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tv   Bloomberg Markets Americas  Bloomberg  May 23, 2018 1:30pm-2:00pm EDT

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account are a public forum and that blocking users on the basis of political speech is a violation of their free speech rights. appraised and it -- approved a new policy aimed at addressing the controversy over national anthem protest preventing players to stay in the locker room during the star-spangled banner. but requiring them to stand if they come to the field. the commissioner announced violations of the new policy would result in fines against teams and not players who were not part of the discussions with the owners at the lead -- at the meeting in atlanta. secretary of state mike pompeo says the trump administration will not tolerate russian interference in the 2018 midterm congressional elections, but members of the house foreign affairs committee today sought -- sought insurance is that the white house takes the issue seriously. >> has the administration done enough to deter encountering russian interference in our next election which is only six months away? >> there is more work to do. we have not been able to achieve
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deterrence of some of these efforts of the russians. but this administration has taken enormous efforts to push back against russia but have not been done in a long time. either here in the ninth states or frankly, from our partners who are more threatened by russia. mark: with that is without elaborating, he said appropriate countermeasures are being taken in response to what he calls the continued russian efforts. china is pledging to work with washington to resolve a growing trade dispute ahead of a visit by commerce secretary wilbur ross. china says it welcomes imports of american products and is promising to buy more american farm goods and energy. secretary ross plans to travel to beijing early next month. global news, 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪
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shery: i'm shery ahn. amanda: i'm amanda lang. welcome to "bloomberg markets." we are joined by our bloomberg audiences. there is still life and the lira. the currency reverses earlier losses after the country's central bank raises its tough interest rates. amanda: tackling gender inequality in the workforce, breanna -- arianna huffington says we have a long way to go to go. we hear from her this hour. we have learned in the past hour that italy's president has asked [indiscernible] we will get more details on that. let's get it check of the major averages. u.s. stocks taking a hit.
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we are seeing more pessimism over the potential agreement between china and the u.s. on trade and also over the fate of the june 12 u.s.-north korea summit. the s&p 500 being led lower by financials and materials. we are also looking ahead to the federal reserve releasing their minutes of their latest meeting at 2:00 p.m. the secondn for consecutive session by fight -- by .5%. amanda: you mentioned italy. i am looking at concerns about the euro. specifically, you can access your gtv gosing function. inside your terminal, for the first time since last november, the put options on the euro cost more than the calls. it has been seen as concern of turmoil in italy. interesting to see whether this turns around. country's turkey, the central bank is raising its top rate to 16.5%.
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that will slow down the selloff in the lira. last week, the president of turkey told guy johnson he will be more involved in monetary policy. >> you will play a role in monetary policy going forward? is that the big change? >> yes. this may make some uncomfortable, but we have to do it. rulede it is those that the state, who are accountable to the citizens. with insight on how turkey is affecting global markets, our reporter is here from london. it makes some uncomfortable might be an understatement given what we have seen in reaction to what is your take on what happens now is the bank released the statement today? >> obviously, toronto -- 300 basis points is a shock. by 75 basisrates points, the back end of last month. the lira had a brief gain on
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that. lost 20% versus the dollar in the course of may. this move is clearly going to stop today's losses, which were 5%. that they pulled back. we are waiting until tomorrow when our to one speaks -- when president heard one speaks and dogan makest hear er his speech. guy johnson's interview highlighted it was a risk that the post-june 24, when he becomes president again, with much more power this time that he will get heavily involved in everything. some bad --say to say some bad things tomorrow or scare the market, it could unwind any gains we have seen for the lira on this rate hike and make the rate hike potentially not worth much. from gtv go on the
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bloomberg library, our subscribers can see that the lira has's and seen the largest slide since 2008. to turkey'se central bank raised their rates on april 25, the recovery on the lira was pretty fleeting. can we expect this move to last? this is awould expect much more serious move. it is what the market has been calling for. a rate hike alone is not enough. erdogan has to maintain distance. they have to maintain their level of independence which was always slightly in question. it has heaven -- have it has heavily been in question since his comments. lots of throwaways. that will stoke inflation. the whole reason white it needs to rises -- why it needs to rise is because inflation is high.
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it really hits an open economy like turkey which has lots of imports, heavy reliance on oil, and heavy reliance on foreign currency. the weak currency and high oil make the situation and economically very bad and erdogan needs to make sure you fleeting the central bank to do what it needs to do. only then will this big rate hike have teeth. marcus ashworth, thank you for joining us today. as i mentioned earlier, italy's president has asked to form a government. our reporter joining us from rome. thought there were doubts on his leadership with questions raised over his experience. does this mean that he is now set to become premier and that we could see a government very soon? >> that's right. the doubts have been dissipated because the president wanted to
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check first with the five start used and -- movement. learned a short while ago that the meeting ended between them. cante has been given a mandate to form a government. cante has come up saying he will seek to a moment the government program. he was awarethat of the need to reaffirm italy's place in europe. which is an ambiguous phrase. it could mean he is reaffirming italy's commitment to the eu, but it could also be taken as he has toat he thinks play a stronger role in the eu and possibly challenging eu principles as called for in the public -- in the row graham. amanda: now that we know who will form the government, there
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is some uncertainty about what it will mean practically. there have been a lot of questions about the turmoil this will create or for viewers who are not familiar, what are some of the suggested policies that we know from these anti-establishment far right leaning parties? john: they are concerned about the -- there are concerns about the programs and the position in the government. the concerns about the program are the spending spree, the fiscal rules, and also, , and asg to a review far as content is confirmed, josh concerned, he is a professor who has no political experience who might be the prime minister where he might find the two leaders of the party sitting with him at the cabinet table. how much will a top -- how much autonomy will he have? how much will they be trying to condition his every move? amanda: thanks so much. up, despite some big
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movements incorporate gender equality, arrieta huffington says we are nowhere where we should be. my interview with the ceo, arianna huffington is next. this is bloomberg. ♪
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♪ amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. women in the workplace, marilyn houston speaks with the david rubenstein for the new episode conversations. they discuss her rise in the company as a woman to -- and a traditionally male-dominated history. >> where you often the only woman in the room at lockheed? >> i was. >> was at intimidating or was it
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a thing where you said, i can show them i am better than them? >> i think it is like any team you come into the you have to establish your credibility. recognizing that i was a different gender. i was different in that sense. after that, once you are contributing and part of the team, it was no longer a factor, for me, into my career. what i will to you that is positive is that today, 22% of our leaders are women. 24%, 25% in the workforce is women. the pipeline of women and it is not only there's only one woman in the room. we have many women in the room. we have a come -- we have come a long way. amanda: lockheed martin, i recently spoke with arianna huffington. she is inactive is too signed an open letter to world leaders this year urging them to address issues of an equity for women to
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when we talked, i began on what motivated her to join that letter. arianna: i think it is incredibly important to realize in despite all the emphasis debates and the media on how achieving education for all girls around the world, we are now -- nowhere near where we need to be. either in the developing world where millions of girls are still denied education, or here in the states and in other where we countries still don't have all the women we need to have on board, in conference suites, etc. together tomen came pen this letter asking for change. one of the things we did is we called poverty sexist. poverty, even, affects women and
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men differently. amanda: what would you like world leaders to do? we are right in the united states should there be laws and policies around diversity and inclusion that are not there today? arianna: right now, we are at the moment where corporations are actually changing their own culture. there is a huge prioritization of diverse and inclusion over the last year. i think what people are realizing is that diversion and inclusion are not just nice to have, they are not just the icing on the cake, they affect the entire culture. we are beginning to recognize that. acompany's culture is company's immune system. when it is not healthy, when it is not diverse, when it is not inclusive, it ultimately affects the bottom line. amanda: one company you influenced directly, uber, has a disproportionate showing of men in the tech jobs. a problem across the spectrum
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and it comes to technology jobs. what is your messaging internally at uber? a lot ofinternally, changes have been made at uber, including most recently, last week, uber was the first company to allow victims of sexual assault and sexual harassment to be able to go to court rather than into forced arbitration and speak about their experiences instead of being forced to keep everything confidential. time, but is very unprecedented, uber announced it will be very transparent and around sexual assault and sexual harassment. it will make a huge difference in the transportation industry. followed suit. message ofceo
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prioritizing safety, as well as prioritizing diversity and inclusion. amanda: is there also new pressure from the board to turn over's -- uber's focus to profitability? arianna: no, there is no pressure on that at all. the board has confidence in that and the timeline here set out ipothe company to have an and for the company to continue growing. i think uber has been an amazing hypergrowth story. and we are committed to continuing growth both globally, and growth in terms of new innovation and autonomous vehicles, etc. amanda: can you give me your perspective on the atmosphere globally, doing business from america, given trade protectionism, given some of the rhetoric on the geopolitical side? is it getting more difficult? arianna: yes, it is definitely
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getting more difficult. i think we have a white house conductsdent that policy through tweets. and the messages keep changing. whole approach to china has changed. it started with being very aboutntational and talk terrorist. now it is changing and the president is worrying about jobs in china. this is definitely a pretty unprecedented moment in american politics, that we are all trying to deal with. newse same time, the good has led to an incredible amount of activism. more young people are registering to vote. galvanized votes by what is happening in washington and what is happening in our schools with the latest tragedies of gun
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violence and deaths. when forces have been unleashed. both forbade, but also for good. exciting as aarly mother of two millennial daughters to see millennials finally being galvanized. that is thrive global ceo arianna huffington. shery: it is time for the bloomberg business flash. a look at the biggest stories in the news. bill ackman has reportedly built a $1 billion stake in lowe's. ackman fully supports incoming ceo who is leaving jcpenney. chaincond largest reported first-quarter earnings that missed estimates. comcast confirms it may make a cash offer for the businesses they agreed to sell to disney
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your disney has made a stock offer for the assets that values at about $33 billion. comcast says its offer would be larger. the assets do not include fox news channel, fox business channel, fox broadcasting, and other properties. that is your business flash update. coming up, the fomc minutes will be released shedding some light on the fed. we will tell you what to focus on. this is bloomberg. ♪ rg. ♪
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♪ amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. the fed is set to release minutes from its policy meeting at the top of the hour. what are the key items you should be on the lookout for? let's ask carl riccadonna, chief u.s. economics. i'm curious about the word
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symmetrical when it comes to their inflation link which. why did they have to add that? carl: it is interesting how the fed adopted the inflation language in the last meeting statement. i think this is giving us a clue as to what the discussion behind the scenes will look like that we will see in the minutes. toy are getting close finally hitting their inflation target of 2%, according to the pce deflator. the headline deflator got there ahead of the last meeting. the fed did not declare mission accomplished. the core metric did not get there just yet. to doing less than they could have with the inflation characterization, they also have been beating the drum pretty loudly on this symmetric inflation target. they are reminding us that the fed is not going to change its stripes once we get to 2% inflation. rather, in light of the fact that they have undershot that target for about eight years running, they are willing to
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tolerate some degree of overshoot. that is going to be the key focal point in the minutes. really trying to better understand how much they are willing to tolerate in terms of overshoot and for what the length of time. that is something they have been somewhat vague on and we could get clues in a bit. amanda: it is interesting, this is not a unique to the u.s. central bank story. central bankers in many countries struggling with the fact that they set these targets. canada central banker saying we know we are at 2%, i don't want to be asked why am not raising rates. it is kind of a reeducation of how much inflation is ok. do you expect to see in the minutes some of these concerns about any inflation being bad? carl: i think they are willing to tolerate a low and stable pace of inflation. i don't knoww -- if that will be a major focal point, but that is something they have been emphasizing for the last several years. low, thenon is too
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the distance -- that disincentivizes allocation in the economy. if inflation is low enough or even in deflationary territory, you can simply stuff your savings under the mattress. that does not really serve an economic good. a low stable pace of inflation forces people to take greater risks with their investments and that helps to propel economic growth. too much is destabilizing. the sweet spot for the u.s. seems to be around 2%. shery: right now, we are already seeing the 10 year yield above 3%. how does this compare to the rise we saw after the 2013 tantrum and whether or not the economy can handle this? carl: it's a different environment. the move in the 10 year yield is about half as much as what we saw during the taper tantrum. furthermore, the economy is on much stronger footing in the current environment compared to where we were in that time
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period. the economy can take this in stride. this is a signal in the development of a fed that is not changing course, sticking to that pace of 3-4 rate hikes per year. even though the economy is improving. that is being reflected in the marketplace. shery: always great having you with us. carl riccadonna, chief u.s. economist for bloomberg economics. friday, the feds day and mark carney are among the speakers at the 350th anniversary conference. we will have live coverage starting at 9:00 a.m. new york time. amanda: you can catch all of our interviews on the bloomberg with the function tv . there is one now. this is bloomberg. ♪
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>> this is the "bloomberg markets." in a minute the fed will be releasing minutes from the policy meetings. as we wait on that,
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looking at in equity market that is mixed. lower to mixed, s&p 500 off by 3/10 of a percent. 2.57% on the two-year. julia: did we do have the fed minutes. scarlet: the bright red headlines that we publish say modest inflation overshoot could be helpful, most officials saw the next rate hike appropriate soon. inflation, on overshoot could be helpful. could behold full. -- be helpful. so presumably soon would be at the next fed meeting. julia: some officials saying for guidance provision appropriate soon, so at what point will we see recognition of monetary tightening. going

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