Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  March 8, 2018 2:00pm-3:30pm EST

2:00 pm
-- welcome to bloomberg markets. ♪ scarlet: where live in new york over the next hour. here are the top stories we are watching and covering around the world. we are waiting for trump as u.s. stocks are fluctuating the potential fallout of the release of the tariff plan. and tomorrow's jobs report. usorgan trading chief tells stocks could fall as much as 40% over the next two or three years. and is a big debate of the returning jay powell from the white house. and u.s. markets close in two hours time, and we will get a check with abigail doolittle. searching for direction seems to be a way to characterize it. abigail: investors are trading proposals.e tariff base
2:01 pm
what the potential exclusions will be, and a scarlet mentioned, a small move to the downside and upside, and the nasdaq has been higher all day, on pace for the fifth update in the ra row. uncertainty and fluctuation is the name of the game today, and the index had been higher for much of the morning but around the time of that terrorists talk and president trump saying they will be signing at the 30 p.m. today -- a little bit of a recovery and investors not knowing what is next and we are aeing that the volatility small mirror of a we had all week. theme in 2018e volatility. let's look at the laggards of the day. buyingurance company is
2:02 pm
the pharmaceutical management company, and health care -- we see consolidation there. investors notg that price 11.7%, andrker down they gave disappointing news and their turnaround is in question. speaking of turnarounds, l brands also in question. finally, let's and on a bright spot. when we had on to the bloomberg, we are looking at in blue, the s&p 500 over the last year. and in white we are looking at the gender inequality index. it is international women's day, and we see the bloomberg gender inequality index is outperforming to a small degree. this is an index based recognizing data exposure, best policy practices and that gender
2:03 pm
equality space, and both of these indexes look like they could be bearish on top, which suggests we may see volatility, but perhaps of a bigger nature in the future. julia: let's get a check now with first real news with mark crumpton. mark: as we have been reporting, president trump is expected to sign an order on steel and aluminum tariffs. the president said he will be flexible depending on the affected countries have strong trading and military ties with the u.s. speaking -- i was and i have the right to go up or down depending on the country and the right to drop or at -- or add countries. mark: the president is set to sign the tariffs document at 3:30 p.m. washington time. three weeks after the parkland
2:04 pm
high school shooting, florida governor is deciding to sign a uncontrolled bill that falls short of what he and the survivors demanded. the legislature delivered the bill to the governor today, who has 15 days to sign or veto the legislation, or let it become law without his signature. while the governor did not say he will sign the measure, family members said they have asked to meet with him before he makes a decision. the measure would raise the minimum age to buy rifles from 18 to 21 and create a waiting. on sales of the weapons. the house intelligence committee may ask blackwater founder for questions of a meeting in january of 2017, and that meeting was allegedly set up by an american lebanese man. california democrat adam schiff
2:05 pm
says the committee also wants to hear from nader you to inconsistencies in earlier testimony. on this international women's day, the commissioner for refugees and unicef director visited a syrian refugee camp in lebanon and spoke to women of that the conflict in syria weapon hurt by domestic violence and early marriage. ves commissioner belie these women will have a better chance of life. they have energy, and they want to change policy. for the foreseeable future. also the commissioner credit lebanon of testing open 5 million refugees over the last several years despite limited resources costing the country
2:06 pm
$18 billion. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. thank you very much, mark. jpmorgan president had a warning for investors. cycle, therend the is some way to go for the next year or two. it could be up to 40% depending on the valuation, and you have to watch. the most important thing is to be paired. the most important thing is to be prepared. your responseet to that before we talk about what else is going on? >> we have been saying that a big bear market recession, a 20% plus pullback in the equity
2:07 pm
market will come when we are in a recessionary environment or reentering a recessionary environment. when you talk about the earnings backdrop, we are not there yet. the next 12 months looks good for us, even with the trade talks and increased volatility going on in the market. we agreed that will be a scenario one day but not in the next 12 months. julia: as he said, two or three years. before what happened the last two weeks, the potential tariffs on steel, we are talking about haul extending the cycle. have we seen an impact on the aluminum and still sector? i think that counters the extension of the cycle so we might contract the cycle in a little bit because the tariffs -- not only do they have a retaliation impact, they also
2:08 pm
have a confidence impact. what we are seeing is the animal spirit gain speed again. if you put in retaliation and we eliminates, competition in the marketplace and might remove some of the animal spirit. for us, that is a tale risk. scarlet: i wonder why politics has a play in the market now -- you argue if tariffs are in place investors will react, which is what they did with the tax overhaul. the right now is a lot of words and rhetoric. mona: north korea had no impact on the market, russia had no tension, but here we are with trump talking tariffs and we had a huge impact. it is economic space to of the potential economic reaction -- imposing tariffs has implications for the economy. ant we are seeing is increase in volatility going forward and as we get further along in the cycle, as the fed
2:09 pm
continues to raise rates and we normalize and we get closer to potential turn, increased volatility is natural. i think that is what we are seeing. you say economic summit and because they can quantify it is reason to start folding into analysis, whereas north korea or russia, you can't quantify? mona: that is exactly right, people can say he was the best case or worst case, and we start quantifying those, and that is why we are seeing the impact. move, critics of this whether or not the president is justified in applying these tariffs, it is in archaic way of issue, and also a part of the business that has perhaps youying, want to move into the area of technology. is that the focus of protecting that this is the president needs to look at? mona: absolutely, we feel the
2:10 pm
same way. i won't put manufacturing was important for the economy, over a hundred years ago the economy was based on manufacturing. -- the lowed away producers are manufacturers and revolutiondustrial is automated technologies, artificial intelligence, robotics. even see it in the marketplace with the bank stocks. what our president administration should be focusing of the u.s. is becoming leaders and those technologies rather than manufacturing. we feel that is the direction we should be going to. julia: we also expect a report of tackling were china's interference in stealing intellectual property, do you think the market response positively as opposed to what we are seeing with the negative reaction we are seeing around the tariffs? mona: i think intellectual property will be received well if we don't receive a big blow back from china.
2:11 pm
what is going of on and cautious on that front so it is interesting to see how that plays out. i think where going in the right direction and intellectual eroperty has to b protected in the united states. scarlet: daniel pinto said be prepared. what is the way to prepare? mona: one think we are advising clients right now is to start shifting your portfolio towards value names. as volatility continues and rates will hire, we could see multiples compress. where you value is the value sectors like financials. names thatdustrial might benefit from steel tariffs -- and we also like the fixed income space shorter duration as rates move upwards. we also like international equities here. places like that europe are good
2:12 pm
for dividend value, asia for growth and disruption. and we look at yen for higher yields, and is a good for fixed income. scarlet: short ration and fixed income international equities. mona: absolutely. happy international women's day. scarlet: coming up, trump takes on the videogame industry and he meets with industry leaders as he charts the way forward in the wake of the florida school shooting. from new york, this is bloomberg. ♪
2:13 pm
2:14 pm
julia: this is bloomberg markets. scarlet: president trump's with
2:15 pm
representatives of the veto give industry as well as members of congress. thate administration says the president considers this response to gun violence the florida school shootings that killed 17 people, and we are joined by chris palmeri who covers the veto game industry -- videogame industry. the violence we see in the videogame industry contributing to the effect of been violence we saw in florida. comes up in mass shooting situations and has been reporting that the alleged shooter was a very active videogame player. the president has said that maybe there is a connection here. this is a much debated subject and has been debated since the columbine shooting. the fact these games has on kids and the mountains of research on
2:16 pm
both sides advocate one way or the other. julia: does that depend on who sponsors the research? pretty much, that entertainment software association, meeting with the president now is saying they have committed their own studies and say we have worked to get ratings on games so parents know the most violent games are not for kids. there is a feeling with the industry that stocks are up today. activision announced today they call ofasing their new duty game, and the stock jumped, so there doesn't seem to be a feeling of investors that this will have an impact. department may not have gotten their lines crossed. one way the industry can respond with is, the games are released
2:17 pm
internationally and we don't see these mass shootings internationally. it is not like this inspires mass shootings and other countries. chris: that is certainly one of their strongest arguments. these games are played all over the world. there are so many kids, 90% of kids play them in the u.s. and elsewhere, and even some of the most basic and seemingly friendly nintendo titles has an element of shooting. that said, you couple the ubiquity of the games and the violent nature of them with guns in the u.s., and that is where you potentially have a problem. it is a combination, and it is interesting to see the private sector response to what happened in florida and what continues to happen in terms of the shootings versus the limitations the government seems to find. we see it with the likes of dick's sporting goods and walmart raising the age of which
2:18 pm
people can buy firearms in their stores. what is the sense from these gamers that perhaps they would at some point be pushed into introducing some kind of age limit for these games? perhaps if investors said, we have to think about this. chris: right now there doesn't seem to be a movement in the industries are. part. they were caught by surprise when the president's press secretary said he wanted to have a meeting with them. it doesn't represent a cutout the of the industry in terms of the major ceos. right now, the videogame industry is not responding with a dramatic change that you see in the sporting goods retailers. julia: perhaps it is a diversion tactic by the government. scarlet: we also have ratings for the video games.
2:19 pm
my son's friends can play games that are rated m, and only play games for their age. is there a desire or urgency within the industry to perhaps build on that ratings system and perhaps look for more enforcement in that way? chris: it is something the industry data under pressure. they weren't required to do so but it has been in place for years now and it mirrors what the movie industry did years before. writing out there doesn't appear to be any additional remedies that the industry is recommending. they are quite opposite. games ontaking the arenas and putting them on twitch and online site and creating contests with in game purchases. it is a booming business and it doesn't appear to be slowing. julia: we will see the results of that meeting and will bring
2:20 pm
it to you. our thanks to chris palmeri. and steps to possibly change the company culture after a challenging 2017. highlights from that interview coming up. this is bloomberg. ♪
2:21 pm
2:22 pm
scarlet: this is bloomberg markets, i am scarlet fu. julia: uber has investors eager to buy its vision, but scandals has cast a shadow over the company. emily chang spoke to megan joyce, regional manager in the night states and canada, and they discussed her experiences working at the company. i have been extraordinarily lucky and have had a remarkable experience at uber. anave been working for incredible woman leading our east coast organization at the
2:23 pm
time and we have men and women who are supportive of people of different backgrounds and styles, and it is a place where i really felt that i could thrive and encourage those around me to thrive. to be honest, it is a place i knew i could come to work every day and make decisions with integrity and fight for what i knew is right. i think the disturbing thing we have all realized over the past year is not everyone in the organization can say the same thing. it has been invigorating in a way to say that this is our mission going forward. i have been deeply involved in ensuring our culture and norms and business practices going forward are once we can all be proud of. i think the exciting thing is we have teams in the company who have shown that we can grow and scale in a way we can be proud of.
2:24 pm
excited the progress we have seen today. >> you were hired by travis kalanick, i am curious how your and if you ared seeing an actual change in the culture at uber as a result of his leadership. meghan: there has been a distinct change in our company, and the mandate from top, and the direction we are going. even strategically, we have acknowledged we need to articulate and told our teams who are accountable to do the right thing every time, even if it is something that is going to cost us a bit more, especially in the short term. balance of power and where the pendulum is and what you are told about priorities. meghan: we need both growth and
2:25 pm
profitability. especially if it is optimizing for the long-term. we need to ensure we are continuing to invest in long-term growth ensuring we are doing it in a sustainable way. i think the challenge of any business leader is to hold those two things on top of mine at the we areme and to ensure helping navigate companies through those trade-offs so we are consistently putting the long-term interest of the company first and ensuring we are setting ourselves up for long-term sustainable success. >> the competitive landscape has also changed and there is data att shows gained writers uber are going through a cultural transition. would you think you have on the competition? are you at all concerned of the threat of lyft? meghan: i think writers and
2:26 pm
drivers have a choice of whether to use uber or not. they can use another platform or drive their own car or choose to walk or some other alternative. at the end of the day, but we find exciting is the opportunity for people to be able to leave their keys at home or not by that second car or the first car to begin with, and consider using options that are more sustainable. scarlet: that was uber's megan joyce speaking to emily chang. cisco up, will speak with cfo and how her take on trump's policies are shaking up the tech sector to what cisco is doing to address gender inequality. ♪ mom you called?
2:27 pm
2:28 pm
2:29 pm
oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. >> it is international women's day and bloomberg has released its rankings of the best female leadership.
2:30 pm
i cover the u.s. economy for bloomberg news washington, d.c.. theednd chop th charts. the states act last were alabama, oklahoma, the, and mississippi to a separate ranking of basic inequality right of women based on categories like pay and education -- vermont placed first while louisiana took the last spot. the rankings were adjusted by the cost of living. i am shelley hagan in washington dc and the follow me on twitter and get the latest updates at tictoc. that is some of our reporting from tictoc that seems
2:31 pm
live on twitter. from new york, this is the markets. earlier in an interview with bloomberg, the saudi energy official should who likes on an ipo. listing, as the aramco london continues to be in contention. theonly thing certain about ipo is that it will happen, and it will happen -- the anchor market will be the exchange and saudi arabia, which is being take theto not only ramp go being listed, but bringing a lot more foreign investment into the saudi capital markets. giving a central role that london plays and come up will continue to play, we believe that brexit -- the relationship
2:32 pm
between these two centers of capital is very important. as far as the second venue of listing for saudi aramco, it will be announced in due course, but the decision has been not made yet. the international listing will be ready to be made, the company has prepared and the government has prepared. --have created the framework the actual timing will be announced when we feel the conditions for the success of in place.ng is are notthose conditions in our control and with to make sure the global capital markets
2:33 pm
are ready. we will make a decision of the listing venues as well. >> is there a chance of a delay into 2019? i cannot comment on that but i will say the objective of the ip has always to optimize value for aramco and its investors, that is the guiding principle we lose. when is the last possible moment you can decide to hit 2018? that we areelieve hitting any deadlines. as far as i am concerned, between december 31 and generate one, is no value los and january 1.
2:34 pm
i do believe there is an artificial deadline. now let's get to first world news with mark crumpton. mark: the head of the african union commission said he considers president trump's slur about african nations to be an incident in the past. tillerson was question during a news conference in ethiopia about the president's derogatory description of the countries in africa. he said it is in the past and tillerson's visit is evident that a close relationship of the nations. whether africa deserves an apology -- and former trump campaign manager met today with the house intelligence committee for the second time. the closed-door session as part of an ongoing investigation about possible links between russia and the trump campaign. in his first interview with the
2:35 pm
panel, refused to answer es during about advance the election. he would still have been in close touch with the president and white house officials. the british government says it will punish whoever is responsible for what they call a brazen and reckless attack of a former russian spy. saidouse of commons resources are being used to determine who poisoned sergei and his daughter, and the two were found unconscious on a public bench on sunday and were both hospitalized and crichlow condition. condition.cal women in spain demonstrated in the 24 hour strike, when he attention to the widening pay gap between men and women as well as gender violence. the spanish government says it respects the decision to strike
2:36 pm
although they have refrained from supporting it openly. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. thank you mark. the president said he will make an announcement on tariffs and the next hour, and for companies there is concern he would unleash a trade work that would benefits of the tax overhaul. ien i look at the bloomberg, ceases go gets half revenue and profits from overseas markets. what is your concern if the u.s. tariffs on steel and aluminum on china and other countries would retaliate and target your technology industry? kelly: i think we are experiencing a very strong period of economic growth not just in the u.s., but europe and asia as well.
2:37 pm
i think it is fantastic what the decision has done of getting the tax reform passed because it is having a big impact for the entire u.s. and global economy. what businesses like is certainty, so whenever there is uncertainty about trade -- we are a global business with a global customer base. any kind there is a threat of a trade war, we don't like that. i hope as we work through this that we don't get into that situation because it would have an application to global companies like ourselves. if you directly contacted the administration to point out the dangers of the announcement following through? haven't personally spoken to the administration but we have a strong group in washington dc. companies and do think the administration listens to global business.
2:38 pm
as they work through that, i am sure they are listening to companies like us. scarlet: one think the administration has listen to is that a text that will help immensely, and you talked about the tax overhaul and how it helped cisco boost stock buybacks. my question to you and companies method, white is it this of returning cash, through buybacks? kelly: it is not one way or the other, we have been consistent about our capital allocation program and we are using the cash by repatriating it by taking out that. -- werategy has been generate cash and invest business in the long-term to drive that cash. we use the cash to acquire companies. we are extremely inquisitive and we have done two or three acquisitions and we are supporting dividends since we started. we have 3% dividend yield and we increase that with our earnings growth. the only part we haven't been
2:39 pm
able to lever up or down is our buyback. said that once tech-support comes and we can repatriate cash, we can get more aggressive. we make the balance -- we are investing for the long-term and invested $6 billion in r&d, and we make those trade-offs. julia: that is a great point, how you decide what the split is in investing in business. yet been active in acquisitions, versus, pushing out with buybacks or dividends, as he talked about. e best split? kelly: the most important thing to do is reinvesting in innovation and positioning ourselves for the long-term to be competitive and growing through profitable growth. that is our number one initiative. we did that through
2:40 pm
acquisitions, r&d, and that is what we drive for. the benefit from having strong cash flows, we only spent a capex -- soars on it is a balance of all. we are focused on driving innovation and driving the long-term growth of the company. has comesilicon valley under pressure of not doing enough to push women in the prominent positions and not disclosing data on how many women are in the senior ranks or throughout the organization. what is cisco doing on that front to make sure there is more attention paid to this? kelly: it is a very big problem in silicon valley. we do share the numbers of women in engineering and we take this seriously and start on top. if i look at the board of directors, 40% are women. look to our management
2:41 pm
staff come up with 40% women there, we start on top and we spent our time focused, not only on how we run the business but how we improve our metrics and how we drive diversity. our board pushes us hard, and we think about our metrics and the products we are making just as we talk about moving forward. with leadership in the top 400 company, and we are going to go through what we are doing in diversity and how we actually rated. , and is a long way to go web great leaders in the business were bringing women along with them and developing and women in our ranks to build that future leadership team. you were at ge for 20 years prior to cisco, and you there,e cfo of business and measurement is renowned around the world and what that creates about future potential leaders. factors do you think other
2:42 pm
companies need to look at as a model to adopt, even today? i absolutely believe in that and i spent a huge chunk of my career there and benefited from the program. ge believes and development and the reason i am where i am is because ge expos me too long cycle and long cycle businesses in different parts of the world. combination of business experience combined with constant development through the classroom experience does generate. great leaders that is why when you look at a lot of companies there is a lot of ex-ge employees. it is important to build the skills in your carrier to position those leaders in the future. should programs be aimed and targeted at women to make up for the lost ground that we have seen so far? kelly: i will tell you -- both
2:43 pm
at my prior company and at cisco -- both companies do a great job of bringing in women in the training programs at the same rate as the man. i can tell you the programs we have at cisco, i have a finance relevant program that closely aligns with what i went through at ge. is over 50% females, and again, it is continuing to develop their skills such as they progress through their careers and progress with their families. we make sure they get the skills and development they need and people grow and have families and we make sure we adjust to that. i did that in my career and companies can do that. yet to keep making sure you are watching and developing and having the right roles and putting people in the right positions to take on the roles they want to take on the next. julia: kelly kramer, thank you so much for joining us. from new york, this is
2:44 pm
bloomberg. ♪
2:45 pm
2:46 pm
julia: we have breaking news crossing the bloomberg, and president trump says tariffs will take effect in 15 days and mexico and canada will be exempted indefinitely from those tariffs. applied iffs want the net the negotiations fail, but perhaps they will come up it will bring you further headlines, and will get a form of exhibit of order signed today and those tariffs will take effect in 15 days. scarlet: will take you there live when the president speaks at 3:30 p.m. and now the stock of the hour, abigail, what are we looking at? has been so much
2:47 pm
volatility, and we are looking at the health care sector, earlier the top sector in the s&p, and it is higher up for a second day, half a percent. what attracted us today, the dealnews of cigna -- see the pharmaceutical benefits manager is up at 8% on the announcement that cigna is buying them for $54 billion. we see so much consolidation of the health care space and this is another piece of it, and what impetus is that they have lost the biggest find, and then, in 2019. a lot of consolidation in the space, and the pressure of amazon on the horizon. -- shares up over the last two days, we see a rise here, and recently the fda did ok the companies equivalent of
2:48 pm
shares -- in the stock of the hour, that's a gap shares of the pharmaceutical giant that is up at 1.8%. also up a second day in a row and the peers that this pharmaceutical giant had a positive investor day -- analysts saying that shares continue to work to outperform the company's solid nickel performance, plus they have a solid dividend yield of three three percent. scarlet: given the health care space -- is it likely to happen here? abigail: there is tons of
2:49 pm
speculation we could see some but it deal for abbvie, seems less likely. if we hopped into the bloomberg, we are going to see one reason there is speculation. these are all their drugs, but their big one, that anti-inflammatory drug -- we see it is a huge amount of their revenue for the company. they needsts thought to make some sort of acquisition to balance that, but they are saying it doesn't come into patent until 2023, and christopher raymond is saying they are not too happy to do a deal anytime soon and he is happy to not write a note that bioject will be bought. but they are doing quite well. julia: thanks so much, abigail.
2:50 pm
regarding the tariff announcement, the president is expected to talk at the 30 p.m. eastern time. time.0 p.m. eastern canada and mexico is expected to and nafta negotiations continue with the hopes that negotiations conclude positively. let's get more context with michael mckee. mike, your views? >> the president has been lobbied heavily not just by business people, but the steelworkers union because the steelworkers union represents the steelworkers and canada. and by canadian and mexican officials. biggest steel importer -- 16% roughly of our still from canada, and 70% of the still we use as per this in the united states.
2:51 pm
mexico is about 9%, so they are two of the top for importers, and it is a significant concession to them to leave them out of these tariffs, if that is indeed what the white house is doing. let's pull up the dollar mexico and canada to give a sense of where we are moving. the mexican peso relative to the u.s. dollar, you have to look at the performance of both of these currencies over the last month to get a sense of what the -- gyrationsoes expected. scarlet: it shows the president can be flexible with the tariffs them at 3:30pose p.m. the president noted a trade surplus with australia -- and he called australia a long-term partner. do we expect an exemption from them? argument the
2:52 pm
president is making is that this is a national security issue. the argument of the australians, germans, canadians, and mexicans have made his we are on your side. the australians are worried about that and they are isolated by steelted overcapacity in asia but there is no word if they will be. julia: let's talk about the chinese as well, got stern comments saying there will be a response from the chinese and that this is ultimately unacceptable. if you start exempting the canadians and mexicans come the u.k. was another one with the skill union president saying they should be exempt. you are making it clear who you are tackling. is clear who the are trying to take on, but you don't take on china at all. -- of our steel imports
2:53 pm
china's steel production, 94% of their steel production is already covered by u.s. tariffs. 96% of aluminum production is, so this is it going to hit them at all. what the white house would like to do is have the world turn on china and say, cut your overproduction. but if they are putting tariffs around the rest of the world, that is what be difficult to do to get them to get along. scarlet: michael, thank you for that much-needed context. the president will be speaking at 3:30 p.m. on this. this is bloomberg. ♪
2:54 pm
2:55 pm
julia: this is bloomberg markets. scarlet: want to recap the headlines that crossed over moments ago, the president's tariffs will take effect in 15 is expected to
2:56 pm
get a new nafta agreement out of this, and countries can't negotiate exclusions on tariffs, so that applies to other countries as well. julia: and just in terms of market reaction, we can see the mexican peso is stronger by 6/10 of 1% wrote to the u.s. dollar. we heard sarah huckabee hunting at a solution, and i think the getet has mourned come and to be cautious where this president is concerned and possible reaction. the press conference is at 3:30 p.m.. from new york, this is bloomberg. ♪
2:57 pm
2:58 pm
2:59 pm
julia: it is 3:00 in new york and 8:00 in london. scarlet: welcome to bloomberg markets. watch.re on terror of
3:00 pm
-- tariff watch. tariffs will take affect in 15 days. mexico and canada will be exempted indefinitely. president trump spoke and brought up a bit of history. dnieperoing to bring in live at the white house. last week, what are we expecting more? is going to be when the president decides to sign these tariffs into law. going back to the campaign a morehe put them into realistic environment starting from last week. aluminum.
3:01 pm
now we are hearing the president canadaempt mexico and for the time being as part of the negotiations with nafta. be freend canada will from these tariffs for now if they can come to an agreement on nafta. gon they would quell on a -- on a quota system and if not they would be hit by these tariffs. mexico and canada for now going to be safe. as aresident using this way to negotiate out of these tariffs through concessions they can make to the u.s.. the president is going to sign these tariffs into law, 15 days before they affect various countries to negotiate with the u.s. and get these tariffs taken off. it is not clear whether they would do that or try to retaliate. scarlet: we are seeing reaction in markets with theex peso
3:02 pm
strengthening in response to this, the canadian dollar getting stronger as well. we will get a formal declaration of this in 30 minutes. peter navarro mentioned a quota system. explain what that means. but lot of this is in flux based on what peter navarro said yesterday the white house is looking at a system where countries will get hit with tariffs or they will be restricted under a quota system. mexico andcanada and other countries that are able to negotiate out of tariffs might be hit with quotas, there would be a cap on the amount of steel and aluminum they can import. it is usually based on historical trends. that is what mr. navarro was saying when he was trying to explain to us how this was going
3:03 pm
to work. countries with the under a tariff or would be able to negotiate with the u.s. and end up with a quota. it is not clear if they will be able to negotiate out of this and have completely free trade. the white house is looking to crack down on steel imports. >> that is an evolution. we are going to a form of quota system. negotiations are on board with that concept. these of the other guys that are against this idea. europeans of their into threatened toave retaliate .
3:04 pm
>> that was the idea. the president would sign this proclamation and other countries would have an opportunity to offer the u.s. some concessions and be able to get out from under these tariffs. those european countries will do that. we're hearing retaliation. that's at the eu and other allies that might slap onto products being exported from the u.s.. it is not clear how those negotiations might go but the white house and president is trying to offer an offramp and instead of retaliating they should come to the table, and be able to come out from under these tariffs. it is not yet clear what they are going to do. the white house believes they have a strong hand with the they have with
3:05 pm
many countries. i like the way you put that. julia: it is going to be a busy 15 days. scarlet: all those negotiators now have to get cracking on this . we are one hour from the close of trading. we were talking about how the mexican peso strengthened on the back of these headlines. we are also looking at u.s. stocks getting a lift. >> they are all higher after the s&p 500 had small gains and losses. the nasdaq higher all day. the fifth day in a row since the middle of february. influenced by a possible trade war or those tariffs. it has been a day of intraday volatility.
3:06 pm
be a meetingg to around tariffs. then trading lower midday. president trump said he promised the meeting would be very big. the news came out that we would in fact have tariffs signed. headlines, the tariffs will be stated in 15 days, canada and mexico will be excluded indefinitely. becauseld of course be that is a big influence for the steel relative to canada and mexico. plus the flexibility we are seeing to some degree. where we are not seeing flexibility, some of these steel stocks. on the news it seems investors are in fact selling these names, we are seeing interesting
3:07 pm
strength related to this -- the industrial names have been down for several days in a row. they are trading higher along with monster beverage. we are seeing a little bit of a rally.intuitive those industrial names are two that would be hit the most. let's take a look at a ten-day intraday chart. move, not suggesting it is a risk off environment considering we have stocks higher into the big trade, .ariff signing >> exemptions flying.
3:08 pm
mark: as we have been mentioning president trump is expected to sign the section 232 proclamations which would officially impose tariffs on steel and aluminum imports. the president defended the move saying it is far from unprecedented. >> from lincoln to mckinley and others, they protected our country from outside influence. stealing our jobs, stealing our companies, we are going to be very fair and flexible. but we are going to protect the american worker. mark: the associated press reported the president has stated the tariffs will take effect in 15 days and canada and mexico will be exempted indefinitely. stay with bloomberg for live coverage.
3:09 pm
three weeks after the parkland high school student shooting rick scott is debating whether he will sign a bill that fall short of what he and the shooting survivors demanded. governor scott would not say if he will sign the legislation. family members said they have been asked to meet with him before he makes a decision. it would raise the minimum age to i rifles from 18 to 21 and on thea waiting period sale of weapons. there is evidence that investing in women is the most effective way to lift communities, companies and countries. his comments came as marches were held to mark international women's day.
3:10 pm
>> world with a male dominated culture, if you have power that is fairly shared -- the world remain out of balance. violence against women harm us all. >> the australian foreign affairs ministry noted no nation can reach its potential unless it fully engages with energy of population that is female. --el news 24 hours a day globe newspaper hours a day. this is bloomberg. we want to take you to atlanta, georgia where we have live pictures of paul ryan at a town hall at home depot's headquarters. some of the headlines, there has
3:11 pm
a had a better way than tariffs. he says mostly china is responsible. he has said perhaps the administration could take a more surgical approach to tariffs to correct trade imbalances. townryan, addressing a hall in atlanta. you can watch his town hall and many other events using the function tv . this is bloomberg. ♪
3:12 pm
3:13 pm
julia: this is bloomberg markets. scarlet: time now for the bloomberg business flash. amazon expanding same day delivery two more states.
3:14 pm
presidenty's vice explains how services are absorbed in an exclusive interview. to our delivery is expected to think about cost we are efficiency. knowing where our customers are helps a lot. a lot of the out the rhythms. we are great at bringing stuff to customers. tohave a lot of advantages do well in this space. >> disney shareholders expressing their displeasure with the executive pay plan to read than half of investors voted against the non-biding delivered even more money to bob iger.
3:15 pm
president trump may have an ally in elon musk when it comes to protections. ill and must would his response to an earlier post saying do you think the u.s. and china should have equal and fair rules for cars? he noted china charges 25% import duties on cars compared to america celebrity of two and a half percent. that is your business flash update. >> targeted. interesting. scarlet: that is what people say they could have more surgical approaches. >> absolutely. we zoom in on m&a with analysis on current activity. to acquire agreed express scripts. it is the latest in a string of health care deals. joining us now, brooke
3:16 pm
sutherland. i was running out of paper listing why they want to do this deal, whether it is the fda short-sellers, corporate complaining, everyone at them. why cigna? a question. i don't think this is who people thought was going to buy them. there was some speculation may be amazon might want to buy express scripts. i don't see amazon getting any bidding war. we will have to wait and see. they are looking at the cvs deal. they're looking at united health and how the strategies are emerging. in a deal to sell itself to anthem. this seems to be the path it is going. diversification. you mentioned united health investing its own pharmacy
3:17 pm
benefits for a number of years. where is it at? >> it has been hugely successful. they have proven this is not just an opportunity for new revenue it is a cost advantage as far as insurance. they have been diversifying in other areas. i think that is where you might see these other players move. it is ahead and everyone else is playing catch-up. julia: what about a counter bid? who else is going to come in here and go maybe i should look ?t express scripts >> it put others in a tough position. -- it is not nearly as big. and some really doesn't have anything. customers,r largest they said they are went to drop that and start their round but it is nascent.
3:18 pm
no real clarity as far as what direction it will take. involved here get but it is a full fair price. you risk overpaying. do you think that was a negotiating tactic? >> of course. they said they were furious they were overcharging. prices you renegotiate or we are going to walk. eventually they did walk. now they are in a tough spot. >> talk about what this means for consumers. express sense for scripts and cigna. do consumers see lower prices as a result of this acquisition and others? >> that is the idea. ,harmacy benefit managers consumers end up paying ever
3:19 pm
higher costs. if you can bring this in with an insurer you cut costs elsewhere in find the synergies you can start passing on. goal with that was a medicines like cancer drugs or other complex medicines that tend to be expenses -- expensive. julia: they say we give these guys the rebates they simply don't pass it on. scarlet: now they cannot make the excuse. what about regulators? >> it is going to be interesting. they are not yet approved. typically u.s. regulators tend to only focus on specific areas of overlap. they have increasingly started to look at vertical integration. theseas a signal that ideas you thought were going to be ok are not necessarily going to be. it is confident and
3:20 pm
regulatory approval. >> $67 billion deal when you include debt. thank you. nafta.up, a lifeline for candida and mexico are exempt from the presidents tariffs. we go live to washington dc, next. from new york, this is bloomberg. ♪
3:21 pm
3:22 pm
julia: this is bloomberg markets. scarlet: we want to recap breaking news from the last hour. the president's tariffs on steel and aluminum imports, mexico and canada are exempted indefinitely from the tariffs. be ap says countries can excluded.
3:23 pm
talk a little bit here about what this means for mexico and canada. the president has linking these tariffs to nafta negotiations. the last round broke earlier this week. ,> excluding canada and mexico the associated press has ported a significant softening for both of these countries. supplier and top the biggest buyer of american steel. detangling this is that the ap might have a indefinite exemption that would take pressure off the nafta talks and the opportunity to say you are playing fair with us. julia: that is interesting.
3:24 pm
indefinitely and leveraging. you say these tariffs won't apply to nafta. it would be a real softening. >> exactly. i'm only going by the exemptions -- but trump is expected to sign these at 3:30 today. will there be exemptions? we have great allies like going to bend he is flexible. we are going to have to see what that flexibility means when we get the actual orders. aboutt: talk a little bit what it means to use a quota system as opposed to tariffs. he spoke with peter navarro that that a quota system
3:25 pm
might work better. compare and contrast those approaches. found it gave to a range of options. one of them was a quota system. it would be based on the import level for each country from last year. that was the recommendation. those imports could come in duty free. that is of the range of options trump was considering. be the leastuld worst of a couple of limits that could be put on countries. it might only affect a small proportion of their imports should they see an increase pass the levels of what was put in place. julia: if you start to exempt mexico and canada, we have talked about the u.k., you do
3:26 pm
start to get more and more focused on china. what were spots do you think the united states is expecting? >> exactly. the president said he wants to hit the trade deficit with china and looking for ways. there is no way to do that because china impacts a sliver of the imports of steel and aluminum. the question is whether that will help achieve the goal. from threat to reality is the trump due to sign those tariffs any moment. we will bring you that live. this is bloomberg. ♪
3:27 pm
3:28 pm
3:29 pm
mark: at the white house today gary cohn took part in his final cabinet meeting. president trump took the opportunity to fun on his -- to
3:30 pm
poke fun. >> he has been terrific. he may be a globalist but i still like him. he is seriously a globalist. in his own way he is a nationalist because he loves our country. mark: one point of contention was the steel and aluminum tariffs. the president is expected to make those tariffs official moments from now. you can see it live on bloomberg television. paul manafort has denied federal felony charges once again. he entered a not guilty plea in federal court where he faces bank fraud and tax fraud charges. he will face a trial in virginia in july and another in a washington case in september. the house intelligence committee

12 Views

info Stream Only

Uploaded by TV Archive on