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Speaker 1: This is Bloomberg Surveillance. China has again and again reacted

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Speaker 1: to hawkish talk from the FETE by allowing more currency depreciation.

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Speaker 1: Cashes a legitimate afford class. It insulates you from the

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Speaker 1: clients in the capital the markets, both bombs and stock.

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Speaker 1: China is not just a commodity power highest driving commodity prices.

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Speaker 1: It's a manufacturing power Hives and it's been putting in

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Speaker 1: manufacturers all through its supply chains in the Southeast Age

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Speaker 1: or in East Asia. Bloomberg Surveillance your link to the

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Speaker 1: world of economics, finance, and investment on Bloomberg Radio. Good Morning,

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Speaker 1: Michael McKee along with Tom Keenean is seven am on

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Speaker 1: Wall Street. Eleven am in regul where Prime Minister sigmunder

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Speaker 1: Gun lugs and faces a no confidence vote. His name

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Speaker 1: in the Panama Papers. The leaked documents to show politicians,

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Speaker 1: criminal celebrities worldwide using banks and shadow companies to hide

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Speaker 1: their finances. A big story, not clear how ugly, but

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Speaker 1: it's something to watch over the coming days. Other news

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Speaker 1: headlines this morning, Alaska Air finalizes a deal for Virgin

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Speaker 1: America fifty seven dollars to share four billion dollars in

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Speaker 1: total and the BATS Exchange sets an I p O

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Speaker 1: price of seventeen dollars to nineteen dollars a share. Equity

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Speaker 1: markets higher this morning. The stocks six hundred is up

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Speaker 1: by three points nine tenths of eight percent. The docks

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Speaker 1: is up a hundred and five points, that's about one

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Speaker 1: point one percent. This morning. Eurosone unemployment falls to ten

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Speaker 1: point three percent. That's the lowest since two thousand eleven.

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Speaker 1: US futures pointing to a higher open after the not

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Speaker 1: at all bad jobs report here on Friday, Treasury yields

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Speaker 1: higher out to the tens. SMP futures six points higher

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Speaker 1: three tenths of eight percent down emating features two tents higher.

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Speaker 1: That's thirty one points on that index, and NASAC one

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Speaker 1: emating features of eleven points two tenths of eight percent.

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Speaker 1: The two year no yield is seventy four basis points,

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Speaker 1: the five year going for one point to three percent,

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Speaker 1: and the tenure has now moved higher to join the

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Speaker 1: whole curve one point seven eight percent for your tenure

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Speaker 1: no yield. Oil lower again right now. West Texas seventy five,

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Speaker 1: down four cents. Brent crude unchanged at thirty seventy We'll

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Speaker 1: talk later in the show with Barkley's energy research head

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Speaker 1: Michael Cohen and former BP CEO Lord John Brown. But first,

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Speaker 1: Sally crow Check is here with US now head of

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Speaker 1: digital investment platform LVEST and chairman of Elevate Network, and

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Speaker 1: we'll talk about those things. But, Um, you had many

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Speaker 1: years on Wall Street, and I want to get to jobs,

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Speaker 1: women and careers. But first, what's striking to me right now?

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Speaker 1: At least in the US? How normal the news seems

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Speaker 1: this morning? We don't have a crisis called we have

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Speaker 1: a company buying another company. They have a company I

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Speaker 1: p owing. Um. When I was just on TV with Tom,

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Speaker 1: we actually had time to talk about UNC basketball. Well,

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Speaker 1: we'll get to that. I mean, you're I presume I

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Speaker 1: know who you think is going to win tonight. Who

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Speaker 1: I really hope is going to win tonight? Uh? UNC,

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Speaker 1: Chapel Hill go go to hell, all right, shameless? Uh.

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Speaker 1: The the overall come in the markets that we're seeing,

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Speaker 1: in the general strength we're seeing in the US economy, UM,

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Speaker 1: do have a feeling that maybe the rest of the year,

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Speaker 1: or at least for the next three months that we'll

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Speaker 1: talk about a second quarter, it's gonna be a little

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Speaker 1: calmer than we have seen in recent quarters. Well, look,

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Speaker 1: I can tell you from a business perspective, Uh, you know,

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Speaker 1: things feel pretty good that during the month of January

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Speaker 1: when the markets were going so bersark, business held up

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Speaker 1: really quite well. So as I don't have to tell

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Speaker 1: you the economy and the markets can move themselves apart

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Speaker 1: um and don't always move in the same direction. But

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Speaker 1: from a feed on the ground economy perspective, things are

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Speaker 1: okay right now. What the market does the rest of

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Speaker 1: the year, your guess is as good as mine. Well,

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Speaker 1: people do tend to forget the market is kind of

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Speaker 1: divorced it many times from the real economy. So, uh

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Speaker 1: do you think policymakers are paying more attention markets? Are

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Speaker 1: they really? Kind of Well, there's no doubt you're you're

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Speaker 1: hearing them talk about the markets and think about the markets,

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Speaker 1: and you know, we clearly have While the United States

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Speaker 1: feels good, markets overseas and economies overseas are not as strong,

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Speaker 1: And so these things are now intertwined. I used to say,

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Speaker 1: you know, back in the day when I was at

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Speaker 1: these banks, what us yeld curve? Right, It's it's becoming

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Speaker 1: a global yield curve. So we can't pull these things apart.

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Speaker 1: We have to keep an eye on what's going on

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Speaker 1: in the rest of the world. Yeah, interesting piece this morning,

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Speaker 1: Tom from the folks at Morgan Stanley, and I can

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Speaker 1: find it here. I brought it in with me. Um. Yes. Uh.

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Speaker 1: Matthew Hornback writing for Morgan Stanley yesterday about how he

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Speaker 1: used to watch the Japanese bond market. No matter what

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Speaker 1: the Japanese government did, the market never seemed to respond

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Speaker 1: because the rest of the world kept putting money into Japan.

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Speaker 1: And he said, now I've seen the same thing in

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Speaker 1: the United States. Yeah, the pushing on a string phrase

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Speaker 1: is becoming ever and ever wider as well. Good morning everyone,

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Speaker 1: Bloomberg Surveillance on this Monday, the second quarter, this April.

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Speaker 1: It's a snowy April in New York. Bloomberg Surveillance brought

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Speaker 1: you by Investco. Investco believes it's time to bench the

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Speaker 1: benchmarks and to consider active management and factor based strategies.

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Speaker 1: Find out more at investco dot com. Slash high Conviction,

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Speaker 1: Sally Cartchack getting our second quarter started, where would you

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Speaker 1: put your money right now? And diversified investment portfolio. Do

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Speaker 1: you have a general counsel. Look, I really believe it.

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Speaker 1: I really do that. Uh, you know, I haven't seen

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Speaker 1: any evidence that there are many Warren buffets out there.

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Speaker 1: If there were many Warren buffets, there wouldn't be a

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Speaker 1: Warren buffet. And so putting money into a diversified investment

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Speaker 1: portfolio I found Looke, Tom, I've in doing this for years, um,

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Speaker 1: even though you know, I hope you think I still

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Speaker 1: look like in twenty six I'm not. But you know,

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Speaker 1: calling the market can be a real fools game. Well, well,

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Speaker 1: then calling the market is the rage, and we know

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Speaker 1: the vogues come in, the vogues come out, and the

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Speaker 1: major vogue right now is large cap and if they

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Speaker 1: raise a dividend and buy back shares, we're going to

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Speaker 1: own it. And one things we see, maybe it's away

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Speaker 1: from what you did at Sandford Burns Stein in your

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Speaker 1: classic work there years ago, is blue chip consumer stocks

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Speaker 1: trading like it's the second season of Madmen. I mean

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Speaker 1: they're trading like the sixties. There, am I right on

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Speaker 1: that multiple older than what do you do? What do

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Speaker 1: you do? Nothing? Did infest broadly right, trying to make

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Speaker 1: a call on on valuation or trying to make a

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Speaker 1: call of what stage where in the market looked at

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Speaker 1: some extent rates are low, so the p s can

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Speaker 1: afford to be high and we need to adjust for that.

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Speaker 1: But you know, again, how how for how along have

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Speaker 1: people been saying interest rates are gonna soar, We're gonna

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Speaker 1: have the bond bear market of our lives two years,

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Speaker 1: three years, come on? Right? And so you know, valuation

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Speaker 1: is a factor, but it's not the factor always. Let's

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Speaker 1: so let's talk a little bit about elvest Um, your

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Speaker 1: new platform, and it's aimed at women. What's different about

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Speaker 1: a woman investing than a man? Well a lot um? Well, well,

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Speaker 1: I would say, look, first of all, let's back up,

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Speaker 1: because I'm an analyst, and analyst by training. We know

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Speaker 1: there's a gender investing gap. We know this, and we

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Speaker 1: know that it can cost women over the course of

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Speaker 1: her life more than the gender pay gap does. If

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Speaker 1: you're earning eighty five thousand bucks, so you're gonna work

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Speaker 1: forty years, it can cost you two million dollars plus

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Speaker 1: if you're putting your money in the bank versus investing

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Speaker 1: in a diversified portfolio. So I don't know what's different

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Speaker 1: about men from men, But I've had or I didn't,

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Speaker 1: but we've done hundreds and hundreds of hours of research

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Speaker 1: with women to talk to them about what they're looking for.

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Speaker 1: At Laicia Monel at Boston College is the best I

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Speaker 1: know on this, and you're totally right. And what's amazing

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Speaker 1: about it is the ramifications of under retirement. When you

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Speaker 1: get out past and I'm going to say the disability

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Speaker 1: curve breaks at forty two, and as an amateur, i'm

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Speaker 1: gonna say it's sixty four, and they never talk about

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Speaker 1: the one out at about eighty two. So so let's

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Speaker 1: take a big step back, because what I would put

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Speaker 1: forth to your listeners today is the retirement savings crisis

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Speaker 1: in this country is a woman's crisis. It's a woman's

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Speaker 1: crisis because women retire with two thirds of the money

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Speaker 1: of men, and because very importantly, women live five plus

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Speaker 1: years longer any nursing home in this country females. When

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Speaker 1: you take that stance, which is super important, When you

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Speaker 1: take that stance, what becomes clear is the possible solutions

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Speaker 1: for the retirement savings crisis go from all negative tax

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Speaker 1: increases entitlement cuts to pretty much positive close the gender

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Speaker 1: pay gap, keep women in the workforce longer and close

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Speaker 1: the gender that the gender investing gap is a gap

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Speaker 1: of time. In What we need, I would suggest, is

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Speaker 1: policy makers who can understand we need to incentivize retirement

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Speaker 1: investment early. It can frankly even be sex biased because

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Speaker 1: as you mention, women live a lot. How much longer

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Speaker 1: do they live? Five plus years longer? Did you know that? Michael?

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Speaker 1: You know that you can, you know it? But back up?

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Speaker 1: So there there is the time issue, Tom, But women

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Speaker 1: just don't invest the same extent as men do. And

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Speaker 1: I love my industry. I love Wall Street, but guys,

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Speaker 1: we know it's an industry that has more men in it.

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Speaker 1: So of my financial advisors. When I used to run

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Speaker 1: Meryl Smith Barney a mail right and the client base

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Speaker 1: reflects that demographic And so an interesting raised an interesting

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Speaker 1: question I want to ask you when we come back. Okay, well,

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Speaker 1: let's do that we invested this weekend. I was told,

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Speaker 1: don't chaabano. I was told us an investment. It was

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Speaker 1: by the way I convinced my husband years ago that

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Speaker 1: if he bought me gold, it's an asset allocation decision.

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Speaker 1: Schlumber j over a Tiffany's Sally with us here as

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Speaker 1: we migrate into the second quarter, and in April, John

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Speaker 1: Tucker inches of snow. I say there's no there. There

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Speaker 1: was like a snow blizzard. May I tell you every

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Speaker 1: opening day for the Yankees. I've gone to the Bronx.

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Speaker 1: It has I swear it has snow. You're if you're

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Speaker 1: not going today because now the future is up six down,

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Speaker 1: future is up thirty four, the yield one point seven

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Speaker 1: seven percent. Let's check in with Michael mar and get

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Speaker 1: the latest world in national headlines like Mike Tom, thank

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Speaker 1: you very much. Amtrack says it will resume normal service

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Speaker 1: today following a fatal derailment outside Philadelphia, but there could

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Speaker 1: be some delays. Yesterday, a trained struck tobacco on the tracks,

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Speaker 1: killing the equipment operator and a supervisor. Federal officials are

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Speaker 1: investigating the crash. Democratic presidential candidate Hillary Clinton says she

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Speaker 1: has agreed to a debate hosted by ABC is Good

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Speaker 1: Morning America on April fift Meanwhile, Bernie Sanders says he

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Speaker 1: has agreed to an NBC primetime debate on April tenth.

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Speaker 1: Donald Trump is calling on arrival John Kasi to drop

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Speaker 1: out of the Republican presidential race. Trump says Kase shouldn't

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Speaker 1: be allowed to continue accumulating delegate if he has no

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Speaker 1: chance of becoming the nominee. Global News twenty four hours

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Speaker 1: a day, powered by our hundred journalists and more than

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Speaker 1: a hundred fifty news bureaus around the world Now Michael Barr, Michael,

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Speaker 1: I did everything to avoid the political derby this weekend.

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Speaker 1: That was a very nice uptate of where we stand

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Speaker 1: going into Wisconsin tonight. Sally Crawchuck watching U n C

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Speaker 1: basketball Bloomberg Surveillance. Bloomberg Surveillance brought to by Fordham University,

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Speaker 1: your radio. This is a Bloomberg Business flash and I'm

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Speaker 1: Karen Moscow. Stocks are rising himid optimism. Central banks will

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Speaker 1: continue to support the global economy. U S Stock Index

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Speaker 1: futures higher as well. SMP EMNI futures of five and

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Speaker 1: a half points now e many futures of thirty two,

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Speaker 1: and NASADAC EUNI futures of eleven tacks in Germany and

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Speaker 1: CAC in Paris both up more than one per cent.

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Speaker 1: The FT one hundred up eight tenths per cent ten

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Speaker 1: Your treasury a little change yield one point seven seven percent.

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Speaker 1: Nim X Scrude oil down three tenths per cent or

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Speaker 1: ten cents at thirty six sixty nine of Arrow Comics

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Speaker 1: Gold is down four tenths per cent or four dollars

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Speaker 1: eighty cents at twelve eighteen seventy an ounce, the euro

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Speaker 1: A dollar thirteen sixty seven, the yen one eleven point

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Speaker 1: six four, and Virgin America is up almost thirty nine

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Speaker 1: percent in early trading after Alaska air Group a great

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Speaker 1: to buy the Richard Branson back company for two point

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Speaker 1: six billion dollars. And that's a Bloomberg business flash, Tom

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Speaker 1: and Mike Karen, thanks you so much, Bloomberg Bloomberg Surveillance

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Speaker 1: this morning. Rather bought you by interactive brokers. Are your

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Speaker 1: save more for more information. Uh, Michael, I know you've

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Speaker 1: got an important question for Sally Crawcheck. My research shows

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Speaker 1: that if she takes net Jets private jet New York

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Speaker 1: to Houston for the Final four, the normal flight is

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Speaker 1: eleven hours fifty minutes everything, and she can say four

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Speaker 1: hours fifty minutes out of Teterborough seven hour, zero minutes.

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Speaker 1: I don't know if I would run. I don't know

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Speaker 1: if I would want to be sitting a big, you know,

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Speaker 1: football stadium kind of thing and then try to watch

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Speaker 1: I get compared to watching on TV. I agree. I agree.

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Speaker 1: I went to Philadelphia UM, where I made myself not

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Speaker 1: at all welcome to the fans around me because I

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Speaker 1: staid up scream the whole time. But I think one

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Speaker 1: of these stadiums is a harder, harder thing, Yeah, harder watch. Yeah.

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Speaker 1: I have a question because we were talking just before.

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Speaker 1: You said two things before the break that I kind

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Speaker 1: of want to put together. One is that women there's

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Speaker 1: an investing deficit for women, and then you said there's

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Speaker 1: a deficit of women on Wall Street. I think related

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Speaker 1: is there's something about finance and women. They I think

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Speaker 1: they have to be Although when you talk to women

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Speaker 1: clients investing clients, and you say, do you need to

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Speaker 1: have a female financial advisor? They all say no. But

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Speaker 1: when they begin to describe what they're looking for, we

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Speaker 1: might argue those are some feminine characteristics. I want someone

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Speaker 1: who understands me. I want someone who explains things. I

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Speaker 1: don't want a bunch of jargon. I'm really not that

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Speaker 1: interested in outperforming the market. I'm much more about my goals.

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Speaker 1: And so the qualities they're looking for they're not getting.

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Speaker 1: And overall, while there are so many great financial advisors

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Speaker 1: and I know a lot of them who do a

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Speaker 1: terrific job for women, the industry doesn't do as good

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Speaker 1: a job, and women report they're patronizing. There's jargon money

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Speaker 1: is for me as a means to an end, not

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Speaker 1: an end, And there's a disconnect here between Wall Street

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Speaker 1: and women investors. Well, obviously there's always part of the

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Speaker 1: glass ceiling is that people hire people who look like

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Speaker 1: themselves and etcetera. And you have that going for you.

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Speaker 1: But in terms of the women going into Wall Street,

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Speaker 1: do they have a different attitude than the men who

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Speaker 1: go into Wall Street? Uh? And is that one reason

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Speaker 1: we don't see as many women rising. I don't think so. Look,

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Speaker 1: first of all, let's let's be perfectly clear. The issue

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Speaker 1: on Wall Street is not a pipeline issue. That the

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Speaker 1: percent of women going to Wall Street today is kind

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Speaker 1: of sort of the same as when I went in

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Speaker 1: the in the late eighties, but they're falling out along

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Speaker 1: the way now. In my old business, wealth management, some

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Speaker 1: of it for a while it was because the women

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Speaker 1: would not do as much transactional business, would do more

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Speaker 1: what you call a new atized business, more um wealth

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Speaker 1: management business, and so it took a longer time for

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Speaker 1: their businesses to build, and they get booted out because

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Speaker 1: they weren't hitting the guidelines that were put in place

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Speaker 1: for men and women, so they weren't being successful. So

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Speaker 1: I don't think it's it's not a pipeline issue. You know,

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Speaker 1: everyone's meaning well and hiring well, but women are falling

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Speaker 1: out halfway through it. I want to talk about the

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Speaker 1: topics come up a couple of times, particularly Arthan love It.

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Speaker 1: And this goes into the crow Chuck Wheelhouse from years ago,

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Speaker 1: which is gap non gap barns. And this came up

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Speaker 1: a couple of weekends ago. Somebody mentioned I never looked

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Speaker 1: at it in your reports that I went mental, and

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Speaker 1: he said, well, you've got to look at it. In

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Speaker 1: your report you get the flavor of the company. And

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Speaker 1: one of them is in the footnotes. We have become

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Speaker 1: a footnote America. We have footnotes which nobody reads. That's

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Speaker 1: why their footnotes. How did we get to where we

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Speaker 1: have footnotes within our annual reports versus for a while

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Speaker 1: but now and for a while nobody read them, you know,

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Speaker 1: I mean as long as I've been around, you know,

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Speaker 1: that's where you know, I was, as you know, research analyst.

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Speaker 1: If we could, I was number one, right, and some

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Speaker 1: of it was reading the footnotes and it wasn't that

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Speaker 1: hard because they were there and they told you all

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Speaker 1: kinds of the under There are more footnotes, I would agree,

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Speaker 1: And would we have better transparency gap and or non

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Speaker 1: gap if we just fold them into folded them in

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Speaker 1: with more visibility, Well, you know, I'm not sure about that.

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Speaker 1: What I would say is that there's for these um

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Speaker 1: for these companies, particularly Wall Street companies, they're so complex

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Speaker 1: and so complicated you have to really dig in to

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Speaker 1: try to understand whether it's in the footnote or the

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Speaker 1: main notes or or whatever. You know, there's real elbow

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Speaker 1: grease that is needed, and it's not you know, it's

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Speaker 1: not so interesting sometimes and so friend for investors finding

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Speaker 1: those analysts who are digging in and doing the work

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Speaker 1: and really really knowing it is at a premium going forward. Um,

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Speaker 1: how does your lves work? Um? Is it active management?

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Speaker 1: Passive management? Um? Yeah, yeah, So it's as as you've noted,

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Speaker 1: it's a digital investment platform. Um, it will the underlying

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Speaker 1: investments will be managed E t F s an idea

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Speaker 1: of keeping the costs low, and the goal of the

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Speaker 1: whole thing will be to help women achieve their goals.

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Speaker 1: It's not going to be about outperforming the market. It's

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Speaker 1: not going to be about what happens when the Euro

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Speaker 1: outperforms the yen. It's going to be and there's going

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Speaker 1: to be real attention to risk management because another thing

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Speaker 1: that we hear from women is that they don't believe

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Speaker 1: Wall Street spends enough time on looking at the downside

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Speaker 1: risk management. It's not that women are necessarily more risk

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Speaker 1: averse than men are. I would say, it is clear

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Speaker 1: that women are more risk aware. So stay tuned because

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Speaker 1: we're still in beta. We're bringing in people and testing

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Speaker 1: it now and polishing and working on it. It'll be

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Speaker 1: out sometime this year. United Laguardi at Houston. You can

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Speaker 1: make you I really do, really care about. We'll take

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Speaker 1: We'll take the will you can take the surveillance. Sikorski

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Speaker 1: over Tom. Three things that don't usually go together. There

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Speaker 1: it is do you have a baseball team and care about?

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Speaker 1: We have posed John and I am posing a new

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Speaker 1: rule on your Tom. You cannot say the Red Sox

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Speaker 1: season is over until they lose a game. Actually, last

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Speaker 1: year I broke the four block. This afternoon they open

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Speaker 1: in Cleveland. We'll see Sally Crawchuk with Elements, Thank you

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Speaker 1: so much. And the Economy on Finance, on Investment, International Relations,

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Speaker 1: Michael mckaye and Tom King, Bloomberg Surveillance Bloomberg. Anollance is

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Speaker 1: brought to you by S S and C more experienced,

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Speaker 1: the future of fund administration. S S and C. They

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Speaker 1: are the future of fund administration.