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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg dwell unders to San Francisco, Bluemberg

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Speaker 1: to the Country six Channel one ninety and around the globe.

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Speaker 1: The Bloomberg Radio Plus happened. Bloomberg dot Com. This is

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Speaker 1: Bloomberg Surveillance seven thirty Wall Street. Good morning. I'm John Tucker,

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Speaker 1: two hours away from the opening bell, and let's catch

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Speaker 1: you updated on the news you need to know Nowmorro

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Speaker 1: Holdings plants to cut jobs in North America, according to

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Speaker 1: people with knowledge of the matter. It follows competitors from

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Speaker 1: Credit Suis, script to Deutsche Bank and Trimming operations. Robert Goldford,

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Speaker 1: the co manager of the Sequoya Fund, retiring after the

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Speaker 1: firm's investment in troubled drug maker Valiant Pharmaceuticals, marked the

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Speaker 1: reputation of a mutual fund that traces its roots to

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Speaker 1: billionaire born Buffett. I get a reading on durable goods

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Speaker 1: orders this morning. Bloomberg ecconomist rich Yamarone says look for

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Speaker 1: it to bottom out today. G d P used tomorrow.

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Speaker 1: Yahoo shares higher after The Wall Street Journal reported Starboard

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Speaker 1: Value will seek to replace Yahoo's entire board on Wall Street.

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Speaker 1: Let's get news from around the world now, at LEAs

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Speaker 1: say good morning to Bloomberg's Michael Barn Good morning, John.

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Speaker 1: There may be two suspects at large following this week's

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Speaker 1: bombings in Brussels. Belgian state media reports that an attacker

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Speaker 1: is seen on surveillance cameras in the Brussels subway, carrying

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Speaker 1: a large bag and walking alongside a man who has

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Speaker 1: been identified as the actual suicide bomber. He was one

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Speaker 1: of three men seen in surveillance photos walking together at

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Speaker 1: the airport. One of the three is believed to be

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Speaker 1: still alive and on the run. Most Democrats believe Donald

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Speaker 1: Trump would be the underdog against Hillary Clinton. According to

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Speaker 1: a new Bloomberg pole, Clinton leads Trump in the hypothetical

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Speaker 1: general election matchup to thirty six Bloomberg pole of Republicans

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Speaker 1: show of thoughs who have voted in this year's Republican

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Speaker 1: primaries and caucuses or planned to do so, back Trump's

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Speaker 1: view that the person with the highest delegate account should

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Speaker 1: win the nomination, even if he lacks the magic number

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Speaker 1: of one thousand, two hundred thirty seven. Civil liberties groups

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Speaker 1: are pledging to push for repeal of a new North

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Speaker 1: Carolina law that prevents cities and counties from passing their

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Speaker 1: own antidiscrimination rules. And sports and broadcasting Great Joe Garagiola

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Speaker 1: has died at age ninety. Global News twenty four hours

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Speaker 1: a day, powered by our twenty four hundred journalists and

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Speaker 1: more than a hundred fifty news bureaus from around the world.

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Speaker 1: Michael bar John Michael two Wall Streets and Speaking Sports

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Speaker 1: time for the Ray Cantina Auto Grew Bloomberg NBC Sports Update.

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Speaker 1: Here's John Stasher. Thanks John Nick. Victories have been few

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Speaker 1: and far between the last couple of months. One one

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Speaker 1: oh seven at Chicago just their seventh win in the

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Speaker 1: last thirty one games, their second since January twelve against

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Speaker 1: the team of the winning record. Chris stops Porzingis led

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Speaker 1: the way twenty nine points. Carmelo Anthony added two teams

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Speaker 1: tonight at the Garden, where last night the Rangers beat

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Speaker 1: the Bruins five two. Derek Pizard team leading twenty six

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Speaker 1: goal Matt Zucarello is twenty four j Team Miller got

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Speaker 1: the twenty on the year, and Rick Nashcort for the

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Speaker 1: second straight game in Brooklyn Islanders ended the four game

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Speaker 1: losing streight three one over Ottawa. All three goals come

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Speaker 1: in in the second period. N C Double A Tournament

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Speaker 1: back tonight. Doubleheaders in the South and West Regions in

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Speaker 1: Louisville and in Anaheim. N I T wins for George,

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Speaker 1: Washington and San Diego State. They'll join Valparaiso and b

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Speaker 1: y U at the Garden next week. The season not

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Speaker 1: yet over for Columbia, sixty sixty seven went over Ball

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Speaker 1: State to reach the c I T semifinals. Alex Rodriguez,

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Speaker 1: now downplaying comments he made with ESPN, reported that the

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Speaker 1: twenty seventeen season will be his last. It's no doubt

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Speaker 1: what the Yankees have been thinking all along too. That's

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Speaker 1: when they finally get out from under a Rods two

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Speaker 1: and seventy five million dollar contract with the Bloomberg. NBC

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Speaker 1: Sports update I'm John Stash. Sorry, thanks to John. Ahead

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Speaker 1: of the market open on Wall Street, futures right now

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Speaker 1: in the U State are lower. SMP futures down about

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Speaker 1: ten that's down half of percent, the DAL futures down

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Speaker 1: seventies seven, and then Aztec E many futures right now

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Speaker 1: down twenty two points. That's down half a percent. You're

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Speaker 1: listening to Bloomberg Surveillance. Good morning on John Zucker. Bloomberg

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Speaker 1: Surveillance continues with Tom Keen and Francine Lacroix. Right now

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Speaker 1: time for the Bloomberg n g I T STEM Report,

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Speaker 1: being brought to you by New Jersey Institute of Technology,

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Speaker 1: partnering with government and industry to apply the university's world

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Speaker 1: class research assets to innovate and spur economic growth. Learn

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Speaker 1: more at nj I T dot E d U. Good morning,

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Speaker 1: Bob Boon, John, Good morning. Thanks. Hey, here's what's making

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Speaker 1: news in science, technology, engineering, and math. Smartphones are so

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Speaker 1: last year. Samsung isn't the only smartphone maker that's becoming

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Speaker 1: painfully aware. Sales are flatlining, and it's planned to remain

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Speaker 1: competitive is to morph into more of a software driven company,

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Speaker 1: so says Samsung executive VP re And Jong, adding in

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Speaker 1: an interview that the South Korean consumer electronics maker is

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Speaker 1: actively looking to acquire developers of artificial intelligence. His vision,

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Speaker 1: artificial intelligence will make the things we do on smartphones

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Speaker 1: much more convenient, and your well trained phone will build

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Speaker 1: customer loyalty. That's because of the amount of time it

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Speaker 1: takes to train the software to understand your preferences. Google

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Speaker 1: will create business tools and products based on its own

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Speaker 1: artificial intelligence technology, seeking to entice more companies to rent

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Speaker 1: its cloud computing services. It plans to offer services such

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Speaker 1: as audio transcription and image identification built around its machine

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Speaker 1: learning software. Google has used this technology for its own

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Speaker 1: products and is now making the capabilities available for other

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Speaker 1: companies to rent. At Access over the Internet had activist

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Speaker 1: investors pushing technology companies to close the gender pay gap.

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Speaker 1: Just heard from Amazon dot Com. The online retailer says

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Speaker 1: it hired an independent labor economist to conduct a study

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Speaker 1: that found for every dollar men earned women working the

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Speaker 1: same jobs Amazon in the US last year, or ninety

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Speaker 1: nine point nine cents. And that's this morning's Bloomberg and

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Speaker 1: j I t stand report. John, Thank you very much,

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Speaker 1: Bom boom. It's seven thirty six Wall Street. Good morning.

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Speaker 1: I'm John Tucker Bloomberg. Saveillance continues this morning. Tom Keene

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Speaker 1: here in the studio. Francine la Quix, I'm happy to say,

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Speaker 1: joining us from London this morning. Hi Franni, Hi John,

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Speaker 1: how are you doing. I'm delighted to join the conversation

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Speaker 1: this morning on Bloomberg Radio, and no one better to

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Speaker 1: join us than the chairman of such Insagi, Kevin Roberts,

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Speaker 1: to talk a little bit more about advertising, the world

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Speaker 1: we live in, marketing, but also disrupting your own business. Kevin,

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Speaker 1: great to have you on the program today. You talk

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Speaker 1: a lot about disruption, You talk a lot about value

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Speaker 1: creation and brands. We were talking about Facebook, Microsoft, Google,

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Speaker 1: Who is the one company that may be disrupted that

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Speaker 1: we're not expecting to be disrupted right now? We're all

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Speaker 1: vulnerable to disruption. You know, descriptions driven by consumers, It's

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Speaker 1: driven by creativity, driven by ideas, driven by constant, constant

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Speaker 1: desire to make things easier and fastest. So if you're

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Speaker 1: not busy disrupting yourself, you are going to be disrupted.

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Speaker 1: It's like Vince Lombardi said way back. He said, if

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Speaker 1: you're not if you play for the Green Bay Packers

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Speaker 1: and you're not fired with enthusiasm, you will be fired

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Speaker 1: with enthusiasm. So you better get on with your disruption.

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Speaker 1: Right But okay, so the big company, how do I

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Speaker 1: disrupt myself? And this is very counterintuitive? So I know

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Speaker 1: where customer lead, I know it's a digital era. I

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Speaker 1: know we spend more time talking to our our mobile

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Speaker 1: phones than we do to our partners. But but it's

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Speaker 1: the concept of brand really changing. The first question is

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Speaker 1: how do you descrupt yourselves? That you asked me, and

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Speaker 1: I think that's the killer question because frankly, a business

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Speaker 1: model disruption, I'm not going to say it's easy, but

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Speaker 1: a business model disruption just needs a fabulous idea with

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Speaker 1: some great execution. Think about Airbnb, think about Amazon, think

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Speaker 1: about Uber whatever, whatever, whatever. But if you transform yourself,

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Speaker 1: you have to disrupt your culture. And if you're fifty

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Speaker 1: years old, sixty years old, twenty years old, and you've

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Speaker 1: been successful, there is nothing more difficult than disrupting yourself

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Speaker 1: culturally because people are you know, in build resistant and

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Speaker 1: feel insecure, nervous about change, let alone about transformation disruption.

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Speaker 1: So it's that's the first challenge. How can you disrupt

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Speaker 1: your culture right? And kind of the problems that you

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Speaker 1: have to to be sure you're disrupting something better? Right,

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Speaker 1: You could be disrupting something that does not need disrupting.

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Speaker 1: So what data are you looking at to make sure

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Speaker 1: that you're not missing it up by disrupting something that works? Yeah,

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Speaker 1: not a tremendous amount of data. I think you know

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Speaker 1: you can follow. I think culture, beat strategy, and beat

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Speaker 1: data every day of the week. And if you if

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Speaker 1: you are truly creativity lead and innovation lead, and somehow

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Speaker 1: you can bring creativity, innovation and technology to be your servant,

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Speaker 1: then disruption becomes less frightening and more a way of life.

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Speaker 1: You have to generate a culture where the product isn't

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Speaker 1: whatever you're making, but the product is constant innovation, constant improvement. Kevin, you're,

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Speaker 1: of course a grow when it comes to advertising. We

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Speaker 1: have to pivot to politics if you look at political

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Speaker 1: candidates on all fronts. So let's look at the US,

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Speaker 1: but also let's look at here the UK and leaders

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Speaker 1: that are struggling, such as the South African president. Whose

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Speaker 1: campaign would you like to do right now? Well? I

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Speaker 1: think it it's a great, great question, isn't it, Because

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Speaker 1: leadership seems to be at a premium right now in

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Speaker 1: the world of politics. If you look around what's happening

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Speaker 1: in Europe, if you look around what's happening in the US.

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Speaker 1: There is a growing unrest amongst the middle classes who

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Speaker 1: are saying, listen, whether you're right or left, you political people.

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Speaker 1: You're ignoring me, you're not caring for me, you're not

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Speaker 1: listening to me, you're not responsive to me. And I'm angry,

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Speaker 1: and I'm not sure how I can manifest my anger

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Speaker 1: except I'm probably not going to vote for you establishment leaders.

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Speaker 1: So I may be attracted to the extreme right, I

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Speaker 1: may be extracted to the extreme left, I may be

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Speaker 1: attracted to the outsider. But at the moment, I think

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Speaker 1: we are in a a vacuum where the next leader

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Speaker 1: that can come for the middle classes is the one

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Speaker 1: we would support. All right, Kevin, thanks so much, Kevin Roberts.

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Speaker 1: There of Sachie and Satchie the chairman, it's not in

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Speaker 1: the vacuum. It's European stocks. They're deepening their losses though,

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Speaker 1: as miners and energy shares go down. You're listening to

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Speaker 1: Bloomberg Surveillance. Now we're coming down to the opening down.

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Speaker 1: We have less than two hours ago, brought to you

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Speaker 1: by Mazda, white planes, visit Masitative, white planes, dot com

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Speaker 1: s and futures down eleven points. That's tom half percent.

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Speaker 1: This is Bloomberg Surveilance Globoo Business News twenty four hours

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Speaker 1: a day at Bloomberg dot Com, the Radio plus Mobile

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Speaker 1: Act and on your radio. This is a Bloomberg business flash.

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Speaker 1: Now I'm kerin Moscow. There's updates brought to you by

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Speaker 1: Sector Spider E t F. So who I buy a

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Speaker 1: single stock when you can invest in the entire sector?

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Speaker 1: Visits sector spd R S dot Com are called one

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Speaker 1: six six sector et F investment firms. Starboard Value has

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Speaker 1: nominated nine directors to Yahoo's board. It says Yahoo has

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Speaker 1: refused to embrace the need for change, and Starboard says

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Speaker 1: it holds about one point seven percent of Yahoo shares.

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Speaker 1: Yahoo is up eight ten percent in early trading. U

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Speaker 1: S Dock Index futures, meanwhile, are lower, with the SNP

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Speaker 1: five index on track to halt its fifth weekly streak

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Speaker 1: of games that had trimmed all of its losses for

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Speaker 1: the year. We checked the markets every fifteen minutes throughout

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Speaker 1: the trading day on Bloomberg, SNP E many Future is

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Speaker 1: down about twelve points, DOWI Many futures down ninety four,

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Speaker 1: and NAS DOCU miny futures down twenties six and acts

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Speaker 1: in Germany's down one and a half percent. Ten Your

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Speaker 1: treasury up for thirty seconds, they yelled one point eight

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Speaker 1: six percent yield on the two year point eight five

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Speaker 1: percent nim X screw oil dropping down two point two

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Speaker 1: percent or eighty seven cents to thirty ninety two A

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Speaker 1: barrel comic school down half percent or five dollars ninety cents.

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Speaker 1: A twelve nineteen seventy announced the euro a dollar eleven

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Speaker 1: fifty one. They had one twelve point seven four And

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Speaker 1: that's a Bloomberg business flash. Francine and Tom Karen, thank

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Speaker 1: you so much. We continue to know the conversation with

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Speaker 1: the such and Sacchi chairman. He is Kevin Roberts. Kevin,

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Speaker 1: we were talking a little bit before about disrupting your brand,

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Speaker 1: and we briefly briefly touched on politics. Talk to me

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Speaker 1: about really the desperate choices facing US Republicans. If you

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Speaker 1: were doing some kind of advertising campaign for them, who

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Speaker 1: would you have to convince? Is it millennials? Do you

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Speaker 1: have to be on social going forward? UM? Trump has

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Speaker 1: to connect, modify with the younger people, but also with

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Speaker 1: he's got to um become more presidential and more serious

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Speaker 1: and build some gravity pass into all the extremism thing.

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Speaker 1: I think you might see him start tracking back. I

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Speaker 1: hope a little bit towards the middle, and I think

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Speaker 1: you might see Mrs Clinton moving a little bit further

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Speaker 1: towards the middle classes, towards some ideas, towards some innovation.

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Speaker 1: So if it were to get down to the handtan

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Speaker 1: combat they were expecting, I think you're gonna see some

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Speaker 1: some movement towards the middle from both. That's what we

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Speaker 1: would recommend anyway. Kevin, you're advisor supreme right, your your

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Speaker 1: head coach also publicly sees how difficult when you look

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Speaker 1: at politics is it to read polls? We saw it

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Speaker 1: here in the UK with the UK elections. The polls

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Speaker 1: made no sense. I mean they didn't you know, on

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Speaker 1: D Day the votes were completely different to what we

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Speaker 1: had in the polls. Is it the same situation in

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Speaker 1: the US. And again, how it is difficult Is it

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Speaker 1: to manage your campaign if you don't believe the polls? Yeah,

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Speaker 1: I think you should start with the answer and work

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Speaker 1: back and the answers never in the polls. The answer

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Speaker 1: is in your purpose, in your beliefs, what you stand for,

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Speaker 1: and how you can communicate that emotionally with the people

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Speaker 1: of your nation. So, you know, looking at polls is

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Speaker 1: sort of interesting, but it's not the point. Right. Information

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Speaker 1: is interesting, but it's really how can you emotionally connect?

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Speaker 1: How can you build a relationship now with all this

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Speaker 1: amazing opportunity of all the social media that's available out there.

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Speaker 1: Looking at polls, he's sort of looking at the rear

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Speaker 1: view mirror. You've got to get into the windshield and

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Speaker 1: stand for something and communicate that emotionally. You know. I

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Speaker 1: look at the system here in the change politics and

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Speaker 1: a I think, Kevin, we all have a framework in

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Speaker 1: the history that's individual. But what we can say for

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Speaker 1: certain is the two thousand sixteen is not even two

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Speaker 1: thousand eight or two thousand two or you know, back

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Speaker 1: however far you want to take it. With that said,

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Speaker 1: what's the new calculus to not make people vote for you,

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Speaker 1: but to get them to change their vote. I think

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Speaker 1: you've got to promise them something besides besides free beer.

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Speaker 1: Free beer would work okay for many people, but I

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Speaker 1: think you have to promise you know, you have to

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Speaker 1: be purpose driven, particularly with this new world where we're

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Speaker 1: all drowning and information so we've all got access to

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Speaker 1: that stuff. We've got to paint a real clear picture

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Speaker 1: of why the future looks like for me. If I'm

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Speaker 1: a middle class, average American, I'm not happy. So whichever

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Speaker 1: one of you two guys is going to give me

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Speaker 1: some joy and some reason to believe I'm going to

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Speaker 1: vote for I look, fran scene at the difference between

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Speaker 1: the UK election and maybe Brexit has some of the

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Speaker 1: features of a selection which is basically going on forever. Kevin,

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Speaker 1: what's your advice to the candidates in that strange gap

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Speaker 1: from the primaries to the convention strange moment it is. Yeah,

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Speaker 1: I think it's a wonderful opportunity, frankly, to start modifying, coordinating.

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Speaker 1: What the millennials want today is not conflict. They're looking

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Speaker 1: for collaboration. They're looking for connectivity. They're not looking for

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Speaker 1: all these attack dogs and stuff that we've seen in

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Speaker 1: the past. They're looking for someone to unite and to

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Speaker 1: move forward together. And I would use that time to

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Speaker 1: start developing those kind of relationships, those kind of accords,

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Speaker 1: instead of simply attacking each other, which I think is

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Speaker 1: really counterproductive for all parties. Okay, Kevin, you mentioned millennials, Tom,

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Speaker 1: We spend a fair amount of our time trying to

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Speaker 1: figure out what this group wants to buy, how they vote,

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Speaker 1: how they make life choices, Kevin, who gets it right

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Speaker 1: in reaching millennials, And it can be companies, it can

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Speaker 1: be political groups. How do you get a millennial to

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Speaker 1: follow you, to embrace what your message is? Well, you

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Speaker 1: don't want to get them to follow you. These guys

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Speaker 1: are not followers. You want them to join you, right,

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Speaker 1: You want them to evangelize for you, and you want

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Speaker 1: them to become part of what you stand for. And

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Speaker 1: I think if you look at the companies that do

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Speaker 1: that well, they would be Apple in a normal bunch

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Speaker 1: of suspects, Amazon would do it very well. Uber Or

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Speaker 1: are living on that right now. Airbnb of revolutionalized and

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Speaker 1: disrupted the entire hotel industry. They don't need rooms, they

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Speaker 1: just need people. Because they haven't convinced or told millennials.

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Speaker 1: They've said, come join us, share your experiences, talk to

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Speaker 1: each other. That's how Apple works as well, Tom, were

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Speaker 1: millennials right in our heads were millennials. But I see it.

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Speaker 1: I see the debate within the digital overload in editorial overload, Kevin,

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Speaker 1: that we all have today. We're exhausted by the amount

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Speaker 1: of material. How does Secretary Clinton or Mr Trump deal?

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Speaker 1: I mean Mr Trump clearly has a new and original

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Speaker 1: method to deal with the overload we all face. Yeah,

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Speaker 1: I mean I don't feel overloaded and overwhelmed. And I

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Speaker 1: know all the you know, the average age of people

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Speaker 1: at Sache and Sachi's twenty seven, and they've never had

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Speaker 1: it so good. They don't feel overloaded at all. They're

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Speaker 1: loving it, relishing it. They make their mind up in

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Speaker 1: less than three seconds on whether they in or out

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Speaker 1: on the information, so they're boom, They're moving on. They're

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Speaker 1: looking for things that they're not looking for information and

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Speaker 1: use as much as they're looking for a point of view,

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Speaker 1: some entertainment, some optimism in the whole messaging. They're looking

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Speaker 1: for it visually rather than just spoken the way that

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Speaker 1: we saw it, and they're looking for it fast. They

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Speaker 1: have no sense of information fatigue, non They're on top

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Speaker 1: of this. They know how to manipulate this and absorb it,

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Speaker 1: as do people like Facebook, Instagram and so on, Snapchat, Twitter.

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Speaker 1: These guys get it too. If you try Apple Music

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Speaker 1: versus Spotify, Apple Music instinctively gets um what these consumers

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Speaker 1: how they want to absorb their music. We are having

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Speaker 1: a great conversation with the such and such a Chairman

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Speaker 1: Kevin Roberts. But Kevin, it's a little bit depressing what

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Speaker 1: you're painting. The picture you're painting is that it's it's

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Speaker 1: you know, there's a more and more of a blunder

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Speaker 1: between facts and I guess opinions and what these these

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Speaker 1: younger generation one? Are we ever going to go back

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Speaker 1: to UM more thoughtfulness. I don't find it depressing at all.

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Speaker 1: I find it very exciting, inspirational, optimistic and uplifting. I

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Speaker 1: think this is a world where ideas of the currency.

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Speaker 1: So we all have access to knowledge now, thank you

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Speaker 1: very much, Google, and we all have access to UM information.

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Speaker 1: Now we're free to connect, collaborate and create. What's depressing

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Speaker 1: about that? Well, because everything goes fast and it reminds

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Speaker 1: me of Dorian finding Nemo right. People, people go so

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Speaker 1: fast that sometimes you don't have time to think. Kevin,

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Speaker 1: what's the perfect medium in you know? I need a

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Speaker 1: short answer. There is no such thing as perfection in

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Speaker 1: this world. A fast game is a good game. There

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Speaker 1: you go, ton Keen the final word, A fast game

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Speaker 1: is a good game. Kevin Roberts, Thanks so much. We're

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Speaker 1: going to continue this discussion. A lot to fold in yourn, Economics, finance, investment,

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Speaker 1: UH and international relations. I know Francine in London monitoring

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Speaker 1: the news out of Belgium, including an important EU Interior

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Speaker 1: ministers meeting today. Unfortunately, there's been too many of these

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Speaker 1: over the recent years, including at Parish. You wonder at

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Speaker 1: this time will be different and they'll get up to

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Speaker 1: some form of agreement along the way. You've got something certain,

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Speaker 1: just a surveillance correction. Francine referred to you as a millennial.

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Speaker 1: That's far from the first millennium. Yeah for the first.

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Speaker 1: Thank you Francine for that age adjustment. If you would

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Speaker 1: let me look at equities, bonds, currencies come out of

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Speaker 1: these futures of negative eleven deteriorating through the morning at

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Speaker 1: down future negative seventy eight. The yields come in on

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Speaker 1: one ninety one earlier this week one eight six. There

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Speaker 1: is a weight to the tape with curve flattening the

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Speaker 1: curve now the two stents spread a hundred basis points

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Speaker 1: oil three days week. We go from a forty handled

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Speaker 1: down a thirty eight uh ninety four on West Texas

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Speaker 1: Brent care thirty nine sixty eighty one cents now Brent

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Speaker 1: but below forty dollars barrel. Not a big deal, but

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Speaker 1: nevertheless something to watch into our three day weekend, and

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Speaker 1: of course the United Kingdom of the four day weekend

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Speaker 1: is well. I don't know how that got figured out.

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Speaker 1: Dollars stronger stay with us. Francine Lacroix in London. I'm

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Speaker 1: Tom keenan New York. Another hour of Bloomberg's surveillance,