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tv   Bloomberg Markets Americas  Bloomberg  February 22, 2018 2:00pm-3:30pm EST

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julia: we are live in new york over the next hour. here are the top stories we are covering. stocks rebound. u.s. equities rise for the first time in three sessions. barclays bounces back. putting 2017 behind him, signaling good returns ahead. u.s. markets close in two hours. taylor: it is not out on the major averages. the dow up 1%. the s&p 500 up almost .5%. the nasdaq still green.
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my eye is on the nasdaq to see we can close in profit for the first time after three days of losses. the range of volatility we are seeing on an intraday basis -- early february, we saw this massive volatility where the highs and lows of the intraday idening.the dow is having the biggest intraday move . we will check to see the volatility continues as the week progresses. we are looking at the energy stocks today. oil is up 1.5%. my eye is on chesapeake energy, up 21% on an earnings beat. fourth-quarter earnings better than expected. they are cutting down $3 billion of debt. management is saying they are working on large asset sales
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this year. some of the laggards we are looking at across the board, my eyes are on roku. they are down 17%. last quarter was good. full-year 2018 was good -- this year, investors were a bit nervous. it is a highly shorted stock. 30% of shares shorted. the bears a broker winning today. -- roku winning today. julia: let's check the first word news. called asident trump white house meeting today on school safety with state and local officials. the president floated the idea of arming teachers as a possible deterrent to school violence. >> what i would recommend doing is the people who do carry, we give them a bonus. frankly, they feel more couple
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having the gun anyway. the president also called members of congress on wednesday night and said they are into background checks. the president offered his full support of the national rifle association as the organization began its offensive against efforts to tighten gun restrictions. in a tweet today, president praised nra chief executives. the tweet came after the president met last night with parents and students affected by the school shooting in florida and other massacres and after he agreed to push for tougher background checks for gun buyers. president trump proposed a bonus for teachers who trained to carry guns in american classrooms. russia may support a united nations security council resolution calling for a cease-fire in syria. moscow wants a few exceptions. sergey lavrov says a truce
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cannot cover islamic state fi ghters. russian backed syrian fighters bombed an area near damascus. it's brexit decision time for theresa may's cabinet. she is shutting her most senior untilers away in a room he today to force them to agree on what sort of trade deal they want with the european union. may needs an agreement before making a speech setting out her plans. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. julia: u.s. stocks rising for the first time in three days. the fed boosts prospects for tighter monetary policy. the s&p 500 still 5% below its record level.
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the 10 year yield approaching 2.9%. if the benchmark year closes up 3%, we have an inflation problem. right now, markets are overreacting. joining us, bruce bittles, baird chief investment strategist. talk about what you mean by overreaction. you used the word "premature." talk us through it. bruce: the bond market is very oversold right now. the pessimism is about as thick as it gets. i wouldn't be surprised if we saw some backup and rates. it would be favorable for stocks. the market is overreacting to the interest rate rise because we don't see inflation being a particular problem going forward in 2018. there's a lot of headwinds against inflation, the
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demographics, technology and the excessive debt. those are pretty easy to overcome. the yields on the benchmark at 3%, i would be surprised if it went much about that. lisa: are you recommending to your clients that they buy up as much as they can? bruce: yes. i think the treasuries are a buy right now. if the economy is going to take off to the upside, that would be a mistake. withconomy will go forward a gdp growth rate of 2.2 5-3%. that justifies rates not going much higher from where they are now. investors buying treasuries at this stage, where do you think yields come back make senseorder to of what we are seeing right now as far as inflation is concerned?
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it will depend a lot on what the stock market does this year. a lot of wealth has been created in 2016 in 2017. if the market rally stalls out this year, that might hurt the economy a little bit. overall, we don't see a real upside to economic activity. lisa: today, we had another auction of u.s. debt, a seven-year auction. -- lessbenchmark rate demand from indirect fire's. bu this is becoming a theme. it seems significant. bruce: maybe it tells us we are finally getting away from recession era low rates from 2009-2018. that has been the fed's goal and
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strategy all along. his we are be seeing finally getting a break away from the deflationary environment we were struggling with for the past 8-10 years. lisa: you are saying we are getting away from a deflationary environment. there are pressures keeping tamping down inflation over the long-term. how do you get that sweet spot? bruce: it seems to me like we are in a sweet spot right now. inflation typically is the result of higher wages. wage growth so far has been less than 3%. wage growth would have to get up to 4% before we saw inflation pressures really ignite to the upside. that seems unlikely. julia: what about a target for end?r
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how much upside potential is there for stocks this year? bruce: we felt that we issued our outlook piece in december of 2017, we felt 20 would be a transition near where volatility would pick up -- 2018 would be a transition year where volatility would pick up in the mid single digits. a transition year. that would be a healthy development for the stock market considering the valuation levels. that would set the stage for a really good market in 2019 and 2020. lisa: what is the optimal haven asset right now? at a time of increased volatility in treasuries, unpredictable movement in gold, what is your haven?
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bruce: gold's ally is inflation. if we don't see inflation surging, i'm not a big bowl on gold -- big bull on gold. stocks and bonds make sense in this environment. lisa: up next, insurance industry intrigue. a multibillion-dollar deal in the works. from new york, this is bloomberg. ♪
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julia: this is "bloomberg markets." in his time for the bloomberg business flash. robin hood's 4 million users can
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start trading bitcoin and at the rim today commission free. they are offering the service in california, massachusetts, missouri, montana and new hampshire. they hope to offer cryptocurrency trading in most states by midyear. the top luxury car in the u.s. is a hyundai. outnew genesis line beat german rivals to be named best car brand for 2018. their debut line bumped volkswagen's audi from the top spot. lexus and porsche routed out the top spots. the barclays ceo sees better things on the horizon. the british lender put fourth-quarter trading revenue marketsys the bank's
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business is doing better than it did a year ago. that is your business flash. update. julia: let's go to the white house press briefing. >> harry truman said this. the economic report is an opportunity for self-criticism. a challenge to the president and congress to determine the causes of whatever promise we face and to find the solutions of those problems. that's what we endeavor to do with this report document yesterday -- that came out yesterday. i encourage you all to read it. the economic report has eight chapters. the first chapter is an economic thatok where we project our policies will create a 3% growth rate going forward for the next 10 years. to trillion dollars higher -- does go trillion dollars higher
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-- $2 trillion higher. trade withlobal innovative policies for america's health. how our go into policies will affect growth -- we can get to 3% growth with our policies. we're supposed to come up with measures of our nation's problems that help set priorities and quantify how bad our problems are. we have a chapter on cybersecurity where we did a lot of original research to find that this is costing us $1 trillion a year -- we also looked at the opioid crisis. that cost $500 billion here. -- that costs $500 billion a
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year. you can come to the cea office to ask me questions. i will start with you in the back. >> two questions -- one on the dollar and one on the stock market. thatondering if you think volatility has any impact on the real economy beyond wall street. >> stock market volatility is to be expected. it is a regular thing in the stock market. it tends to go up when the market has gone up a lot. it's nothing unusual or something for people to be concerned about. secretary mnuchin has spoken a lot about the dollar. >> the united states still has a strong dollar policy. >> 63 mnuchin is in charge of commit occasions about the secretary mnuchin is in charge of communications
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about the dollar. >> [indiscernible] >> there's been some inflation data that has caused concern for markets. most of our policies will create growth on the supply side. when supply-side growth comes, that is good for inflation. get to 3% acan comic growth without a big pickup in inflation. , we get thel this fed forward guidance for now. >> [indiscernible] >> thanks for the questions. if you cut the tax rate on investment, you get more capital spending and that increases supply. up here in the front. has oftensident pointed to the rising stock market as evidence of the
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success of his economic policies and the strength of the economy. if the stock market goes down, should we conclude the reverse? >> the stock market is a great forward-looking indicator. it's the market's assessment of the present value of future earnings. swinging through the ups and downs, the stock market is a great communicator. -- your bestwalker guess is to flip a coin. in the long run, economic policy matters. 35%stock market is up since the president was elected. that is pretty consistent with what you would expect given the policy changes we've made. in particular, cutting the --tutory tax rate from 35%
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to 27.9goes from 26.5 -- that is the nature of the business. >> [indiscernible] market,ere's a bear that would likely happen. there's a lot of bad news about earnings growth and the economy -- the stock market is a reasonable indicator of the status of the economy. row, in the yellow tie. >> [indiscernible] net positive and tha negative if the u.s. is to pull out of nafta. >> we've done a lot of analysis to guide the president's thinking on trade. our job is to provide objective analysis of the pluses and
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minuses of all the moves being considered. i can't comment further on that. >> [indiscernible] obviously, you can't go into your analysis. would it be a good thing for the u.s. economy if they said we are done with nafta? >> we had a really extensive investment and trade -- i dug into the details and saw how right the president is about trade. our trade deals are asymmetric. we charge no tariffs at all on important to the u.s. -- imports into the u.s. if you look at u.s. sales of autos and to korea -- into korea -- if economists were to sit down and write a trade deal, it would be two or three lines. let's have three free trade -- let's have free trade.
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rightk the president is to prioritize improving those deals. >> what do you project for the labor force participation rate and those marginally attached to the labor force over the next 12-24 months? the president identified that as a priority. positived be something in that room in the next 12-to four months. fromwnward pressure retiring baby boomers has been a key underlying factor driving down moderate growth. >> the labor force participation rate is going down because people are retiring -- >> there are fewer workers. fewer workers, you get less output. we have an extensive analysis of this. half of that is the retiring baby boomers and half of that is bad economic policies that have
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chased people away from the labor market, including higher marginal tax rates, the affordable care act and increased use of disability and so on. there's a lot of reasons why our policies can have a positive effect. we think wages are going up. with higher wages, more and more people are attracted back into the labor force. >> you are inviting the american public to look for those numbers and move in a positive direction -- >> relative to the forecast of the obama administration, yes. you can see that inside the details of the economic report. it is a smaller negative than the obama administration thought. we think our policies will draw people back into the labor force. >> i want to ask about wealth inequality. is that a concern? [indiscernible] >> inequality is a concern for
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everybody who studies the economy. theuality skyrocketed over last eight years in part because of something we talk a lot about discussing tax reform. corporate profits were growing at 11% while real wages were dropping 4%. inequality increased a lot because people who own equities saw their wealth go up. people who relied on their paychecks went down. we were chasing all the corporate activity overseas. are wealth was more or less creating jobs for irishmen, non-americans. the tax bill has addressed that. there will be big wage increases, would you've already -- 5 million people received pay raises this year because of the tax bill. that will reduce inequality. time for more questions?
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grow the scope -- row two. >> [indiscernible] stock analysts were looking at how companies are spending their tech savings. 17% tong to workers, capital spending and 43% to dividends and buybacks. your model was that a much higher percentage would go higher -- >> we are starting out with trillions of dollars that were parked overseas. those moneys are coming home right now. that is a one-time adjustment. takingf companies are that money and paying bonuses and increasing dividends and doing share buybacks. weh that money coming back, will have an adjustment where you see more dividends and share buybacks because of chemo the
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past earnings this cumulative past earnings -- because of cumulative past earnings. right now, 5 million people have had a 1000 old pay raise already. bute buybacks have gone up, that the trilling to dollars overseas that have been brought -- that is based on the trillions of dollars overseas that have been brought back here. >> [indiscernible] the gas tax hasn't been touched and 25 years well construction in 25 yearsrisen -- while the construction prices have risen. you look at the chart of gdp growth over 10 years, it's above or at 3%. when you look at past tax 3%?, why only at >> let's start with the gas tax.
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we have a chapter on infrastructure. we talk about what a 20% financing mechanism might look like for infrastructure and the challenges for the current organization presented by innovation. you can imagine the thought if everybody had an -- it's being approached in the 21st century. the president is instructing everyone to think creatively about how we finance that. all the possible tools are on the table. as for why we didn't go forward with 5% growth, we get a 2.2% andline growth forecast then we have a chapter on each of the president's policy , that gets us up to
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3% on average over 10 years. that's all based on really hard science. if those numbers had led us to 5%, we would have been at 5%. let me close by putting that in perspective. the median forecast going back to this one is that economic growth would be 3.2%. we are a little bit below the median. the economic growth forecast for the obama administration the first four years was 3.2%. at the end of their administration because we kept having low growth years, the average was 1.2%. they came up with a story for why we should expect low growth forever. read theif you
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economic report, there's a strong case to be made that we can go back to normal and stop modifying the word "normal." >> can we expect 4% growth or higher down the line? >> if you think about what a 3% i think theike, quarters ofng some growth in excess of 3% are pretty high. with that, i have to go. thank you so much for your attention. >> [indiscernible] >> economists are always attentive to developments. i think the unconditional odds of recession are something that people who study this talk about -- there's so much momentum in this economy, we average 3%.
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are model suggests the first quarter should be a bit about that -- above that. right now, we are looking at an economy that is as good as we've seen since before the financial crisis. thank you very much. was kevin hassett at the white house press briefing. he was asked about current market volatility. he says that is normal, it should be expected. he says the dollar policy has been unchanged under this administration. -- steveuestions asked mnuchin talked about the economy. he said if the economy can get to 3% growth without boosting inflation -- wages can rise as well. honestly, the most
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interesting thing is the u.s. economy can get to 3% growth without inflation -- how much is this doing a wink wink, nod nod to the federal reserve saying inflation isn't going to pick up even with this boost, so you don't have to go too fast with respect to raising interest rates and stymieing this growth? julia: he did say without boosting inflation much. michelle was saying that she expects growth at 2.9% this year, three hikes this year, from the federal reserve. the administration is taking a look and then they can hike next year. >> definitely an interesting conversation. >> a quick check on the markets for a sense of how we are looking here. chart, you the session some of the movements we are seeing here rallying, is soon
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time says we are bouncing off the lows of the session. extensive 1% higher for the s&p 500. helping these fed minutes of course that we did see some ending weaker in yesterday's session. we will have to see what is happening. it has been lower by 2/10 of 1%. a quick look at what is going on in the rate market, we take down a lot of supply in the session. week.l so far this we are trading off the 290 level. still some basis points off the level. >> the increase in volatility is not stymie dealmaking.
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insurance and it according to people familiar with the matter. david broke the scoop. congratulations on the scoop. can you walk us through what motivated the standard life at this point? what is in it for them? >> sure. last week, the story of how they were talking to the group in the u.k. about merging their insurance businesses. those stocks fell up part -- how the deal would be structured. it seems quite a fast turnaround for them and it is a great deal. a live consolidator and it is the biggest deal they have done so far but also looking at the structure of the deal, it seems -- we're hearing there take a
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20% stake in phoenix and do an increase to fund the deal. it seems cryptic quake live the -- quite quickly. >> can you step back and look at the insurance industry at large which has struggled with low interest rates and making enough income on assets to meet obligations? do you expect more consolidation in the industry and is this just the start? >> absolutely. that is something that keeps showing up. even aberdeen was a product of emerging last year. the last acquisition they did before this was deutsche bank's essence in the states. insurers are figuring out where they want to focus and how they want to bill up -- buildup the businesses and cut costs.
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it is something we are seeing a lot of. >> we look for a formalized announcement to do with that deal. let's get a check of the headlines at this hour with mark crumpton. mark: president trump asked the justice department this week to ban rapidfire bump stock like those used in the message -- the massacre in las vegas. some are not sure they can. the federal bureau of alcohol, tobacco, and firearms is deciding whether they have the stockso regulate bump long legal battle with gunmakers. control pierce says gun supporters are using west week's mass shooting in a florida high school to promote a gun agenda. in maryland at the annual
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conservative political action committee conference. >> we share a goal to save schools and neighborhoods and a safe country. wastedl, opportunists not one second to exploit tragedy for political gain. mark: echoed by president trump today and a tweet. in the middle east, tensions have increased since president trump's declaration that the u.s. recognizes jerusalem as israel's capital. in the arab world, some have the declaration means washington has forfeited its role as a piece create or in the region. republican senator lindsey graham disagrees. they will tell you that they need to change to help them
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more. nobody is going to take the united states's place when it comes to brokering between two sides. mark: earlier this week, the u.s. delegation was in jordan king.they met with the the red cross is shocked by the level of violence near the syrian capital of damascus and for immediate the agency says it has a convoy of food, medicines, and other supplies ready to be delivered to the eastern suburbs. syrian government forces have been bombarding for weeks. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. julie: thank you, mark. australia's prime minister headed up the largest delegation for the united states. meeting president trump at the
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white house tomorrow, the transpacific partnership will be just one of the items up for discussion. --tralia's administer minister's book with bloomberg about the meeting. >> fundamentally, it is a decision for president trump in terms of what he would like to do with respect to the ttp. the deal has changed from what it was. i believe fundamentally, the premature of australia believes there is a good opportunity for the united states to come back to the ttp title. it would be a good deal for america and those countries. >> if the president and his team dismissed that out of hand, what else do you want out of the meeting? the top three people -- >> a couple things are happening. i think it is unlikely there will be an out of hand dismissal. i was encouraged by the primus to's's's speech, the
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president'speech. he made it clear the u.s. would consider possibly looking at the ttp again. i think the door has been cracked open there and i want to be engaged in a constructive way with the trump administration. incentive, create that would be good. we have seen president trump outline a bold vision for infrastructure across the united states. --you're making the case what exactly do you mean? do you want to invest in the u.s. or just give advice? >> we have got one of the largest national savings calls. a modest population of 24 million, it speaks to the policy focus for some time. we have got finance to bring to the table, and the experience of public-private hardships. experience.a mixed
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we have learned through that and we believe especially with a federal system as well, a lot of experience around construction and management and financing we can share with the u.s. >> hopefully from your point of usw, giving advice to the and also taking some advice from donald trump about taking down the corporate tax rate now. >> certainly corporate tax is a key one for us. we have seen australia over slip up, unfortunately. taxes, we want to make sure that declines over time. we know, capital is more liquid than it has ever been. attract --be able to >> australian pension funds,
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endowments i have to invest in a lot of that comes from the united states here at what you make of the australian dollar right now? 72 cents, we will ultimately see what happens. clearly there will be a push with the reduction of the u.s. tax rate. markets,ward emerging wondering how that would play out, but certainly, the long run average, a benchmark. >> sure. as a trade minister, are you more in favor of a weaker dollar or a stronger one? >> i think the notion of a weaker dollar is a false notion. it really is in my view the definition of a false economy. we need to make sure we build gradually over time a stronger dollar. that has got to be in the context of remaining competitive.
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>> talk to us that the economic health of australia. got 2.8% or so this year, the forecast, 2.2%, not that. for the australian economy? i know there are a few out there. australia is obviously the fastest growing region in the world. we are in continuous economic growth. that is because spence consequence of committing to economic reform over many years. we want to attract foreign investment as a country and reach full potential. that is my role as investment minister, but i have got to say, i have got a role of -- in the future. it is a healthy one. >> speaking earlier on bloomberg. with look at the market
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less than 90 minutes to the close. two-year yields dipping down. 10 year yield off the highest level since 2014 as they reached yesterday. today on the day giving up some gains over the past few days. at what we a look are seeing, interestingly, lagging behind the s&p 500. tech stocks are hanging in as well. less than one quarter of one percentage point. this is bloomberg. ♪
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lisa: this is bloomberg markets.
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, what abigail doolittle sector are you digging into today? abigail: we're looking at the industrial sector for the etf here. 1%, one of the top sectors for the s&p 500. it is worth noting, we have had ugly and bearish reversals in the last few days but this is one of the few sectors to be on pace for the second day in a row. tops for theare industrials. there does not appear to be anything to specific for any of the gains but we have the macro tailwind of the barclays industrial complex. the ceo's among many others with encouraging words and we see other investors with these names. record high,ting a check this out, boeing. i would like to point out that it is up 104%. that is incredible.
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today, higher on the news that the company offered a $1.4 billion debt offering in an environment of buybacks and m&a. it continues to fly despite that . it will be interesting to see what way that goes. as for the stock of the hour, united technologies, the best day since november of 2016 after the asset conference yesterday did say the company is weighing breakupibility of a into separate companies. they have jet engines, air conditioners, and who knows how that fits together. just to show the complex city of it, if we hop in and take a look at the financial analysis function, we will see everything going. eliminations, carriers, a lot is going on here. investors wanting simplification, smaller with far more focus.
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very interesting, the collins acquisition. company talking about a breakup, that is at the end of the third quarter. the look in your face. >> at a time when industrial companies are increasingly talking about breaking up, the ceo is talking about strategic alternatives. a trend? >> i think it is. it seems the conglomerates were a thing of the 1980's and they are not merely estimates and are not cost-effective. they want to deliver more returns and that seems to be the trend. it is not new in terms of the breakup talk but what is new, the ceo giving us more consideration and be more open about it. like itit is not could be a posy perhaps at the end of this year and next year. turning them around takes years. >> yes. >> exactly.
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julia: president trump, the nra and -- or pelicans want to get something done on gun control. leader of the mra -- nra spoke earlier today for your talk about the mood now p or what was the response because clearly,
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this was a real hot button subject not just for republicans now but the country as a whole. >> certainly a hot button topic. we are little week -- a little over a week from the shooting in florida. we heard a very defined and aggressive tone from the sea are -- the -- wayne what they are. fare for him and he has said similar things in past years but the end -- it is notable that the nra is maintaining a firm and aggressive as issued in favor of gun rights, arguing that those who are calling for limits on gun sales and gun ownership now are trying to takeaway peoples guns. it is a familiar rallying cry in the it it up like they often do. >> the an array is ranking ninth groups.l outside
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are there any other republican candidates who have come out and say they are not going to accept the money and try to distance groundhimself or is this safe and they basically feel like this is an issue they want to stick with? >> it is an interesting question. senator marco rubio of florida was out last night in the town hall. if he would refuse to take any additional money from the nra, that.lined to do he is not following the nra agenda, that the nra is supporting his agenda but the donations is an important factor in the debate but it is not the most important factor in the debate. the reason nra tends to wind -- very quicklyttles and effectively, shown a track record of punishing politicians who vote in favor of any measures, even popular ones. democrats tried to pass through the senate a modest change to -- it wasound session
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filibustered in the senate. the following year, not a single one of those senators filibustered. three democrats who voted for the bill -- a long way to go in order to match that level of intensity, though we have seen quite a bit in the last few days. >> as painful as the events are, they are painful in terms of timing with the midterms. ,hen i look at suggestions talking about stronger background checks, for those health, i believe that is a reversal of a reversal of an action that congress took. . >> there are a few dimensions to the debate. one thing the president is proposing is a nebulous change in the background system. that could come in the form of legislation introduced a john
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cornyn, a republican, and chris murphy, a democrat, that would essentially create new conditions for applying for background check rules. there is a system that people's criminal history's are checked against before they can buy a gun from a federally licensed dealer. of reporting a lot from law enforcement agencies to relative there is information so there may be an overhaul. president trump has suggested increasing the age to buy assault rifles from 18 to 21. i have spoken to several cpac attendees here in the last few hours. that is met with a frosty reception. any action to limit gun sales is perceived by the crowd behind me as an attempt to ultimately restrict second amendment rights . it is a mentality that gun-control advocates are dealing with. they will have enough -- an uphill battle.
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reminder. you can go to tv , the function on the bloomberg. breaking news, related functionality on the program. spoke to us earlier about the gun control debate in the united states now and more broadly, plenty more is to come on bloomberg markets. this is bloomberg. ♪
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lisa: i'm in for scarlet fu. welcome to "bloomberg markets." ♪
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live over the next hour here here are the top stories we're covering around the world. for the firstrise time in three days as u.s. treasury yields ease from eight year highs. it bloomberg exclusive. you will hear from the central bank governor about accusations made against him and his denials. and, social media influence. $1 billion plus off the company's value with a single tweet. an hour from the close of trading, a check on the equity markets with abigail doolittle. theail: it is amazing and question is whether we will see what we saw yesterday. we have the dow in the s&p 500 higher.
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the dow and the s&p 500 up more than 1%, the nasdaq, it's highs at eight -- .8%, now slightly lower. tuesday and wednesday, stocks were mainly higher and then a bit of a pullback. the intraday basis, we see the tech heavy index has been higher for most of the day. a small lake up and down, it will be interesting to see whether the buyers can hang on. some say this has to do with in the last we take a look at what is happening sector wise, it is mainly bullish. moments ago, this was all green. a great way to see what is happening sector wise. 1.4%p, a look at energy at . in financials on the bottom, the financials earlier had been slightly higher, now down more
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than .5%. the fact that it's tailing off right now is not very and -- very encouraging. stocks could gain just little more. we will know more in about an hour. we not only have earnings winners but we have crude oil trading on a bullish department of energy report. but we also have chesapeake energy and petroleum, these companies put up earnings plus, how they will reduce debt by two or $3 billion in 2018. that is up 28%. investors clearly liking it. is a really being rewarded by investors. the 10 year yield, this is a chart where we see stocks opening in the u.s., trading lower and helping futures, and then lower, helping stocks more. year, the nasdaq
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went slightly negative. that is the degree of influence in the sense of rave repricing of risk. very sensitive to yields right now. we will keep an eye on how that trades out. earlier, julia was mentioning snap. let's look at the ipo's, not doing well today. the first quarter, the current quarter, a high shortage of 35%. was mentioning snap. let's look at the ipo's, not doing wellsome are liking this,% on the kylie jenner tweet. pretty amazing. >> thank you. that is an amazing story. with markthe news crumpton. mark: thank you. president trump suggested a crackdown on extreme content in the united states could help prevent school shootings. he spoke at the white house during a meeting with state and local officials in florida. >> more and more people say the
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level of violence in video games is really shaping young people's thoughts. the further step, movies. mark: the israeli -- one reality which will have dire consequences for israel in the long-term. the un security council, in the statement, mr. carter said the two-statetwo-state solution -- a delegation from the u.s. group
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civil society in new york, as -- let the palestinian center for survey research -- research in the west bank. and the representatives group was on an unofficial visit . tensions have been high since december 1 president trump the united states recognizes truce alum as the capital of israel and the u.s. embassy will be relocated there from tel aviv. of the late reverend billy graham will be brought to the u.s. capitol stay where it will lie in the rotunda until thursday, march 1. house speaker paul ryan made the announcement today. reverend graham died yesterday at the age of 90 nine. global news -- global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. julie: thanks.
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how long does it take to get to the 1%? the court -- the price of admission is around $418,000 according to a new report. speaking of income, barclays is the first a bank to reveal a gender pay gap. it is paying female investment bankers less the half of male peers. warren buffett released his shareholders this saturday which may bring more clues about the billionaire's's plan. us now is bloomberg's executive editor, jason. welcome. .tart with a 1% story >> people are distracted because they are looking at w-2s and trying to figure out if they are in the 1% or 2%. $69% making more than million. people are looking to see if they qualify, i'm surprised how many people do.
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talk about how big the group is. >> it was 1.4 million in 2015. the 1%. and the average of 1%. ,hat is the minimum you need just to walk into the door of the 1%. the average was $1.48 million. >> that makes sense. >> what does this tell us? that wealthy individuals are making more and more and wages are increasing more more than anyone else? >> it is going up certainly since 2009 not surprisingly. the bottoms of the last little while, and then going steadily out for the 2%. over $300,000.e >> definitely something to compare yourself to.
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whatever else. talking about wages, a fascinating story today looking at how barclays pays its female investment bankers less than half what it does mail investment bankers. this is really interesting for a couple of reasons. firstof all, it is the bank but we will hear from a lot more banks. this law is requiring companies to come talk about their pay cap he said -- pay gap essentially, if there is a pay gap, which there is. it is quite staggering when you look at barclays, and they were the first to come out and we will see how the other banks you mentionedat 48%. that is an average. the average of foot female investment bankers would pay versus mail investment bankers. there were a lot of high paid dude investment bankers out
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there and many fewer females. this is math at the end of the day. >> i'm glad you pointed this out. was an alarming headline but the details here, if you have got a significant areortion of women who lower ranking, and you are not waiting this in a sense, then you will see a huge pay gap. not comparing apples it -- apples and apples. a woman and a man in the same role, then fine. >> the problem is if you did the a woman and a man in same role, you could easily fix this. this points to a true structural challenge that the banks have, and a cultural one. >> that is what allows going to say. investment banking is all about knowing people, having contacts, and it takes time. the same efficient in way other businesses are and it is all consuming. if a woman is more likely to be saddled with childcare duties, they will not have the time to
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go no delay it is a soft selecting group. you have to sacrifice that. a lot of soul-searching. >> and i think we will see a lot of banks come and deal with this exact problem. you do start to think about not justa lot of soul-searching. compensation, but you start to think about workplace culture and talent development because this is going to be a long road to get toward anything was a humbling parity. >> i>> i think they would arguet is about making money bottom line, getting women to the work weiss, bouncing up the ranks of men versus women i think. this is being significantly weighted by the volume of men versus females in the work vice. talk to us about the oracle of omaha. reception plans are in the air .ll around
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>> this is a nerdy bloomberg thing i know. one thing i love about it is saturday morning, we will have a blog going through the letter and people jumping and commenting. you can. >> imagine a lot will be logged on to see what happens. we always pay attention to this. are especially is because warren buffett has started to signal more and more that he will name a successor. people will look for either hints or more obvious language in the letter. as you know, the two top lieutenants, one of them is expected to ultimately get the top job. the other thing we're looking for, of keen interest to wall street in the past few weeks, another name we associate with berkshire hathawayexpected to ie architect of health care program that warren buffett came out and talked about with jamie dimon. >> the details on this, the
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question is, do we get more details? >> some of the philosophy behind it, one of the big questions when they saw this was, our buffet and bezos putting out a new business they will roll out to the world, or will they just take care of their own employees? >> it is scalable in the end. is there anything else we should be watching? >> you look forward buffett has to say about the markets. at a time when we were hearing about volatility again, are we going to see value investing? he is the guru of value investing so will we see value coming out? >> adding billions to their book value as well, that is a juicy amount of money. >> never argue with warren buffett. >> thank you for joining us as always. tv.utive editor for global
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up next, a bloomberg exclusive. you will hear from a central bank governor as he takes on his accusers. this is bloomberg. ♪
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lisa: it is time for a look at some of the biggest business stories in the news now. officials say the investigation around steve when and his resorts remain a priority. officials are examining what executives and board members new against him,ims who stepped down earlier this month. a $2.4 billion or it just outside boston. talksholdings in advanced
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to buy an insurance unit. according to people familiar, they intend to reach about $1.4 billion, which could be announced this week. representatives of both firms declined to comment. one of the highest-paid u.s. executives for 2017, $630 million, almost all of it was in the form of a stock he got when he went public last march. that is your business flash update. >> blackrock is one of the largest shareholders and gunmakers and the retailers. the commentseased following mounting pressure over the shooting. just to give you some perspective, six train dollars in management, a top shareholder , you might recognize just over
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,0% of shares holdings, 16% just under 12% outdoor, 9%. >> lack rock is a firm that has a lot of exposure and they will be invested in kent -- companies that are controversial. the question is how they remain socially conscious>> lack rock s and avoidxposure and disrupting the repetition while continuing to invest in tobacco stocks. gunmakers and pharmaceutical countries in the crisis. pinpoint,ldn't just comments -- precisely. a conversation we will continue to have, no doubt. bank governor not backing down, he denies allegations that he solicited bribes. the governor sat down with guy johnson. andlisten. >> the banking situation started improve.
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this is painful for the banks because they started to lose the money. closed at the beginning of 2016. >> matter relates to what we're talking about with the charges. >> at the moment, i cannot talk about this. that is the situation which is unraveling. unfortunately, by the end 2016, all of the commercial banks, unfortunately, losing all accounts. this again lands on me because i went to the united states. >> do you deny the allegations? >> absolutely. >> have you spoken to anybody in the ecb? you had a conversation >> i had a conversation with the result the board.
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not mario draghi personally. at the moment, there are tosibilities, looking continue work as a governing council member. >> ok. i don't how to put this more delicately. have you ever been offered a ride? >> no. >> have you been hinted? are thinn't, but these ice things and you never know -- >> there wasn't even a hint. did you report that hint? >> no. >> why not? >> that is a good question. maybe i misunderstood, let's have -- let's see how things are developing. ,he most important thing
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nothing to do with commercial banking supervision. >> the credibility of the central bank is important. ,'m curious to know nothing to do with commercial banking supervision. why even a hint, even the merest with of impropriety, why didn't you report that? that would be a clear thing that you could say happened but i reported it. >> you couldn't imagine. this wouldown develop like it has been, i regret that i didn't do that. >> that was an exclusive interview with the latvia central bank governor. this is bloomberg. ♪
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julia: it is time for a thin abigail doolittle. abigail: thanks. joining us now is an options strategist at interactive workers. thank you for taking the time. intraday terms of the reversal's we have seen this week and the volatility in the last couple of weeks, what do you make of this? >> today, by surprise. yesterday's move was a classic reversal. higher highs, and we woke up this morning as though nothing happened yesterday. it doesn't surprise me that we've come off our highs a little bit here that would follow what we have seen. market may be trying to consolidate some of the moves we saw but that means you get a lot of trading opportunities and it means that volatility remains firm because volatility is intraday. if you are getting big swings, there are a lot of trading opportunities and it helps to thefor the opportunity --
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volatility. >> we were just talking about rates. it seems similar to when oils when up and stocks went up and we see different correlations, whether it is the yen, and rates go up and stocks go down, so how long that lasts? >> it lasts until it stops. i know that is it ridiculous answer but is -- it is part of an algorithm trade. correlation finding algorithms. good algorithms pick up on it first. shock to the system and then yen and oil or something else. >> the vix is spiking skyhigh. what you make of this? curveneed to see the vix
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trademark, on the higher back end. there is a little bit of stick -- scarcity in the volatility world. whether there is just still natural sellers, we are seeing the front end of the vix curve inflated relative to the backend . it has flattened out considerably from before. feel, it iseally just a normal environment until the pattern reasserts itself. >> i know your idea has to do with scarcity. can you take us through it? >> i noticed the skew is heavily inverted. normally, we see longtime treasuries. we normally see it trade lower than volatility. the reason for that is natural sellers. , the skew has inflated dramatically on the call side. i contribute that to the various
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people not necessarily believers of the short break. weeks to think, how do late set? if we do not feel that bullish, necessarily, you could sell it in the input which takes advantage of that and by out of the money put in april, for the same volatility, which is still very rare. >> terrific insight. julia, back to you. julia: coming up, a billion dollars plus the company's >> terrificvalued in a single t. we will discuss. this is bloomberg. ♪ we use our phones and computers the same way these days.
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call, visit, or go to ♪ trump told a white house meeting today on school safety with state and local officials from porter. the president floated the idea of arming teachers as a possible
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deterrent. people thatnded the do carry, we give them -- give them a bonus. they


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