tv Whatd You Miss Bloomberg March 8, 2018 3:30pm-5:00pm EST
>> he has been terrific. he may be a globalist but i still like him. he is seriously a globalist. in his own way he is a nationalist because he loves our country. mark: one point of contention was the steel and aluminum tariffs. the president is expected to make those tariffs official moments from now. you can see it live on bloomberg television. paul manafort has denied federal felony charges once again. he entered a not guilty plea in federal court where he faces bank fraud and tax fraud charges. he will face a trial in virginia in july and another in a washington case in september. the house intelligence committee may ask eric prince to answer
questions. the meeting was allegedly set up by a lebanese-american businessman and meant to establish a back channel between the trump administration and the kremlin. adam schiff says the committee also wants to hear from nader due to inconsistencies in earlier testimony. it has been four years since a flight 370 departed and what happened to the plan and the 239 people on board remains a mystery. company called ocean infinity is still searching using submarine drone technology. it is presumed have gone down in the southern indian ocean. global news 24 hours a day powered by 27 hundred journalists and analysts in 120 countries. this is bloomberg.
♪ julia: live from bloomberg world headquarters in new york, i'm julia chesley. julie: julia: i'm julie hyman. julia:we are 30 minutes from the close of trading. julie: the question is, what'd you miss? scarlet: well done. president trump will sign orders on terror of from now. the mexican peso canadian loonie are cheering as they will be exempted. the insurance company buying express scripts. one year since -- took on wall street.
on the investment firms diversity initiative. after a morning of will they won't say, president trump is expected to sign a tariff at the white house. mexico and canada will be exempted pending nafta talks. washington,st, in michael mckee. back out too get you. this is what we are talking about. the context on this is everything. exemptions for canada are tied to those nafta negotiations. briefing from a the senior administration official that told us canada and next ago will be excluded and there is an opening for other allies to ask for an exclusion or show that it is justified on
national security grounds. this is a significant step back from what trump told us he was broadto do, blood tariffs. it has prompted threats of retaliation. beo think countries will breathing a sigh of relief. we will see when he signs this and we see the fine print what exactly will be done. if they can agree does that mean he would impose the steel and aluminum tariffs? is that something trump would want to do? scarlet: there are still so many questions as we await that news conference. some context around this. we understand there are 15 days before tariffs take affect. thatthat suggest countries want an exemption need to make their case within 15 days?
>> the president has unlimited power to take on or off the sanctions. a country could apply. be removed from the list later on. with home from what we are hearing the extent and mexico will not be on the list. time.going to take some we left mexico city. get an agreement which could take several months, they will not be in there. they are to live the biggest steel suppliers. if there is no tariff on them, you might have to raise fees on other countries even more. ,> as we look at this picture
the signing of this tariff announcement, we see the secretary and peter navarro are there. we do not see gary cohn because he is no longer at the white house. we appear to be getting a moderation of this in advance of that without gary cohn being there. if there -- is there another voice who is a moderating influence? >> i would say his republican party would have been the loudest voice we saw. a republican campaign to stop this. we saw paul ryan break from this, we saw kevin brady leading 105 house republicans saying this is going to cost jobs and hurt u.s. manufacturing and lead to higher prices, you need to roll this back.
i think that pressure you cannot exaggerate how important it is for him. trump wants to send a loud message to steal country, for people who voted for him, they feel left behind globalization. maybe the message has been sent. if their are some exemptions, that might be enough to help of these his voters. loads of corporate investors as well. not to mention leaders of other countries concerned about the backs of that it might come in here. >> there is a special election in steal country and sylvania tuesday. trailing.ican is now the democrats have been endorsed by the steelworkers union.
>> why do this now? >> the idea is to convince the working people in that district the president and republicans are on their side. julia: we are seeing the president arriving into the room shaking hands with steelworkers could getting ready to make his announcement. scarlet: some of his constituents you could say parade let's listen in. trump: incredible steel and aluminum workers. you are the backbone of america. you know that. very special people. i have known you and people that are closely related to you for a long time. i think it is the reason i am here. i want to thank you. i also want to thank secretary
mnuchin, secretary ross, peter navarro, mike pence, our great vice president. they have worked so hard getting this going and getting it done. people are starting to realize how important it is. we have to protect and build our steel industries while showing flexibility and cooperation toward those that are really .riends of ours both on a trade basis in the military bases. a strong steel and aluminum industry are vital to our national security. absolutely vital. steel is steel. you don't have steel, you don't have a country. our industries have been targeted for decades by unfair foreign trade practices leading to the shuttered plants and mills, the laying off of
millions of workers, and the decimation of entire communities. that is going to stop. this is not nearly an economic disaster but a security disaster. we want to build our ships, we want to build our planes, we want to build our military equipment with steel and aluminum from our country. now we are taking action to correct this long-overdue a travesty.is i am defending america's national security by placing tariffs on foreign imports of steel and aluminum. a 25% tariff on foreign steel, and a 10% tariff on foreign aluminum. when the product comes across our borders. .t is a process called dumping
they dumped more than at any time on any nation, anywhere in the world. our plants out of business, it drove our factories out of business. a lot of steel coming into our country, but we want it to be fair and our workers to be protected. we want our companies to be protected. place any new tax on products made in the usa. no tax if a product is made in the usa. bring your plant to the usa. no tax. which we will benefit from the massive tax cut's we have in place. we have passed the largest tax cut plan in the country's history. tremendousused success between that and regulation cutting.
maybe regulation cutting every bit as much. we have a long way to go but we cut more than any president in history. we are urging all companies to buy american. that is what we want. action i'm taking today follows a nine-month investigation by the department of commerce, secretary ross, documenting a growing crisis in our steel and aluminum production that threatens security of our nation. and is bad for us economically and with jobs. the american steel aluminum industry has been ravaged by aggressive foreign trade practices. it is an assault on our country. it has been an assault. than anybody.er other countries have added capacity that exceeds demand. flooded the world market with cheap medal that is subsidized by foreign governments creating
jobs for their country and taking away jobs from hours. i have been talking about this for a long time, longer than my political career. one month toa produce as much steel as they produce in the united states in a year. we have closed down so much capacity. plants closed all over the united states. in some plants i see massive plants from 40 years ago. they are working on a little corner of the building. we are going to get those buildings producing again. that is going to be a great thing for our country. this is only the first stop. aluminum imports account for more than 90% of the primary american demand. over the last two decades two thirds of american raw steel , more than one third
of steel jobs have disappeared. six primary aluminum smelters, a big deal, have permanently shut just 2012. of actions are a matter necessity for our security. we are saying the national security benefits. >> u.s. steel announced it is reopening a mill in illinois and recalling 500 workers immediately. that is going on all over the country. panels,on with solar which we did months ago, and washing machines where they were dumping all over our country. they are expanding plans to make washing machines.
skilled trained workforce in steel is a crucial element of america's national security and must be protected. after the signing of this sentries will be to upgrade their idled military grade high quality aluminum production which is also critically important to national security. aluminumfter tens of and think of it, this is a closed plant. they are doing 150,000 tons. workers, andd 300 ultimately many more hired in the great state of kentucky. a package of sometimes $90,000 per worker. our greatest presidents understood from lincoln to
thaton to teddy roosevelt america must have a strong vibrant and independent manufacturing base. president mckinley, who felt , thestrongly about this country was very successful. we operated out of cash flow if you can believe it. the protective tariff policy has made the lives of masses of our country sweeter and brighter. it is the best for our citizenship and our civilization . it opens up the higher destiny for people. many politicians lamented the decline of our once proud industries and many countries announced global accessibility but no one took action. years.seen it for 25
now they are doing something about it. rust.ies were let thriving communities turn into ghost towns. you guys know that. the workers who poured their souls into building this great nation were betrayed. over.etrayal is now i'm delivering on a promise i made in the campaign and have been making it for a good part of my life. run foret's raw president and look what happened. withssage, having to do you, and also other messages, security, the wall, the border.
my most important job is to keep american people safe. we just had approved a $700 billion military budget, the largest ever. that means not only safety but jobs. it also means the use of steel from our country. if the same goals can be accomplished by other means, america will remain open to modifying or removing the tariffs for individual nations as long as we can agree on a way to ensure that their products no longer threaten our security. put ambassador light heiser in charge of negotiating with countries that seek an alternative to steel and aluminum. treating -- treated so badly over the years by other
countries, i think we have been treated badly by our politicians, by our presidents, by people that represented us that didn't know what they were doing. $800 billion a year on trade. every year. 800 billion. it has been going on for a long time. 300 billion. 400 billion 500 billion. billion. and it keeps going. but it is going to start changing. we are negotiating with china. bigre in the midst of a negotiation. i don't know anything is going to come of it. they have been very helpful. i don't know anything is going to come of that. cut down theing to deficit one way or the other. ofhave a deficit with china at least $500 billion.
when you add intellectual property it is higher than that. at the same time due to the unique nature of our relationship with canada and mexico we are negotiating nafta. we are going to hold off the tariff on those countries to see whether or not we're able to make the deal on nafta, national security, very important aspect of that deal. if we are making video on nafta this will figure into the deal. if we don't make the deal on nafta, and terminate nafta because they are unable to make fair for ours workers and farmers, and fair for our manufacturers, we are going to terminate nafta and we will start all over again, or we will just do it a different way. it. will be i think we are going to make a deal on nafta. i have been saying it for a long
time. if we do there will not be any tariffs on canada or mexico. one other thing. the countries we are dealing allies.eat military we are going to be looking at that very strongly. we are going to see who is treating us fairly, who is not treating us fairly purely --. who is paying the bills? we subsidize many rich countries with our military. not $.60 on the dollar. we have to stop that. that will enter into the equation. tweet from elon musk he is using our wonderful space facilities and did a great job
three weeks ago. he said an american car, going to china pays 25% import duty. a chinese car coming to the united states only pays to 5%. a tenfold difference. in american car going to china, think of that. we sent our car over there, pay 25%. everybody knows it. they have known it for years. they never did anything about it. we going to do a reciprocal tax program. if china's 12 charges 25%, and we charge them nothing, they are at 50 or 75, we're going to be
at those same numbers. we charge them50 50. it doesn't work. that is called the reciprocal tax. we are going to be doing a lot of that. the first year we have set the stage. a lot of it had to do with structurally we had to go through certain procedures to get to this point but now we're at this point. american companies have not been treated fairly. some american companies have taken advantage of it and gone to other countries and developed automobile plants, taking our jobs away, taking companies to make cars. then they send them across the border without tax. without anything. we lose the jobs. they make the cars.
they sell the cars back into the united states. we're changing things. they're going to have a lot of great relationships. companies are going to be very happy in the end. i think countries are going to be happy. show great flexibility. many countries that treat us the aret on trade and military our allies as they like to call them. we just want fairness. we want everything to the reciprocal and i think in the end we are going to have a lot of great jobs, a lot of great companies all coming back into our country. you see chrysler announced they are leaving mexico coming into michigan with a big plant. you haven't seen the and a long time. because i grew up with this
group of people i know a lot about the steel industry and aluminum industry. i thought maybe if you've you like to say a couple of words. about 25 million people watching. if you want to say something, on out. please. >> my name is dusty stevens. i work in kentucky. right now we're running at 40% capacity. two years ago we shut down 60% of capacity when we had a downturn in the market. my father worked in the industry for four years. this hits home for all of us. these tariffs going into place, this gives us the ability to ,ome back to 100% capacity invest in our plant and 300 jobs brought back to the communities.
i would like to say thank you. >> one thing, the quality of our higher. much it is of a better quality which for certain things is important. please. president of 227. i would like to tell you a story about my father who lost his job due to imports coming into this country. i want to tell you what that does to a man with six kids is devastating. i never forgot that, looking does to eyes, what that a family. you hear about it but when you are involved and it impacts you come it will never leave. said, your story
did not end. for all the people ever present in my union, i never want to see it happen again. i appreciate the opportunity and i'm humbled with this. it is important. i never want to see it happen again. i say that sincerely from my heart. i thank you for the opportunity. >> your father is looking down very proud of you. >> he is still alive. >> than he is even more proud. davis, i may ron still worker, and a want to say that in 2009, my plant supplied vehicles --or motor
and all these imports coming into our country is going to be idle in september, so the one thing we had 400 members and were going to be down to 71. these tariffs have an impact, not only for our plant, but others as well. [applause] pres. trump: anybody else? accept rateg to jobs, right? things are going to change rapidly. it is my honor to start this process. it is going to be a very fair process and fair to other countries, especially those who treat as well. we look forward to it and we look forward to having lots of mills and plants opening up, steel and aluminum. you are great people.
pres. trump: about time, right? [applause] pres. trump: let's go take a picture into the oval office. thank you very much, everybody, thank you. [applause] scarlet: that was president trump signing orders on steel and aluminum tariffs, 10% on imported aluminum, he also -- pres. trump: china says it is that 2% -- we're going to have a great relationship with china but we have to do something.
losing with china $500 million a year, we have to do something. we are going to accept their products but it is scored to cost a lot of money from the standpoint of the shipment. thank you very much, everybody. scarlet: the president answered questions on china that china says they shipped only 2% of steel to the united states but he claims it is much more because they do it through other countries. also want to point out that there has been a benign reaction in the markets to the actual signing of the tariffs as opposed to the run-up. stocks closing up less than a half percent across the board and we interestingly have a pullback in the aluminum and steel stocks today after day are gaining over the past several days. it seems the softening and
exemptions is allowing a little bit more strength and stocks in the face of this. julia: how you ultimately get those results and negotiate exclusions? homework is bloomberg international economic advisor michael mcnd cirilli. as far as response the tariffs are concerned on the aluminum and steel and the exclusions for canada and mexico -- then it gets exciting and negotiating exclusions for others. michael: we have 10% on the aluminum and 25% on steel, and it takes place 15 days from now in theory. beyond that, we don't know a whole lot. all the things talked about regarding history is incorrect. what they're going to do is going to depend on the details. the oldwant to use
cliche of the devil in the details, but there are still products imported into this country that are not made here. which ones arew going to be subject to tariffs and which ones are not, and which ones might be but a u.s. producer says it can ramp up production and start making those things. calculate what the damage is going to be -- and the past, which is the model everybody is working with. when still tariffs were put on with george w bush -- the people used steel and aluminum, jobs were created and saved in the steel industry. that is the general pet of economists. at this point, we can't totally chocolate, and were left at each industries estimates and their estimates are different and the administration. a senior official telling us there will be zero cost and no inflation and no jobs lost. in santa clausg a long time ago and i'm not
going to sign on to the huge numbers some industries are putting out there. it is hard to believe that there will be an impact on downstream users. the analysts at equity companies have started trying to calculate as best they can what it might be. scarlet: and this is something gary cohn was pointing out to the president. kevin, i want to bring into the conversation. the president was flanked by steelmakers in pennsylvania, and yet people of his administration, steven mnuchin, and the u.s. trade representative trump says will be talks with countries on lifting tariffs, as well as peter navarro. resurgence of secretary ross as well. i thought he was on the outs and for a wild reporting indicated that wilbur ross was not delivering on the tariffs and trade promise the president sought, but that appears to be
changing now. >> i talked to officials, and we saw the demise of steve bannon from the administration, a very public falling out with president trump and the political orbit surrounding him. since then, there hasn't been a voice with this administration that has advocated for those types of economic policies. for all intents and purposes, has been on the sidelines in the past. but his new authority is without question to become the face of this particular policy proposal. someone who was at odds with gary cohn, and now he announced his intention to resign this week, and as you noted with folks like secretary ross and mnuchin -- who were more tepid
in their acceptance of the policy. bit of athis is a watering down of sorts from the original policy that president trump initially wanted, though it is still a far way away from what republicans within the president's party have been pushing for. the politics of this, as we have been reporting, comes as a time when president trump is going to hit the midterm campaign trail in southwestern pennsylvania, right outside of pittsburgh. struck by the president's rhetoric and remarks and reminded me of what the president withdrew from the paris climate agreement in which he said was that the elected to be the president of paris but to serve the people of pittsburgh. they are banking -- they expect this to resonate with the folks in that state. julie: it was poignant to hear
from the steel and aluminum workers. whatt to ask you briefly, happened to this skillet and aluminum industries in the united states? you heard about that man's father losing his job in united states and 80's. china has flooded the world with still, while not dumped in the u.s., it depresses the u.s. -- the global is still price. -- the global is still price. and over the past 20 years or so we have gone from needing still producers to two, and you are not going to have as many people working in those industries. the president's assertion that the steel industry is that is ridiculous because the steel industry is producing just as much still as it has an the last -- since the recession ended you had the dip with a recession happened. but from 2000 on, it has been reasonably leveled. when you look at profits, i am
of new courseraph profits, and they had the best year ever in 2017, and revenues have been going up and up, even in the face of all of this competition. not a serious issue for this particular industry, but maybe for some of the workers were displaced by machines. julia: we can't end the conversation without talking about china. a narrative and not to become a subject about china and ultimately talked about the deficit and what we are losing as far as the deficit with china is concerned. i thought was interesting terminology. tweeto used elon musk's about the car industry and what works one way doesn't work in the other, and that industry is important to talk about as far as china is concerned.
misleading,is also we don't lose money, it just means we are buying more of their stuff than they do of hours, and that is our choice. there are different tariff levels, and has to do with the level of development of a country, and china is classified as an emerging economy and not a economy, and that has to do with whether or not product is important to us. there are products we charge countries more than they charge of us, so it is a complex product of all these trade negotiations. the tpp would have lowered a lot of tariffs that the president is talking about, but he pulled out. that is again our choice. the important thing to remember about the chinese still industry is that we have 94% of their still output covered by sanctions already.
them,sn't going to affect the shipment is not as big as the president is saying. toneed is a global effort bring down their still production, and if he puts tariffs on allies, is going to be hard for them to cooperate with the u.s.. words, 15 days. kevin cirilli and michael mckee, great conversation. thank you both. gina,y,our this doesn't and the conversation, this begins it. >> i think we at least have the news and the price, we have been working on pricing news of selected tariffs on selected products the last week or so. we price that end, now the concern is where do we go from
here? this is this the beginning of a longer-term trend in the back for products and economies and become a bigger issue, or is this the end? i think that is the struggle the market will go through in the next several months. scarlet: and a chart to illustrate this conundrum. we have to import prices and with the exchange rate between the chinese currency and the u.s. currency. talk is through what we are seeing here and what could happen with consumers. happen with consumers. gina: it is important to not there is a big change -- the shift in currency, import prices are rising. even though everyone talks about 2%lation and a benign cpi at -- import prices are up 3.5% on a year-to-year basis. we are already starting to see higher import prices as a result of currency transition.
the dollar decline lester is creating inflation here. if we continue to proceed in an environment of greater action is protectionism, will see it exploring more. why is it important? a lot of corporations and pork production or a part of their production process or ultimately to sell to the final consumer. this could be important for the margin outcome for the s&p 500 going forward. if you look at the s&p 500 index, almost every sector except for telecom is expected to produce margin growth this year. taxes,ot because of margins are expected to his excellent including tax reform. scarlet: we are getting hands of an increase in prices -- they are already talking about them being squeezed by wage inflation as well. gina: if this becomes a bigger
issue, it is going to move beyond the consumer space and will see it and industrial margins and technology margins and water spots -- and broader spots. food is a good source of friction. they are directly imported overseas and paying a lot more for those at the corporate level and struggling to pass those increases on to the consumer. what happens among producers? we haven't gotten to that angle and that is the area of greatest risk is everyone has to stick. scarlet: and it all unfolds pretty quickly. julia: it would like the push towards the end of the cycle. extendthe tax overhaul that cycle and it takes to the opposite direction, which is exactly what you are saying. gina: it cut, we are not there yet, but as a result of inflation pressures, you either have the consumer pushback and not spend as much, and that the
term rates the economic growth outlook. or you have the fed rapidly trying to catch up with inflation, and you have a matter of what is the curve doing in that environment. does it remain anchored in the short run and it keeps moving higher, inverting the curve, which is obviously the best long-term signal we have for the end of the cycle. julia: inflation is a mechanism. gina, great to chat with you. let's get to first world news this afternoon with mark crumpton. seen here live on bloomberg television, president trump followed through on his pledge to impose tariffs on steel and aluminum while excluding canada and mexico and leaving the door open for other countries on the basis of national security. populationnt tsai a authorizing the tariffs in a
meeting this afternoon with workers in the steel and aluminum industries. to a levy a 25% duty on steel and 10% on aluminum. population chile, members of ash today partnership agreed -- with some saying the accord could be implemented by the end of the year. spent a commitment to free trade after president trump pot the u.s. out of the deal last year, concerns about protectionism are growing in light of america's newly imposed tariffs on steel and aluminum. the head of the african union commission said today he considers president trump's slur about african nations to be an incident in the past. u.s. secretary of state rex tillerson was question during a ethiopiaerence in about the president's derogatory descriptions of countries in africa. is that it is in the past and that secretary tillerson's visit
exhibits the relationship between the u.s. and africa. on international women's day, united nations commission at unicef executive director visited a syrian refugee camp in lebanon and spoke to women who foot the conflict in syria and have been hurt by domestic violence and early marriage. the commissioner believes the women will have a chance at a better life. >> i think the executive director and i are hopeful that they have energy, ideas, and they want to change things. and their life for the foreseeable future, and going back to syria. commissioner also praised lebanon despite having
limited resources that cost the country $18 billion. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. and some breaking news on toys "r" us, there making bankruptcy after not finding a buyer and reaching a that restructuring time from lenders. it is not yet formal from the company, and toys "r" us and it back up soon but that should $5 billion in debt. the situation is not resolved yet, it is fluid, but a deal could emerge and the company is making preparations for a liquidation. while the markets had a fearless girl -- thearless iconic wall street statute is helping promote the status of
diversity. joining us from boston, she has helped lead the efforts at state street, it is not just about a statue, but other initiatives. elcome, among the initiatives you are doing come in your fridge that the companies in the u.s., u.k., and estonia, and convinced 152 of them to include at least one female board member now, which is commendable. at the percentages, that is a quarter of the companies that you reached out to. not even have. 2017, 2018, what is this still such a hard sell? >> it is a great observation, and we have 600 companies that we need to actively engage with and change that.
while the overwhelming response from companies that we talked to was generally positive, we did get some reaction and surprise of why do we need women. it still continues to be evident , they need proof, and we know there is all kinds of research and empirical evidence that shows greater gender diversity does lead to better financial results when looking at things like profit margins. scarlet: talk a little bit about the companies will push back and wanted more information. today block to a certain sector, give us more context. lynn: in the u.s., intended to be smaller companies who were family-oriented. interestingly enough, we expanded the universe from the u.s., u.k., and australia, to also include japan and canada. we engaged with companies in japan where 55% of companies have no women on board, and the reaction from some of those japanese companies is
particularly telling. one company said we don't have any women that by our products. another said show me the proof, wisest necessary -- why is this necessary? some of the questions were legitimate, where can we find board ready women. our initiative is important for us to engage and understand how companies are building a pipeline of senior women in their corporations. julia: that is exactly where i wanted to go. to beoman, all of us want chosen by our talents and not ultimately because we are women. if we don't have the pool to choose from -- by definition, you're going to have more men on your board. whenroblem comes early on you have to foster and get women up the chain so the pool of people you can choose from for your board is more even.
observations.o we issued guidance, and part of uidance is to think out of the box. part of the directive from the ceo is clearly small -- must and 5% of companies are run by women. they need to think out of the box and expand the universe to identify qualified women. they are certainly there. julie: i would be remiss if i didn't ask you about state street itself, about the transparency of the makeup of the executives branch at the company. state street recently settled claims of gender and racial imbalance in pay for $5 million. what is the latest on internal efforts there? lynn: we unequivocally support
equal pay for equal work, and that particular settlement was a result of where we believe the methodology and findings were accurate but made the decision to settle and move on to focus resources in other ways. even before that, and since then, we have continued to strengthen the initiatives within state street. have identified a chief diversity officer and continue to expand unconscious bias training, and importantly, read reset our corporate level goals across all levels of women in leadership. they are strong goals and aspirational, and if achieved, will put us in the highest level of financial services and we expect to achieve those goals. julia: a to do list that is ambitious but achievable. scarlet: thank you for joining
industry and the pressure to rein in costs. we are joined by brooke sutherland, and we were talking earlier about this and they came up with the reasons why express butpts could use help here, talk is about the reasoning behind why they would look at express scripts right now. feeling pressure to control costs and be competitive with rivals, and i ran the numbers before i cannot hear, and since the start of 2013, daft $300 billion of deals in the healthcare services -- which is telling. i think ie simply an insurer. scarlet: is a merger a possibility? brooke: regulators took a tough look at health insurance
consolidation and you suck you manus deal was scrapped, and i think and them is going to have the same problem if they tried to merge with each other, you could tried and it will be risky, and it may be frowned upon by investors. have to find ways to diversify, but to your point, express scripts was the last big pharmacy manager out there, so diversification is going to be small and they will be in a tough spot. julie: what are the motivations of consolidation for medical costs and for us, the end user? julie:is that going to happen? cutout thehink you middlemen while you by the middleman, you could amount to effectively, so are we going to see costs come down? brooke: they were like on details of how this will save consumers money and how it would increase profits at the same time, which seems a divergence of motives.
we will have to wait and see. their stated goal is that they would like to change the way these drugs are managed and how cost eventually are related to consumers. whether or not it works, we'll have to see. the one benefit you see as you have amazon breathing down their next, and they see that they have to make things more efficient. scarlet: it always happens and i'm glad you want the amazon, as julia mentioned, express scripts was going to be an attractive takeover target here. some thought amazon would come in with a big, could still come in with a bid? brooke: it could, but they are not one to get in to bidding wars. with jpmorganalks and berkshire hathaway takes them out of this, that it wouldn't be totally out of the question to see a counter bid.
it is a fullheap, and fair price, so it would be surprising to see someone come over the top. julia: he said there has been consolidation and the structure is changing all the time, how do regulators to get this deal in light of what we have already seen? has already changed the way this landscape looks. brooke: on one had they are trying to make the health care system less complex and make every thing come under one roof and say consumers money come up on the other hand you have one company controlling. if they have benefit managers and what it means if you want to be just and insurer -- yet to typically looks at overlap between businesses and this case there is significant vertical integration, and we saw that with the at&t and time warner
deal and the push back their. re. that is now in the courts. gulie: and also a dru servitor is an outlier of doing everything in the health care industry. raised asat has been a potential target, and it is more complicated and harder to see the synergy there. i wouldn't necessarily be surprised to see somebody look at that but i don't know if the logic makes quite as much sense as we are seeing with express scripts and cigna. also readou can brooke's columns on bloomberg. mark: as seen live on bloomberg, steel and aluminum workers joined president trump at the white house as he followed through on his pledge to allow
stiff tariffs. the president left the door open to sparing other countries. to protect: we have and build our steel and aluminum industries, while at the same time showing great flex ability and cooperation towards those who are friends of ours. both on a trade basis and military bases. mark: the president also encouraged foreign companies to build facilities in the united states, saying they could do so, tax-free. five months after former can soldiers were killed in an memoh in niger -- the rewards retroactive payments and request are evaluated in the pendley, taking account the
recommendation that classified risk analysis and any other relevant information. to united nations secretary-general says there is overwhelming evidence that investing in women is the most effective way to lift communities, companies, and countries. watches were held around the world to mark international women's day. >> power is at the heart of the matter. we live in a male dominated world with a male dominated culture. power is fairly shared, world will remain out of balance. gender inequality and discrimination and sounds against women harms us all. ministeraustralian said no nation can reach its that children must fully engages with the skills and ideas and energy of that 50% of its population that is female.
global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap of today's market action. u.s. stocks finishing in the green and the nasdaq climbed -- the tariffs that president trump announced were narrower than some anticipated, and narrower to his initial investment and canada and mexico will be exempted pending nafta negotiation's and other countries can apply as well. there will be a flurry of negotiations in the following days. maybe not china. julia: i didn't say that. -- volatilityss?" is back in the spotlight. we welcome beth campbell, the senior vice president at citadel
securities. great to have you with us. after relative calm in the last it is important to trade and not see something on the screen that they actually are -- spread between opthow dow did you do? you definitely see the return of volatility and i was talking about this with a client yesterday. wherethis long period everyone was concerned, we are shifting to a just to this new paradigm of perhaps consistent volatility from here on out. securities is positioned to differentiate these markets because of our model around firm pricing. in thethe only dealer rates firm, executable pricing for interest rates and the u.s.
treasury. with that ultimately makes for clients and what our clients really appreciate there is they know they can that that liquidity and execute at the price they see on the screen. we have gotten a lot of feedback and performed very well, whether orbe volatility in february, brexit. scarlet: i am glad you brought up those episodes because they are sparked by different things, and in february, was sparked by the return of inflation and wage increases got people thinking that if the reserve will raise rates faster. you seek market changes? i think it tends to mean more volume and fixed income asset classes. we are seeing more trading and hearing the desk views and where things are going. becomesthe acid test more interesting to a wider array of investors when rates go
up. is a state with volatility coming back because it is a careful what you wish for situation. there is volatility and then there is volatility -- this selling at correction and a more steady selloff. what are you seeing is more likely and why? beth: i think the market handled it in an orderly way. if the data stays stable, absent ime large geopolitical event, think we are heading towards the market being able to consume it. julia: do you see any out there right now with clear pricing -- how else they can incorporate, what else did clients want that you are not providing that you think is critical if we do see
this more -- volatility in the market going forward. what i think liquidity is clients want. trade the market electronically, 60% of the market is traded in more traditional ways, for more complex transactions. what we started to do is expand the into that area as well. lester it was treasuries and handling the full curve, and electronic. this year the big focus is doing the same thing. next evolution is moving to exchanges, how do you see that playing out and will be impeded by perhaps a turn in the u.s. economy if we get that? at a late stage of this economic cycle and perhaps some action from washington is pushing further in that direction? beth: i think it is important to
recognize the move of interest rates is one component of the product evolution towards liquidity, transparency, and ultimately the benefits for the investor, which is what we're after. in the u.s. we have made great strides. looking at the 40% of the market has changed electronically, and some of the benefits to the investor -- we have seen spreads compressed 50% since we started trading electronically and that's an academic research saying these tens of million dollars a day and transaction costs. i do think there is going anywhere, and there's benefits. the market has been improved and we will only see this trend continue. think the next area -- it is weeks old instead of years old where we realized the benefits. julia: this that compression help you as well, if you are having to make markets -- particularly volatile markets, than the risk of losing money or
making money is reduced. maintaining af client relationship that you acknowledged you are perhaps going to lose money? but it is more important for the client to maintain? beth: i think the model is focused on the position rising of risks and knowing exactly where the press should be. -- but beingney your for the client at the same time. think that is where our focus is and why we are able to price firms. that the system and technology to ultimately put the executable price on the screen. julia: think that is all about . scarlet: beth, thank you so much. and private equity has had its struggle of achieving gender it hasy, and white iy
18% of those working in private equity and only about 9% whole senior positions. genderthe needle on the gap can advance returns on these firms, and here with more on her tara chapelle. talk about the impetus for change, where is it coming from the target private equity to do more when it comes to women and gender balance? women make good investors and there's been studies and more coming out every year about what makes women such strong investors. they are patient and take a long-term view, cautious, and very thoughtful. the returns tend to be higher and outperform, but there's few of them. -- a private equity is this it is no different, i think about 18% of women working in private equity are women, and i
think only 9% -- small numbers, but you can imagine that as more clients of theirs are seeing this research come out and seeing it would be better for their returns and also checking the box to have more women investors. they're putting pressure on firms that it makes sense to do this. julie: how is that pressure playing out? is it starting to happen yet and what does it look like? tara: there was a report i look at this law firm wrote about new york city's top five pension systems and they receive data that they need to check the box before they decide where they invest, so it is real. it is not just something they are doing in theory and they are actually implementing this. julia: what about getting women to join senior roles? i was looking at maternity conditions for private equity at maternity leave is
16 weeks, so they are trying to be -- parental leave for adoption as well. tara: i think that is important. the fact that women are leading this charge and pointing out we need policies that better accommodate parents. goes both ways, and the weight we have the quality is we have -- and we need everyone involved and they want to benefit from it. julia: other private equity firms are all looking at this now. scarlet: i think it is interesting to look at this now because that he industry doesn't have a great reputation. i think about the elections and how mitt romney was described and painted as a job destroyer, and is it partly to remake the industry as well? they are thinking of a way that it is a good opportunity to remake the industry and how it is something other than an
industry that burdens company with debt? last year,ok back at the retail apocalypse, and how many retail businesses are suffering because of buyouts from firms that may overburden companies -- we have been quick to blame amazon and amazon this will sustain longer if they did not have all ayback.bt to p i think it is a more thoughtful approach to think things more holistically. what does it does but like if we try to exit and the impact on employees and communities? i think that is important and something women tend to think about. julie: we are talking about reasons why private equity might want women, but why do women want private equity?
you think about recruiting at an early level out of mba programs for example. finance is having a tough time overall, and when you think about the choices that they have, private equity is not necessarily the first choice for graduates. tara: it comes down to the workplace balance and what they are think about with diversity and gender. pe is a highat, paid field and it makes sense for women to aspire for that. i've heard from people who have gone into pe and other areas of investment management that it is not that they don't have the same goes in the visions as man, but they are cut off sooner and stuck at the middle level and don't come to the senior roles. whether they are not promoted as much or don't have the mobility or ability to hop job from job. a lot comes in culture and if we can change the culture, it opens up the door for that.
i looked at the stern site today at nyu -- why are only 2% of women managing funds and the pe industry is only 9%? i think when you to learn that gap and what is missing. scarlet: tara, thank you so much. julia: and the companies battle against amazon and microsoft in the future of cloud computing. it is international women's day, and this is bloomberg. ♪
against competitors. diane: there is headroom for everybody there, and microsoft and amazon have different strengths. so does google. differentiated in our data analytics and different in our security. if you want to keep your -- ourtion secure productivity suite down to our network, we are the people who discovered the vector meltdown. differentiation of where all these companies are going. that is why i can't say i am work cut see a lot of out for us and we are working extremely hard.
you think google has a good shot of being number one in five years. do you still believe that? is possible,k it those words were taken out of context, but at the and of january in our earnings call, we passed a billion dollars a quarter in 2017 and that google cloud platform is the fastest-growing of the public clouds according to publicly available numbers, which puts us in the triple digit growth. -- over 4 momentum million paying customers. it is definitely a possibility. we areore about, benchmarking our own growth against ourselves and we are happy with it. wespeaking of the metrics, always want more.
when will google give more details on how the cloud business is doing? diane: we will in good time. it is interesting that in january we finally gave metrics and now our most frequently asked question is, when are we going to get real metrics? maybeere real, but not the metrics you are looking for. how does blockchain change things? blockchain is powerful -- the crowd is powerful for security and powerful for health. is where everyud company is going to operate and it the data is going to be, is inevitable that blockchain is going to play a gigantic role in cloud.
and in our fully distributed world of which cloud plays a very meaningful role where data gets shared. >> we haven't seen google make big m&a deals. will that change? diane: you have to be careful, and'slots of small tack there are straightforward and we can make them successful. when you look at a very big deal, and those in the middle don't make sense. the big deals take a lot of and the companies that would be right for a big deal don't grow on trees. butit is possible, something that would be extremely thoughtful and not immediate. scarlet: we know janet yellen is
one of a kind and she was the first remote chair of the federal reserve and art of the very small cup of women in leadership roles in central banks. analysis of the monetary institutions shows that women in management in central banks ranges from just under 51% in sweden to 3.4% in the far right in japan. in case you are wondering, sweden's risk bank has a requirement as part of a diversity initiative that posts be held by women, thus the 51%. and the ecb has women and the ecb has women in 35% of management positions by 2019, and as of late last year was at 27%. in as changes to recruitment procedures today, and the bigger issue is there aren't many women who are economists. if you look at the pipeline, where do draw from? if they go outside of the industry. julia: by that metric, the u.s. is doing incredibly well.
scarlet: when you try to solve problems like tepid wages, women can bring that. julie: one of the things we touched on is that it has to start earlier. , you can't depend on people getting to a certain point in their careers have to start with earlier education. scarlet: coming up, what you need to know about tomorrow's trading day. this is bloomberg. ♪
>> you are watching "bloomberg technology." words a check of the first news. at the white house today, flanked by industry workers, president trump officially imposed stiff tariffs on imported steel and aluminum well excluding canada and mexico. he left a window open for exemptions for other countries on the basis of national
security. the u.s. will levy eight point 5% duty on steel and 10% on aluminum. the top democrat on the white house -- house intelligence committee says further questioning has been requested for warmer trump campaign manager corey lewandowski. he refused to answer questions from special counsel robert mueller for the second time today cured florida's governor is debating whether to sign a gun-control bill delivered by the florida legislature to his office today. he has 15 days to sign, veto or let it become law without his signature. the measure would raise the minimum age to buy rifles from 18 to 21 and create a waiting period. the pentagon has approved danger pay for u.s. troops serving in