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tv   Bloomberg Markets European Close  Bloomberg  March 9, 2018 11:00am-12:00pm EST

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data planned reduction has a big effect. six-month inflation, i would like to see that continue. when we have confidence we will be a 2%, we can continue to increase policy rates in line to be normalized policy. i think the strategy we are pursuing is a good one but a gradual increase works. we are not behind the curve and will have good discussions over the course of the next few meetings. >> one of your own speeches, the forecast to 2%, you want to see us get there. >> i would like to see 2%. >> glad we got to see you. charles evans, president of the federal reserve of chicago, i would like to thank our radio and television audience and we send it back to you. vonnie: kathleen hays speaking with chicago fed president charles evans and we thank them
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both. fascinating elements in the interview, not least of all the symmetric inflation target of 2% and he said we have been comfortable at 1% for a long time, 1.5%, no problem around 2.5%. mark: waiting longer, charles evans says has merit. that implies that he has yet to be convinced a march hike is on the cards and he was pushed by kathleen, saying that if you do not go in march, does not leave a lot of time for hikes for the rest of the year. in the press conference meeting, it brings our question -- should we have a press conference at every meeting? he will leave that to the new fed chairman, jay powell, to decide. vonnie: it has not been decided and there is scope for changes but fascinating when he talked about the symmetric goal for the fed and how he thinks inflation
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will pick up. one metric he is watching is the six month reading. it has been a 2% and he wants to see it stay at 2% in march, confirmed we are on that trajectory. mark: as he said at the beginning of the interview, it is important that the process continues because, during recessions, the fed traditionally has cut interest .ates by 500 basis points it does not leave them with a lot of room now, given rates are well below 5%. vonnie: yes, and he is looking for more governors being appointed. workload, he said is quite stringent on the three fed board of governors. a check on u.s. markets with abigail doolittle. >> a rally on this friday with the dow, s&p 500, nasdaq up more than one present, near session highs after the
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better-than-expected jobs report for february. good news. a slight loss, hourly wages growth came in slightly less than expected but 313 thousand new jobs. on the week, a big weekly gain. , we are going to see lots of weekly volatility. this is a longer-term chart, for much of 2016, small moves on a weekly basis that led to a big yearly game with the s&p 500 gaining 19% last year and 2018 hit with a strong january and a selloff, rebound, selloff, rebound. selloffk, part of the was the announcement that president trump was likely to sign tariffs on steel and aluminum. that happened yesterday and investors were initially selling but in the close yesterday, solid, and perhaps investors are
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cheering the move, the idea of by american protectionism is adding to the gains today and on the week. some of the big gainers on the week, helping the chip space. philadelphia semiconductor index on the week, up in a big way, up high 4.4%, fourth all-time in a row. a lot of strength. that could be considered a bullish tell what is ahead for stocks with the chip sector, tiny components used in pretty much everything we use, when there is strength for the stock, that is considered to be a leading indicator of strength on a broader base. land research, macron, on semi conductor trading higher. stanley sees expanded clouds spending for micron.
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that is consistent with what we see overall today, a risk on day on this friday. mark: a similar story 30 minutes until the finish of the friday session and weekly session, gmm is her function, up for the day and week, the best run since january. currencies gaining against the dollar. production was the data hike -- industrial production was the data highlight in the u.k. with its biggest monthly increase in more than a year in january, the 1.3% gain from december as factory output rose for an unprecedented ninth consecutive month and oil production rebounded following the reopening of a key north sea pipeline and manufacturers benefiting from this synchronized global upswing in january, increasing output by .1%. this is a great chart.
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philip hammond is set to receive a much-needed boost next week when his fiscal watchdog update on tuesday, a spring statement formerly known as the budget. stronger than expected revenue has left the budget deficit on course to overshoot the 49.9 billion pound forecast by the -- by november. a negative in the government is an increase in market interest rates since november with capital economic desk is adding it could equal 2 billion pounds per year to government desk costs and investment -- ob -- the obr assumed. two-year, five-year, 10 year, 30 year, and the boj met today. they stayed the course with
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their monetary stimulus on friday. final policyda's meeting before his new term begins next month. inflation is a far cry from the boj target and he made it clear during a parliamentary confirmation hearing this month that powerful monetary easing is here for a file -- while. peers who are raising rates or normalizing policy, this the inflation gauge with the boj lagging. fed's inflation gauge at 1.7% and the ecb is at 1.2%. tortney donohoe we are going the -- going to the -- going to. added the mostrs workers last month since the middle of 2016, payrolls rose by
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313,000 in february, more than expected and the two previous months were revised upward by 54,000. the jobless rate is 4.1% for the fifth straight month. wages increased at a slower rate of 2.3% in one year ago. insulted, threatened, and mocked each other but president trump and teen gunman -- kim jong-un have agreed to meet for the unprecedented summit, no time yet. president trump says north korea has agreed to stop missile testing for now but he says economic sanctions will remain in place. leaders of the u.s. and north korea have never met. wants to winmp exemptions from the steel and aluminum tariffs, he signed an order imposing a 25% duty on imported steel and 10% on aluminum. tenant and mexico exempt as long as they agree to a rewritten trade deal. invited u.s.
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security allies to apply for their own exemptions. philip hammond in the u.k. will get a much-needed boost on tuesday, his fiscal watchdog is expected to predict after growth and lower borrowing. the u.k. budget deficit is expected to come in as much as $15 billion lower than predicted, the smallest in one decade. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. mark: thank you. global investors, plenty of news this week with central bank decisions and trade war talk, economic data including the jobs report today. to make sense of it is marcus ashworth of bloomberg gadfly. charles evans said there is merit in waiting and suggested he is open to the idea of not voting for a hike in march. which camp are you in when it comes to rate hikes until we see
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the eyes of inflation, given still below the fed 2% target? should you wait until you see inflation dive before hiking rates, or should you worry that if we get to a recession, we need to have the rate much higher than it is not to give us a chance to cut rates? >> the reason charles evan was not a german -- charles evans was not made the chairman because he is dovish and i found his comments interesting and do not think powell will propose a hike in march. because from the payroll reports, the economy is strong. therefore, he does not want to set a precedent, his first meeting and he does not do anything, that is not how he wants to lay it down. he made clear. he will not take every member,
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he will take majority. mark: another central banker we watched yesterday, mario draghi, he managed to put up the impossible by pushing the euro down, stocks up, yields fell. your piece was fascinating yesterday. you say that what we saw in effect yesterday, i am using your words, in effect, we saw a shift in forward guidance? isit was done for 2019 market guidance telling us, how can the ecb in talking about after stopping qe in december, tapering in september to december, a time which could be a few months, first quarter, first half to 2019, if they expect inflation to go down in
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that time. it does not make sense to me. that could change. the economy could change by then. as it looks now, the reason mario draghi was right and confident, even though they dropped the wording on the easy offr, he branched it because he knows the forecast, the pressures on inflation, all the market has not fully got that. the euro did. not on the rate markets. mario draghi has the time to do what he wants to do. vonnie: if you were treasury secretary or chancellor or minister of finance in a european country, how do you vote the prospect of tariffs? the latest is the italian prime minister complaining that they are not the way to go.
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he spoke with someone in a phone call. how do you plan for these tariffs? >> the best thing to do is ignore them. president trump playing a great game of bluff i think. a number of suspects like china who do need to be told with the market approach to the last few years, something that cannot carry on forever. it is not fair to the rest of the world. in regard to the approach, one way of getting attention. it may not transpire what the initial what the calls are for these types of tariffs. it is a hard thing to react to because it may not happen. as far as how the ecb and eu and the rest of europe handle it is a watch and wait. mark: what is the france versus
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england rugby score going to be? >> a modest win for england. mark: next week, i will ask you about the ireland-england score. we will get vonnie involved. vonnie: assuming that is your prediction tomorrow. mark: if he is wrong, we will not have him back. find his columns at gads go. history in the making, president trump and kim jong-un agreed to meet and what would be in an unprecedented summit, the latest developments. this is bloomberg. ♪
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♪ vonnie: live from new york, i am
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vonnie quinn mark: live from the city of london, i am mark barton with the close to the countdown in 15 minutes. vonnie: president trump agree to a meeting with north korea's kim jong-un. they have exchanged insults and threats of war. the president says great progress is being made. the time and place of the summit is not set. donald trump north korea has agreed to put its missile tests on hold and sanctions will not be lifted. going by our washington bureau joinedn new york for -- by our washington bureau chief in york. north korea is on the state-sponsored terror list, do we negotiate with terrorists? >> fair question, donald trump will say he will negotiate with anyone he thinks he can get a deal with and is optimistic to get a country that has resisted almost all international pressure for 60 years to come to the table and do something.
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donald trump will be asking kim jong-un to do is the one thing he cannot do which is give up nuclear weapons. that protects north korea and giving them a greater stature in the world that it might in a impoverished and it -- as an impoverished country. a way to make some progress and break a logjam with north korea. vonnie: in that spirit, could it be any worse? >> it probably cannot. , north koreaympics and south korea shared teams. mike pence was there and now donald trump will talk, nowhere to go but up. analysts say this is what kim jong-un wants, recognition on the international stage. you could make the argument donald trump is giving this to him by giving him the meeting without getting anything in return but donald trump is a dealmaker he thinks and will see
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what he can do. i would temper expectations to what breakthrough we may see. mark: one quotes that i worry about a president who has no foreign policy experience getting out. he said that i do not trust donald trump alone in a room with kim. will he be outmaneuvered and could he be outmaneuvered? >> this will be the question for donald trump always, he has him most no foreign policy or governing experience when he came into the job. twice the age of kim jong-un. has done more deals businesswise than kim jong-un. donald trump sat with vladimir putin in hamburg for a couple of hours with no agents or very few agents in the room. that is his style and he believes he can do the talking and knows what to say. i think a lot of analysts are worried that kim jong-un will
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come with his grandfather, his father, a playbook, and he will have an donald trump may not. mark: donald trump has more to lose. is donaldde, what trump have to gain realistically from this? what is the best case an area? -- scenario? >> north korea is out in the gold, we have no diplomatic relations, china does, south korea would like to have at least something approaching standard diplomatic relations. there are steps you can take along the way to denuclearization that would be viewed as a positive on the world stage, occasion, a sense they will abide by some international norms when it comes to trade or on sanctions. a lot of things between here and there. if donald trump would say, what the heck, it is not working so
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let's see if we can make it work. he may a scenario where bring out dennis rodman and it may be a show. we are jumping ahead but what would it mean for iran, syria, countries we do not negotiate with? what it opened doors to secondary consequences? .> this is the concern once you have one conversation with a country you said you would never talk to, donald trump conditions kim jong-un were has to give up his nuclear weapons and he has not done that and yet they will have a conversation. are watchinga closely, can donald trump be pushed around? -- he drop his preconditions that is a fair way to look at this and always the risk when you start down these roads. a country -- a conversation the
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whole world is watching. ahead, we speak with the chairman of oaktree capital group of the recent turmoil. this is bloomberg. ♪
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♪ vonnie: live from new york, i am vonnie quinn. mark: live from london and our european headquarters, i am mark barton with european close five minutes away. vonnie: china syndrome a governor says market access reforms should be accelerated in the second largest economy in the world can be a bolder in opening up. our china correspondent reports from beijing. >> they used what is likely to be his last public appearance as call for steps to reform and said policymakers were focused on achieving quality growth with less of a reliance on credit. he did not repeat his warning of
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a moment, saying that the current expansion of debt was stable. ofpening down expectations currency regime saying that internationally the one has been taken. the chief said china's regulators would coordinate more closely to end loopholes that have led to a buildup of financial risk in the system. he is expected to step down as head is the pboc after 15 years. his successor will likely be named on march 19. time for the bloomberg business flash, the biggest business stories in the news. toys "r" us is getting ready to liquidate its bankrupt u.s. operations. the shutdown of the u.s. division has become more likely in recent days. toys "r" us has not been able to find a buyer or reach a debt restructuring deal with its lenders. major league baseball is telling
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facebook to play ball, the social network has recent agreement with exclusive rights to stream 25 afternoon games. the first time a major u.s. league has agreed to show regular season games exclusively on facebook. that is your latest bloomberg business flash. here is european equities three minutes away from the end of the friday session. from the end of the weekly sessions, stocks will close the week higher, rising for the fifth consecutive day. better late than never. up. up and cac 40 just halftime for the currency board. ♪ retail.
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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. ♪ bloomberg's european headquarters in london, i am mark barton. fifth they of gains for the european get part -- fifth day
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of gains for the european benchmark and on track for the best weekly gain come at 2.7%, since february 16, third weekly gain in four. ofestors cheering the idea the possibility of talks between president trump and the north korean leader. the toprt, tech is performing sector on the s&p 500 this year and the best in europe and consequently riding the wave, since january 1, adding $579 million to the ishares s&p 500 i.t. sector etf, bringing total assets to a record $1.1 billion. blackrock fund has experienced one day of outflows since the start of the year. that was january 29. a wonderful chart. is this euro-dollar falling for a second day? euro-dollar and risk reversal
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data with options to going the currency will not stay down for long. risk reversal showing traders are not willing to pay more to guard against euro gains and to do so for declines. garfield reynolds from our sites tariffsg and the possibility of talks between donald trump and kim jong-un. he says the bullish driver of the euro-dollar includes u.s. deficits, european economic strength, and the end to the ecb bond buying program. on the matter of north korea, a great chart, another reference to the markets live team, and rallysays they can further and to narrow the so-called korean discount if the detox leads to a reduction in geopolitical tensions. pe ratio has been at record lows relative to the emerging-market index for years as global
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equities with significantly discounted because of the escalating threat of north korea missiles, if donald trump and kim jong-un to meet, this could be a game changer. themarkets live team says key beneficiaries will be construction companies that could benefit more than enter korean infrastructure companies, retails, cosmetics and tourism stocks will recoup losses as well. vonnie: the theme of the u.s. data check is backing off when it comes to various metrics. earlier but weaker after having strengthening the several last sessions and the canadian dollar stronger and the u.s. that had been weakening thanks to threats of tariffs. also strengthening because canada and mexico will be exempt.
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the same dynamic with the mexican peso. yield is 2.90%. it has not breached that. a greenve to gmm, picture around the world for the indexes, mexico with a sigh of relief on the exemption from the tariffs. russia is higher as is argentina and south korea. stronger -- won is south korean won is stronger with crude oil up 2.8%. 61.84. nd had weekend -- weake substantially. theie: the british -- mark: parliament would have six months to debate and approve the deal before britain deals -- leaves in march.
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our london bureau chief. january cuts it fine for businesses and parliamentarians, everybody. >> the history of the talks has been missed deadlines. we can count them. this was the big deadline. the big moment for the deal to be struck and giving enough time for the parliaments, it has to be approved by the european and british parliament for them to approve it before we get to brexit day which is only one year away and a few more weeks, the end of march next year and british officials say that is unrealistic because so many points they do not agree on. we still have distance between the two policies. into january, that does not leave much time, the transition time is part of that and that does not become formally agreed until businesses -- they need clarity, what will trading with
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the european union look like? they will not find out until then, putting in place their contingency plans. banks have started putting into place their relocations of people across the continent. airbus stockpiling parts so they can continue to manufacture the wings they make in britain. companies cannot wait any longer for clarity and acting as if there is not a deal and planning to deal with worst case an area, not good for the economy. mark: parliamentarians front, promised they would have a meaningful vote, does that mean a take it or leave it vote? >> yes, when they say, if you do not like this arrangement, if you vote this down, no time to negotiate anything else before we leave. parliament will not be happy with it because there is a strong majority of getting the
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vote, they lost the amendment on the issue before, which was they wanted to vote, having it so close to brexit day makes the process less meaningful. bek: should article 50 extended? a tricky process. >> it is possible, it is in the article that the timetable can be extended with the extent of all the other members of the european union. it is not a given. we heard this week from remaining camps that they are coming around -- this is a strategy, if we can delay brexit, the longer we go on, perhaps public opinion will change and we can keep written -- britain in the single market where you can take the exit down the road. a strategy to stop behold thing. -- the whole thing.
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provocation for pre-brexit are's in the conservative party. there was a referendum that a decision has been made. unlikely we will get to that point that the government will -- they say we will be leaving in march of 2019 over and over. as we have seen, things can change quickly. mark: red letter day is the meeting in a couple of weeks. will a transition deal be approved? will we get something concrete? >> the british are hoping, the european council meeting, a week after next, all the heads of government from europe come to brussels and they are supposed to rubberstamp a transition agreement. at the moment, significant differences between what the british and europeans want. somebody in the next two weeks will have to blink and there will be a compromise. about the rights of european citizens in the transition.
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the jurisdiction of the european court of justice. and about the border in ireland which has not been resolved in a meaningful way. it will be that delayedamped or if not to a meeting in june and the transition time is called a diminishing resource. companies are already having to put into place their plans for a worst possible outcome. chief,ur london bureau thank you for joining us. vonnie: looking forward to that news. let's get to the first word news today with courtney donohoe. >> american employers went on a hiring spree last month and brought along a more than expected 313,000 workers, the most in the middle of 2016. the government revised the prior two months higher by 54,000 jobs as the jobless rate remained
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4.1%. the pay gains have not taken hold. china is welcoming the upcoming summit between president trump and kim jong-un. the chinese foreign ministry says it hopes all sides in the nuclear dispute will show their political courage in negotiations. china is north korea's most important ally in the white house says the president's relationship with china helped bring north korea to the table. governor rick scott and florida has to decide whether to sign a gun-control bill that challenges the national rifle association, it passed after the school shooting and wage -- raises the minimum age to buy rifles from 18 to 21. and create a program to allow school employees to carry handguns if they undergo training. saudi arabia will purchase 48 british main fighter jets -- made fighter jets, they signed a
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memorandum of intent. the deal would be valued at close to $14 billion and keep thousands of jobs safe as the airplane market -- maker and it supplier. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: howard marks of oaktree capital group coming up, we will ask whether it is time to get defensive. ♪
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♪ mark: live from london, i am mark barton. vonnie: i am vonnie quinn in new york and this is the european close on bloomberg markets. a headline right now, according
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to a wall street journal report, lloyd blankfein of goldman sachs is preparing to exit before the year is over. according to the wall street journal. as u.s. stocks rise, treasuries fall on the back of a robust labor report that shows the american economy is strengthening. to fundamentals high enough where the -- ofk: i am with howard marks oaktree capital. good to see you. howard: good to be here. erik: i will make reference to your most recent memo in january, i describe it as the big question for investors right now, a question that has unchanged. some people are excited about the fundamentals and others are wary of asset prices. both positions have merit but is often the case is figuring out
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which one to weigh more heavily. harder today because the nasdaq just hit another record. you spend a lot of time with clients, how are they wrestling with this question? howard: they are wrestling. most are doing what i would do, remaining invested. some of them are putting on some caution. justifythe fundamentals being invested. i think they do. our economy is strengthening. erik: we saw it today with the jobs numbers, 313,000 new jobs. erik: nobody thinks -- howard: nobody thinks there will be a recession in the next 1.5 years but the level of prices calls for some caution. it is not like the fundamentals are terrible and the price means you should get out or the
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fundamentals are great and prices are low and you should be full risk. the fundamentals are good and prices are high. erik: this there a difference between caution and defensiveness? howard: no, they are the same thing. erik: how do you act defensively in a market like this? howard: it depends on what you do. we are accredited investors. -- we are credit investors and we try to have the highest standards we can, where we have the option, we try to tilt portfolios to one's -- we want covenants. we try to invest in defensive industries rather than cyclical industries. everything you want to do in the investment business, every asset class, ways to do it aggressively or cautiously and this is time for the latter. erik: except for i cannot count the number of months, the market rewards investors, not for
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taking a cautious approach or a defensive approach, they reward investors for momentum. the market rewards investors for buying heavily leveraged companies. howard: sure. we are in april risk time -- a pro risk time where there investors have been rewarded. because it has happened for eight or nine years, does not mean it will happen continuously. the more it happens, true of any phenomenon in the investment world, the longer it happens the less likely it is to keep going i just when something has been going on for five and seven and nine years, that is when people say it will always be the case and went it is at its most dangerous. erik: we learned courtesy of the wall street journal that lloyd blankfein of goldman sachs may be preparing to step down as early as before the end of this
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year. at oaktree capital, you have been a goldman sachs client for decades. how do you think the firm -- what do you think that firm will be like without oil blankfein who has been -- lloyd blankfein who has been the ceo since 2016. howard: a lot of their ceos have been terrific. the copresidents today are terrific. one or both, i assume one, will whenever lloyd's shoes it is and i am sure the firm will go on. when you do business with goldman sachs, you do not do business with lloyd blankfein every day, there are terrific people in the organization and elsewhere. interacts withas just about every large financial services firm in the united states and in the world. to what degree is a firm defined
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by its ceo and when there is an underlying culture that allows it to continue in some respects uninterrupted regardless of who is in the corner office? howard: a firm, that is a difficult question, some firms are transactional. do the deal and make the money. some firms are coulter based. -- culture based. will it retain that? putting the client first, what they call long-term greedy. if you make good decisions for the interest of the client in the short run, you will maximize your own value in the long run. i believe that and i believe that goldman sachs believes it and still does it. hand, a ceo the one puts his stamp on a company. on another hand, if it is a
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culture-based company, his job to perpetuate the culture and lloyd blankfein has done both. erik: people have predicted how financial markets will correct. when they correct. one was daniel pinto of taking morgan and head of the corporate investment bank. he said the stock market may undergo a deep correction and 20% to 40%. as -- admin ofgoodman blackstone expects high-yield spreads which currently are on torage 350 basis points widen to 700 basis points. both were talking a two-year to three-year time frame. you are not in the business of numerical forecasts but these
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projections do get something i know you do think about, what does the next downturn look like when it comes? two different scenarios, one is dire, stock market only corrected 20% or more twice in the last 30 years, the other, while not pleasant, is -- what will it be to you -- humdrum? howard: what bennett said about high-yield bonds is not humdrum. you said it correction of 20%, 40%, most people today that is false but most people find a correction as 10%. what he is talking about a 20% is -- and 40% is a bear market, down 20% would be very hurtful and down 40% would be terrifying. happen.t know what will you said that for me. i have said it enough times. had a littlehave
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preview in the last six weeks. everything was hunky-dory until february 1. and then we had cathartic the things iof observed in the last memo in 2017, the market was complacent and it was the first year in history where there was no 3% correction. , we had 3%, 4%, and two of them only took one day. short-term but was a collapse, and if it went on longer, it would have a field the prediction of 20%, 40%, it went down 10% and could have gone down 20%. -- 100 basis points is dire in my opinion. semi-dire. 350 today is the low end of the normal range for spreads. when i started in 30 years ago
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this year, spreads were 325 if you invested in high-yield bonds versus treasury 30 years ago, you did extremely well over treasuries for the next year's. today's spread is fine. if i got to 700, that is outside the normal range for spreads, they would be cheap demonstrably. you may not call it a panic but it would be a substantial correction. erik: let me go back to goodman, and i served of his interview -- an expert of his interview. let's play it. >> rising rates will create volatility, particularly in the high-yield bond market. to findthat dislocation new things to invest in. while we have existing investments that may trade down on a mark to market basis, we are confident to the credit quality of what we own, the company's abilities to pay interest and service their other
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financial obligations, pay us back at maturity. we worry about is not what we the 25w do we deploy billion of dry powder that we have. to do that, we need things to move around. is gettingbennett excited, everybody agrees that when the cycle turns, there will be more opportunity in value and distressed funds. there are so many more low rated bonds with weaker standards, what does that mean? do you have to wait for prices to drop further to acquire the necessary margin of safety? howard: you do. look, bennett said that blackstone has 25 billion of dry powder and we have over 20 billion of dry powder and eager to deploy it. we are not doing it now and that says prices are not low enough to be a screaming buy.
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we hope they will become it. as he says, the things we own will decline but we will get a chance to make great buys. we look forward to that. money, three jobs, raise deploy it when things are at low prices and harvest it when things are at high prices and it depends on the middle one. raising money does not do that if you do not spend it on bargains and you will never have a chance to garner profit if you did not buy cheap. erik: thank you for being here. the pleasure is mine. howard marks of oaktree capital. vonnie: makes it seem so easy. thank you to you and howard marks. moment.ay with us for a goldman sachs up 1.5%. shock, we knewa lloyd blankfein what at some point leave but the wall street journal says he may do it by the
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end of this year. their story says goldman will likely follow an announcement of the departure with a quick transfer of power because the two copresidents are around. what will this do to the stock? you asked howard about this. erik: the market is telling us and nothing at the moment. hard to imagine goldman sachs trading up on the news lloyd blankfein may be preparing to leave the firm. what he appears to have been successfully as what every company wants to do and needs to do, pave the way for ceos secession. whether it will be harvey schwartz or david solomon is a question. it may be both. they have a long history of partnership in leadership. it may not be surprising if the board puts them both in place. sachs iss that goldman
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a firm rich in culture and the ceos job more than anything is to preserve the culture. if a client like howard says the culture is intact, that tells you as much as you need to know about what they will be like after lloyd blankfein is gone. vonnie: we will talk about this a lot more in the next couple of hours for the stock at 1.5% and the wall street journal report will be watercooler talk. lloyd blankfein preparing to make his exit by year end and the copresidents are there to take over and there will be a transfer of power. wonder if he is going out on a high note or less than a high note, we will examine that throughout the afternoon. this is bloomberg. ♪
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>> i am mark crumpton with first word news. the head of the trade association for the u.k. steel industry says president trump's new trade tariffs are bad news for all steel exporters.
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he said that could prompt some countries to take protectionist measures. >> this could trigger a trade war with almost all steelmaking countries taking action and that is the last thing anyone in the global steel sector really wants at the moment. >> he is calling on the british government to work with the u.s. officials to carve out an exemption for the u.k. former trump campaign aide sam number arrived in washington days after he scoffed at testifying before a grand jury in a series of television interviews. berg said he would defy the subpoena in robert mueller's pressure pro but now says -- pressure probe -- russia probe. he calls the affair a teachable moment. rick scott has to decide whether to sign a gun-control b

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