goldman is right under because goldman did not all that bad during the crisis because they survived. lot during drop a the crisis because they almost failed. citigroup and bank of america after buying merrill lynch. they have a better recovery. in a shorter time, their share prices have doubled, tripled, but goldman never went to the barrel so he kept it at a nice level for a long time. the company did go through something but the last year or two, it has been slowing down, stumbling. that is when you look at 12 years of leadership and say we need fresh eyes and see what we can do. shery: any indications of the timing of his departure? 2019 would be the 150th anniversary of goldman sachs. any hints? >> the journal says by the end of this year. typically when these things are announced, they happen much faster, once it is out there, people do not hang out for nine months. it may be faster than the end of the year. he will not be there to see the anniversary. vonnie: maybe it is strange, he told alix steel in november he would not go anywhere anytime soon. i guess that is his prerogati

goldman doing right? >> the example that we saw in commodities brought down there trading numbers shows that there trading is still high risk. the bigger guys like city and jpmorgan have done is to go more ,or flow and take less risk more flow and more volume, which makes it is a lower margin on bigger volume and bigger flow area but you don't take as much risk, so if commodity is going in the wrong direction -- then you don't lose as much and still get the float and money has flown through. atphen: if you look estimates for the last quarter, it is citigroup, the one that is supposed to have the biggest increase, not goldman sachs. that also place to the types of clients that they have, they have targeted clients who are not small hedge funds and are not taking big risks and are investing more in the long run. there is still a lot of trading and volume, but not as much risk, and you are not taking as much risks trying to help them. so these things make a difference. they haven't found an whichative is thi

it may have been acquired by goldman or was about to be acquired by goldman but it was a separate company and it was managed separately. eventually, as a result, i was integrated into the goldman sachs firm. david: did you ever meet a person who turned you down at goldman? lloyd: i knew who it was. david: are they still here? lloyd: no, this is 36 years ago. for many years after i got there there would be no one threatened by being at odds with me. it took me a while to work my way up the letterhead. david: did you feel like you are ready to be the ceo of goldman sachs? lloyd: i never felt like i was ready to be the ceo. i've been the ceo for 10 years and i still don't feel like i'm ready to be the ceo of goldman sachs. ♪ ♪ david: you wound up as the vice chairman of goldman sachs? lloyd: well, you know, it took a couple of years. when i was living through it, it wasn't so quick. i got involved in sales and trading and over time, i became a vice-chairman of the firm. one of several. but my particular coverage was over all the sales and trading businesses at that time. david: the tradi

goldman has been unique. unique maybe, morgan stanley's got to the right place with gorman, but they've had some along the way. >> my interview with lloyd last year, i asked him about successi succession >> that was will we're going to look for that >> we're going to look for that sound bite that that wilfred is talking about. it's all live tv and that's the way it hapss sometimes >> goldman has been unique to all the banks and brokerage firms, the good news is loyd is going to have a role in it and their bench is as deep as can be you would think than when others left, they have and it's always been seamless because the culture is so deep and strong that investors properly reck ni w can rek nuys that. it is lagging today and it's tough to fill the shoes of blankfein. >> would you have expected it to be down? >> i think it's just part of the market it's faith they'll do the right thi thing. >> i'll just point out i worked at goldman for five years around the turn of the me lynn yum they've had a term from one

most of the people in that business at goldman sachs are career goldman sachs people. david solomon was one of the rare partners, one of the rare individuals hired as a partner outside of the firm in 1999. right, erik schatzker. thank you for all of that wonderful contacts. we appreciate it. goldman is up one and a half percent, and of course the market of fire. goldman higher than the broader market. shery: it is time for the bloomberg business flash. dropbox has set a price range for its ipo. the filesharing company plans to sell 46 million shares for $22 billion. at the high end of that range, $100uld drop off at million. one of vmware's biggest investors wants to end talks with dell about a reverse merger. he argues that it would be a turbo deal for -- terrible deal for shareholders. he is trying to bring all of the pieces off his empire together under one publicly traded groups. that is your business flash update. right investors are cpiing their sights on data. joining us now with what to , someone who knows a little bit about debt options, matthew mcclellan. let

ultimately, i joined a arian, they were acquired by goldman or was about to be acquired by goldman but it was a separate company and it was managed separately. eventually, as a result, i was integrated into the goldman sachs firm. david: did you ever meet a person who turned you down at goldman? lloyd: i knew who it was. david: are they still here? lloyd: no, this is 36 years ago. for many years after i got there there would be no one threatened by being at odds with me. it took me a while to work my way up the letterhead. david: did you feel like you are ready to be the ceo of goldman sachs? lloyd: i never felt like i was ready to be the ceo. i've been the ceo for 10 years and i still don't feel like i'm ready to be the ceo of goldman sachs. ♪ ♪ david: you wound up as the vice chairman of goldman sachs? lloyd: well, you know, it took a couple of years. when i was living through it, it wasn't so quick. i got involved in sales and trading and over time, i became a vice-chairman of the firm. one of several. but my particular coverage was over all the sales and trading businesses at t

months ago, goldman named to co-chief operating officers. after 15 months, the board made a decision that david solomon will be the next ceo. our best estimate is that lloyd 2019fein will step down in , that will be the 150 year anniversary of the creation goldman sachs. well goldman had a tough year last year, fourth quarter was the worst rating quarter since the financial crisis. 2017 was the worst trading year since the financial crisis, the stock price is underperformed and there has been questions about the strategy. having said that, within goldman is poised to outperform over the next year and as a result that lloyd blankfein will be passing the baton on to david solomon, from a standpoint of relative strength. vonnie: what are solomon's challenges? he has decades of experience and he was tapped by john dingell read to come over. willie have challenges with the trading side? mr. mayo: clearly his strength is on the investment banking side. of decade that and it's all and ran banking, revenues and 20%, but the remedies for his area and

blankfein a 63 years old and led goldman for 12 years. 63-years-old, and led goldman for 12 years. price -- aas a rating of outperform on goldman. what are your thoughts? >> nothing has been confirmed by possibility but the is there that the ceo of goldman sachs will step down at the end of the year after 12 years. a deep bench, a 30 person management committee with an average tenure of around two decades or so per person. they have four people that could be the next ceo or the ceo of solomon, head of banking, harvey schwartz, the x cfo, -- ex-ceo. is a candidate, and because it isn, not certain that he will be gone. we have had these reports in the past. no matter who is the ceo, we think goldman sachs is turning the corner and their earnings should exceed expectations both ,his year and next year in 2019 and that is why we are more positive on goldman today. julie: mike, we saw the stock take a leg down when the headlights came out and then it recovered, up 1.5%. it looks like other market dispense share -- participants share your lack of concern, even if there is a management tr

it may have been acquired by goldman or was about to be acquired by goldman but it was a separate company and it was managed separately. eventually, as a result, i was integrated into the goldman sachs firm. david: did you ever meet the person who turned you down at goldman? lloyd: i knew who it was. david: are they still here? lloyd: no, this is 36 years ago. for many years after i got there there would be no one threatened by being at odds with me. it took me a while to work my way up the letterhead. david: did you feel like you are ready to be the ceo of goldman sachs? lloyd: i never felt like i was ready to be the ceo. i've been the ceo for 10 years and i still don't feel like i'm ready to be the ceo of goldman sachs. ♪ ♪ david: you wound up as the vice chairman of goldman sachs? lloyd: well, you know, it took a couple of years. when i was living through it, it wasn't so quick. i got involved in sales and trading and over time, i became a vice-chairman of the firm. one of several. but my particular coverage was over all the sales and trading businesses at that time. david: the tra

did you think about stepping back from goldman customer -- goldman? there were problems that were easily explained in other words. i had a cough and allergies. i would have aches and pains when i exercised. i started to lose weight. but i was always trying to lose weight. but i collected all that stuff. i went in to see a doctor. i was tested for allergy and medicine. a cat scan lit up like a christmas tree. he called me up and told me i had lymphoma. david: did he say this could be life-threatening? >> life-threatening for sure. there are over 70 different kinds of lymphoma. cured, it's get curable. david: there were three or four days of chemo or something like that. was sixreatment i had ek cycles. david: two do go for a second and third opinion? you don't know how to react to things when you go through them. life is about risk management, due diligence and worrying about details. what happened, it was so quick ,hat, what i had the cat scan iowa had lymphoma, but i did not know what kind. i had to have a biopsy, which was general surgery. they have

did you think about stepping back from goldman? lloyd: i started having some, what in hindsight, were symptoms at the time. they were easily explained in other ways. i had a cough. summer allergies, i thought. i had aches and pains when i exercised. i have never been this age before. i started to lose weight. but i was always trying to lose , weight. i just thought i was unusually disciplined. but when i collected that stuff, i went in to see a doctor. first, saw nothing because they didn't even think to test me for what i had. they prescribed allergy medicine and then a couple of weeks later, it didn't go away so i -- away so i took a full cat , scan. that lit up like a christmas tree. they called me and said i had lymphoma. david: when a doctor tells you, did they say you could treat it? it is just a matter of treatment or did he say it was life-threatening? lloyd: life-threatening, for sure. there are 70 different kinds of lymphoma. hodgkin's, non-hodgkin's, different things. each one carries its own risks. i have the more aggre

goldman can look in the future. what i found interesting is he is not a life or from goldman sachs. when he joined goldman sachs in 1899, that was as a partner. >> he has gotten himself into the culture of the place. part of it is working in a pretty prominent job, obviously, but part of it is what we were talking about with the investment bank and whatnot. this is sort of drawing from the investors and analysts who are looking at this. and the stock, we should mention, has gone up nicely today. so the streak is endorsing not just this pick, but also the clarity they provide. request i think it's interesting what you said about how harvey shorts came from the trading side and -- goldman sachs has changed as blankfein --oyd >> this has brought up memories of post the financial crisis or in the midst of the financial crisis. and we spoke to a lot of folks about this change, or this potential change. many of them positive on goldman sachs. i remember back in those early days, the financial crisis, when it was naming th

goldman is doing quite well. i think he's got a time period. -- morebly has more of leeway than schwartz did. going to move the firm away from trading. more time to figure out what to do next. it's probably more than blankfein would get. vonnie: the executive board who ultimately decided this, sales and trading people to a great extent. what does it say about the rest of the employees sales and trading staff in solomon that they did this? stephen: it shows a general shift. they realize they cannot be the firm they were before the financial crisis. it's been them a long time. general consensus that we have to move the firm in a different direction whether that means more investment banking or it means actually doing in acquisition on the lending side. toy've been tiptoeing consumer lending. maybe they need to that more aggressively. vonnie: fascinating. l.ephen gande let's check in on the first word news. >> president trump says commerce secretary wilbur ross will speak to the european union officials about tariff

liz: goldman sachs. >> goldman sachs alum that worked in the trump administration. it was likely that we quoted wall street sources saying lloyd blankfein may announce his retirement this year. that was we, at fox business were ahead of the story for months now. now what's crazy about the story is goldman is not commenting. i think it's perfectly natural he would leave this year. i think just based on what i heard from other wall street executives, people inside the firm, he's been contemplating him putting a date certain on retirement. remember he's 63. at the end of this year, might be 64. liz: is there a front-runner? . >> listen, i don't think it's gary cohn coming back. it may be. may be that the board likes him a lot. liz: he was well liked there? >> you know, gary is a rough guy. i don't know. liz: i just said that. >> you like him a lot because of the cleveland stuff. gary cohn is from cleveland, shaker heights i believe he grew up in. liz: i don't think so. >> you don't think so? where? liz: i'll check. >> i hear it's lower probability he could get the job.

goldman sachs raises a record high after what kind of company goldman will be in five years. inflation tight rope. u.s. breakevens it's a 2%. david: welcome to "bloomberg daybreak." i'm david westin right here with alix steel waiting for sepia. alix: it feels like risk appetite remains, but we are coiled like a spring based on the number. as a p futures modestly higher. we have euro-dollar pretty much flat. oil flat. david: it's time now for the morning brief. it is cpi data. 1:00 this afternoon the u.s. treasury continues its auctions today with $13 billion and 30 year bonds. at 2:30 p.m. this afternoon and his inaugural trip in california , president trump will be in san diego viewing border wall prototypes. voters will vote in the special election in pennsylvania's district outside of pittsburgh. kelly lines is here with first witnes word news. >> moscow denies it's behind the poisoning of that foreign minister claiming it's all nonsense and that they have to provide samples of the nerve gas. it's either direct act by russia or russia has lost control of a deadly nerve age

not just that goldman sachs, but jpmorgan and all across. carol: more bloomberg television starts right now. ♪ ♪ nejra: regulation rollback -- the u.s. senate passes legislation that would ease constraints on regional and community banks, but will the house go even further in slashing dodd-frank rules? going dark -- mifid ii has been implemented, but how much disruption will we see? and the future of the banking union. what there is to say about europe's future and further integration. welcome to "bloomberg markets: rules and returns." i am nejra cehic in london. rules and returns goes into the regulatory challend

not just that goldman sachs, but jpmorgan and all across. carol: more bloomberg television starts right now. ♪ ♪ david: when you have problems with weather, do you ever communicate directly with god? pm netanyahu: all the time. we used to say it was a local call, but you know, the internet changed all that. [laughter] david: the iranian agreement. you are skeptical. pm netanyahu: you either fully fix this deal, or you fully nix it. david: what is the pleasure of being prime minister? pm netanyahu: oh, investigations. [laughter] [applause] david: the israeli economy is doing quite well. pm netanyahu: if you are not investing in israel -- is anyone here not investing in israel? invest in israel! >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪

i would say goldman has lot of mojo. jpmorgan is now the face of wall street, and jamie dimon is the face of jpmorgan. goldman has to get its mojo back, that comes with new leadership. connell: interesting. you are right because it was, and whether it was the revolving door from wall street to washington that goldman has been known for or the way it ran its own business. >> and the fact that goldman got bailed out and jpmorgan was buying other companies, you know, bailing out bear stearns. goldman took credit from the government, and they might have been in trouble without government support. connell: we were to the point, goldman getting into retail or consumer banking, nobody would have thought that was possible in the old days when it was the white shoes firm. >> i think goldman is trying to find its way post crisis. they were the big deal maker, the big capital markets titan and looking into consumer markets. what is goldman sachs right now? i think it's lost its mojo and time for new leadership. connell: and they'll

bigger picture for goldman, i don't think it would change a whole lot. it's run by kind of committee as much as one person so i don't think this would shift or signal a big strategic shift. >> charlie, you own 6400 shares of goldman sachs are you selling as a result? do you have any viewpoint on the shares that's different now as a result of the possibility that he's going to be gone by the end of the year? >> absolutely not. i would say this is the deepest of management teams of any of the big banks. there are a lot of us who feel towards lloyd blankfein the way people did towards winston churchill when he was running for prime minister in the '50s we owe the survival of the company to him, so we're going to give him as much time as he wants. he really led that place through a time when lehman brothers went to zero, when bear stearns went to zero, when citi lost 90% of its value. he was the risk manager who got them through very strong he came from j. aaron, so he has a little bit of a commodity trading background that's hurt him lately obviously, commo

not just that goldman sachs, but jpmorgan and all across. carol: more bloomberg television starts right now. ♪ mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. >> the following program is a paid advertisement for the shark lift away speed. shark has redesigned the upper right and redefines what versatility means. the shark do a clean power lift away speed, build for ingenious innovation for life's real messes. >> so cool. >> i love it. >> shark thought of everything. >> i can never go back to the old way. >> it has

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diversity on wall street and at goldman in particular is an issue, and solomon agrees that goldman needs to do a better job elevating women to its top ranks. in january he told the women in corporate leadership initiative that you make progress, and progress day-to-day feels slow and you are a big organization, but you know overtime that will change. it is our job to change it." indeed, jordan, when you look at the top ranks at goldman sachs, the women are few and far between here. what they have -- what have they been doing to promote women? jordan: david solomon is likely to become the next ceo of goldman sachs, continuing a pattern of a woman not running a major u.s. bank. goldman sachs has been out in front saying they need to do better to improve women diversity. goldman sachs 10 years ago started this 10,000 woman initiative, saying that we need to empower women into leadership positions. but inside the firm you see that women are entering these entry-level positions but not rising to the top of the executive team. shery: out of 11 executive officers, there are only two women at go

will be ceo of goldman sachs. the chief operating officer has decided to retire effective april 20th command of complexity and client focus has defined his position at the firm. i want to thank harvey for all he's done for the firm david, some thoughts on schwartz's exit and i think solomon is right >> i think we know who the next potential ceo the company is going to be. we know these two are in competition. we talked about it on friday when the news broke from the journal that m solomon on the banking side of the firm schwartz's pedigree is a little different than his and he's been actively campaign the job for some time. age is an important factor here as well. as you know jim, david is 55 or 56-year-old, if you are going to take the job, you need some time in it. we are talking about him being 53 moving aside of the next generation which is something that blancfein is doing. >> there is no way that lloyd is going to let this generation people leave and listen, they got to be 40 years old i think this is do or

simpson owes tens of millions of dollars to the goldmans and browns. he still has to pay them with any money he makes outside of his pension. >> reporter: in 2007 the goldman family was awarded rights to simpson's book by a florida bankruptcy court, changing the title to "if i did it: confessions of the killer." greatly reducing the size of the word "if." >> let's immediately go to a picture in los angeles. >> reporter: now, nearly 25 years after that televised white bronco chase, america remains captivated by o.j. simpson. >> and the oscar goes to "o.j.: made in america." >> just last year espn winning an academy award for "o.j.: made in america." >> ron goldman, nicole brown, this is for them and their families. >> reporter: if simpson's story felt like a made for tv movie, it became one in 2016. >> i'm trying to win. >> reporter: with "american crime story: the people versus o.j. simpson." >> i'm not black. i'm o.j. >> reporter: tonight the real o.j. simpson is settling into a life of freedom. and while many are convinced he may have confessed to mu

he told me to goldman, that's what you do. if you're committed to gold mma you make sure the talent in the 40s and 50s gets in. martin is a very interesting figure by the way because he's a technology guy and there's a big belief that perhaps technology is going to be the way of bank ing a tough choice >> hey -- >> but i like the idea that a technologist would be included because that shows you the bank understands what the future is is >> sure. let eets bring in andrew ross sorkin, i understand you got news >> not news per se, but i think i would caution everybody here before they get too excited that somehow lloyd is leaving the building tomorrow or at the end of this year just a little context and i've talked to a number of sources around this situation. around many months, including today. the pieces came out. back when gary cohn left dpold ma goldman, there was a real meeting of the mind of the board to find a successor and to understand what possible theties were this story started in many ways a year and a half ago. esp

goldman sachs could see a changing of the guard. set to stepein is down as soon as the end of this year. president trump agreed to meet with kim jong-un by may of this tor in a high-stakes gamble denuclearize the regime. >> robust hiring but muted wage growth. 313,000 jobs were added to the economy last month beating the consensus by 100,000. the data quelling concerns they would have to accelerate rate hikes this year. discuss, i have to ask about wages. what happened? >> economic data doesn't go in a straight line. sign ofthink this is a a reversal of the trend we have seen. wages are slowly going higher. there is that discussion that we have slag in the labor market. -- we are still seeing a tighter and tighter labor market. number in whopping terms of job ads. can we think the president? >> for important -- for investors it is an important point. if physical peak comes it will be the middle of this year. we peak fiscal impact, should expect to see the labor market continue to do well. the question is what going on when you see t

>> long as goldman's earnings pick up. if gold man has earnings like they did in the fourth quarter of last year, i'm not sure this is as much lloyd's decision as it would otherwise be. it's up to lloyd blankfein and the board to put better numbers on the board. >> do either of these two people, the front-runners, let's call them, do they change the strategy of the firm in your mind >> well, goldman was late to change its strategy. i mean, look at morgan stanley five or six years ago going into wealth management. we describe the pivot, they timely used the word pivot last september 12th, 2017, going from fix to fax but another part of the pivot like into mass market consumer lending with marcus, we haven't spoken to one investor that's owning goldman stocks because of mass market. david solomon, the smooth investment banker, the best rolodex in finance right now with large corporations. harvey schwartz, the person who can break down walls and get people working together and great risk management resource allocations. so th

esc evan, you're a goldman guy what do you think? >> i think the secession planning going on at goldman, and whenever you do, it's in certain people's interest to leak things at certain times i'm sure the board at goldman would be negligent if they weren't doing planning right now. unless something is super imnept, and i don't think anything is super, super imminent it's still -- we're early march. the fact he would step down by the end of the year, i don't see that as big news. >> jesse is standing by. thanks for joining us as well. what do you think is going on here >> thanks so much for having me. you know, i don't know it looks like a nondenial denial to me from that, but i think that, you know, the reference to huck finn is a reference to huck finn's fictional funeral and gets to see himself eulogized. when blankfein sees himself eulogized where shareholders think he was really good but i think he was not he presided over the destruction of goldman sachs a goldplated name, a name hallowed in the has of government and in the has

thank you so much the latest on goldman sachs. david: now a check of the markets with abigail doolittle. in full valley, and the nasdaq 100 sharply higher, and the reason we have the nasdaq 100 here, tech heavy nasdaq indexes putting up all-time highs. the nasdaq and the nasdaq 100 put in record highs -- three major averages plus the nasdaq on paper, the weekly gains. the s&p 500 up 2%, and relative to the nasdaq, we hop on to the bloomberg and look at the one your chart of the nasdaq. have a beautiful uptrend of the average -- near-term buyers, we see volatility back in february with the 50 day moving average was light. right now we are looking at all-time highs, for the near-term and long-term buyers supporting stocks. it is worth noting that when you see big weekly swings like this, it could be more big volatility. or ahead, see upside and we will see. microsoft, amazon, and phabetout -- and alfa -- oil now higher on the week despite a bearish department of energy report, and that confirms the risk on tone. and finally, preside

goldman wants to hire internal candidates. an internal candidate become ceo. 40%summer, they have about of women in their employee class. that's great. there's only two women on their executive team. you have to groom them and promote them and have opportunities for them. scarlet: i think about how deana powell has come back. there is over her promotion when she returned. she was added to the management committee. her background wasn't in a profitable business. >> when you are looking for the next ceo, you're are looking for people who've been in position of profit and loss. you look at the pool of women who are in that, it gets smaller and smaller. lisa: how does goldman compared to its peers? >> goldman is not alone when it comes to female representation. citigroup and jpmorgan have less than a quarter of women on their executive teams. it is a conversation that needs to happen across all of the banks. how do you get your first ceo of a large bank? >> you spoke to eat at cooper -- scarlet: you spoke to edith cooper. a panel

not just that goldman sachs, but jpmorgan and all across. carol: more bloomberg television starts right now. ♪ wouldulation rollbacks ease constraints on community banks, or well the house go even further? how much disruption will we see? and the future of the banking union. markets:o bloomberg rolls on returns.

we worked for solomon brothers for 20 years and we did not like goldman. this is away from commodity trading where blankfein and cohn rose in that business. it's a better business these days investment banking is where higher margins are. >> by choosing someone with that type of background, doesn't necessarily mean they drop the rest of the business clearly, things have already transitioned in thatbecause revenues have fallen from a peak you think now there will be a further decision by solomon to get trading and focus on investment banking >> it's like when the head of the joint chiefs of staffs come from the army. there will be inter-divisional rivalry within the army and the solomon and goldman sachs of the world. the fact blankfein and cohn had come from that side of the business had an impact on where capital went and how much capital went into them that's the one negative argument you could make about goldman >> i was going to ask what you thought the impact was across the industry or what it tells us about the industry right now. >> one of the takea

gary cohn, if you remember, was the president of goldman sachs. he left being the number two guy at goldman for the white house, and that came after trump

and where goldman sachs is in that cluster. banks are looking up at this point. this is a good time for transition because the climate is better. art: i agree with that. when you look at financials in general, you have tax reform, which helped them more than the average s&p 500 company. you have regulations cutting through 2018. in 2008, when things were on the downswing, you are looking at have -- issues, now you morgan stanley went to the financial advisor route of things. i think 2018 is a great year for financials. alix: if i take a look at what goldman was under blankfein and what it will be in the next five to 10 years, it could potentially be more about markets, lending, more cross-selling on the street as well. walk me through what you see as the significant changes. >> i think we have to think about the management and then the environment. i think goldman at its core remains focused on the institutional business. it is a company that has always done well in their banking franchises. obviously the trading franchises hav

david: goldman sachs sets best the stage for a ceo succession. broadcom's blockbuster bid for qualcomm gets blown up there we had guest: this has a chilling effect of m&a. >> this notion of broadcom as a chinese company is nonsense. guest: distinguished guests share important insight on trade. >> you need access between countries, it is called fair trade. this talk all of about trade wars, i think it is overdone. >> i don't think donald trump will do anything ridiculous. davidavid: and, canadian prime minister justin trudeau insists that his country will continue pushing back against protectionism. >> we will continue to push against it in a firm and polite way, because you are canadians. david this is all straight : ahead on "bloomberg best." ♪ david: hello, and welcome. i am david westin. this is "bloomberg best," your weekly review of the most important business news and analysis and interviews on bloomberg television from around the world. on friday last week, it was reported on the wall street journal that lloyd blankfein would step down a

back i worked for goldman sachs, just like gary -- that guy worked for goldman sachs, just like gary cohn. considering that, directionally, no one knows what's happening, if donald trump decides that he needs someone to beat up on, i have been hearing strains where it might not be wall street. what if it's big tech? the guy who made a movie about clinton cash -- his next documentary, which will debut at cannes, not during the real film festival, is about tech companies. they can smell the sense that trump may be the new wall street, the new punching bag, instead of being goldman sachs and jpmorgan, it could be amazon and apple. emily: marty was on the show yesterday during the breaking news. he talked about how he thinks the relationship between silicon valley and the white house has taken a pause, because we just don't know. what's the vibe from the tech community so far about these tariffs in particular? >> what you have to think about with silicon valley is, to the extent that we are going to look at foreign nations as kind of the enemy, that's going to have a big impact. i think

story back to the floor. >> more clarity on the line of succession at goldman sachs. david solomon is now the soul resident and coo at the firm, putting him in line to be the next ceo. harvey schwartz is stepping down. >> 15 months ago, goldman named two co-chief operating officers, and after 15 months, the board made a decision that david solomon will be the next ceo. our best estimate is that lloyd blankfein will step down in 2019, on the 150th anniversary of the creation of goldman sachs. clearly, david solomon's strength is on the investment banking side. he is head of the area with good growth in one of the best corporate rolodexes around. the relationships between the goldman sachs and corporations and governments is as strong as it can get. the challenge and opportunity is for goldman sachs to better leverage those corporate relationships to build business across the firm, not just in investment banking, but also in the trading side. >> let's be clear, this is still lloyd blankfein's term. he will step down as ceo when he wants to on his timetable. we just know

moment.ay with us for a goldman sachs up 1.5%. shock, we knewa lloyd blankfein what at some point leave but the wall street journal says he may do it by the end of this year. their story says goldman will likely follow an announcement of the departure with a quick transfer of power because the two copresidents are around. what will this do to the stock? you asked howard about this. erik: the market is telling us and nothing at the moment. hard to imagine goldman sachs trading up on the news lloyd blankfein may be preparing to leave the firm. what he appears to have been successfully as what every company wants to do and needs to do, pave the way for ceos secession. whether it will be harvey schwartz or david solomon is a question. it may be both. they have a long history of partnership in leadership. it may not be surprising if the board puts them both in place. sachs iss that goldman a firm rich in culture and the ceos job more than anything is to preserve the culture. if a client like howard says the culture is intact, that tell

mocked goldman sachs on the campaign trail. people are relieved that they have this guy that they saw as a friend, someone who could push to cut corporate taxes, and now gary cohn is gone and that is sort of destabilizing. i talked to wall street executives over the last 24 hours that said this freaks me out. somebody compared it to losing a security blanket. emily: let's look at apple as an example. it is still unclear if apple would be marked as an importer. if this would hit company that manufactured apple products, .ike foxconn or what does this really mean as far as we know for apple, its products, its supply chain? tom: apple has to be caught in the middle of this somehow, given the fact they are the world's largest, most viable company. they are importing products from china, both finished goods and a lot of the supply chain is in china. to the effect that china is affected, apple is not going to get off scott free here. the question is, in a worst-case scenario -- we have talked to a few analysts here -- it certainly wo

david: goldman sachs sets the stage for a ceo succession. china plans new frameworks for financial regulations. broadcom's blockbuster bid for qualcomm gets blown up. >> you have to look at this as a chilling effect on m&a. >> this notion of broadcom as somehow a chinese company is nonsense. david: trade is a trending topic. distinguished guests share important insights. >> you need a normalization of access between countries. it is called fair trade. >> i think all of this talk about trade wars is overdone. >> i don't think president trump will do anything ridiculous. david: and, canadian prime minister justin trudeau insists his country will keep pushing back against protectionism. >> we will continue to make these arguments in a firm but polite way because we are canadian. david: it is all straight ahead on "bloomberg best." ♪ david: hello, and welcome. i'm david westin. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television from around the world. on friday la

julia chatterley's there with goldman's top economist. betty: when the -- julia: when it rolled out, it was the ancestral home, but i am joined by the chief economist. let's start with the exit speech by gary cohn from the white house. how do you recalibrate your thinking on policy in light of his decision? >> it raises the uncertainties of what gary's views are and ande policy and generally approach that is more market oriented in a number of areas. there is still a number of people with those views in the administration, but there is more uncertainty. we don't know who the new national economic council director is going to be. a number of names have been floated, but it is too early to tell. what we do know is that there is a tariffs step. the steel and aluminum tariffs will have some impacts. they will incrementally increased inflation -- increase inflation, but the size of what we see in and of itself from a macro perspective is not that big. i think it is too early to tell what the outcome is going to be. you used the word modest. le

should leave goldman sachs? the idiots. the smart people stay. i left because i had a burning desire to have my own business and my own company and to paint on my own canvas. i was very young and did not realize how hard it was. the chairman of set x had a great line. if you know how hard it was, you would into it. i am very glad i did it. i learned to evaluate talent to build a business which ultimately led to greater success with a lot of failure mixed in. that is why when i got knocked out of the white house, people said, oh my god, what a failure. that's not a failure. if you are an entrepreneur, you know how to be persistent and resilient. if you have it, you have to go for it. you have to live your life without fear. bob: i think we have a lot of questions. >> thank you for coming. my question is, you say we have to look at these politicians and accept that they are human. i want your stance on when trump had the parkland discussion, he had it written in his notes to remind himself to say, i hear you. do y

david: goldman sachs sets the stage for a ceo succession. china plans new frameworks for financial regulations. broadcom's blockbuster bid for qualcomm gets blown up. >> you have to look at this as a chilling effect on m&a. >> this notion of broadcom as somehow a chinese company is nonsense. david: trade is a trending topic. distinguished guests share important insights. >> you need a normalization of access between countries. it is called fair trade. >> i think all of this talk about trade wars is overdone. >> i don't think president trump for the u.s. administration will do anything ridiculous. david: and, canadian prime minister justin trudeau insists his country will keep pushing back against protectionism. >> we will continue to make these arguments in a firm but polite way because we are canadian. david: it is all straight ahead on "bloomberg best." ♪ david: hello, and welcome. i'm david westin. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television from ar

he worked for goldman sachs just like gary cohn. when i hear tom talk about apple and am reminded that trump mocked apple, considering the direction, if donald trump decides he needs someone to be -- beat up on, i think you are hearing that it might not be wall street. what if it is big tech? i feel like the guy who made the clinton cash, his next documentary which will debut at con, i think is about the big tech companies. i can smell in the air the sense that the new punching bag for trump could be amazon and apple. schenker was on the show during breaking news and he talked about how he thinks the relationship between silicon valley and the white house has taken a bit of a pause because we just don't know. what is the general viable response from the tech community so far about the tariffs in particular? matt: what you have to think about with silicon valley is to the extent that we are going to look at foreign nations as the enemy, that is going to have a big impact. there are lots of different ways, and that think the biggest w

. >> goldman sachs sets best reach for a ceo succession. blockbusters lot bac bid for qualcomm. >> this notion of rock, as a chinese company is nonsense -- this notion of broadcom as a chinese company is nonsense. >> you need access between countries, it is called fair trade. >> they always talk about trade wars, but i think it is overdone. >> i don't think it will do anything ridiculous. host: and, canadian prime minister justin trudeau insists that his country will continue pushing back against protectionism. >> we will be firm and polite because we are canadians. host: this is all straight ahead on "bloomberg best."♪ ♪ >> hello, and welcome. i am david westin. this is bloomberg best, your weekly review of the most important business news and analysis from around the world. on friday last week, it was reported that lloyd blankfein would step down as ceo of goldman sachs at the end of 2018. he brushed off reports on twitter, but last monday, the story came back to the four. >> more on the line of succession at goldman sachs. so solomon

betty: is he well-liked at goldman? >> he is. he rose to theboth have factions and harvey shorts -- harvey shorts have his supporters and people who liked him. he was the cfo from 2013 until be named copresident. if you talk to accountants or compliance people or legal people, they were all in harvey's cap, but david had his cap as well. betty: one of the top stories all day long. the succession of lloyd blankfein -- and still ahead, a billionaire's warning to new zealand about international abdication. details later this hour. haidi: up next, the multibillion-dollar auction -- and how demand is shaping up in just a moment. this is bloomberg. ♪ haidi: we are counting down to the sydney open. better positioned with asian markets going to a lackluster day of trading. investors continue to pass implications of trade tariffs and looking ahead to other key data. i am haidi lun in sydney. betty: i am betty liu in new york and you are watching "daybreak australia". bond sales will push the 10 year note further into bearish territory a

is goldman ahead of the race? they are as far along as anyone. everyone takes a different approach and has a different business model but jp morgan is at the front of the pack that goldman sachs absolutely is. if you think about where the firm will be in five or 10 years, you think about how employees have expanded into those units and all of the initiatives -- it may be a little below the surface. the will move the needle in next five years and that is what i am thinking about. some investors are ahead of that but some are looking at goldman as the old investment firm. the future, it could be quite a bit different. , according to our calculations, is trading at 12.5% or 13%. you are neutral on the stock. what needs to happen at goldman to keep fueling -- it has hit a record, that is pretty impressive. what will fuel the next leg up? >> it has been a great story and a great stock and that is part relationew on its call. -- on its valuation call. we need to see things that a curse here that are going to make us think that the return on equity is g

getting hate mail here, but those same people that hate goldman sachs, if goldman offered a job would be there like -- that what's my point? still the best bank out there. not about p.e., it's about price to book. book value at goldman last ya , quarter, $180. this environment, book value 1.8 or so. do the math. gets you about a $340-ish stock. >> guy, it's evan. happy friday. >> i worked at goldman as you did, guy agree with a lot of your points. reality is, they're struggling to get double digit returns on equity over the past few years there's not as much leverage trading margins. margins, commissions, everything's gone down how is this company becoming a high double digit roe company? >> that it's fair. right off fixed incomes is foolish. they'll re-invent themselves in some capacity and you're right listen, they have lagged morgan stanley in many ways passed them by to count out goldman sachs just off the cuff and say they should be trading at a non-multiple the rest of the space i think to me it doesn't make sense. look, jpmorgan is trading at a premium multiple and deserve it.