tv Bloomberg Markets Americas Bloomberg June 28, 2018 1:30pm-2:00pm EDT
president thinks we would be confirmed easily by the senate, but the president has expressed concern about keeping his senate seat in republican hands. the 81-year-old kennedy announced his retirement yesterday. u.n. ambassador nikki haley told members of the observer research foundation, an indian think tank, that like india, the u.s. wants to have a productive relationship with china. >> but unlike india, china does not share our commitment to democracy, the rule of law, and fundamental freedoms. this makes china's expansion of investment into the region a matter of concern for many of us. ambassador haley also mentioned pakistan, saying the country has been cooperating with the united dates, but that officials there told washington they will not tolerate pakistan
giving a safe haven to terrorists. german chancellor angela merkel is defending her decision to keep germany's borders open during the 2015 refugee crisis. speaking to the german parliament today, the chancellor said her country provided help in what she calls "an exceptional situation." critics accuse merkel of endangering european security with her welcoming approach to migrants. aviv hasn tel convicted an israeli-jewish man of making a string of bomb threats targeting jewish community centers in the united eighth -- united states. the court did not name the man, because he was 18 when he allegedly committed the crimes. he is considered a hacker who holds dual israeli and american citizenship. he used technology to mask the origin of his call that communications to synagogues and public venues.
global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. ♪ from bloomberg world headquarters in new york, i'm shery ahn. amanda: and i'm amanda lang. here are the top stories we are following from around the world. largestat the world's hedge fund. ray dalio is reportedly stepping back from bridgewater associates. we speak to him in 30 minutes. a hard-hit to union workers. late of mark janus joins us to discuss the supreme court's ruling that government employees have a constitutional right not union fees. pay
plus, my exclusive interview with troy terry on the company's big reorganization plans. that is all ahead. let's get a quick check on the major averages today. we have the moving higher, but not with much conviction on the day today. both tech and telecom as leaders in the broader market, industrials lagging. ups datingge, fedex, in a big way to the downside, and walgreens is a massive decline or that is pressuring the s&p 500. that, of course, that amazon is getting into the pharma care distribution space. oil is moving higher today, but energy stocks are not following student. -- suit. shery: not a lot of conviction in the u.s., but in emerging markets, a lot of conviction to the downside. stocks and currencies are now falling for the fourth consecutive session. we are seeing e.m.'s docs now sinking to the lowest level in currencieshile em ane india's rupee touching
all-time low. that coming as china's yuan underperforming for an 11th session. and breaking news, as amanda was telling us, billionaire investor ray dalio is taking a step back from bridgewater associates. we will speak with him and about half an hour. until then, let's bring in kathy burton. kathy, we are hearing that dalio is telling clients they could go towards a partnership model. what could that look like? hase: this is something ray been working on for the past 10 years. he is stepping away slowly from the business, and there has been a few hiccups along the way. they brought in some people from the outside that did not work out, people internally have changed roles. this is the next step in that, and overtime he has been giving people more ownership in the company, the senior executives, so that will probably boost to that. expect that six
when we interview him shortly he will tell us that -- -- considered to be the people with the highest standing in the firm are the ones that really get to make the decisions. since ray has the highest standing, he is the one who has been able to control the decision-making. down inhe executives go their tenure, they have less and less control. i think he is going to boost their standing and reduce his. kathy: so this evolution, , will be compared to others, including goldman sachs, which ultimately led to an ipo. is that an expectation in their
plan, that this could end up in the public market? kathy: not really. they have sold stakes to institutions in the past, but i do not think they have any lands to go public at all. amanda: is -- shery: is that because they already have the cash that they need or they have brought in and outside investors to they do not have to raise any more money? kathy: that is correct. they do not need to raise any more money, and they raised so much money and generate so much cash it is not really an issue. amanda: do we think there will be a change in the investment style or process on the other side of this? as you say, this has been a period of years this has been coming, but this feels like a more official stepping back and inviting people to the table. what do you think will change? think anything will really change. i think they have a very set way in which they manage money and a lot of it has been computerized, and i do not see they will change any of that. it has been fairly successful.
so in terms of implications for investments they might make or directions they might take, there is no internal dispute that will be resolved differently? kathy: no, i don't think so. amanda: kathy burton, thanks to you. ray dalio will be on bloomberg television at the top of the hour, 2:00 p.m. new york time. that was the a live interview ideasrik schatzker at the festival. free up $5 billion in capital and find some savings before 2022. i spoke with ceo roy gori about what is on the table. the reality is we have about 50% of our business that is tied up in reg is the -- legacy businesses. this has not been a big focus for us historically, and now, with leadership in that base,
who will run these businesses, we have to be much more deliberate about delivering better returns and making sure that we are putting out capital -- putting our capital to the best use. our goal was to free up $5 billion worth of capital, and at the same time we need to be focused on in spaces -- expenses. our goal there is to improve efficiency quite significantly and drive the way we operate. amanda: it was not too long before the spinoff of hancock was being discussed. is that still on the table or did rising rates change the picture of it? roy: we are still committed to the u.s. market. we have a great brand, a great franchise in the u.s. with john hancock for 155 years, but we will pick it to much more behavioral insurance, which is where customers get the benefit of leading healthy lifestyles and are rewarded for good behavior in terms of choices they make on a day-to-day basis. we are going to partnership there with vitality, and that is
a pivot point for us and a driving force for us as we try to of all that business in the u.s. to a much more focused business around digital solutions to customers. we still committed to that agenda and feel positive and optimistic about the opportunities we have there. been a there has cost-cutting initiative at this company for the past five years, and i have seen concerns from analyst that your profit growth might have been more about cost-cutting the revenue growth. is that a legitimate concern that was driving a result? house, we have been focused on cost in the past, but the honest truth is that has not become a part of the culture. we had a program called ene, historically, that was around china to create operating sensors, and it was successful in many ways. it was not a cultural transformation. it was viewed as a project with a start and and and date -- and nd date.
we are working on the cost to embed this into the culture of the company. cost is designed to improve return, but also designed so our price can be as competitive as it should be. amanda: you have also explored the idea of taking alternative investments and repackaging them for investors to access. will we see more of that from you? roy: as a life insurance liabilities are very long dated, so we had to find an asset class that could match our liabilities. we built a great capability in managing these kinds of assets. what we are seeing now is that there is a greater demand for these kinds of asset classes across the various geographies that we operate in. that is true institutionally but also from a retail perspective. we are now seeing that this capability we have used historically to manage our own now of significant value for other organizations
and retail customers. as you say, exactly packaging that capability and offering it as a solutions, which is now a business in its own right. amanda: asia has been a focus ulife, more so than other players. how much focus will there be on that? you are absolutely right. the biggest mistake people make in thinking about asia is it is a big growth opportunity and therefore they should just go in race asia and be part of -- and and be partace asia of asia. but you need to have been there through area's economic cycles -- various economic cycles and build credibility so you have the right to do business. we have been asia for over 120 years, we see it represents about one fourth of our earnings, but we have a phenomenal footprint and a fantastic franchise there.
we have a great brand, and that is a tremendous platform for us to build on so that we can actually really capture the growing opportunity that is part of asia. man u life financial ceo roy gori. the interest in that john hancock business is not just because it has been in the u.s. market for so long, but it was a big push into the u.s. from this canadian-based player and it is underperforming. it remains to see that that it is actionable take a second look at. shery: i found that interesting, and also their comments on their asia business, that it is a third of their earnings and they are expecting a lot of optimism there. --ing up, a blow to the from the bench to organized labor. we will hear from the original plaintiff, mark janis, next. this is bloomberg.
amanda: and that is one of our ,ighlights from tictoc streaming live on twitter. i'm amanda lang in toronto. in newand i'm shery ahn york. before an unsecured retirement, justice anthony kennedy made one of the last decisions in his that the practice of making public employees pay union dues violates the first amendment and cannot continue. the move, the dissent said, will lter the relationship between employers and employees in wholly unexpected ways. take you so much for your time today. we saw this ruling and many
people are saying it could weaken unions. are you not concerned that they will not be able to properly represent a worker such as yourself and other state employees? mike: i think you have to remember that the unions ask for this collective bargaining and exclusive arrangement in the state of illinois, so it is their doings of themselves that have gone down this path of this all-inclusive that they have asked for. shery: so we know at this point, the 1977 ruling said that the money could not be used to support any political candidates for political purposes, but what was the issue you had and why do you think it was necessary to bring up this case? it iswell i think important because number one, the first amendment gives me the rise of freedom -- the right of freedom of association, and because i had to pay these fees to support them, even i was not a member, that negated my freedom of association.
almost other point is everything a union does, at least in the public sector, is political. they negotiate for salaries and benefits and a lot of other working conditions, which directly affect the taxpayers. so they are inherently political and in the private sector, if it boeing or anylar, other corporation, they would consider that lobby. so why does the union have a free pass in that direction? so mark, this kind arrangement is not unique to the u.s.. several countries, including canada, have found if they belong to the union, i pay dues to this. you say you are not antiunion. is it your hope that this creates more accountability, that unions can represent workers but they have to persuade workers to join them for a reason? mark: oh, absolutely. i think it is, and from the steps of the supreme court back in february, we had randi weingarten, the president of the teachers union, saying if they lose, they will have to be more
accountable and have to contact and be more transparent with their own numbers. my thought on that is shouldn't they have been doing that the last 10 years plus? it take this case for them all of a sudden to realize that they need to make that change? but does it concern you that this will be used by those who are antiunion, who would like to see unions disappear altogether and leave workers without protection? mark: no, i do not see it at all. in the federal government, you have the union in the federal side of the equation and those people, if they do not want to be a member of the union, it they do not have -- they do not have to pay a fee, and the union is surviving and doing very well. shery: but they will get the benefits of whatever the union actually bargains. doesn't this pose the problem of the free rider who gets the benefits but does not have to pay? mark: in my original premise, they asked for that originally.
he wanted it to be all-inclusive and at present -- represent everyone. if they now do not want to represent me because i am not a member of the union, they need to go to the legislature, get the law changed, and say we only want to represent union represented, dues paying members only. shery: so how do you think this will affect unions in practical terms? are you expecting an exit is out of -- exodus of state employees opting out of these unions? mark: we don't know. it has only been a little over 24 hours. i think everyone is waiting for and to see settle what is actually going to happen. i think it is too early to make that decision. i also think you have to have the word get out to people, let them know what this decision has and how it affects them, and let them make their choice. that is all we are fighting for, someone to make
their own choice, not someone else mandating what they pay and what they have to do. amanda: we don't have a lot of time left, but was this a passionate cause for you? mark: absolutely. even though my name is on the case, there are 5 million public-sector workers in 22 states across this country. i do not look at it as my case and i do not look at it as me only, it is for these 5 million --her government workers other government workers. and believe me, i received a lot of support in this from all over the country, wishing me well and support, so that right there is a big plus in my factor, that i am going down the right road on this. amanda: mark janus, thank you for being with us today. mark: thank you. after: stay with us, more this break. this is bloomberg. ♪ bloomberg. ♪
amanda: this is bloomberg markets, i'm amanda lang in toronto. ahn in newi'm shery york. time now for a look at some of the news right now. paging dr. amazon. the e-commerce giants dive into health care did a number on stocks today. retail shares sag after amazon announced it would buy pill pass for $1 billion, with law greens -- walgreens leading the plunge. points fromopped 40 the index, the most of any company. visa and mastercard are closing in on a settlement for a 13 year lawsuit. bloomberg has learned that both card companies will pay merchants about $6.5 billion under the terms of the
settlement. the lawsuit was filed on behalf of 12 million merchants nationwide. if federal court rejected a $5.7 billion settlement back in 2016. and that is your business flash update. and we have been bringing you this programming note that ray dalio will be on bloomberg television at the top of the hour, 2:00 p.m. eastern new york time. it is a live interview with our own erik schatzker at the ideas festival. and just a reminder, bloomberg users can interact with the chart you have seen on gtd go. go.te you have been watching bloomberg. ♪
julia: we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. great dalio takes a step back from bridgewater. we are live in a few moments with the billionaire investor from the ideas festival. speaking of that, heavy hitters continue with the -- with david rubenstein. thoughts -- at foxconn. he is said to tell to his economic policies of the groundbreaking ceremony for a new multibillion-dollar facility in wisconsin. in two hours.lose let's get a check on where stocks are trading with abigail doolittle. abigail: we have a push for the major averages. we have had moves up and down on the day. at this point, we