WEBVTT - Krawcheck: diversity leads to higher returns

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<v Speaker 1>This is Bloomberg Surveillance. Nominal GDP is actually slowing now.

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<v Speaker 1>We've gone from almost five percent in late down to three.

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<v Speaker 1>If you look in this recovery, and especially since the

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<v Speaker 1>Affordable Care Act passed, virtually all of the job growth

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<v Speaker 1>has been in full time jobs. What's changed, I think

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<v Speaker 1>as we've kind of reached full employment and there's a

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<v Speaker 1>number of inflation indicators that are finally coming to life.

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<v Speaker 1>Here a little bit Bloomberg Surveillance, your link to the

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<v Speaker 1>world of economics, finance, and investment on Bloomberg Radio. Good Morning,

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<v Speaker 1>I Michael McKey along with Tom Keene. It is seven

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<v Speaker 1>am on Wall Street. Eight pm in the port of Shanghai,

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<v Speaker 1>where things were quiet in February two. Quiet for investors

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<v Speaker 1>who are selling off on a drop in Chinese exports.

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<v Speaker 1>Never mind China was on a holiday for ten days

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<v Speaker 1>during the month. Markets looking for a reason to sell off,

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<v Speaker 1>and sell off they are right now. The stock six

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<v Speaker 1>hundred down three points, just about a percentage point. The

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<v Speaker 1>docks is off a hundred eleven points one point one percent.

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<v Speaker 1>This in spite of the fact that they had a

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<v Speaker 1>very strong industrial production report that according to some analysts,

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<v Speaker 1>is going to mean stronger growth in the first quarter.

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<v Speaker 1>For Germany, u S features lower eleven points down for

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<v Speaker 1>the SMP EMNI features at six tenths half a percent

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<v Speaker 1>for Down features down eighty five, nantac emnies down by

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<v Speaker 1>twenty nine seven tenths of percent, And believe it or not,

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<v Speaker 1>these are all improvements off the lows of the day.

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<v Speaker 1>Analysts say the rally maybe a bit tired, needs a breather.

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<v Speaker 1>The catalyst of higher oil prices isn't there today, at

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<v Speaker 1>least not at the moment. West Texas down by four

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<v Speaker 1>tens fifteen cents at thirty seven seventy five brands still

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<v Speaker 1>well over forty dollars forty seventy six cross that mark yesterday.

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<v Speaker 1>That's a two tenths decline. Now those are pairing their losses,

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<v Speaker 1>so we will see what impact oil has on the

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<v Speaker 1>markets later today. The oil dollar correlation seems to be

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<v Speaker 1>at work today, the dollar higher against most of its

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<v Speaker 1>major trading pay airs. BONN yields are down the tenure

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<v Speaker 1>at one point eight five percent, the five year one

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<v Speaker 1>point three seven eighty eight basis points your two year

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<v Speaker 1>Thursday's ECB decision. With their rates, they're a lot of

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<v Speaker 1>talk about even more negative rates. But Germany's two year

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<v Speaker 1>yield higher this morning at negative fifty six basis points.

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<v Speaker 1>We'll be talking about that with Dutch BIG's dominant custom

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<v Speaker 1>in a few moments the first time. Today is International

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<v Speaker 1>Women's Day. I don't know how you're planning to celebrate,

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<v Speaker 1>but we have one of the world's most accomplished women

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<v Speaker 1>with her name is not Berg Dark Goodman. That's where

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<v Speaker 1>Tom is going. Her name years in senior positions on

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<v Speaker 1>Wall Street not a head of Elevate Network for Women

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<v Speaker 1>and founder of a new digital investing platform for women ELVs,

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<v Speaker 1>which I was reading through this morning. Some interesting articles

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<v Speaker 1>on there. You were telling Tom a short time ago.

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<v Speaker 1>The biggest part of the problem still people like to

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<v Speaker 1>work with people like them. And I know we can

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<v Speaker 1>talk and talk and talk about, you know, look for talent,

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<v Speaker 1>but people don't that necessarily. You've been dealing with this

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<v Speaker 1>for a long time. I'm wondering. We have new generations

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<v Speaker 1>coming up, younger people who may be growing up in

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<v Speaker 1>a different kind of that. That's for Tom, Honey. I'm on, Honey,

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<v Speaker 1>I'm on the radio the Seventh Store. As a new

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<v Speaker 1>generation comes to work and gains power. Do you see

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<v Speaker 1>that changing old pipeline when you said that to Tom

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<v Speaker 1>this morning? Though, you know what went through my mind

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<v Speaker 1>that old New Yorker cartoon on the internet. Nobody knows

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<v Speaker 1>you're a dog. As we get more into you know,

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<v Speaker 1>work that isn't defined by sitting next to a person

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<v Speaker 1>of the same gender, does it change I think a

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<v Speaker 1>couple of things. I think I was very fortunate that

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<v Speaker 1>I stumbled upon being an equity research analyst, which is

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<v Speaker 1>just very numbers oriented. Nobody ever turned down one of

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<v Speaker 1>my research reports. But oh it was written by a

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<v Speaker 1>girl or geez, she wrote it on a Sunday afternoon

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<v Speaker 1>as opposed to a Thursday because she was doing the

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<v Speaker 1>whole work life balance thing. So I think there's that.

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<v Speaker 1>But I think the idea of relying upon it's a

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<v Speaker 1>pipeline issue, and the pipeline is better sit on Wall

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<v Speaker 1>Street simply isn't right. I mean, we have the same

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<v Speaker 1>percentage of women in these investment banking classes that we

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<v Speaker 1>had when I got in in the You know, ladies

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<v Speaker 1>don't worry super super as well. I certainly hope so.

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<v Speaker 1>But you know, but but so what So I think

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<v Speaker 1>relying on that doesn't work. I thought it was over

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<v Speaker 1>when I got out of college. I thought the whole thing,

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<v Speaker 1>the whole you know, women are going to make it

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<v Speaker 1>as far as men. It was done, in my opinion,

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<v Speaker 1>But all those men got to retire at some point,

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<v Speaker 1>right that the people who aren't hiring people based on talent,

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<v Speaker 1>but based on you know, And then the question is

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<v Speaker 1>can we over do the younger folks have fewer gender

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<v Speaker 1>biases than we do, And maybe they do, maybe they do,

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<v Speaker 1>And I do find you know, you talk to these

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<v Speaker 1>young men and young women and they take equality as

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<v Speaker 1>being a given. But but you know, we need to

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<v Speaker 1>be vigilant because we all have these biases. And even

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<v Speaker 1>though the research is so clear that diverse teams lead

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<v Speaker 1>to higher returns, lower risk, greater client focus, greater long

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<v Speaker 1>term focus, greater innovation, that diverse teams outperformed smarter teams,

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<v Speaker 1>even with all of this, you know, you look at

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<v Speaker 1>that and you say, yeah, but that's true for other teams.

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<v Speaker 1>I want to work with my buddy Joe. Yeah. One

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<v Speaker 1>of the things I see here is almost a cultural thing.

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<v Speaker 1>There's a great map on on Twitter last night of

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<v Speaker 1>where women are doing better politically Australia all of Europe

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<v Speaker 1>is green on the map, and the US isn't there.

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<v Speaker 1>How much of the challenge that you've lived and that

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<v Speaker 1>you have studied here, particularly in the last ten years,

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<v Speaker 1>how much of it is just outright American culture? Well,

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<v Speaker 1>I think some of it is that we tend to

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<v Speaker 1>bring in pe people who are quite different when things

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<v Speaker 1>are really quite broken. And so Tom, You'll remember when

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<v Speaker 1>I was brought in to run Smith Barney and the

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<v Speaker 1>research business of city. It's because the research business we've

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<v Speaker 1>had gone through scandal, it was broken. And you can't

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<v Speaker 1>tell me that part of the appeal was this woman looks, acts,

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<v Speaker 1>think so differently than what came before. Same thing when

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<v Speaker 1>I was brought in to turn around Meryll Lynch that

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<v Speaker 1>you know this was a broken business. Um, you know

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<v Speaker 1>that we've gone through the crisis. There were difficult as

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<v Speaker 1>great advisors, great advisors, but the attrition rate was very high,

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<v Speaker 1>and there was something about we need a change, and

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<v Speaker 1>we needed some bombing change. Some people call it the

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<v Speaker 1>glass cliff, bring in a woman when things are broken,

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<v Speaker 1>bringing a person of color. Hopefully they make it. Well, well,

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<v Speaker 1>let's continue that discussion. Sally Quatrick with us this morning.

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<v Speaker 1>As we look at so much of Wall Street Bloomberg

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<v Speaker 1>Surveillance brought you by Investco. Looking for investment views, experienced

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<v Speaker 1>experts are just to click away go to investco dot

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<v Speaker 1>com slash us to subscribe to the Investo blog for

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<v Speaker 1>all of them, and at invest go us on Twitter

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<v Speaker 1>at I m v s c O at invest go us.

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<v Speaker 1>You can do that on Twitter. Sally Cachuck with us

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<v Speaker 1>and Sally, I want to go back to, uh, what

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<v Speaker 1>you and I've talked about many many times is I'm

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<v Speaker 1>seeing a lot more women go into engineering and go

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<v Speaker 1>into science. There's no question among you know, the friends

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<v Speaker 1>of my kids and all that they're they're they're going

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<v Speaker 1>for some form of stem um structure that makes me

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<v Speaker 1>hugely optimistic ten years up. They're just smarter. Yeah, well

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<v Speaker 1>they may or may not be smarter, but you love

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<v Speaker 1>to see it. What I do fret about is that

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<v Speaker 1>women do and girls do still get messages. Were not

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<v Speaker 1>good at math and I look at my old world.

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<v Speaker 1>Well look I look at my old world. There's a

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<v Speaker 1>gender investing gap. There's a gender investing gap. And if

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<v Speaker 1>we think about Wall Street, the bent of the employees

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<v Speaker 1>on Wall Street, the what we do on Wall Street.

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<v Speaker 1>It's it gets mail pretty quickly, we output form, we

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<v Speaker 1>beat the market, we pick the manager. And then we're

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<v Speaker 1>telling women, you need more financial education, you need more

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<v Speaker 1>hand holding. You're not good at math, you know. And

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<v Speaker 1>women tend to because we loved we're great students. The

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<v Speaker 1>research is clear. We love getting those a's. We tend

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<v Speaker 1>to have all that financial education, all those documents next

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<v Speaker 1>to our bed, and we say we're going to read

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<v Speaker 1>them when we don't. You came from cost you came

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<v Speaker 1>out of Chapel Hill, and you know f F the

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<v Speaker 1>equals PV one plus art of the t. You know

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<v Speaker 1>the exponential function, you know the five ratio du punt function,

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<v Speaker 1>and that No, I was a journalism major. Actually okay,

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<v Speaker 1>I need a lot of basketball and beer. But point

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<v Speaker 1>to the point. You had the initiative to learn the

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<v Speaker 1>fundamental dynamics so you could be an executive down the road.

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<v Speaker 1>Do you see that trend? Bill? Yeah? But look, you

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<v Speaker 1>know I again, I wouldn't push it back on the women, right,

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<v Speaker 1>it's you know, okay, women work harder, take other different classes.

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<v Speaker 1>I would say I certainly worked hard, but I did

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<v Speaker 1>happen into a company and a type of business that

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<v Speaker 1>was really gender color background blind. Being an equity research

0:09:16.000 --> 0:09:20.199
<v Speaker 1>analyst for me was such serendipity. And so don't make it.

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<v Speaker 1>You know, women, you better keep changing, you know order.

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<v Speaker 1>I mean, we've got this gender investing gap. We somehow

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<v Speaker 1>tell women it's their fault. Well, how about we change.

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<v Speaker 1>How about we start too as we're trying to at

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<v Speaker 1>last look at what they need to invest and it's

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<v Speaker 1>not necessarily being correct. When the euro performs again, well

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<v Speaker 1>we need an hour with Sally Tom. We absolutely don't

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<v Speaker 1>have enough time. So in the very short time we

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<v Speaker 1>have left about thirty seconds left, why don't we let

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<v Speaker 1>you do a shameless plug tell us about you're going

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<v Speaker 1>there anyway. I am so excited about last right now.

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<v Speaker 1>For years I told myself women didn't need something different

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<v Speaker 1>on investing, But the numbers speak for themselves, and so

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<v Speaker 1>we've done an enormous amount of research. We're in beta

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<v Speaker 1>right now on Alvest digital investment platform for women that

0:10:10.679 --> 0:10:12.679
<v Speaker 1>really speaks to their needs. We're sort of keeping its

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<v Speaker 1>super secret right now. And then I'm also the chair

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<v Speaker 1>of Elevate Network, which is tens of thousands of women strong.

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<v Speaker 1>Um it's a network that helps them advance in business,

0:10:21.760 --> 0:10:24.360
<v Speaker 1>because networking is the number one unwritten rule of success

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<v Speaker 1>in business. You guys do it better than we ladies do,

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<v Speaker 1>so we're trying to help. So to two of those

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<v Speaker 1>big initiatives. Selly, thank you so much for coming in.

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<v Speaker 1>Thank thanks for having met futures negative six. They've improved

0:10:38.000 --> 0:10:40.040
<v Speaker 1>a little bit, doufs. Just netis thirty five. We're going

0:10:40.120 --> 0:10:42.760
<v Speaker 1>to quote euro again because Sally says it doesn't matter.

0:10:44.040 --> 0:10:47.839
<v Speaker 1>Fifty seven stronger yet weaker euro? Uh what does it

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<v Speaker 1>mean there is hero yet? All right, let's check with

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<v Speaker 1>Michael barn now and get the latest world at national headlines.

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<v Speaker 1>Thank you very much. Voters will ahead to the polls

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<v Speaker 1>today for presidential Mary's Republicans have contests in Michigan, Mississippi, Idaho,

0:11:03.840 --> 0:11:08.160
<v Speaker 1>and Hawaii. Democrats have primaries in Michigan and Mississippi. The

0:11:08.240 --> 0:11:10.800
<v Speaker 1>European Union is close to a deal with Turkey on

0:11:10.840 --> 0:11:14.559
<v Speaker 1>a cap on the inflow of migrants. Turkey made a

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<v Speaker 1>plea at the last minute for concessions at the Brussels summit,

0:11:18.760 --> 0:11:20.800
<v Speaker 1>calling on the BLOCK to double its financial eight to

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<v Speaker 1>Turkey to six billion euros or six point six billion

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<v Speaker 1>dollars cell phones could be a big distraction for drivers

0:11:27.559 --> 0:11:30.719
<v Speaker 1>and people walking on the street, and the report by

0:11:30.840 --> 0:11:33.800
<v Speaker 1>the Governor's Highway Safety Association says that could be a

0:11:33.840 --> 0:11:37.520
<v Speaker 1>factor in the rise and pedestrian depths. According to the report,

0:11:37.520 --> 0:11:41.360
<v Speaker 1>pedestrian death surged by an estimated ten percent last year.

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<v Speaker 1>More people were driving more miles because the economy improved

0:11:45.080 --> 0:11:48.200
<v Speaker 1>and gas prices plunged. Global News twenty four hours a day,

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<v Speaker 1>powered by our journalists and more than a hundred fifty

0:11:51.640 --> 0:11:54.280
<v Speaker 1>news bureaus from around the world. Michael bar Mike, Tom

0:11:54.320 --> 0:11:56.439
<v Speaker 1>and Michael thanks so much. Features, Think of the six

0:11:56.480 --> 0:11:59.920
<v Speaker 1>town Features. Thing of thirty nine. Next, Dominick Constom of

0:12:00.040 --> 0:12:07.199
<v Speaker 1>Deutsche Bank. This is Bloomberg's Surveillance. Bloomberg Surveillance brought you

0:12:07.200 --> 0:12:09.520
<v Speaker 1>by the Jewish Community Fund j c F. Donor advised

0:12:09.559 --> 0:12:12.240
<v Speaker 1>Fund is the smart and efficient choice to manage your philanthropy.

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<v Speaker 1>Called to one two seven, five to eight to seven

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<v Speaker 1>seven