tv Bloomberg Markets Americas Bloomberg August 16, 2017 12:00pm-1:00pm EDT
from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are following at this hour. president trump facing growing condemnation from within the gop, and also from the business community. fresh statements in the last hour, including one from central lindsey graham, who said the president's remarks yesterday are quote, dividing americans, not healing done. plus, the republican congressman and house ways and means committee chair will give us his outline for the fast forward on reform this hour. and, the global chief investment strategist says the economy could be offended i three bears in this market. abigail doolittle is here with us know. we are halfway into the trading day already, abigail. let's of rhetoric, lets a
chatter out there. what's happening to the markets? abigail: the bulls are in charge at this point. we have solid gains for the dow, s&p 500, and nasdaq. in fact, this follows a big move up for the major averages on monday. a big move down last thursday, but the volatility, and very interesting is the fact that ben ammons said this pattern fits what we've seen before when we've had risk off scares like we had last week, geopolitical tensions, so often the equity markets. we then see 5 updates. let's see it tomorrow follows through. one of the big points today, apple pointing in yet another intraday record high, second consecutive intraday high in a row. the fifth this month, just about halfway through. really pretty impressive. look at this, apple year to date up 40%, on pace for its best year since 2010. this after the company recently did offer guidance that is supportive to the stock for the current quarter, plus ahead of
the release of the upcoming iphone 8. let's look at the retailers, we are seeing a bid there. 3%, the company beat estimates and raise the outlook being held by the company's online presence and ceo brian cornell has turned around. he worked with it on the call. he talked about hiv retail environment. today target doing very well, walmart reports tomorrow -- it seems investors may want to see what those results actually are, but we do have a nice bit for the retail space. turning to amazon, the online retailer that is typically higher today, not so much. although well off of the lows as we can see earlier, shares had been down much more after president trump earlier did tweet that the company is causing uqote, great damage to taxpaying retailers. the company did also issue a $16 billion bond issuance, the fourth largest of this year,
perhaps that is weighing as well. and then finally, let's take a look at the online retail presence versus the bricks and mortars. this is g #btv 2441. it's a five-year chart. in blue we have the bricks and mortar retail job picture. in white we have the online job picture. president in that tweet against amazon also said quote, towns, states are being hurt. jobs are being lost. this chart may not support that. grayson martyrs jobs, while stagnating to some degree, our moving slightly higher and it may be more appropriate to say that jobs are being reallocated. look at this growth in online jobs. vonnie: abigail doolittle, thank you for that. president trump facing growing condemnation inside his own party for his explosive remarks. his staff of visibly dismayed in some cases by the comments and by the decision to revisit such
politically dangerous topics of the president had appeared to be moving beyond great even president trump's chief advisor gary cohn is reported to be deeply upset over the events of the past few days. president richard trumka made the decision to leave the president's manufacturing council. the former treasury secretary larry summers says not enough c's have quit. -- ceo's have quit. >> i think if he were to be deserted en masse because they decided collectively to send a strong signal, i can't believe he would fail to hear that signal, and there is certainly a adjustmentd for an when the president of the united states is a quite a civil rights activists -- equating civil rights activists with white
supremacist. it would be constructive for the presidency -- vonnie: candy trump administration get the legislative agenda back on track? bloomberg's white house reporter joins us from washington. on those comments about the former treasury secretary made, the ceo's leading the manufacturing council is one thing but would it take staffers, close aides, people in positions that have been bestowed upon them by the president to leave before anything changes in washington? >> we have not seen any evidence of this happening so far. we have heard private whispers of dismay from some of the president's advisers, a sense of shock amongst some of his staffers the right now no resignations, no sign that people are leaving the president. we have two member the president has had trouble filling out his staff. he has sort of a bare-bones staff. when you look at the various agencies, a number of deputy
assistance and secretary -- deputy secretaries have not been named, the president sort of trying to get through his legislative agenda with a very skeletal staff. if he were to start to see hiringleave, especially people within his administration, it could make things even harder for the president as he faces a number of deadlines over the next few weeks on the legislative calendar. that says's a thread it's better to be at the table with the president than renounce everything and not be at the table with no voice in any proceedings at all. that's one thing for business leaders and ceo's. increasingly gop leaders aren't announcing the president and his are of condemnation. - - denouncing the president and his lack of condemnation. >> the 41st president, george bush,ush and george w. they both put out a statement not specifically denouncing the president by name but coming out forcefully against nazism, white
supremacy, making a very forceful statement in contrast to what the president did where he sort of equivocation between many sides and different groups, and also the senate majority leader, the house speaker, both republicans, the highest-ranking republicans in congress putting out statements over the last 24 hours that seemed to repudiate the president's comments even though they did not directly, comments about what the president said, they took a different strategy when directing this issue of white nationalism, white supremacy, and neo-naizis. they were able to denounce these groups without saying it's about both sides, and basically making it clear they are uncomfortable with the way the president handled it. vonnie: the trouble is these rallies aren't over. there was another statement you mention from the senate majority leader. it ostensibly in relation to a rally that is planned for lexington, kentucky great if these rallies continue and there's more violence, how do we get back on track for any kind of decision-making in
washington? of past the next term, but in september. >> that's right. these rallies do appear to be going forward. these groups are energized by what we saw in charlottesville over the weekend. some of them are energized by what president trump has said. they have got publicly and praise the president for his comments. many of them believe they do have the president and the white house on their side and they are starting to move or word with plans are rallies in places like lexington. on the other side we are seeing activists rallying around the idea of removing some of these monuments to confederacy leaders, and that is sparking sort of this ongoing debate and this ongoing clash between these two sides. and right now the white house seems to be pouring a bit of fuel on the fire. both sides seem to be energized and it does seem to be something that will dominate the news cycles over the next few weeks. vonnie: thank you. let's check in on the first word news straight years mark
crumpton. mark: people packed a historic theater in charlottesville, virginia this morning to pay their respects to 32-year-old heather heyer. the legal assistant was killed last weekend when a car rammed into a crowd of people protesting that white nationalists rally in charlottesville. heyer's father addressed the gathering. >> she loved people. she wanted equality. and in this issue of the day of her passing, she wanted to put down hate. part, we just need to stop all this stuff and forgive each other. mark: president trump tweeted for the first time about heather heyer, calling her quote, beautiful and incredible, and a truly special young woman.
named aident has longtime eight hope hicks as the interim white house director of communications. the 28-year-old work as a spokesperson for mr. trump during his campaign. the white house says it will make an announcement on a permanent communications director at quote, the appropriate time. in germany, angela merkel's rival in next month's elections says the u.k. needs to keep it simple when it comes to brexit. the social democratic party's martin schulz tells bloomberg the british may complicate negotiations by producing a series of precision makers for the talk. scholes says that negotiators should be left to do their work. iraq is asking the un security council for help and collecting evidence to prosecute islamic state extremists for possible crimes against you manage the. iraq was foreign minister says his government and the united kingdom are working on a draft security council resolution
seeking assistance earlier this year. the human rights attorney urged iraq's prime minister to ask the council to set up an investigation into the crimes. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. up, our nextg guest says the goldilocks economy could be upended by three bears in the market. we will explain what those three bears are next. this is bloomberg. ♪
their gradual climb ahead of the latest federal reserve minutes, just in about an hour and 45 minutes, our next guest says investors should be positioning for circumstances that could awaken volatility and new risks. the chief investment strategist for u.s. intermediary business and pastry global advisors is here. you say this is a goldilocks economy with nothing too hot, nothing too cold? >> i don't know how else to explain it. it's a too often used term. we have good but not great growth, low interest rates that continue to be supported by still easy monetary policy, and inflation which we saw again at the end of last week with the data that was released. if you look at the bank of america merrill lynch survey released yesterday, almost half the respondents described the trend in the global economy as being goldilocks. where not clear, the fed is still divided about whether
to implement tightening over the next few months and increase rates again. given all of that, did we hear anything more out of the minutes today about the disagreements of the fed? >> it seems as though unlike the children's fairytale, goldilocks seems to be comfortable if we look at most measures of volatility. even after a brief spike yesterday in the vix comments below 12. will be interesting about today's fomc minutes is that most folks are going to be looking towards signals around the balance sheet. looking forng to be his information rather expectations for inflation. yellen is a labor economist and she continues to be perplexed by this idea that with unemployment so low, and job growth continuing at this late stage of the economic cycle, why there's no wage growth. that is what is keeping them steadfast in raising rates. vonnie: i think what you mean
there is goldilocks markets. i'm not sure how comfortable this economy is. let's have a look at the charts. decline,without a 5% you know, and it's been a while. when do we get that? >> i'm not sure. i think from an investor perspective, when markets are reaching new heights and volatility is plumbing new lows, it's important to look at things that could go wrong. it's kind of a three bear we were chatting about. a monetary policy mistake could be a risk. certainly the failure of the republican policy is a risk and leslie, though it seems to have been abated a little bit of late , military conflict or an unexpected conflict could be a risk. those are the three bears from my perspective. vonnie: how is military policy -- monetary policy a risk? i think the risk here is
either from the federal reserve or the ecb tightening monetary policy too soon before the recovery continues to gain traction. you kind of talked about the economy continues to be sluggish growth with low rates. if in fact we begin to tighten monetary policy to aggressively, before the economic recovery continues to be in traction, that could curtail business spending even further, consumer spending could be at risk if that were to occur. you said another risk was the failure to implement parts of the gop strategy. have the odds of that increased the last few days? >> i think so. if you look at the expectations for corporate profits next year, they are being revised downward. what i think is going on here is that by this time next year, i think folks are expecting lower taxes, more affordable health care, and a less red tape environment.
i think all three of those things are at risk in terms of the policy agenda moving forward and i think you are starting to see that now reflected in corporate profit expectations for next year. vonnie: let's have a look at g #btv 1103, gdp forecast. economists forecasts. then there is the administration's forecast. you can see just a little bit, which is more likely to be the case. >> from my perspective, the economy is likely to continue to go at this kind of 2% trend growth and not the 3% or more trend growth that perhaps the administration is expecting. vonnie: that would be the economists, correct? >> that's correct. the catalyst to change that certainly would be, if we were to see progress on tax reform, more affordable health care, but regulatory environment, it's looking as though those things are being pushed further and further out on the horizon.
vonnie: breaking news, the ceo stating sustainability, diversity, and inclusion are my personal values and also fundamental to the 3m vision. other ceo joining 6 business leaders and resigning from the president has manufacturing council. the reaction to the weekend's events continues. larry summers says, too few ceo's have quit, writing, no advisor committed to the bipartisan tradition of american government can believe he or she is being effective at this point i should feel ashamed for
complicity. -- and should feel ashamed for complicity. >> i don't know whether it would affect what he thinks but i think this is a president who more than any other president respects people who have been successful in the business world. >i think if he were to be deserted en masse because they decided collectively to send a strong signal, i can't believe he would fail to hear that signal, and i think there is certainly a drastic need for an adjustment when the president of the united states is equating civil rights activists with white supremacists. so yes, i think it would be constructive for the presidency and much more importantly, constructive for the company. i think also that if you look at any of our major companies, they look back at their history with
pride, but there are things they regret. their treatment of jews or gays or african-americans or women decades ago. when the history of many of our leading companies today is written decades from now, the moments when their ceo's stayed with president trump will be a moment that's regretted. becausehy i so admired, it wasn't the easier course, to step back. ken frazier of merck took the step that the ceo's of intel and under armour took. ae steps that the head of the flcio. it continues to be my hope that as they see what is happening,
as they listen to their employees, as they listen in many cases to their children, say, i need to provide input to the government of my country, but i don't need to be part of president trump's once a month, if that, photo op. and is houldn't be lending my reputation and my company's reputation to him, given all the values, the civil rights, justie ce values, the integrity values through profiteering, the international cooperation, values with steps like the paris breakout, and i shouldn't be lending my reputation and my companies -- company's reputatio n to this preisdent. -- president.
i hope and i kind of expect that more will come to that conclusion. clearly is ane important moral element to this. it comes across very powerfully in your piece. other people have spoken about it. there also is the business side of it great in this instance do you think those are perfectly aligned? i have to think about my shareholders, i have to think about my business. is that simply irrelevant or is the moral too important to miss? >> i would make these points. first, merck stock rose, as ken frazier resigned. and the president's lashed out with a tweet about controlling merck's prices. there's no evidence that it's directly harmful to shareholders. encouraging the
president to stay away from his remacy, he white sup might return to the economic issues that are important for many of these companies. the purpose of tomorrow's -- yesterday's press conference, as it was billed by the white house, was to focus on streamlining infrastructure approvals. that is something that's usually in america's economic and corporate interest, and that was entirely lost because of this. so if we bring the president back to economic issues, that will be in the corporate interest. vonnie: that was larry summers earlier today. this is bloomberg. ♪
vonnie quinn and this is bloomberg markets. we were higher a little bit earlier and continuing to ride higher. nine and a half points. the nasdaq up 6/10 of 1%. 3making news, the ceo of has become the latest to resign from president trump's manufacturing council. a statement was released saying sustainability, diversity and inclusion are my personal values and also fundamental to the 3m vision. he finishes the statement by 3m, we'll continue to champion an environment that sustains those three values of sustainability, diversity and inclusion. let's get to the "first word news."
congressional republicans continue to react to president trump's comments about the violence in charlottesville, virginia. lindsey graham says the president took quote, a step backward by suggesting there is a moral equivalency between the white supremacist neo-nazis and kkk members who attended this rally. he added that many republicans will fight back against the idea that the party of lincoln has a welcome mat out for the david dukes of the world. saturday -- senate majority leader mitch mcconnell says the group behind the violence are planning a rally in his home town of lexington and he says their bigotry is not welcome in kentucky and should not be welcome anywhere in america. that kim jongted own -- kim jong-un made a very smart decision regarding a
decision not to launch a missile toward guam. ceo and blackstone group's steve schwarzman are being urged to quit a white house panel. protesters are heading to jpmorgan with more than 400,000 petitions demanding the two quick president trump's strategic and policy forum. swordsman is chairman of that forum. the u.s. trade representative robert my kaiser called for a major overhaul of nafta, the north american free trade agreement as talks begin on revamping the deal between the in that it states, canada and mexico. >> for countless americans, this agreement has failed. we cannot ignore the huge trade deficits, the lost manufacturing jobs, the businesses that have closed or moved because of incentives, intended or not, in the current agreement. mark: mr. light kaiser also said
that at least 700,000 americans lost their jobs due to exchange -- due to changing trade flows from nafta. news 24 hour today howard by more than 2700 journalists and analysts in over 120 countries. vonnie: thank you. straight to santa monica, california. , chairman oflican the house means and ways committee. >> i am here live at the reagan range center with chairman brady. i want to get to taxes. i have to ask you about the president's remarks, yesterday. is that an acceptable view for you? rep. brady: i strongly condemn the violence and hatred they bring to this.
i think the president is right to call it repugnant to our nation. because we are here at the reagan center, i think reagan said it beautifully when he said the politics of racial hatred and religious bigotry have no place in america. it undermines the values we stand for. i think that is exactly right. sahil: you are trying to quarterback one of the most ambitious legislative initiatives with all of this happening, with the polarized environment we have and the fact that these controversies have been dominating august, how do you get this done? rep. brady: i wish every day was talking about this broken tax code and what we need to do to fix it, especially lowering rates for families. issues and ier think america is ready for this. tax reform is all about helping every american, of every income size and every size business. improving their lives and
letting them keep more of what they earn and making sure they can pursue their american dream. i think this is the right issue for the right time. reform took toax an half years to get done and between that was a landslide reelection victory by resident reagan. is there something you have that they did not? rep. brady: no, it is an ambitious schedule and we know that. we stay laser focused. not that it will be easy or level all the way through, especially in these final months this fall and through the rest of the year, there will be a lot of work to be done, a lot of votes to be held. i am convinced we can achieve it, this year. sahil: one of the challenges you face is public opinion. only 4% of americans pegged taxes as their top priority. significantly less than health care.
do you have a enthusiasm problem? rep. brady: we don't. those polls tend to reflect whatever issue they say online or on tv that week and that month. in my town hall meetings in texas and across the country, when i asked how many of you are pleased with the way you are taxed in america, no hands go up. it takes two seconds for people to start laying out to me how frustrated they are with this code. are, how manyates special provisions there are. i think there is a hunger in america for fixing the way washington taxes us. sahil: democrats have launched this so-called not one penny campaign. there is public opinion that suggests people don't think the wealthiest americans should get a tax cut. rep. brady: it is all about growth. democrats working with president
reagan recognize that as well and so did president kennedy. we saw the economy step up in a major way. that is what i think democrats and review -- republicans are united in this. we have to get better paying jobs. we have to stop this exodus of u.s. companies and jobs heading overseas. ,hat ought to be our goal rather than just picking out one provision in the tax code. i reached out to our house democrats to ask them what is important to you in tax reform, can we find common ground? sahil: is reconciliation still the plan? rep. brady: it is. sahil: your committee has been hard at work on this issue, but the president has ended up directing attention elsewhere with all this talk in charlottesville. has the first half of this month been a missed opportunity? rep. brady: i want the president to spend every tweet and discussion about tax reform.
this is critically important. i am confident he will be all in and using the bully pulpit to talk about what is wrong, the broken tax-cut we have and what this opportunity is. he feels comfortable around this issue, believes strongly in it. his tax team is fully committed. i am optimistic about him leading on a signature issue for america. sahil: you have been dedicated to the idea of a permanent overhaul. a number of your senate colleagues are not that committed. senator toomey said is it -- if it ends up being debt neutral, it will be an anemic tax bill. rep. brady: we will deliver reforms and tax cuts in some form. i am going for the greatest growth for the greatest number of years for americans. the way to do that is you go bold. so families and businesses can count on it, including those we hope will bring those jobs and supply
chains back to the united states. tax reform should move us toward a balanced budget, not away from it. me,ill work with senator to i am looking forward to working to get this done. sahil: there is talk of a potential 15% or 20%. do you prevent individuals from abusing that rate by restructuring themselves? experts say it would take is significant expansion to the scope of the irs. rep. brady: we are focused on lowering the rates for every size business. separatet, we want to business from wage income. we think there are good ways to do it. we are working with the treasury department since the day secretary mnuchin took office to make sure the run out abuses in that area. we recognize it -- there are not
abuses in that area. we recognize it. we don't want to invite the irs more into your life. planimplicity of this moves the irs out of your life. are you open qad per patriot idea that starts a decade -- speculator because republicans have suggested to me that would help pay down the long-term revenue? rep. brady: we welcome those ideas and clearly mortgage adjustment plays a key role. incentive for companies to move their jobs or headquarters overseas, leveling the playing field and providing us revenue like our competitors use to lower rates. we had that debate, it is over. now we have to find fresh ideas. repatriation. at we think we have a good way of
moving this forward. i want to see us move to a territorial system and i don't want it to wait. i wanted to be permanent to meet our competitors. i want our businesses to be able to bring their earnings back at nothing or next to nothing to be reinvested in the united states. sahil: thank you so much. vonnie: a great interview. coming up, amazon is back in the spotlight of president trump's twitter page. ♪
vonnie: this is bloomberg markets. we focus on a notable -- we focus on the little stuff you need to watch -- stocks you need to watch. urban outfitters responding pretty spectacularly. emma chandra joints me with more . i thought they were on the brink of extinction. emma: that is the trend we have been talking about in recent days. urban outfitters surprised with its earnings, stocks up around 18%. it is the biggest surge since its ipo, 24 years ago. it has had a great day. a surprise be on revenue and earnings per share. what i really wanted to talk about was some other brands that urban outfitters own, including anthropology. we have a chart showing how well they have been doing and you can
freehe green line, that is people and that accounts about 20% of urban outfitters' reven ue. anthropology is the purple line. that is falling, but it did better if less than expected. anthropologie is a little more costly. does that tell us anything more about wider retail infrastructure? emma: i think it is the mix they are getting and the moving online that we talk about when we discuss retail. we have a good charge -- a good chart in my terminal. us what we have been seeing happening across retail with that move to online. any company that shows it is
doing well in online is getting rewarded. vonnie: thank you, emma chandra. 18% right now on the session. year over year stock is still down 30%. it is all relative. president trump has unloaded on amazon. the president tweeted that the world's largest online retailer is hurting other stores, implying it is killing industry jobs across the u.s.. president trump attacked amazon and its founder in the past. joining us now from san francisco is cory johnson, bloomberg editor at large. what to make of these attacks on amazon not paying taxes? cory: it is really odd. there was a time when amazon operated in a way to avoid taxes , by having very little profits or no profits at all and by setting up distribution centers in places that were low tax
environments, like nevada. they change that and they changed it quite a long time ago. distribution centers closer to consumers in big cities and high tax places like new york, new jersey and florida and california. they pay lots of taxes. amazon paid about 41% of its operating profits in taxes, last year. believe every reason to that this is really about the tough reporting of the campaign finances and personal finances of donald trump and the skating editorial of the washington post about his comments about the racist in charlottesville -- racists in charlottesville. vonnie: wanting to just pick on companies ad hoc, there are plenty. cory: and amazon is not one of them. amazon is paying boatloads in taxes.
shift takingamatic place and the pain being felt this year, where so many retailers are suffering, not because amazon is so powerful but because u.s. consumers have shown a desire to shop online. amazon has been a primary beneficiary of that. it is more about consumer choice than it is about the power of amazon and i think the premise -- president's criticisms are out of place because of what people choose to do. vonnie: cory johnson, we will return. breaking news. the president strategic counsel is set to be defender. his strategy and policy pounds -- counsel which had 17 members left is set to be disbanding. we will bring you more details on that as we get them. the new york times has reported that it might be disbanding, that it was being considered. the manufacturing counsel will make a decision later, as well.
cory johnson. -- back to cory johnson. we are not getting a reaction from amazon. will there be a reaction? is jeff bezos big enough to ignore this? cory: i think amazon is going to publicly ignore this. , they havecompanies more focus on limiting their public relations two things that talk to readily to consumers. this is a company that is focused on consumers. the president might be critical of amazon, but it is hard to imagine being critical of people shopping online is that is the thing that is vexing retailers. people are finding greater convenience and shopping online and that dramatic shift to one amazon and other companies like walmart.com is really what underlies this big change in the world of retail.
given that really tough reporting and i say reporting, not just the editorial page in the washington post about this president, i think it has a lot to do with the president's anchor -- j -- president's anger. vonnie: want to reiterate, the president's strategy and policy council has been disbanded. disbanding,o be following six business leaders resign during -- resigning from the manufacturing counsel, including the ceo of 3m, most recently, putting out a basicallycondemning, suggesting that 3m stands for things like solidarity and diversity and he was not about to give that up. coming up, goldman's long-term dominance of the takeover paying off every step of the way. we will bring you more. ♪
vonnie: president trump's strategic and policy forum is set to be disbanding. detailsbring you more when we have them. a quick check on markets. we felt that grind higher take a little pause. points 500 is up three of 1 -- 3/10 of 1%. the nasdaq is the winner today, up half a percent. as for the 10 year treasury, we are told to .25% and oil is $47.30, down after we got inventories that were really much bigger of a draw down for oil than we had anticipated, estate -- except for cushing oil and gasoline.
sachs longtime dominance of the takeover advice is translating to some success by providing short-term bridge loans to help finance deals such as discoveries buyout -- amazon's purchase of whole foods. joining us to discuss what it might mean for investors. >> there is always been an argument in the market about a particular m&a situation, does the financing come first or do you get the advisory because you can finance the deal or do you already have a relationship with the country -- with the company and they get you to finance the .eal for them they decided that they were going to make a big effort in financing these deals which is not as sexy, but it allows you to get money from advising of the deal, then from lending them the money, and then you can
syndicate the bonds and then it helps you in the secondary markets for trading. fees doesat kind of goldman get from this? is this a very lucrative business? nabila: they get about 40 to 80 business points and then they get the interest, but it is about saying we will be in this market and be able to compete better. nabila ahmed, a great story, thank you for that. we urge everybody to read that story about goldman sachs. breaking news, campbell soup ceo is the latest to resign from the manufacturing counsel. this is significant because it follows a statement yesterday where he said they would be staying on the job initiative group and on the manufacturing counsel. now, the nice morrison put out a statement saying that she is
resigning from the manufacturing counsel. we have the strategic and policy for him also disbanding according to people familiar with the matter. it looks like some of those councils are just crumbling. seven of the business leaders running from the manufacturing counsel is campbell's the nice morrison. -- denise morrison. markets are higher. nevertheless, still have to get -- healthy gains for the s&p, the dow and the nasdaq. stay tuned. more markets right ahead. ♪ ♪
other members include dr. thai because growth of the cleveland clinic. bob iger of disney was on the council but resigned earlier. here with the latest is bloomberg senior white house reporter. it seems to be almost a cascade at this point. when it comes to this strategic counsel, is this sort of jumping before you are pushed? margaret: you are right to say when wea turning point came out of the weekend and the merck ceo stepped aside from an advisory role. it was unclear whether we were looking at one people, two people. this is a much broader statement by a cross-section of ceos. it does seem that the effort in