>> from bloomberg headquarters in new york, i mark crumpton and this is "autumn line" the intersection of business and economics with a main street perspective. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this tuesday. our anger -- our agriculture reporter has details on the latest crop report and what it means for your grocery bills. our chief washington correspondent, peter cook with fed speak and more from his exclusive interview with the fed

governor, jerome powell. those stories and more in just a moment but first, we have breaking news on halliburton. let's go to our chief market correspondent, scarlet fu. >> halliburton, the oil services company is cutting 6.5 percent to eight percent of its workforce. no layoffs planned due to the baker hughes deal, but this is because of the challenging market environment. those were the exact words used by the company. total had come -- total headcount at halliburton is about 80,000. the houston business journal reported halliburton would be cutting between 5000 and 6000 jobs. oil prices have plunged from their highs of last year. if you look at how halliburton shares are performing, take a look at the bloomberg terminal. this is the intraday chart and you can see we opened lower and have been on a little bit of a recovery and yet when the news

hit we had our lows of the day, down 2.8% at the moment. >> thank you. let's return to washington and our chief washington correspondent, peter cook, with more on his exclusive interview with federal reserve governor jerome powell. >> i did have a chance to sit down with him on monday for a speech he delivered a catholic university law school and i learned he's ready to fight congressional efforts to audit the fed and i've learned he's not yet ready to start raising interest rates just yet. he's as he needs to see more evidence that inflation is moving back up to the fed's target and he says we are not there yet that he thinks it is coming. while he is encouraged by the recent jobs numbers, he still sees room for improvement. >> it does feel very much like

there is plenty of slack left in the economy. you've got people working part-time for economic reasons and people who want to come back to the labor force who are not in it. and most of all, wages have been low and do not suggest tightness in the labor market yet. those things tend to indicate the natural rate is pretty low. >> he says the fed can remain patient and normalizing monetary policy. he would not commit to a timetable in terms of raising interest rates. one of his fellow voters right now said raising rates in june looks like the attractive option. i'm not sure jay powell is convinced of that yet. >> he is convinced of challenging efforts in congress for oversight of the federal reserve. >> he offered a spirited attack on the legislative push in congress to audit the fed. he said it is an attempt by

lawmakers to metal directly in monetary policy and in his view, that is a mistake. >> this is about getting congress into the meeting by meeting making of monetary policy. over time, we have learned when that happens elected politicians what more accommodative policy that results in bad economic outcomes. susie gao exclusion was enacted, we've had lower inflation. why we would change that now is a mystery to me. >> he and the rest of the fed know they have a fight on their hands. the bill has 31 cosponsors, including majority leader mitch mcconnell. >> peter cook, thank you. the "economist" magazine buttonwood gathering is focused on the future of finance and global economic growth stop the chairman of the u.s. council of economic advisers spoke at the event in new york and joins me here in the studio.

it's a pleasure to have you on the broadcast. let's start with greece. what are you telling president obama about the risk to the u.s. economy over the developments in greece if greece does exit the euro? would it do damage to the u.s.? >> there's no question greece faces some very serious issues and it is for greece to work those issues through with their creditors. we are in conversations with all parties, but insofar as you are talking about the u.s. economy we have real domestic momentum and strength. you see it in consumer spending, business investment residential investment. 87% of our economy is domestic. i think we have the momentum to handle a slowdown in the rest of the world, especially with low oil prices and low-interest rates. >> let's talk about the friday jobs report. fed governor powell use the word

great to describe the report but some parts of it are not so great -- unemployment in the african american community unemployment in the latino community those numbers are still way too high. what is being done for people in those communities and the community of americans at large, some 30 million people who are still a lot of work? >> is a great question and even if we got our unemployment rate down further, there are still a lot of parts of our economy we want to work on and you just named a few of them. it is important to understand that for every immunity, a stronger economy is a benefit. the unemployment rate for african americans and hispanics came down the past year at a faster pace than the overall unemployment rate. bringing the unemployment rate down helped, but it's not only need to do. the president has an initiative called my brother's keeper that

is focused on those communities. if we do everything from the preschool agenda he has through community college and beyond those are policies that would help get at the employment and wage prospects of a number of groups being left for the behind. >> you have these conversations with president obama and it looks good on paper, but as you know, politics gets in the middle of this. is it a question of coming to the table not with what you want but with what you might be willing to sacrifice to make some compromise with the other side of the aisle? >> the president is always looking to get stuff done and always willing to make compromises, as long as he is not compromising on his core goals. i do think one of the encouraging things we have seen lately as we have seen a lot more convergence around the challenges of inequality, so once you are defining the problem in a similar way, i am hopeful that can bring around

the conversation to solutions to what is a commonly agreed-upon topic. >> president obama is scheduled to meet with regard -- with members of the congressional back -- congressional black caucus. they are opposed to giving him fast-track authority on issues like the transpacific ownership. how can the president get the caucus and other democrats at large on board when they have so many disagreements with where this country should be regarding trade? >> there is no question trade is a divisive issue and that is why the president is working so hard to make sure we are negotiation -- negotiating a better trade program that levels the playing field and includes strong labor and environmental standards. it is a fact that exports are associated with higher paying jobs, up to 18% more. it is important we put things into an agreement and take that and translated into a tangible

reality. >> are you concerned the strong u.s. dollar is hurting american businesses and their ability to do business overseas? >> this goes back to the first question we discussed -- the slowdown in growth and the rest of the world with a stronger dollar is a headwind for the u.s. economy right now, but we also have some tailwinds like lower oil prices and domestic momentum. we should be able to make it through but it would help a lot if in washington, we do what we need to help. >> we started with peter cook interviewing the fed governor jerome powell. mr. powell said low-inflation gives the fed time to remain patient as it considers when to raise rates. with the labor market continuing to show strength, why wait? >> i'm going to leave policymaking to the fed. but i want to agree with governor powell on auditing the fed would be dangerous. >> would you advise president obama to veto that? >> i would

certainly advise him to be opposed to it. the congress should not be telling the fed what to do with monetary policy. they are an enormously transparent duchenne already. any additional legislation would be between superfluous and highly counterproductive. >> what about >> is a the fed is not transparent enough to mark >> all of the information is made public. its deliberations are made public. it has increased its communication. what that he'll is about is congress supplanting its judgment as to what monetary policy should do to an authority that has conducted in an independent manner and all of us have been well served by the fed 's strong tradition of independence. >> i mentioned at the beginning of this interview that you were at the buttonwood gathering. the future of financing global economic growth was on the agenda.

what do you in your colleagues see on that agenda and is the united states poised to lead the global economy since some people have said here on bloomberg that we are the least dirty shirt in the world. we are not where we want to be but the u.s. is showing signs -- signs of momentum. >> you heard it awful lot about the united states about a home for the global economy is one of the leading lights in the global economy. we are thrilled to be in that position and would be even happier if the global economy was firing on all engines, but at least there is a recognition we are leading the way because of the choices we made in fiscal and monetary policy that put us in this place. >> the chairman of the council of economic advisers joining me in the studio. a pleasure to meet you. up next, we will the latest world news and speak live with the head of the centers of disease control and prevention

about an effort to get the measles outbreak under control. ♪

>> it is 15 minutes past the hour. let's check bloomberg world news. in the war on terror, the u.s. says intelligence has not been able to determine how or when american died while in islamic state captivity. her death was confirmed today. on friday, islamic state claimed the 26-year-old aid worker was killed in nature dini and airstrike. united arab emirates has launched airstrikes on the islamic state route from air in jordan. it marks a return to combat after flights were halted last year. the united states is reportedly closing its embassy in yemen. security has deteriorated after

takeover by shiite rebels. diplomats were being evacuated and the them is he will suspend operations until conditions improve. newsweek's magazine -- newsweek magazine's twitter account was hacked with messages threatening president obama's family. the background photo was changed to a picture of a person whose face is covered with a scarf and the words "cyber caliphate." in ukraine, government troops have broken the rebel strongholds near an eastern city. the ukrainian president and president obama spoke by phone today just as mr. obama is weighing sending lethal defensive assistance to the ukrainian military. the leaders of ukraine, russia, france and germany planned to meet on wednesday to hammer out a piece deal aimed at securing a cease fire with pro-russian

separatists in eastern ukraine. coming up, should there be tougher vaccine waiver rules? the cdc director joins us next on what is being done to deal with the measles outbreak. ♪

>> the number of measles cases in the united states since the beginning of the year is now at 121. the u.s. senate is holding a hearing on what can be done to address vaccine rentable diseases. dr. thomas friedman is director of the u.s. center for disease control and prevention. thank you for your time today. >> in the year 2000, health

officials said measles had been eliminated here in the united states. what is going on? >> since the year 2000, every measles case we have had in this country as far as we know has come from somewhere else in the world. there are a few things you have to know about measles. first, it's one of, if not the most infections -- infectious of all infectious diseases. second, we got a vaccine that works well. it is safe and effective. that vaccine has been used around the world in 2 billion kids and has prevented tens of millions of deaths in the past 15 years alone. 15 million kids did not die because of the measles vaccine. in fact, it's driving many of the infant mortality reductions are on the world. however, we have had a resurgence of measles in countries around the world in the past few years. we see the reflection of that in the u.s. because we are all connected why the air we breathe.

>> according to the pediatrics journal, but cost for containing one case of measles is over $124,000. what the economics of preventing a public health outbreak? >> public health is the best buy. when you look at vaccinations in general, for every dollar we spend on vaccines, we save three dollars in our health care system and $10 in society overall. prevention is far more cost-effective than cure, but even more importantly, when it comes to measles the only way we can stop measles is with vaccinations. >> there is a movement among some parents not to have their children vaccinated for measles. how does the confluence of science, religion and personal liberty impact public health and as a doctor, what would you tell parents who have concerns about getting their kids vaccinated? how do you convince them the

science on this matter is settled? >> i understand parents are concerned that their kids be safe and healthy. the measles vaccine has been studied again and again in the science is clear. there are no negative long-term consequences of the measles vaccine. there can be negative consequences of getting the disease itself. i made sure my kids were vaccinated against measles and i encourage all kids to do so unless their child has a medical indication and that is an important point. there are some kids -- babies under the age of six months or kids with leukemia or a severe medical condition who cannot be vaccinated. if you do not get your kid vaccinated you are putting nunnally them at risk, but the kid down the block with leukemia at risk. you are right -- your right to swing your fist ends at my nose and not to do something that protects the community is something we need to look at carefully because in schools communities and states and

cities around the world, parents are saying my kid may be at greater risk because of your decision and that is something communities need to discuss and take clear answers on. >> you have made a passionate case but there are some parents who just are not buying what you are selling. what do you tell them? >> first off, 92% of american parents are getting their kids vaccinated against measles on time. there are pockets where that number is much lower. when we look at people who are not getting their kids vaccinated, the vast majority are not people who are adamantly against vaccinations. there are folks who may not realize measles is still with us or may not realize measles can be very severe. it can be and it can kill as many as one in a thousand kids even in this country. another one in 1000 can get long-term neurological consequences from the measles disease.

>> there are currently 19 states with laws on the books that allow people to choose whether or not to have their children vaccinated based on personal beliefs rather than medical reasons. how should these vaccine waiver laws be addressed? >> that is an issue for each state and locality to decide themselves. it is important parents recognize when they decide not to vaccinate their kid, they're not just putting their kid at risk, kids in the neighborhood who have severe medical conditions. opting out of vaccines for someone who doesn't have a medical indication is not a decision that should be taken lightly or easily. >> given the drop in funding, how prepared are u.s. hospitals to handling measles outbreak? >> public health departments around the country are used to dealing with infectious disease. we have had proptosis and a mumps outbreak in a couple of states.

it is important states invest in public health. what we saw nationally is many states around the world reducing the budget for state health departments in the 2009 crisis and not necessarily building that back since the economy has rebounded. globally, we need to do better. globally, nearly 150,000 babies and young kids died preventively of measles. we can stop that and save lives there and save suffering and illness as well. the director of the u.s. center for disease control and prevention joining us from atlanta. thank you so much for your time. coming up, the mayor of san diego, california. we will talk with kevin. about a variety of issues including cyber security innovation, and cross order relations with mexico. he joins us when bottom line

continues in just a moment. ♪

>> welcome back to the second half-hour of "bottom line" on bloomberg television. i'm mark crumpton. thanks for staying with us. let's get to the top stories on this tuesday. take a look at the numbers. nymex crude down almost 5.5%. rent crude is down over 3% today. tough numbers. and the atomic energy agency is predicting that global prices will only see a partial recovery over the next five years. halliburton says it will cut its

global workforce by 6.5% to 8%. that's a total of about 80,000 jobs the energy services company says they will lay off due to what they call a challenging market environment. a storm -- a third storm in two weeks lasted massachusetts with more than two feet of snow. boston has seen record-breaking accumulations this year. the governor called a state of emergency and is requesting snow removal aid from neighboring states. and it is not over. there is another storm forecast for the weekend. the white house has announced it is creating a new agency to combat cyber security threats. san diego is home to a number of cyber security companies. kevin faulconer is the mayor of san diego, california and he joins me in studio. mr. mayor, welcome to "bottom line." >> it is a pleasure to join you.

>> san diego is also home to 66 of 100 ships in the u.s. fleet. what will it mean for jobs in your region, particularly in the defense industry? >> is a huge driver of what is happening in our san diego economy. we have had huge growth year-over-year. i think you have hit the nail on the head and what we are doing with the local economy. everything is interconnected. those things need to be secure and that is where cyber security plays an extremely important role in why i am really proud of the leadership role san diego is playing in the cyber security world. >> do you have any concerns that another agency is being created, albeit to streamline the

bureaucracy? >> streamlining bureaucracy is what we need. the most important thing is if we are secure. we look at what we did in san diego with these cyber security excellence. cyber security incubators is a growing field and one we are particularly well-positioned and in san diego. we have some of the best talent and the best companies making a secure future not just for our cities, but our nation. >> last summer, the san diego city council overruled your veto of the minimum wage proposal there. you objected. you said it would lead to higher prices and layoffs. i went on the u.s. census bureau's website. it said the median house come -- how school -- household income in san diego is -- it is one of the wealthiest cities in

america. it could not handle the increase? >> we want to have a level playing field so we do not have some cities -- we all need to compete and compete fairly. what im focusing on is making sure we are growing careers and handy ago that provide a ladder up to success and not a temporary, but longterm and lasting success. >> is that specifically what you and members of the council are doing to address income inequality? >> i am really focused, mark, on the skills gap, and how do we manage the training situation to take advantage of technology the lifestyle industries we have in san diego so all san diego and's can be part of that tremendous growth. these are career opportunities. >> sir, i do know what to put words in your mouth, but it sounds like what you're saying is the minimum wage increase may be a temporary problem, but long-term problems are in education?

>> we are such a strong believer in that and we just did a form with some of our community college leadership in san diego just teed of weeks ago. had we make sure that we are training our young folks to make sure that they have the skills they need? >> immigration reform is tied to this. tijuana, mexico is about a half hour drive south of where you are right now to read what does this mean that you and a city in mexico can share economic strategies that will benefit both cities? >> we say it is not about two cities. it is about one region. one mega-region. mark that is a competitive advantage for us in san diego. and when i look at our relationship with my counterpart, the memorandum of understanding we recently signed, our two cities working closely together and city to city issues, jobs, transportation, the environment

companies of immigration reform is not just essential for san diego and the state of california. it is essential for the united states and i'm a big proponent of it. >> sir, you are a republican in a democratic state. san diego a republican mayor. there is always this discussion in washington about bipartisanship or a lack thereof. what can washington learn about how you deal with your democratic counterparts on the city council in san diego? >> most of the issues we are on there is no place for partisanship. we are making sure that we hire police officers in san diego. that is not a republican or democrat issue. that is a common sense issue. let's work together. we will be able to find common sense solutions. i think that is what the people of san diego want and what most of the country wants as well. >> sir, you mentioned

infrastructure. back to the federal government -- does this country need and infrastructure bank? the shovel ready jobs the white house always talked about to put americans back to work. there are some any roads and bridges. are we talking about stuff that could go on for five or 10 years? >> yes. when you look at our roads and bridges, they have not been repaired in basically decades. it is also a civil issue. 50% of all new revenue growth in san diego i am going to put right back into infrastructure repairing a roads, our sidewalks, are facilities -- our city facilities. we are still way too far behind. that is where we are putting our dollars in san diego. >> sir, there will be a units -- a u.s. senate opening in california -- >> no.

i am going to continue doing what i am doing. i have the best job in america. i love doing it. >> kevin faulconer mayor of san diego, joining us in studio. thanks for joining us, mr. mayor. when we come back the latin america report and details of the ubs forecast for 2015. ♪

>> welcome back. it is time for today's latin america report. ubs has posted its 2015 gdp forecast for latin america. gdp was cut to -5/10 of a percent from 6%. the main driver reduction in commodities. venezuela was reduced to -7% from 1.5%. that's your latin america report

for this tuesday. up next, a bloomberg exclusive. matt miller has an exclusive interview. we continue in a moment. ♪

>> welcome back. it is 45 minutes past the hour. let's check bloomberg world news. india's prime minister has suffered a huge setback. his party has been trounced in state elections by an anticorruption party. the world's best-selling luxury car brand finished only third in that category last month. both audi and mercedes beat bmw in january. bmw sales rose just 6%. both audi and were sadie's have vowed to -- and mercedes have vowed to recapture the luxury

carmaker crown i 2020. we will have another update in about 30 minutes. in other auto news, a bloomberg exclusive -- sergio marchionne says ferrari could go public by july. matt miller sat down with the chrysler automobile ceo and joins us in studio. that is pretty big news. >> he told our print reporter mark clothier that he could sell all of ferrari's shares before he finishes his bagel. obviously demand is very high. i asked him, how can i get some? how many fiats would i have to buy two get one for robbery share? they could have a loyalty program. -- two get one ferrari share. the could have a loyalty program. look at what he told me. >> this is something that actually encourages people to be long-term investors.

it allows you to earn your right to have the extra votes. it is a long-term commitment strategy that may work its way into ferrari. >> very interesting. possibly a european-style program. if you own shares for a longer time you earn more of a say in the company. he also says europe is a growth area. it has been tough for competitors. obviously it has been tough fiat for as well. listen to his thoughts on the continent. >> the last decade, i think there is ample opportunity for some of the number to fall back. obviously this russian issue continues to have significant overhang on the market, but i

think we are bound to do better. >> a great story by bloomberg news. also on the website today. even though analysts or the majority of analysts think it is a cell -- a sell sergio marchionne brought chrysler back from bankruptcy. he has done incredibly well. >> matt miller therefore is. stay with bloomberg. we will hear more from you throughout the day. >> yes, we will. more from my exclusive interview with sergio marchionne. >> thanks so much. boom times are ending for american farmers. farming income is addicted to drop by as much as 22%, the third straight year of the client. american farmers stand to lose about $20 million. that's a huge income loss.

with this require further subsidies to support the industry? >> you are right. this is a big loss for american farmers. we did a little digging. for a percentage basis, this is the a guest drop year to year since the great depression. you have to go back to 1932 to see such a decline in farm income. there have been changes and one of those changes is the existence of a federal safety net, i.e. farm subsidies. you see the usda with a 15% of an increase in subsidies to farm owners. the result of the farm bill passed last year. it was based on higher prices than what farmers are getting now. because prices have gone down in inventories are up the taxpayers may see the prices rise. >> what is the impact on gas prices? >> that has actually been a

bright spot in reports for agriculture today. along with lower fuel expense for this year, which is taking off a little bit of pressure on the profit margin, you also have a report that shows demand will be going up in the next year. this is tied to higher gasoline consumption. you go to the gas pump. you get your ethanol 10% blend. if you have more gasoline, that is more of that -- 10% lead going into gas, meaning more ethanol, meaning more relief for farmers. >> ok, what is the impact on crop prices? >> crop prices look like they will be going down. corn is stabilizing. soybeans has been holding their price fairly well, but people are expecting a lot of soybeans to be out this year and you also have to look at the world situation as well. when you look at places like

brazil, argentina, this is a global market. it is not the u.s. acting in a vacuum anymore. >> how does the u.s. crop situation compare with the rest of the world? >> when you look at supplies for the main feedstocks -- corn, wheat, soybeans -- the overall story is a pretty good supply. the stronger dollar is hurting the u.s. export market. you see south america, former soviet union countries becoming more productive. it is making it a challenging time for u.s. farmers. the farmers i spoke to say this may take a few years to work out. >> this all comes back to the consumer. what does this mean going forward? >> a little relief from the high prices we have seen in the last few years. you will finally's the -- you will finally see hog herds go up from last year when they had a virus that was hurting their

numbers. in other commodities, of course, we have the low commodity prices in inflation as well. the cost of the commodity is only a small part of what things cost, but again, energy is a relief as well. you add that altogether and we have a little easier time for food inflation that we have seen for the last few years. >> bloomberg's agriculture correspondent, a story on bloomberg.com. alan, thank you so much. stay with us. our chief markets correspondent scarlet fu will have a check on the markets on the other side of the break. "bottom line" continues. ♪

>> get the latest headlines on the top of the hour on bloomberg radio and streaming on your tablet and bloomberg.com. that does it for this edition of "bottom line" on bloomberg television. i am mark crumpton, joining you from new york. thanks so much for joining us. on the markets is next. >> it is 56 past the hour.

that means bloomberg television's on the markets. i am scarlet fu. we have just about an hour left in the u.s. trading day. grease and major creditors are hoped to reach an agreement on funding. they will be holding an emergency plan. right now we want to focus on oil. giving back some of the gains from late last week and earlier this week. 5% becomes relatively common. as for the affect on equities, energy stocks are the worst performers. the energy select spdr is down by the most in two weeks. what is behind this isola ration prices? -- deceleration in prices? what is it about the price

correction in 2015 that is different from late last year? >> before we were looking at a bit of a freefall. now we are probably getting close to that part and part of the volatility is every piece of data matters. there were traders who were looking for that ebitda that last bump down or search up so they do not get in too late. >> having said that, are we going to get some doe numbers tomorrow, as we do every wednesday. how long will that remain a trend? >> we think we will see those bills into the first quarter, second quarter. withdrawals will probably be the second half of the year. >> there is a reduced rig count. does that indicate lost production? or is that a fault indicator? >> there is not a one-to-one

indicator between lost rigs and lost production. if you take an inefficient rate out but you move a more if efficient rig in you do not get a barrel for barrel decline. >> the rig count -- the idled rigs will have an impact, but down the road. not right away. >> that's right. it's not a natural sign of what production will be on a day-to-day basis. the other complication, there is a backlog. that volume is coming to the market as well but it is uncertain when it shows up. >> halliburton will be laying off staff. what are your clients in the industry worried about as well as those in government? >> the industry people are saying how long for how -- how low for how long and do they need to reformulate their

strategy for the next five to seven years? government wants it the other way. they want to know how long can the consumers enjoy the benefits of the lower prices? and then you get some outside of the u.s. and they are worried about what happens to their fiscal terms. governments in these oil-producing countries, a lot of these treasuries are funded by the oil revenue they are generating. >> all right, skip york. thank you for adding your perspective to this. "street smart" is up next. ♪

>> welcome, everyone, to the most important hour of the session. we have 60 hours until the close. i am trish regan. on wall street you got the market rising. partly thanks to earnings. also oil prices right now falling, snapping a three-day streak on speculation that increase in u.s. supply is making a global glut even worse. "street smart" starts right now. ok, here is a quick look at some of the stories we're watching for