limited time, get $150 off - and free shipping too. just go to buyleesa.com today. you need this bed. haslinda: it is 9:30 in singapore, 10:30 in tokyo. here are the first word headlines. reports from beijing say policymakers have room for them the overall rrr cut. we are talking about regulation and control of monetary policy becoming more obvious. the economic information melee says a comprehensive cut in rates would be unlikely. a former pboc official says the bank will use the medium-term lending facility again if it works well. president trump has expressed

support for treasury secretary steven mnuchin after questions about why -- bank liquidity when it did not seem to be a problem. the president says mnuchin is talented and appeared to roll back his criticism of jerome powell. he repeated the fed is raising rates. oil is holding near an 18 month low in new york, even after the opec group signaled it may extend or deepen restrictions on production. futures are near monday's 7% decline. people continue to watch the market as they discuss extra moves to balance prices if conditions change. russia says crude will be more stable in the first half of next year. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. let's do a quick check of the markets right now. philippines have just come

online, but first to china. flat add 3016. under pressure despite the government saying it is willing to prop up the economy. emily: in february 2007, drew faust made history when she was appointed president of one of the most prestigious and storied institutions in the world, becoming the first woman president of harvard university. a civil war historian and multitime author, faust led the university for a decade, tackling thorny issues like immigration and same-sex social clubs and raising record amounts -breaking amounts of capital, all while fighting to prove that an ivy league education is still worth the rapidly rising costs. as she passes the torch to her successor, faust opened up about her most recent and next

chapter. joining me today on "bloomberg studio 1.0," outgoing harvard president drew faust. you have been president for 10 years and this is your last year. how do you feel? is it bittersweet? drew: i feel really good about it. i think that jobs like a presidency have a certain rhythm. and you move through them the agenda and you accomplish things and you work together with people. and then it is good to have fresh eyes and somebody with another agenda, carrying -- you hope -- carrying your agenda forward, but nevertheless bringing new skills and new approaches and new energies to it, so i feel terrific about what we have been able to accomplish. emily: you were the first woman president of harvard. and when you took over, you made a point to say, i am president of harvard, not harvard's first woman president. why was it important for you to say what you said? drew: i felt people would label me as special or in a different category, or perhaps imply that i was there only because i was a

woman. i did not want that. i wanted to make clear from the start that i was as real and complete and full a president of harvard as any of my 27 predecessors. but i had a very interesting experience in the aftermath of that announcement, which is i got letters and messages from little girls all over the world saying how much it meant to them that there was a woman president of harvard. so i wanted ultimately to be both the woman president of harvard who could perhaps be an inspiration or model for women all over the world, but i wanted to make sure that people understood that i was as much a president of harvard as anyone else. i wasn't a president with an asterisk or some special status. emily: i would love for all the little girls who are watching to learn how you got there. you were born in new york city, you were raised in virginia, you had three brothers. what was that like?

drew: i grew up on a farm and always a tomboy. i was always a tomboy. i enjoyed raising -- i worked in the barn raising animals and i played war with my brothers, but i was always aware that there were privileges they had that i didn't and that things were expected of me, in terms of wearing little lacy dresses at appropriate times and exhibiting a demeanor that did not always seem to me consistent with being as noisy and boisterous as my brothers were allowed to be. so i think i had a very astute sense from early on that girls were given certain roles in. society in virginia in the 1950's and that i was not entirely comfortable being relegated to such a role. emily: what did you believe about what women could and couldn't achieve? drew: i did not have many models of women who were even in the workforce or had careers. my mother didn't even finish high school.

my grandmother was a force in her own right, but she wasn't someone who worked outside the home. so i did not have very many indications of what was possible for women. the expectation of me when i was growing up was essentially that i would find some man to marry and become a housewife and raise a family. emily: so how did you break out of that? drew: i always was good in school and i loved school. so as i pursued my educational ambitions, that took me to college and into a world where different expectations prevailed. and i could be -- i went to an all women's college, bring more awr college,run m and was taught by powerful intellectuals, scholastic and academic women. so i began to see possibilities in their lives that i was able to imagine for my own. emily: you had some other firsts. you were the first harvard president without a harvard degree. awr, you to bryn m majored in history, and then you

went on to the university of pennsylvania and became a history professor. drew: i was very much a student activist in college, very involved in politics, civil rights issues, vietnam war protests, and cared a lot about changing the world and having an impact on the world. and when i graduated from college, i worked for two years for the department of housing and urban development, so i hope in a very idealistic way to move into maybe urban planning or some area that would enable me to carry on my concerns about public service and changing the world. but i so missed intellectual life and ideas and the kind of debate that is at the heart of a university, so i applied to graduate school at penn and went penn, andot a phd at that eventually led me to a faculty position at penn that i held for 25 years. emily: you wrote six books. tell me about that. drew: i became a historian of

the american south and began to explore questions that were not all that distant from some of the questions that i asked as a young child growing up in a segregated society. my first book, which came out of my phd dissertation, was about people who defended slavery, because i found that so unthinkable and couldn't imagine how people came to convince themselves that this was a position that was justified or acceptable. and i think i was projecting some of my questions about people who had embraced segregation in my own home community, when i was growing up in virginia in the 1950's. so what makes people defend the indefensible, and then what makes change? emily: you must have some strong opinions about how president trump has spoken about some of the civil war heroes, or not heroes, and the monuments? drew: we are in an interesting moment with civil war memory and some of the challenges made to monuments and accounting for the

past. i think it is a very healthy moment, because to understand what our history has been and to understand that the civil war was one in which a whole section ,f the country was defending fighting in favor of the system of slavery. i think we have hidden from that a lot as a nation, and to bring out those divisions and understand them fully and the understand the context in which race relations today operate is a very important dimension of moving forward as a nation. emily: so you think those monuments and statues should come down? drew: i think it varies. i think that many of them should. there are others that perhaps we could simply elucidate or explain. emily: so how does one get from civil war historian to first woman president of harvard? drew: it is about being part of the university over a long

period of time and living a life in a university where i came to realize the wonder of education and opening minds and contributing to the growth and flourishing of individual talent. and thinking about universities as places where people pursue truth and challenge accepted wisdom and devote themselves to learning and scholarship. so i had come to believe that universities are among the most important institutions in our society. and i began to be invited to take on leadership roles and move from penn to harvard in 2001, to be the head of the radcliffe institute for advanced study, which had just been made a part of harvard university, and then from there, i went on to become president. emily: does being the first woman president part of it, the woman part of the equation, does it come with an extra pressure or sense of responsibility?

drew: a lot of eyes were on me andwould i be able to do it what would that say about women generally? not just about could drew faust do this job, but could a woman do this job. i would just have young women beaming at me. people that i did not know would just give me the biggest smile, as if to say, you go, girl, it is for us, too. throughout, i felt i could perhaps be the kind of role model that i didn't initially have when i was a child, but found in professors when i got to college and saw women doing extraordinary things. emily: amen to that. you go, girl. what do you see as your biggest success? drew: i hope that i have made the university a more open place, have expanded access for people from all kinds of backgrounds, points of view, economic circumstances. and made harvard more affordable

and more open, but also made it a place that felt more welcoming and inclusive once they got there. a place where women would not just feel that they were there on sufferance, or students from less advantaged backgrounds were just there on the margins. but this was their harvard, too, and that they owned harvard as much as any of the more traditional kinds of students who might be there. drew: we have to make sure we attract the best talent, and that's why affordability is so important. ♪

emily: the most oft-used measure of success for any -- for a school president is the money they raise. you met or succeeded goals. the endowment is $38 billion. do you think this is the best measure of success for your field? drew: no, i don't at all.

it is important, obviously, to have the resources to accomplish what you want to accomplish, but it depends, of course, what are you going to use those resources for? money is an enabler. it isn't an end in itself. the way our endowment works is the income it generates through --estments funds about 35% 35% to 36% of our operating budget. so those billions of dollars are working capital but are producing income every year that we then apply to the wide range of activities that we undertake. research, teaching, financial aid, maintaining our buildings. emily: university endowments are a big chunk of the money that funds venture capital firms, that funds the future companies of silicon valley, and historically, lp's and endowments have been very quiet about their strategy and what they care about. there is a big sort of movement in the tech community to push towards funding diversity and

funding, you know, not all-male venture capital firms, you know. is it all about making money or is it about who you are giving that money to? drew: we have had a position that has been articulated pretty forcefully in response to the request that we divest from fossil fuels. we have had a policy that is, our endowment is about funding the core mission of the university, which is teaching and research. it is not a fund that is meant to be a social intervention fund, and so we have not divested in response to the pressures put upon us, and we have not used our endowment as a political weapon or tool. in part, the logic of that is that what are the issues, and how many of them? and what are the priorities? would it be fossil fuels, would it be diversity, would it be other kinds of very admirable concerns that might distract

from what our core business is, which is funding teaching and research? emily: how do we bring down the cost of higher education? drew: that is something we need to get under control and address more fully. technology is going to help with that. what can we do online to supplement or replace certain parts of instruction so that we can leave to people the parts that we absolutely need people for and streamline some of the other parts? i think we will see some of that coming forward. but constraining costs is going to be a real challenge for all of higher education. emily: there are a lot of companies trying to disrupt higher education, and some say that a harvard degree won't matter by the time my children go to college. how do you respond to that? drew: we have to make sure we attract the best talent, and that's why affordability is so important. the experience of being in that community, living in that community with other students

from whom you learn probably as much as you learn in any class you take, that is core of what a harvard education really is. so that at its best, the residential dimensions of harvard education are essential to the full experience of what it can be. and that is not going to be disrupted by a simply online experience. you are not bumping into somebody in a corridor and finding they challenge you in ways you never expected, or that ways they are different from you expand your understanding of the world. that is such an important part of what happens both in and outside our classrooms. emily: there is a sense here from the heart of silicon valley that stanford has surpassed harvard, especially when it comes to technology and becoming a feeder for the biggest and most powerful companies in the world. is that a fair assessment? drew: of course not.

of course not. [laughter] drew: we are different institutions, and i think that is a great strength of american higher education, that there are different emphases and different opportunities that institutions like stanford and harvard can offer. i don't want to have a stanford-harvard competition in front of you and say, oh, we are so good at this. we have a growing presence in technology and fields of engineering. our students concentrating in engineering have tripled in the last 10 years, so that is an area that i think we are paying more attention than we did a decade or two decades ago. but we also have such deep-seated strengths in life sciences, in the humanities, the arts, and such a commitment in social sciences, and the endeavors that are not simply involved in technology. we compete very successfully

with stanford for students and for faculty, so we are very pleased to be harvard, and we expect to remain harvard. drew: we want to support the needs of women on campus, but we don't think that these separate organizations are the way to accomplish what needs to be done. ♪

emily: what is harvard doing differently to train the worker for tomorrow? drew: differently from? emily: do you think harvard needs to do anything differently to arm workers with the skills necessary to succeed in the modern economy? drew: well, there have been some changes in how we approach education over the past decade that respond in part to what you are saying. which is we find our curriculum much more oriented and our

students much more eager for hands-on experience, in a variety of ways. there tends to be many more internships or public service opportunities tied into curricular offerings, doing and thinking are intertwined much more closely. emily: one of the things i have been following as an alum is harvard's crackdown on single-sex clubs. harvard has had a long tradition clubs, ase finals they are called, and more recently all-female clubs have sprung up. i am curious how your position on this has evolved over the course of your tenure at harvard and how that led you to the decision that this needed to change in a big way. drew: the issues surrounding finals clubs came into my consciousness almost as soon as i arrived -- as i arrived at harvard as dean of the radcliffe institute in 2001, with a lot of debate and discussion about the exclusion of women in these

clubs and the centrality of the clubs in undergraduate student life. by the time i became president, therefore, i had been hearing about these issues for many years. and hearing about them also increasingly after i became president, from the dean of the college, from people who were head of the undergraduate houses, and worrying about unsupervised drinking in these independent organizations, the experiences of women, sexual assault in these organizations, and they were just a -- and there were just a constant drumbeat of issues of inequality and exclusion and student safety related to those clubs. so in 2016, we issued a policy that became a matter of great debate and dispute, but we thought was necessary to welcome women into full citizenship at harvard and say that these much valued and sought-after spaces from which they were excluded should no longer dominate the

student life and have kind of a second-class status delivered to women at harvard. emily: so what is the policy as it stands now? drew: the policy is that if you choose to join one of these single-sex social organizations, there are certain privileges to which you will not have access. and those are leadership positions in the recognized student organizations that are funded in part by harvard college. and that you will not be given dean's recommendations for certain fellowships and other honors. emily: there has been a lot of protest and people who say that this unfairly targets women, who historically have not had the same access to the privileges and resources that men have had, and that men who have been part of finals clubs at harvard have had. what is your response to women who feel this disenfranchises them? drew: well, the protests coming from women is about the single gender women's organizations

that grew up to compensate for women's exclusion from the male organizations, but there remained enormous differentiation in the power of those organizations, the resources of those organizations, and the centrality to student life of those organizations. they were still kind of second-class status within student life. we have been concerned about the issues that made women feel that they needed separate spaces for themselves. and so a number of these organizations have now said they will continue and they will allow men to join, but they will also have their own activities within the organization. we want to support the needs of women on campus, but we don't think that these separate organizations are the way to accomplish what needs to be done. emily: should an all-female organization be given the same status as an all-male organization or an african-american organization, for example?

drew: recognized student groups at harvard have to admit any student. they cannot discriminate on the basis of race or gender or any status.entity-based they can't discriminate on the basis of whether you can sing well enough or play football well enough to get into them. that kind of differentiation is acceptable. so we have a variety of organizations that students join, like the football team or the glee club, where you have to try out, but it can't be derived from an accident of birth. emily: so what do you think of your successor, larry backow, and what do you hope that he will accomplish? drew: i am delighted by his appointment. i first got to know larry when i was just becoming president and he was president of tufts university. and he invited me to dinner at the president's house at tufts the very first day i was

president, july 1, 2007. and he cooked dinner and talked about being president and offered to help. we became good friends and spent a good bit of time together. i would come to him with problems, and when the financial crisis happened, we consulted one another. he joined the harvard corporation, which is the governing body. and so i have been the beneficiary of his wisdom on that group ever since. i am delighted that his experience and wisdom will be carried forward into harvard's next chapter. emily: what do you think will be the biggest challenges for your successor and for harvard in the political atmosphere that we are in today? drew: the cost of higher education and how to make it accessible and affordable. that is something that any president is going to have to -- harvard or elsewhere -- is going to have to attend to. another element is that there is such suspicion and hostility emerging to higher education, a sense that higher education is not serving a broad public, but

a place like harvard is much too elite in its impact. how do we reach out beyond our own walls and both do more and explain how much we are already doing to improve the lives of people across the country and around the world? so that is an important agenda item for a new president as well. emily: what is next for you? drew: i want to see if i can learn to be a historian again. emily: really? so does that mean writing a new book? drew: hope so. i hope so. i have ideas for different projects i might pursue. i have a sabbatical next year, and i will begin to investigate some of those and see what might work. emily: what is your advice to future women leaders, or women who want to be leaders? drew: what a great question. just believe in yourself. don't let anyone cause you to doubt yourself. emily: all right. drew faust, outgoing president of harvard university, thank you so much for joining us today on

"bloomberg studio 1.0." it is really an honor. drew: thank you. ♪

haslinda: it is 10:00 a.m. in singapore. reports from beijing say policymakers are making room for a triple are cut next year -- triple-r cut next year. will notays the cuts be likely and the bank will use the medium term lending facility again, if it works well. new regulations promising to treat all companies equally. the rules go into effect immediately and contain four types of