tv Bloomberg Markets Americas Bloomberg March 11, 2019 1:00pm-2:00pm EDT
vonnie: from bloomberg world headquarters in new york, here are the top stories we are following. the unfinished business of the financial crisis. we talked to the cochairman about the path forward for the agency. animal health care in high demand. ceo about the unit's becoming a fully independent company. the founderown with and ceo of the ibw group. last time she was on, she said it was borderline crazy to start a hedge fund in this environment. we will see what she says now. into the trading day. abigail doolittle has been keeping and i on the trading. abigail: after last week's big decline, we have the balls out here the question is whether or not it is for real.
take a look at it. the s&p 500 and nasdaq on pace for the worst day in a month or more. the first update for each of the major averages over the last succession can look at boeing. one of the big stock stories on the day after the tragic crash of the 737 max. is a point dow weighted index, dragging on the dow. the dow had been down, opened up 1% down. slowly but surely rebounded. now up 3/10 of 1%. underperforming the other major indexes. quite a recovery. big technology names rallying on the day. let's look at those movers. apple up 3.3%. this is another great over a bank of america merrill lynch to buy the analysts there come a positive on what is coming out of the supply chain. microsoft also helping the dow, helping the s&p 500 in addition to those two stocks. amazon and facebook,, phase book seeing an upgrade -- facebook
seeing an upgrade. the company's story product helping out or could help out facebook. finally, in terms of the bounce on the day, we have the s&p 500 on pace for its best day in a month. if we look at what is happening to the s&p 500, here is today's big-game can up 1.2%. the best day since the middle of february. it stands out considering last week we had five down days in a row. the worst week of the year. the first time we had five down trading days in a row since before the presidential election. that factoid coming to us from our producer. i would like to point out on the year overall, this year's rally, last week, and anonymously -- an anomaly. is today's a dead cat bounce? vonnie: two hours left and perhaps we will know the answer to that. unfinishedest, business of the financial crisis.
jim is now cochairman of the guggenheim security. former chief restructuring officer at the u.s. treasury between 2009 and 2011. and the principal architect of recapitalization. he sold his company to guggenheim security last september. terms are not being disclosed. i did try. congratulations. from your new perch, talk to us about what is going on. he will clearly do something soon. has gotten through the senate banking committee. it was a close vote in senate banking committee democrats lined up on one side. the republicans lined up on the other. not a typical in this political environment. suggestions are that the prepared toon is propose a plan to recapitalize and privatize, return the companies to private ownership. that is part of a more systematic reform of the
insurance market. the players there, steve mnuchin is a morgan industry veteran, as is the acting director. mark has been a policy analyst to have been advocating -- and to with draw the government's footprint in the mortgage market. sort of like nixon going to need, it may be that you someone like mark to bring the republicans to a place a have never been before which is to contemplate the possibility that fannie and freddie survive in some shape or fashion. the first issue is to restore their capital if that is where they are going to go. in an agreement that the previous administration signed with the fhfa director. they prevented the companies from building any capital and retaining their earnings. as a result, the government has
made a good deal of money on fannie and freddie as their earnings have been swept. fannie and investors in and freddie, both the equity and bond aside, both want this to move on. jim: the bondholders have been paid in full. principal and interest. it is really the common shareholders who haven't been stuck in this limbo of this long-running conservatorship. vonnie: there have been plans other but there are only so many plans to choose from. and each has a different degree of government control and outcome. -- in outcome. what plan will win out and how much will the government have to do with mortgage finance in this country? jim: the government has a huge footprint today. jenny may which guarantees fha and veterans administration loans or fannie and freddie who are in a conservative ship backstopped by a line of equities from the
treasury department, together they constitute about 60% -- 50% of the entire mortgage market. the government is a huge footprint. has beene reasons it so difficult to resolve the conservatorships when you have ideaarty dedicated to the that governments should withdraw wereootprint is not people worried and have been legitimately wearing about the impact that would have on mortgage credit formation and house prices. a halfway house that a number of us have been advocating for a while which is a much stronger regulatory regime, with higher capital standards. and maybe utility like limitations on return on equity. which you letr them build capital and the ranks ofined privately held companies as opposed to government controlled entities. vonnie: what plan to the -- do those who have a financial interest back? jim: i have not had a plan in a while.
it was hired by the investors to propose a recapitalization plan. that is the last thing that has been out there and proposed. theirlan for recapitalization. the administration hinted they were going in that direction. as soon as the hint at outcome a senator crapo and senator brown both on the senate banking committee, the majority and the ranking member, each said not so fast, this is something congress has to be involved in. anyone who has been around this knows that congress has been and tried twice to enact comprehensive reform with fannie and freddie but it foundered on disagreements between republicans on the one hand wanting to scale them back, and democrats on the other one in making sure that there a for mandates did not get lost. i think the first step is rebuilding their capital. today they have $3 billion of capital running $4 trillion
worth of liabilities. that is a grossly undercapitalized company. vonnie: but it is on purpose. it is being chosen to recapitalize them. jim: they have kept them on a very shortly. so that they cannot get away. administration, the previous administration and this administration having a safe. now it is up to the treasury theirment to amend agreements to allow the companies to recapitalize. then either to the new fhfa director and/or congress to set the framework in which that recapitalization occurs pay the alternative is 10 more years of what we have been doing which is having the backstop i the treasury department run by the government agency in a limbo state for the private investors. vonnie: is there enough lobbying going on? is there enough willpower in congress? if there is, which i assume there is, then what is your best estimate for when it gets done? jim: i think we are still a long
way away. vonnie: you do? jim: i do. to $4put some numbers trillion worth of mortgage guaranty is outstanding in the preliminary ruling. the fh fa promenade at for capital. 3% to 4% capital requirement. that would be $120 billion to 100 $60 billion of capital for two companies that each only have $3 billion of capital. between here and 120 ilion dollars to $160 billion, you have a long way to go. vonnie: jim, thank you. what are you working on at the guggenheim? jim: we will talk about that another day. vonnie: ok. cochair ofn, guggenheim security. mark: let's turn to the first word. president trump. is reviving his border while fight in a new budget that 68.6 billion dollars for his signature project. also seeks to impose spending
cuts to other domestic programs and sets the stage for another fiscal battle. titled "a budget for a better america" promises taxpayers first. it would not balance the budget for 15 years. researchers have discovered what may be the keys to the mystery surrounding sunday's crash of any view be an jetline. they found the two black boxes from the boeing 737 max had crashed minutes after takeoff, killing all 157 on board. it was a second crash of a 730 seven max in five months. that has prompted ethiopia, china, and indonesia to ground max's.37 the global ground and could put financial pressure on boeing. british prime minister theresa may is refusing to admit defeat for her european union divorce deal today despite deadlocked talks with the block one day before parliament is scheduled to reconsider the plan, that it has rejected once before. the house of commons is scheduled to decide tomorrow
whether to approve the withdrawal agreement. if voted debt -- it was voted down in january. onmakers are split whether to leave the eu and on what terms are the trump administration imposed sanctions jointlycow-based bank owned by russian and venezuelan state and companies for allegedly trying to circumvent u.s. sanctions on the south american country. more than states and 50 governments recognize opposition leader juan guaido as interim president of venezuela. they say that president nicolas maduro was not legitimately reelected last year because opposition candidates were not permitted to run. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. vonnie: thanks, mark. an update on the brexit story. theresa may has decided she is traveling to strasberg.
she is heading to strasberg for a brexit talk with the european union jean-claude juncker in the hope that she will be able to bring something extra back in order to put her brexit deal to parliament tomorrow. she had been under flight on whether she would fly. angela merkel had said that the eu made an important offer to the u.k. on brexit but may had rejected that offer over the weekend. theresa may is traveling to strasberg for further negotiations this evening. this is bloomberg. ♪
independent company. completing and separation from eli lilly. for more, let's welcome the president and ceo jeff simmons congratulations. you obviously have been with the company for three decades at this point. times you were 7.6 oversubscribed to what does it tell you about investor interest in this area? jeff: thank you for the opportunity. i think it tells us two things. one, the space itself to you have an industry that has been growing for quite some time at 5%. it is predicted to do that in the future. it is an industry that is quite recession proof. it is linked to society. today i don't think society has ever cared as much about the care and the well-being of animals and touched so many people. consumers eat milk and eggs as well as pet owners which is increasing as well. i think the second part of today's success of being oversubscribed is related to the lancome. strategy very clear
and spent a lot of time with our investors. it is built around launching , ar a dozen products portfolio of solutions that we have been in front of customers for six decades. and a strong margin expansion story. i think it represents both of those factors. vonnie: can you describe your shareholder base? what kind of shareholders have you engaged with? jeff: we spend a lot of time looking at the long-term investor. the investor that sees the trends i highlighted, the importance of that and those that are used to an innovation-based model as well, and those looking at elanco through the lens of a great space and maybe the most compelling value proposition coming into the space today. i think both of those. primarily, the longer-term experienceat has with this kind of an industry profile, similar to pharma, biotech, and others. major: we have seen two
animal health ipos. how does the industry change in the future? continuequestion, we to mature and sophisticated as we stand up independent companies. as he mentioned, been involved in the industry for three decades. i can only speak for elanco which is a heavily focused company. we serve amazing customer base with farmers and veterinarians. innovative,ionary, thinking about pet owners and consumers. being able to totally dedicate our focus there, speed, fit for purpose models, and as well as our capital and investment of appropriate cash. where does it go? it is now not rolled up and looked at inside a may be human pharmaceutical model and compared against a diabetes product, but dedicated to what we need to do. that will drive innovation and enable to create more value for our customers. vonnie: your shares are up 4%.
animal healthco president and ceo jeff simmons p we are looking forward to the quarterly reports. for more, u.k. prime minister theresa may heading to strasburg to talk to the eu commission -- commission president. let's bring in maria from brussels. is there any indication that something changed in the last hour? the prime minister was considering whether she should go and suddenly she decided she should. maria: right. we have talked about this before. the situation was fluid. changing by the minute. the irish government had said earlier on that the prime minister would fly into strasburg. european officials said in strasburg, jean-claude juncker already on his way. it does seem like something has changed in the past hour. you would think political logic and convention for tell you if she is flying into strasburg, she doesn't think she can get some kind of concession, something that would allow her to present something to a vote.
to ae: hedge funds off strong start in 2019 after last year's suffering their worst performance since 2011. our next guest said you have to be borderline crazy to start a hedge fund in this environment. anana weinstein -- il weinstein joins us. great to have you. it turns out we are starting nicely this year, particularly the long short funds. the strategy is doing quite well. up 7% on average.
has your doom and gloom perspective changed or are we seeing a good start to the year? ilana: i will challenge that. short funds for them to -- for the first two months was up 7%. the average long short fund last year was down 5% to 6% in line with the s&p. the s&p for the first two months of the year was up 12%. congratulations. if you are a long short fund. you have proven your beta and that you provide no downside protection and you are 50% of the upside. i think for anyone to be celebrating that would be misplaced optimism. >> they should have done better. ilana: they should have done better. if they are running with the direction and beta, they need to outperform the market. lps can buy the s&p. vonnie: how much flowing is into that strategy? >> again, i'm not sure i would calibrate it as a good start. i think that strategy in general
has had an awful last five years. we will see how the year shakes out. how thearing it to broader market has done, it is not so good, given they ran with the direction. where money is flowing is not to those guys. founders that represent a differentiated return profile. >> what about when it comes to attracting talent? if long short equity is up but not as much as you would hope, what does the landscape look like? ilana: i think hedge funds have to decide what lane they are in and then drive in it really well. you are either -- you can be a long short fund, but then you to short. you need to -- your performance can't just be writing the beta wave and calling that performance. you also need to generate p&l from long short spread and from having a robust short book and
from managing volatility well. back to my two lanes, you are either a market neutral fund that runs in a way that is uncorrelated to the market and is giving lps something to -- something differentiated or you run with more direction and you need to outperform by that much relative to the index in order to justify your fee structure. vonnie: at what rate are we seeing startups this year? we had a story today about someone starting the 500 million. will we see startups throughout the year? ilana: two comments. startups weevel of have seen over the last few years has definitely slowed and certainly the scale with which they have started. the exception being that people who leave from funds like citadel which represents -- which is the nl that -- of dna trying tore replicate, everyone wants returns, better uncorrelated to
the market. and if it is someone credible who leads that dna, that is attractive. that is what we saw with exodus point last year. that one fundson launches and raises $8 billion out of the gate. what are you -- what you are highlighting are the exceptions. not the rules. let me say it this way. if you come from one of those funds that has not performed all that well over the last five years and you say, i'm going to start a fund, what you represent is a dna that lps are not necessarily trying to replicate. if you say i will run differently, that's great, but you are also tested in that regard. what will attract capital are guys who come from a construct which have been successful and are credible enough pharrell peas to believe they can do that. it is interesting, this hedge fund that is starting up, john graham, that is one of four exit -- exit adele's starting this year. vonnie: we have 20 seconds. what happens is here?
-- this year? ilana: it is pay for performance. i think the issue the hedge fund industry needs to pay attention to is not compensation deflation. it is -- if funds don't perform, people one i get paid but the issue with netting. that is where you lose your stars. if you are underpaying people who in spite of the headline, not so great performances for the fund, are the p&l of the fund in its entirety. they need to get paid even if there is not a big performance. vonnie: the top performers. we will be back soon to update it. ilana weinstein. stay tuned. more markets next. this is bloomberg. ♪
comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers.
"activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. mark: i'm mark crumpton with bloomberg's first word news. president trump is seeking one of the largest ever cuts to domestic discretionary spending in a four point $7 trillion fiscal 2020 budget proposal
released today. the plan increases defense spending and adds $8.6 billion for building a border wall. the budget blueprint forecast annual deficit extending beyond the next indicated and rioting -- rising national debt. it represents a wish list for his priorities that is certain to be dismissed by congress. it raises the threat of a shutdown -- the showdown that could trigger a government shutdown in the fall. democrats have chosen milwaukee to host their national convention. ian c share tom perez picked milwaukee over miami and houston. it will be the first time in more than a century that democrats gather in a midwestern city other than chicago to nominate their presidential candidate and milwaukee also will be one of the smallest cities to ever host a presidential convention. at least 21 of the people who died in sunday's ethiopian airlines crash were united nations staff members. attorney general antonio
guterres -- secretary general antonio guterres, excuse me, spoke at the meeting of the commission on the status of with today which began hundreds of delegates standing and silent tribute to the 157 victims. "a global tragedy has hit close to home and the united nations is united in grief." the flightave found data and conflict voice recorders from the plane. the plane crashed shortly after takeoff. is in iraq fornt his first official visit to the nation. he was received by an honor guard when he landed in baghdad. resident rouhani says he hopes to boost ties between the countries. iran is hoping to increase to roughly $13 billion in volume in trade between the two neighboring countries to $20 billion. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.
♪ vonnie: live from bloomberg world heart quarters in new york. i'm shery ahn. amanda: live in toronto, i'm amanda lang. welcome to "bloomberg markets." we are joined by our bloomberg and bloomberg audiences. y: u.s. stocks higher today. marking its 10th anniversary this past weekend. we discuss where the stress points could be in this record run. theresa may is on her way to strassburg for last-minute talks with the european union regarding brexit. we get the latest from london. den is back to battle. yoga wear. files a plan for an
ipo that would raise $587 million. let's get you started with a check of the major averages. we are seeing u.s. stocks rallying back to life after the worst week of the year. we are seeing the s&p 500 jumping the most in about a month, up 1.3%. every sector is in the green. we have more positive eco-data. not to mention that we also have news supporting the markets. world oil prices, gaining grounds as we heard from saudi arabia that they will extend their uber than expected cuts for a second month. the only pressure point seems to be on the dow which is lagging other sectors. which is gaining 6/10 of 1%. that is as we hear that boeing, the largest component of this index, really take a tumble after that crash over the weekend of ethiopian airlines. amanda: one dark spot.
one place we are seeing gains is for chipmaker nvidia. chipmakers have been under pressure, especially nvidia because of a slowdown in chips for online gaming. take a look at nvidia as it announces an almost $7 billion and istion of melon not, really based company. this gets it into chips that service data centers. an important part of their business. it has been a weak part. this is a longer-term one-year look at the stock. really hurting, especially relative to the overall stocks that the semiconductor index. on the day, nvidia is doing well as a result of this. interesting to note that intel is also doing well, despite the fact that it theoretically lost out in a bidding war for the same company. one reason why stocks in general are doing well, u.s. retail sales, we talked about how weak they were in december. look at this terminal, courtesy of our friends at bloomberg and the data they can offer up
showing you visually what we are talking about. december was down from its already weak position. that puts the stabilizing in january into context. a big jump. you can interpret that as the consumer is still there, discretionary items, building materials, two sources of strength. that is one reason for optimism of what we have seen a turn of what was a steep plunge in december. shery: what does that mean for the federal reserve is the big question. you have the spending tallying recovering, since 20 -- 2000 and we have other economic indicators like the jobs report on friday with february payrolls. the weakest in more than a year. take a listen to what jay powell had to say about the state of the economy. mr. powell: i think growth this year will be slower than last year. lester was the highest growth we have experienced since the financial crisis in more than 10 years. this year, i expect to growth
will continue to be positive and at a healthy rate. there: perspective is key as fed -- fed chair powell says. growth will slow but there may still be growth. that stands out in the world where we see other economies seeming too slow. you noted a boeing stock is definitely taking a toll on the dow. investors are voting with their feet. the investigation continues into ethiopian air flight 302. we are here to talk about this and how it may affect sales of the best-selling jet. we have bloomberg's justin voc energy trust. it is early, investigators do not know whether there is any cause or a link to the lion air crash five months ago. that there is clearly nervousness about that. how serious are these questions for boeing today? justin: i think there is a lot of nervousness. the reason you see that is because there is no information out there now about, is there a link?
is at the same issue as the cause in indonesia? is it something new? in the absence of any kind of concrete facts right now, you are seeing selling and pressure on the stock. what about information on how big these 737 max jetliners sales are for boeing, the company itself? a really important point to remember. we always talk about the 737 as a workhorse for airlines around the world. it is really also a workhorse for boeing. it is about one third of their revenue and it is by far the best seller. for boeing, it is the cash cow of the company. the demand has been phenomenal. it is a plane that goes back 52 years when it first started flying. they have updated it, this new version is very popular. it is hard to overstate that the
737 has to do well for bowing to do well. amanda: we have seen indonesia and china ground all macs eight. i am curious whether you think that is an overreaction? and whether you expect to see other countries follow suit? we see concern among flyers about what kind of plane they are getting on which seems like a damaging next step here. justin: right. we have seen on social media people have been asking the question. and inquiring about changing their flight plans. reaction the chinese on grounding the plane, what we have not seen is a number of other large countries follow up you are you have not seen mexico, canada, brazil, europe or the united states. right now, i think what is happening is a lot of places are really hoping to get data from the data recorder and the cockpit voice recorder -- recorder to find out an initial sense of what may have been happening when the flight went back to the airport. shery: the issue is that this is
very similarity to the lion air 737. what did boeing tell airliners back then when that indonesian plane crashed? justin: right. back then it was an issue that was traced to a system that boeing added to the plane because the center of gravity had shifted. the max has larger range then the earlier 737's. that's changed some of the flight profile and boeing added a system, basically an anti-stall system to keep the plane from crashing to we do not know if that has any role in what happened in africa over the weekend. but the fact that both pilots had reported some type of trouble and were returning to the departure airport, that is what is making people nervous. that there could be overlapping similarities. shery: justin, thank you so much. justin backman there with the latest on that boeing crash.
years sinceked 10 u.s. stocks hit their lowest point during the financial crisis. a decade later, the fundamentals of the american economy are strong but slowing growth abroad and uncertainty over trade is worrying markets. let's bring in the founder and cio at as a manager value works. we to have you with us. thank you for joining us. for today's session, we are training session for u.s. stocks. does the signal that there is some appetite to buy the dip at this point? havenear-term look, we seen a great bounce back from the selloff that came into september -- december. probably this selloff and bounceback will have been a mini correction in a long-term market advance and we are probably going to see a little bit of the justin of the advance over the past few weeks as we had these high levels. in more likely than not, 12 months from now we will be higher. amanda: i have seen your view
that staying out of the market is one of the bigger risks, right? that you should not try to do that to her we are seeing a growing pool of cash among the so-called take money smart investors out there can what do you make of the folks waiting for this big term? presumably when the interest rate environment stops being stimulative. charles: you are right. the big negative for investors over the past 10 years is not that the market has done well at the big negative is investors have not participated because they have been on the sidelines. the nextst risk over 10 years is not that you suffer near-term bounce and bruises , i think20% correction the biggest risk is that you do not get invested through this market advance and you are not invested into the next market top. frankly i think the next market top is quite some way away. i think we are in a major secular bull market only -- and only halfway through. shery: what does it say about
the difference between small caps and large caps? a chart showing the small caps, smaller stocks have outperformed by broader market. his is a trend that can continue into the next few years? charles: i think it is are the small caps underperformed the mega-caps for a couple years. the past few months and quarters have been a setback for the small-cap stocks. also there has been growth in a lot of small-cap companies. the small-cap companies are becoming less small. because they have good solid fundamental growth, and we are thatg acquisitions in space, small caps and mid-caps can have a good run for quite a period. shery: we have seen retail sales in january stabilizing. pastve seen that for the 10 years, discretionary really has outperformed every other sector. how healthy is the u.s. consumer right now? a couple ofre are funny data points over the past few months. the jobless numbers for the past month were concerning. in decemberales
were concerning. people are writing those off as one offs. they may be canary in a coal mine. they may be indicating there are fundamental problems with where the u.s. economy is. you have to keep an eye on that. data, the piece of bigger data set suggests things are going in the right direction. i think you have to say invested that way. amanda: what is the biggest risk to your view? what is something that would put you off side? charles: two big things. the fed turns around and tightens too much. that is a mistake that happens in cycle after cycle that the fed gets going in a direction and it pushes it too far. there is nothing to protect against that. if policymakers blow it, we will have a recession. that is a risk. the other thing is something funny is happening in the global economy in china and asia where that slowdown may or may not have run its course.
we saw funny numbers out of korea that suggests there is a real issue going on. if something is happening in asia that peters out of control, that is a significant risk. amanda: good to have you with us. charles lemonade is, thank you. still ahead with one day to go, theresa may is on her way to strasburg for talks with the european union. how her leadership style has defied the odds after this. this is bloomberg. ♪ ♪
for a vote in the u k parliament. one thing is certain about may, despite the defeat in parliament of her deal, the prime minister has remained calm and persistent. >> brexit means brexit. brexit does mean brexit. brexit means brexit. and we are going to make a success of it. we are leading the european union but we are not leaving europe. what we want to ensure is that we get the best possible deal. the best possible deal. the best possible deal for britain. every vote for me is a vote for strong and stable leadership. strong and stable leadership. strong and stable leadership. no deal is better than a bad deal. what we are working for is to get the best deal for the united kingdom. the british people want us to get on with it. get on with it. there are some in westminster who would wish to delay or even stop brexit. i can only get a deal through parliament if legal changes are made. we must secure legally binding changes to the withdrawal
agreement to get the changes. and deliver brexit on time. i have always said no deal is better than a bad deal. i think we have got a good deal from the european union. i do not want to see article 50 extended. should be onfocus working to get a deal and leaving on the 29th of march. theresa may's leadership style is the latest story for bloomberg businessweek. with us from london, tim ross. we do obviously have these deadlines counting down. toward the march 21 22nd summit including new speculation that there will not be a brexit at all that there will be a another path. what do you expect to see in the next 24 hours? tim: in the next 24 hours, we have the prime minister on a plane right now heading to strasberg where she is due to hold more conversations, more negotiations with jean-claude
juncker, the president of the european commission. the hoped-for may's -- hope for will office is that she get something new from president juncker that will convince enough members of parliament in london to back her deal in a vote in the house of commons tomorrow. if that vote sales, if she can't get her deal through, then all that's are off as to what happens next. shery: we saw the pound rally after angela merkel said the eu made a very important offer to the u.k. on brexit. do we have any idea where the talks are at? they are at the end game now already. the big demand from theresa may is to change the terms of what is called the backstop plan. and that is an idea that is being brought forward to avoid the need for any hard border infrastructure and customs checks on the land border between ireland and the u.k. after brexit. because that would be politically difficult in that
area. that is the big demand. of thege the terms backstop agreement or whether or not the european union is able to move far enough in the direction of what theresa may wants there, we will find out caps on a couple hours time. of the obviously, one points made in the series of clips and the story is her own style. embattleden obviously at the center of a great crisis. but also theater. would you make the case that she has done well, she has done surprisingly well given all of that? tim: i think she is a remarkable political figure for the simple reason, i can't think of a prime minister who has been through quite this much pain politically in her two or three years in power. and is still there, soaking it all up. and it is not looking like it is getting any better. if you remember, think back to 2017, she called in an election -- called an election, it all went terribly wrong and she lost the majority she started with.
she has had ministers resigning, her brexit secretaries resigned, she lost the key vote in january on her brexit deal, and has come through not one but two attempts to remove her through confidence motions. and yet she is still there, soaking it all up and trying desperately to get this brexit deal done so the u.k. can leave on time at the end of this month. shery: tim, thank you. that was tim ross, read his story on theresa may in the latest bloomberg businessweek on stands now and hear from the top reporters and editors every weekend on bloomberg television and radio and on bloomberg.com. breaking news. cutting the ceo a bonus for 2018. we are hearing they will cut it by 19% to 1.0 6 million euros. -- compensation was 1.3 one million euros for 2017. bonus, ahis 28 -- 2018
step aside yoga pants. levi strauss joe's jeans are back in the game. the genes company filing a plan for an ipo that would raise $580 million. for more, let's bring in matthew townsend. i have been noticing these genes are getting stretch year and more comfortable. does that strategy paying off? matthew: it is. a big part of what all gene makers have been doing is doing two things. making the pants stretch year and more comfortable. which emulates yoga pants. the big idea is everyone wants to wear more comfortable clothes
and levi and other companies that make jeans have been doing that. shery: how well is levi strauss doing? matthew: they had a good 2018. a lot of topline growth. help byofits were up, tax cuts good the big thing they are pitching investors on ironically is not about the jean business which is still 70% of their business. it is their tops. jackets, things like that. that business doubled over the past five years. $1 billion. they can paint a picture of we are a more diverse company and brand. we are more of a lifestyle brand and less -- and hurt less by disruption. 30 seconds here, but is it something you think will fly well with the market? it has the china opportunity to diverse its business. will this go well? matthew: it looks like it will. there have been risks with other brands going public and not doing well. given the fact that it is under in china and they see this
opportunity of becoming the last brand and it is an iconic brand, a lot of power behind that for investors. we will leave it there are great to have you with us. that is matt townsend. bloomberg users can interact the that charts you see -- chart to see on gtv go p can see charts featured there and the analysis and data that backs them up. from toronto and new york, this is bloomberg. ♪ ♪ . .
undetermined number of people who work closely with the world body. he added that the u.n. staffers came from all quarters -- corners of the globe and all had in common the spirit to serve the people of the world and make it a better place for us all. he spoke at the opening on the meeting on the status of women which weekend -- began with members standing in tribute to the victims. >> the global tragedy has hit close to home. the united nations is united in grief. i extend my deepest condolences to the families and loved ones of all the victims, to the government and people of ethiopia, and all these affected by vince --this disaster. mark: the u.n. security council began its meeting on afghanistan with diplomats standing in honor of those who perished. kim jong-un is showing signs he might fire his foc