>> from bloomberg world headquarters in new york, i'm mark crumpton, this is bottom line. the intersection of this and economics with a mainstream perspective very we begin with the bloomberg exclusive rate secretary chuck hagel's making his fourth trip in asia since taking over the pentagon last year. the ministrations commitment to focus on the pacific rim. secretary hagel has more than just asia on his radar. peter cook sat down with secretary hagel for an elusive interview. peter joins me now from los angeles. good day. >> good afternoon. secretary hagel faces a range of

challenges at home and abroad these days. the crisis in ukraine is raising worries about russia, another shooting rampage at fort hood has upped immigrant soldiers killed by one of their own, and just troops are still at war in afghanistan. that is not stopping chuck hagel for making this trip to asia right now. i spoke with him in honolulu as he needs -- meets with defense ministers from 10 asian countries. i asked him about the shooting at fort hood. >> it is a terrible tragedy. it has been revisited once again on fort hood. our thoughts and our prayers go out to the families of the big adam scott, and those who have been wounded and are going to continue to focus on them as we should. in the meantime, the investigators do their work. we do not have a lot of the answers, we do not know why it happened, we do not know why he did what he did. we will find that out.

this is 24 hours away from that terrible incident, so we are working very hard to ensure first of all the safety on all of our basis of the men and women who work there everyday and their families so that they are reassured. but we will find out. >> what does it say that man and women from the military fighting result in harm's way back home now as well? >> it is a terrible statement. i recognize that, we all do. we have to figure out what went wrong. we have been implementing a number of recognition that came out of the fort hood incident in 2009 give and navy or incident of last year to bring more security to our bases. we will see what comes out of this as to how do we assure in every way possible the safety

and security of those bases? >> we have been meeting with 10 of your southeast asian counterparts of your going to do -- counterparts, you're going to japan, mongolia, my question for happeningen what is in ukraine, syria, american troops still in afghanistan, is this really the right time to rebalance? >> i do not think you can develop your strategic interests based on one episode ortega is supposed -- or two episodes. we have been a person of the hour for many years -- we have been a pacific power for many years. states,apan, the united we have treaty obligations, we have some of our strongest allies in this area. we have tremendously important interest, security, stability,

economic in this area. it is not a matter of choosing which part of the world we're going to be and which part of the world we are not going to begin. we are not retreating from any part of the world. we have 400,000 men and women deployed and stationed all over the world in 100 countries. we are strong in nato, we're going to continue to be in the middle east. this is an area that is very important to america and for our future. >> for the chinese copy you're going to make your first trip as secretary. why should they not take this rebalance as a direct threat? >> we have assured the men everywhere, president obama has in recent meetings with the firstent, president's lady michelle obama, and , we have saidy that this is an approach to reach out to try to be more open. communicate cap accord make,

find ways that we can work with each other and common purpose of a common interest. we do that now with the chinese in many areas. we will continue to do that. we have differences? yes. with thatay to deal is to be direct and open the eye was invited to come by the minister defense, and i'm looking forward to being there for three reason talking about all of these areas of also bold new cooperation can and will talk about where we differ as well. >> let me ask you as you are on your way to asia, we still have tensions in europe, the crisis in ukraine. it does not feel like we are de-escalating it at this point. what evidence do you have, if any, that those troops on the greeting border are heading home? >> we do not have any verification that they are pulling troops back. there've been various reports that they are moving troops back. there are troops that are moving around, we know that.

no indication of any significant movement of large troop deployments along the border away from the border. focusedident has been on a diplomatic resolution. we want to de-escalate this in every way we can. that is the smart way to do it, the responsible way to do it. here. eu anduropeans over the have madethis and we it very clear what our position is. this is the responsible approach. >> they may be sending another u.s. warship into the black sea, is there other options of the considering to reinforce their position in eastern europe? could we do that, would that be something that the defense department would consider? send link somebody back or mentally to europe -- sending

somebody back permanently to europe? >> as you know, he has been tasked by nato to come back to nato in about a week with a number of new possibilities, new measures, new options that we and nato should consider and can consider. --se areas that you >> on the table? >> they're all measures that can be considered, but we're waiting to see with the general comes back with. >> are you worried that this will become worse before it gets better? >> know i do not think there is any escalation on our part. we told the russians that there would be consequences for their actions. we've taken economic sanctions, the eu, the united states/ . we have been very clear what measures we would take. -- canhe amount of moves the obama administration

misjudged flat ribbon and the challenge that they pose? >> i do not think anyone missed judged blogger program. let's go back to 2008 would putindent who in -- invaded georgia. this is not a new approach that he is taking. what you always have to do is for anyys be prepared contingencies, any possibilities. i don't think he was a matter of misjudging putin, what his intentions were, why he did what he did. and --l do not under understand fully, but the point of responsible government is to have strong options and capabilities, and be prepared for any contingency. it is a dangerous world out there, and it is a very unpredictable world. coins you're going to negotiate that in an environment of dwindling defense dollars, top

budget spreadsheet is presented what. if the situation in ukraine and the crisis their lead you to reassess even the budget you just submitted? would you do things differently now knowing what has happened? >> let's not forget the number that i presented in the president's budget was not my number, it was not the president's number, that was a number that was already agreed to by congress in a bipartisan budget agreement in december. , wehe $496 billion budget have already presented bigger numbers. the budget that i presented the president obama's budget, with a bigger number. we have asked for $160 billion more than what the numbers are right now based on sequestration in the next two years, and for this year a $26 billion increase in the budget as well. president obama made that very clear. in somethis crisis

strange way make your case for you that these numbers need to be higher? get theu use this to kind of budget you want? >> the way you look at it is that it is not just one episode, but what is it going to take to fulfill the missions and obligations of our defense department budget in order to secure the united states of america? we have continued testimony, we have senior members today up on capitol hill. the congress what we need in the way of resources in order to fulfill those missions to ensure the united states, the people of the united states that we can do the job that they want us to secure their security. resourceske increases and we play that we have given the numbers and the rationale. >> on the way to mongolia, the first offense. to go there since on ron sold. when he got there of and left

every they gave him the gift of a worse. my question is are you prepared for a similar get, and is there room on the plane? if the not know mongolians would consider giving me a horse, but i would be privileged if they would give me any recognition of our unitedship, the states and mongolia. there's probably no place for livestock that i have seen on that plane. i've been on that plane secretary hagel to why, it is a long time, there might be some room but that would be just one more challenge on his plate at this time. >> let's get back to russia and the ukrainian crisis. the notion of sending american troops back to europe, that would be a big step. >> that would be a very big step, particularly, if as i asked the secretary cover those would be permanent troops back on european soil. you do remember that we used to have four brigades in europe, that has been not down the two over the past several years, to

send in a hold other regained back there on a friend basis -- a hold major step other brigade back there on a permanent basis would be a major step. a big step in and one that the russians would probably not take too kindly to. trip, secretaries asian which stop might be the most important? atyou can see her it -- here and his answers, the stop in china for sure. it is really china that is most particular about this. of.t see this as a threat event is up to check hegel and other members of the administration to reassure them that it is not a direct talent in china, but there will be some tough issues there, and right at the top of that list will be cyber warfare. real challenges between these countries as they try to wrestle with that issue. check hegel had a big speech at the nsa did a couple of days ago. a lot of that telegraphing a message to china.

>> peter cook joining us from los angeles, spanning the time zones to get that interview with secretary hegel. thank you. claimant report, and white we expect today's report to be one of a number of reports that will be shaking off the impact of severe winter storms. ♪

>> job creation in march ready much averages acted. 192,000 new jobs, according to the new labor market report. what does that mean? was it just whether induced bad dreams? i have to ask, by saying the march employment numbers, are they enough to convince the march andnqwill

april the renowned months -- the rebound months? >> three months in a row depressed job growth because of the unusually severe winter, we think it will take more than just mars to make up that ground. we think we got a little bit of the weather he back today in the report can and we will get another round in next month's job report as well. i would take this job report to the bank all day long. >> what scared the markets today? everything is down. >> equities were trading up after this report to the newly think that i can report to is that even though consensus expectations were for around 200,000 dividing the markets were set up for a much larger number. consensus isn't always exactly how the market rises. i think with they were priced for a much better number. talking to clients in brazil all

last week, and they wanted me to prove why this would not be a 300,000 number. it is the first time white people -- it is the first time people have challenged me on .his patent if w we have recaptured all of the rebounded one reported we had gotten more. >> last week janet yellen was in chicago and she pointed out some inconsistency in the jobs data. she said the recovery feels like a recession too many americans. on the u.s. economy and the job market out of the ico but told the hospital? >> there is still a long ways to go. i'm going to sound like a politician here. we have made some inroads but there is a long way to go. in today's report for janet yellen as you will like the labor force addition rate -- for dissipation rate that take that, but you will not like that big jobless rate that takes up also to 12.7% or so.

a few things she will like it if you think she will dislike in this report. in terms of how we feel about the recovery i look at consumer confidence which jumped last week. rb level round 82 where it ended up last week of the ada is normal in recovery. it has taken five years for u.s. households to feel like this is a recovery. that is the context that i put it in. >> some early weakness that we have seen, was a weather related as true opposed to structural? >> it was absolutely weather related. i we are expecting a big rebound in the second quarter, and i would say that we would have to go through the weather effects and take the average over the first half of the year to let it tell us if we are in line with expectations or not. in markets however, i would expect that this report, as you said, just the first in the long string of reports that we are going to get that are stronger, showing that rebound from the weather.

>> there was an important milestone that was raised, private employers regained more than the jobs that were lost in the recession. why is the unemployment rate still elevated? >> let me put it this way for you. we have regained the level where we were prior to the recession, youan unless -- unless account for the number that entered it since then. what if we continue to grow jobs and a hundred thousand a month, then we are probably still $1 one million jobs last and where we should be. >> the unemployment rate did hold steady, 6.7%, but the number of part-time people who are working who want full-time increased to 7.1 8 million.

how long can this continue? are we looking at a permanent situation now where we have americans, millions of them, that are going to have to work two or more jobs to make ends meet? >> this has been a very big downturn in the labor market, so it is typical unc part-time jobs rise and people taking on multiple jobs. all about janet yellen looking at the part-time issue. it does not matter. if you work part-time and you want a part job -- part-time job, good for you. if you work part-time and you wish you begin full-time job , but you can't commit that is where it matters. caress what janet yellen about. >> the fed's taper schedule, as far as that is concerned, anything in the march numbers that would alter that schedule l? >> not at all. and that is so locked in, even bill dudley says that gdp would have to be five percent are

present for us to change our past. that is saying we are not going to alter, they want to be in the -- out of the business of qe. i think it is a done deal. us.hank you for joining next, bottom line continues. ♪

>> we're approaching 26 minutes past the hour, that means a bloomberg television is on the markets. our calling matt miller is standing by with the details. on a day where we got that jobs report with the mark critz -- that jobs report, the markets

are lower right now. >> we have stocked down across the board of the nasdaq really taking a dive down almost 2.5%. one of the stocks we have been watching all day is grubhub. shares of the food ordering site soaring on the first day of public trading. bot -- when those shares hit the trading floor of the new ,ork stock exchange the morning they began trading right away at $40 apiece. a dayme, and becomes just after british competitor just eat started trading over in london. those shares have read about 12% over there first two days on the public market. not doing nearly as well as grubhub. i think a lot of people feel it is very important to be able to order their food over the internet. do you ever do that? [laughter] >> i cannot honestly say that i

do. ordered lunch for you on seamless a lot. >> you're a good man. thank you. bottom line will continue in just a moment. ♪

>> welcome back to the second half-hour of autumn line on bloomberg television. i'm mark crumpton, thank you for staying with us. let's check on some of the top stories we're following this hour. investigators say the iraq veteran in the forefront shooting may have argued with another soldier before the attack. officials say they have a strong indication that army specialist yvonne lopez clashed with at least one fellow resmed before killing three people and then taking his own life.

the search for the malaysian airlines jet entered a new phase when they deployed to sing grace shaped -- stingray shaped sound locators for the deacons all silent. leaving the multinational search , -- they were brought into the effort because there was nothing to lose. the manager for retired formula one star markle schumacher says he now shows moment of consciousness and awakening. it is been more than three months since schumacher fell while skiing in france and at the sight of his head on a rock, cracking his helmet. doctorsjanuary the began to way, from a drug-induced coma. tonight on political cap to go with al hunt paul ryan, republican, we'll talk about his

two thousand 15 budget proposal. >> you put out your budget this week with a divided congress and the president is a democrat. we would know it will not be enacted, but is it a blueprint? >> that is a good way to put it. this is in the fourth year that we passed a budget like this, and this is the fourth year we have sent 2000 budget and pay off the debt. we should say what we believe in. >> also tonight, the house intelligence committee chairman will talk about his nsa reform bill and the situation in ukraine. boatsreally do not want on the ground, and the military there, but that is not is going to happen. short of that, there is some morale boosters and these could go along way to empower ukrainians to defend themselves against what they believe is the russians coming over the border.

>> former cbs announcer will give his racket for this weekend, and the changing face of sports. you can see all of this on political capital with al hunt tonight right here on bloomberg television. it is right now time for the commodities report. su keenan joins me. >> good afternoon. wake up and smell the coffee because while there is a lot of green on the screen, coffee futures are the runaway story. coffee up roughly 66% today's trading. the really staggering statistics is that year to date they are up almost 60% year to date. this is a big part of this story, the latest news is that coffee shipments from india, asia's third-largest groin or are poised to fall this year. all of that combining to push futures higher.

will really hurt the brazilian crop, and prices should stay at this level for the medium-term. of records could certainly be going higher because we also have the cost of cocoa higher. just about $24 on the chicago exchange, but that is after rising to an all-time high. that payroll data, it did prove a list for oil in gold, what is the breakdown? >> that came out very supportive of gold futures, they rose to the highest in three weeks. the latest government data out of india shows that oversees purchases of gold doubled in the last month. when we returned oil, the analyst say that the payroll

data shows the economy is getting stronger, which is supportive and both -- bodes well for oil. that could reverse the today rally ifo day olivia goes down. libya goes down. >> su keenan with the commodities report, thank you. unemployment rate for women rose in march despite job gains. ♪

>> it is time for today's latin america report by strong aftershocks continue to follow a 6.1rthquake with

magnitude. repeated aftershocks have shaken buildings and sent people running into the streets in the largest city closest to the epicenter. eday's earthquake left eight people dead. nuvo will pay more than $226 great -- toash create the channel. it is time now for a closer look at the march in climate report -- employment report. to unemployment rate rose 11% for african-american women.

she joins me now from washington. welcome to bottom line. thank you for your time today. >> thank you for inviting me. >> there is no way to sugarcoat this, these numbers are pretty bad. what happened? >> i think people have not been paying attention to what has are going on for women, and singularly for african-american women during this recovery. rates, unemployment although it did not go as high as men's during the recession was slow to come down, and that was particularly true for african-american women. we had a little encouraging news last month when african-american women's unemployment rate drop below 10% for the first time in five years, but it this month it was back up again to 11%. the overall unemployment rate for women went back up to 6.2%. men's same time that the

unemployment rate was nudging back down. both men and women have unemployment rates that are 40% higher than at the start of the recession. we have a ways to go. >> he noted that it seemed particular for african-american women. they seem to get lost in the shuffle here that a lot of attention was not being paid to what they were going through. any ideas why? sometimes women as a whole get ignored altogether with a lot of talk about the recession would've began, but then very little attention paid after a couple of years when they were losing jobs and the unemployment rate was actually going up. race, they focus on only look at men, so that african-american women really drop out of the picture. certainly it is appropriate to worry about the unemployment rates for african-american men,

although it went down last month it is still higher than that for african-american women. this is a crisis in the african-american community, but sometimes we forget about the women altogether. 192,000rst glance, the good, but those were in low-wage sectors. what choices do they have? >> that is the problem. i think that is why so many of the people particularly women, are taking these low-wage jobs. theaw in today's report kinds of sectors of the economy that were gaining jobs. look atdid a closer specific job categories, particularly those jobs that pay $10.10 an hour or less. what we found was that those jobs that pay in dollars $.10 an ofr or less account for 76%

women. their little less than half of the workforce as a whole. wrote alleagues fascinating story that is on bloomberg.com. it tight people who say that increased participation of women in training such as apprentices is one way for them to become more employable and to earn higher wages. does your group encourage women to seek employment in skilled trades such as electricians, carpenters, or plumbers? >> we certainly do. employment of women in the construction trades has changed very little really over the last several decades. clearly, these are better paying jobs. the problem is that sometimes even when women have the training, they find it hard to get jobs sometimes. they encounter harassment on the

job, when they enter these nontraditional occupations. it is not an easy road. in addition to urging women to enter nontraditional jobs that pay better, we want to increase the pay in jobs that women have which is why raising the minimum wage is so important. >> we have about 30 seconds left, next week the senate is expected to go temporarily to renew emergency unemployment benefits. what is the restoration of those benefits going to mean to women and their families? >> and is going to mean a lifeline that comes back for 2.3 million workers and their families. women and men are about equally likely to be unemployed for long times. this is absolutely vital for women, it is vital for men, it is vital for their children. it is also really good for the economy, when they have more money to spend, demand will go up in the economy will be boosted. >> the vice president for family

economic security at the national women's law center joining us in washington. the whiteboard -- thank you for your time. to theth us, your guide biggest newsmakers of the week comes in just a moment. we are receiving breaking news that the nasdaq composite falling 2.7% is headed for the biggest drop since 2012. ♪

>> we bring you encore, a look back at the notable newsmakers from this past week on bottom line. >> you can't pick and choose law ands the total intersecting parts. the whole unseemly experience of this part is this part is out, we will make this up as we go along has created a larger cloud

on the entire legitimacy of the enterprise. >> the law itself is something that i have been concerned about. but i do not expect to get everything i want every time a piece of legislation is passed. everybody that i called this law the silver rights act of the 21st century -- civil rights act of the 21st century. it makes it more likely that the money will flow into those documented sources and less to other places. >> it is another addition to it where bottom line, we have too much money flowing into politics. i do not think it is the same as free speech, i think it is similar to bribery. it is why we cannot give money to somebody who pulls you over when you get a speeding ticket.

worlden in the developing will take 90% of their income and invest it in their children to the families, and the community. it is not instantly target women, but women are very good as far as investment is concerned. 90% of our loans are repaid around the world. >> lane talks in washington, and that talks and not just what kind of policies get past or do not get passive as well as endless new revelatory process. >> let's get you the bottom line of what is happening next week. preview, we have the imf and world bank spring meetings to look forward to. do notthree-day meetings officially start until friday, but we will have 20 of preliminary events leading up to the weekend gathering of global financial leaders. global imf outlook on

tuesday guy followed by the ability report on wednesday, and separate news conferences on thursday, the imf managing director of and will break residents jimmy duncan. kim.m yong it was at that meeting that the fomc opted to drop its 6.5% in employment threshold to increase the benchmark interest rate -- industry. also on wednesday, the comcast-order cable -- time warner cable merger will come underscore me when comcast executive price president advised before the senate judiciary committee. comcast proposed $45 billion purchase still he could from the justice department and the fcc. earningsime again, season kicks off without clout

leading the way on tuesday. other companies reporting about topics include retailers like bed bath and beyond as well as big banks, wells fargo, and jpmorgan on friday. jpmorgan will likely report a drop in quarter earnings. >> new stocks joining the ranks as well. what that is right. autoland don't -- auto lender ally financial will take as much as two point $7 billion in an initial public offering that for wednesday. it was rescued by the federal government back in 2008. the ipo will help the treasury divest part of its stake. they will start trading on the new york stock exchange on the 10th. under the ticker symbol ally. >> thank you so much. another check of the market movers is on the other side of the break. a down day on this friday.

>> get the latest headlines on the top of the hour at bloomberg radio, and at bloomberg.com. that does it for this edition of bottom line, thank you for joining us. on the markets is next. have a great weekend. ♪ >> it is 56 minutes past the archive and you know what that

means, bloomberg television is on the markets. i am matt miller. let's get you caught up right now on where stocks are trading. it is a horrible day to be invested in tech stocks. the nasdaq is down right now, taking its big guys -- biggest 2.6%.s 2012, not we have a tech stocks coming , apple, facebook, all big losers today and that is dragging down the index. wrong somes gotten traits this year. -- trades this year. stocks and bonds are both up for the year. these two funds have plunged and get people have continued to pour money into them. help to break down the trade. gotten it soone

wrong this year? >> going into the end of last year everyone thought that 2014 would be the year that treasury yields are going to rise. they have not, and of anything they have come in. duration treasuries have done the best. we get good returns if treasury .yields rise >> just like today. >> treasuries are rallying, gilder daughter without that yields are down a lot. everyone thought that this would be the euro and finally back in the road would gain steam, finally would have the fed pulling back its stimulus. >> the taper. >> and yet, surprise, surprise, here we are very for us and looks a little more tepid, whether it is the weather story, tever you want to believe. we have the unrest in crimea, what we have going on in china, there are a lot of events that

people were not expecting going into the end of last year. >> but now it is over, put in has crimea, the weather is warming up, and yellen seems to be indicating that she is going to start raising rates. are people doubling down? >> they are. economists forecast that they will end the year around 3.4%. there are at 2.7% right now. there are still a lot of rising to go. if you want to preserve your gains on any particular investment, you're concerned about rising rates. nd is supersized. >> why do people use this as opposed to buying the straight bond? >> these are different in your -- then your classic vanilla

plain etf that is a basket of bonds or stocks. these are derivative raised etf's. they havenot small, $6 billion in assets. these are not tiny little funds. investors are saying, here we have a way to have a package hedge fund trade, in the etf format, easy and an out. use, and youasy to have a lot of leverage. >> right. >> no one has learned any lesson. thank you very much. we will be back in 30 minutes. ♪