1
00:00:03,000 --> 00:00:07,280
Speaker 1: Broadcasting live to New York, Bloomberg eleventh Old to Washington,

2
00:00:07,360 --> 00:00:10,920
Speaker 1: d C, Bloomberg nine nine one to Boston, Bloomberg twelve

3
00:00:10,960 --> 00:00:15,000
Speaker 1: liners to San Francisco, Bloomberg nine to the country. Soon

4
00:00:15,200 --> 00:00:18,319
Speaker 1: is exam General one nine and around the globe the

5
00:00:18,360 --> 00:00:22,240
Speaker 1: Bloomberg Radio plus appen Bloomberg dot com. This is Broomberg

6
00:00:22,320 --> 00:00:26,160
Speaker 1: Surveillance and good morning. I'm Karen Moscow along with Tom

7
00:00:26,239 --> 00:00:28,720
Speaker 1: Keene and Michael McKee and the opening Bell brought to

8
00:00:28,760 --> 00:00:31,960
Speaker 1: you by s C. I have evolving investor and regulatory

9
00:00:32,000 --> 00:00:36,599
Speaker 1: demands affected your investment firms operational readiness, imagine transforming your

10
00:00:36,640 --> 00:00:39,440
Speaker 1: business or the se has global platform at se i

11
00:00:39,479 --> 00:00:43,040
Speaker 1: C dot com slash imagine. Stocks are higher at the

12
00:00:43,080 --> 00:00:45,400
Speaker 1: open the S and P five hundred up almost two

13
00:00:45,400 --> 00:00:47,960
Speaker 1: tenths per cent or three points to twenty forty three

14
00:00:48,240 --> 00:00:50,559
Speaker 1: down Jones Industrial average up to tens per cent or

15
00:00:50,560 --> 00:00:53,680
Speaker 1: thirty eight points to seventeen thousand, five hundred nineteen and

16
00:00:53,680 --> 00:00:55,240
Speaker 1: then asked to acts up a quarter per cent or

17
00:00:55,280 --> 00:00:58,320
Speaker 1: twelve points to forty seven eighty seven ten. Your treasury

18
00:00:58,360 --> 00:01:00,800
Speaker 1: up to thirty seconds. The yield one point eight eight percent.

19
00:01:00,840 --> 00:01:02,880
Speaker 1: They yield on the two year point eight four percent.

20
00:01:03,320 --> 00:01:05,440
Speaker 1: Nimex screwed oil up one and a half percent or

21
00:01:05,480 --> 00:01:07,760
Speaker 1: sixty two cents to forty dollars eighty two cents a

22
00:01:07,840 --> 00:01:11,119
Speaker 1: barrel comes gold down one point one percent or thirteen

23
00:01:11,160 --> 00:01:14,360
Speaker 1: dollars seventy cents to twelve fifty one thirty announced the

24
00:01:14,400 --> 00:01:16,720
Speaker 1: euro a dollar twelve eighty five and the yen is

25
00:01:16,760 --> 00:01:20,400
Speaker 1: at one eleven point five four Tom and Mike Karen,

26
00:01:20,680 --> 00:01:24,640
Speaker 1: thanks so much. Rhodes University is a hundred eleven years old.

27
00:01:25,600 --> 00:01:29,080
Speaker 1: It is a foundational institution for South Africa, with us

28
00:01:29,400 --> 00:01:33,000
Speaker 1: Martin Haggerty of Black Rock who earned parchment from there

29
00:01:33,440 --> 00:01:35,360
Speaker 1: a few years ago, and of course growing up in

30
00:01:35,400 --> 00:01:40,039
Speaker 1: the crucible of South Africa. It are really too mutuous time, Martin.

31
00:01:40,160 --> 00:01:43,360
Speaker 1: What is the knock on effect of the central banker

32
00:01:43,520 --> 00:01:47,200
Speaker 1: of the world to the South Africa's of the world.

33
00:01:47,520 --> 00:01:51,640
Speaker 1: Obviously a shift this week back to international events, but

34
00:01:52,160 --> 00:01:57,000
Speaker 1: you lived it. What's the perspective of emerging markets when

35
00:01:57,000 --> 00:02:01,840
Speaker 1: a central banker blinks in Washington? That's a that's an

36
00:02:01,880 --> 00:02:04,760
Speaker 1: interesting question. You know, I actually grew up in Zimbabwe,

37
00:02:04,920 --> 00:02:11,200
Speaker 1: so the epicenter of hyper inflation in real times point

38
00:02:11,200 --> 00:02:15,680
Speaker 1: out exactly, Um, you know, I think he's a little

39
00:02:15,720 --> 00:02:20,360
Speaker 1: more credible than I in many measures. But the the

40
00:02:20,360 --> 00:02:24,840
Speaker 1: the impact on emerging markets is is really profound given

41
00:02:25,080 --> 00:02:28,760
Speaker 1: what what what transpired on on Wednesday, because the sort

42
00:02:28,800 --> 00:02:32,919
Speaker 1: of transmission mechanism for policy globally has been via real rates,

43
00:02:33,680 --> 00:02:37,280
Speaker 1: So real rates kept artificially low once the FED got

44
00:02:37,280 --> 00:02:39,799
Speaker 1: to the zero bound in two thousand you know, two

45
00:02:39,800 --> 00:02:44,959
Speaker 1: thousand nine, two thousand eight, and engaged in Kiwi. All

46
00:02:44,960 --> 00:02:47,359
Speaker 1: of that was in a in an attempt to elevate

47
00:02:47,440 --> 00:02:50,839
Speaker 1: inflation expectations, push real rates down initially at the front

48
00:02:50,960 --> 00:02:54,760
Speaker 1: end of the curve, and extend those declines further and

49
00:02:54,880 --> 00:02:58,000
Speaker 1: further out the yield curve, and that had an impact

50
00:02:58,040 --> 00:03:02,320
Speaker 1: of flooding dollars to about the global economy. And as

51
00:03:02,560 --> 00:03:07,080
Speaker 1: the FED began to transition away from the queui and

52
00:03:07,240 --> 00:03:10,920
Speaker 1: indeed hike at the end of last year, this had

53
00:03:10,960 --> 00:03:14,400
Speaker 1: an impact on pushing real rates in the US higher

54
00:03:15,400 --> 00:03:19,560
Speaker 1: um and thus draining dollars globally back to the U

55
00:03:19,800 --> 00:03:26,560
Speaker 1: S and the the impact of the FED decision on

56
00:03:26,560 --> 00:03:30,280
Speaker 1: on a Wednesday to become a lot more cognisant of

57
00:03:30,280 --> 00:03:34,160
Speaker 1: global financial conditions relieve some of that stress, which is

58
00:03:34,200 --> 00:03:39,160
Speaker 1: why you've seen the sudden decline or the rapid decline

59
00:03:39,160 --> 00:03:41,920
Speaker 1: in the dollar post event, the rapid appreciation and emerging

60
00:03:41,960 --> 00:03:45,800
Speaker 1: market currencies. As the central banker of the world has

61
00:03:46,040 --> 00:03:52,800
Speaker 1: basically eased monetary policy for them indirectly, we've seen a

62
00:03:52,840 --> 00:03:57,040
Speaker 1: lot of other central banks joining in. Is this now

63
00:03:57,080 --> 00:04:00,760
Speaker 1: where we go from here in terms of other central

64
00:04:00,760 --> 00:04:03,760
Speaker 1: banks joining in? Do you mean the B e c

65
00:04:03,920 --> 00:04:07,280
Speaker 1: B and the b o J. Uh, Well, not there,

66
00:04:07,320 --> 00:04:10,400
Speaker 1: but the central banks around the world basically looking to

67
00:04:11,160 --> 00:04:16,880
Speaker 1: ease policy even if they do nothing. Um. Well, if

68
00:04:16,880 --> 00:04:20,520
Speaker 1: you look at the the other major central banks in

69
00:04:20,560 --> 00:04:23,440
Speaker 1: the world, which which I mentioned in my question, the

70
00:04:23,480 --> 00:04:26,919
Speaker 1: attempt of their policy has been too lower real rates

71
00:04:27,279 --> 00:04:30,080
Speaker 1: um and the primary mechanism of which they can do

72
00:04:30,120 --> 00:04:33,280
Speaker 1: that was obviously cutting rates. Uh. And now that the

73
00:04:33,640 --> 00:04:35,279
Speaker 1: e c B and the b o J have taken

74
00:04:35,360 --> 00:04:39,080
Speaker 1: rates negative, and there appears to have been a somewhat

75
00:04:39,080 --> 00:04:41,400
Speaker 1: of a consensus coming out of the G twenty meeting

76
00:04:41,440 --> 00:04:45,000
Speaker 1: that the negative rate avenue is perhaps not as open

77
00:04:45,080 --> 00:04:49,480
Speaker 1: as previously perceived, that the credit easing channels are now available,

78
00:04:49,960 --> 00:04:53,400
Speaker 1: and the attempt to ease via the credit channel is

79
00:04:53,480 --> 00:04:59,400
Speaker 1: too obviously increase the monetary velocity domestically via via the

80
00:04:59,440 --> 00:05:03,159
Speaker 1: credit channel and elevate inflation expectations that way and push

81
00:05:03,200 --> 00:05:07,440
Speaker 1: real yields down through the indirect approach, as opposed to

82
00:05:07,960 --> 00:05:12,480
Speaker 1: pushing real rates further and further negative and devaluing the currency,

83
00:05:12,560 --> 00:05:16,440
Speaker 1: which in the interconnected world in which we live, a

84
00:05:16,760 --> 00:05:21,320
Speaker 1: strong A dollar obviously has impact for China, who are

85
00:05:21,440 --> 00:05:25,799
Speaker 1: themselves trying to UH forge their currency policy going forward.

86
00:05:25,880 --> 00:05:29,240
Speaker 1: But briantly explained, if it's a new interconnected world, Ian

87
00:05:29,279 --> 00:05:32,240
Speaker 1: Bremer on Monday, folks with you raise your group, and

88
00:05:32,279 --> 00:05:34,640
Speaker 1: then if it's if it's a G zero or a

89
00:05:34,640 --> 00:05:37,760
Speaker 1: G ten or G whatever nation, how do you foresee

90
00:05:37,760 --> 00:05:40,479
Speaker 1: the next plaza chord when we get to it. Not

91
00:05:40,720 --> 00:05:43,440
Speaker 1: everybody agrees will get to it, and I'm not saying

92
00:05:43,480 --> 00:05:46,240
Speaker 1: it will be an equivalence in to the eighties or

93
00:05:46,279 --> 00:05:49,960
Speaker 1: even the nineties, But can you even have an accord

94
00:05:50,680 --> 00:05:57,080
Speaker 1: in a free float minute by minute news transfer world. UM,

95
00:05:57,120 --> 00:06:01,440
Speaker 1: I don't think you you explicitly can. But as a

96
00:06:01,480 --> 00:06:04,680
Speaker 1: result of the recent G twenty meeting, it appears that

97
00:06:05,160 --> 00:06:09,160
Speaker 1: the there has been somewhat of a of a soft

98
00:06:09,279 --> 00:06:14,279
Speaker 1: understanding between UH the the sort of main for the

99
00:06:14,400 --> 00:06:19,039
Speaker 1: US Europe Japan and China, that the the rapid or

100
00:06:19,080 --> 00:06:22,800
Speaker 1: the potential rapid depreciation that markets were expecting from the

101
00:06:22,880 --> 00:06:26,880
Speaker 1: Chinese authorities on on the currency is possibly not going

102
00:06:26,960 --> 00:06:31,719
Speaker 1: to happen as as previously expected, given that the negative

103
00:06:31,800 --> 00:06:35,919
Speaker 1: rate dynamics employed in Europe and Japan had a profound

104
00:06:35,960 --> 00:06:40,359
Speaker 1: impact on dollar strength, which through second round impacts impacted

105
00:06:40,360 --> 00:06:44,839
Speaker 1: the Chinese. So, um, what what we we desperately need

106
00:06:44,880 --> 00:06:49,640
Speaker 1: globally and what I'm encouraged to see is at least

107
00:06:49,839 --> 00:06:53,640
Speaker 1: the normalization of inflation, at least in the US so

108
00:06:53,720 --> 00:06:58,159
Speaker 1: far so that the the sort of very moribu nominal

109
00:06:58,240 --> 00:07:02,359
Speaker 1: GDP rating that we've been and actually has a potential

110
00:07:02,440 --> 00:07:05,320
Speaker 1: to to move away from the two and a half

111
00:07:05,360 --> 00:07:08,400
Speaker 1: to three and a half nominal rate or or slightly

112
00:07:08,520 --> 00:07:13,040
Speaker 1: sub to real GDP growth back up to to something

113
00:07:13,120 --> 00:07:16,560
Speaker 1: north of fault the same that that is enough to

114
00:07:16,560 --> 00:07:19,280
Speaker 1: to lift us slowly away from from the from the

115
00:07:19,360 --> 00:07:21,520
Speaker 1: zero bound Martin, I think the headline of this is

116
00:07:21,560 --> 00:07:24,680
Speaker 1: we let you go is simple. Martin Haggerty predicts, Morning

117
00:07:24,680 --> 00:07:28,240
Speaker 1: in America. That's great, Martin Haggerty, thank you so much

118
00:07:28,240 --> 00:07:30,680
Speaker 1: with black Rock on a Friday. Really, you know, Mike,

119
00:07:31,040 --> 00:07:35,120
Speaker 1: you brenching this with Benjamin Freeman earlier. Okay, we're here.

120
00:07:36,280 --> 00:07:39,600
Speaker 1: The headline this week are the mark downs Norway and

121
00:07:39,640 --> 00:07:44,880
Speaker 1: everybody else. Okay, great, is this it? Or how do

122
00:07:44,960 --> 00:07:48,760
Speaker 1: we like rate towards Morning in America or Morning in

123
00:07:48,800 --> 00:07:52,080
Speaker 1: Oslo or Morning in Norway. Well, nobody seems to help. Well,

124
00:07:53,120 --> 00:07:56,080
Speaker 1: maybe bringing fiscal into it, but nobody otherwise seems to

125
00:07:56,120 --> 00:07:58,880
Speaker 1: have a plan, because the general view is what we're

126
00:07:58,880 --> 00:08:01,960
Speaker 1: doing is maybe put to floor under things with monetary policy,

127
00:08:02,000 --> 00:08:06,840
Speaker 1: but we're not building anything. What we know in Good

128
00:08:06,840 --> 00:08:10,280
Speaker 1: Morning Washington, Boston, New York, San Francisco, the Bay Area,

129
00:08:11,080 --> 00:08:14,280
Speaker 1: nationwide is Mike McKie and I know there is no

130
00:08:14,360 --> 00:08:18,280
Speaker 1: quicker way to bring a weekend gathering to a complete

131
00:08:18,280 --> 00:08:24,600
Speaker 1: halt than talking about kids mathematics. It is Louis c K,

132
00:08:24,760 --> 00:08:29,760
Speaker 1: the comedian Lewis c K, among others, talking about this

133
00:08:30,120 --> 00:08:33,439
Speaker 1: what they've done to our kids schools. We're gonna end

134
00:08:33,440 --> 00:08:38,120
Speaker 1: the week with, I would say, for families, the interview

135
00:08:38,160 --> 00:08:41,520
Speaker 1: of the week. Whether you agree or disagree, Mike and

136
00:08:41,559 --> 00:08:44,160
Speaker 1: I don't have an opinion. Someone who has made a

137
00:08:44,160 --> 00:08:47,599
Speaker 1: cottage industry of this, and she'll join us next is

138
00:08:47,679 --> 00:08:51,840
Speaker 1: Dana Goldstein and and she created a firestorm last week

139
00:08:51,880 --> 00:08:54,600
Speaker 1: with an article. We'll talk about it, but just think

140
00:08:54,679 --> 00:08:57,160
Speaker 1: about it. And when we come back with Dana Goldstein,

141
00:08:57,679 --> 00:09:03,440
Speaker 1: just think about how you want kids, grandkids. Whatever taught

142
00:09:04,480 --> 00:09:07,600
Speaker 1: a X squared plus b x plus equal zero. I mean,

143
00:09:07,640 --> 00:09:10,600
Speaker 1: does that matter? X squared plus b x plus see

144
00:09:10,800 --> 00:09:17,719
Speaker 1: does zero? Will do that? Next up eight points Now

145
00:09:17,880 --> 00:09:20,600
Speaker 1: Chicken with Michael R. Get the latest world in national headlines,

146
00:09:20,800 --> 00:09:23,240
Speaker 1: My Tom, thank you very much. North Korea has fired

147
00:09:23,280 --> 00:09:25,720
Speaker 1: a ballistic missile and the waters off its east coast.

148
00:09:26,160 --> 00:09:29,320
Speaker 1: The missile flu for about five miles before crashing into

149
00:09:29,320 --> 00:09:32,840
Speaker 1: the sea. Former State Department officials Steve Gannard says the

150
00:09:32,880 --> 00:09:36,520
Speaker 1: North is reacting to new u N sanctions. Normally, the

151
00:09:36,600 --> 00:09:40,040
Speaker 1: North Koreans will do something to show that their belligerents

152
00:09:40,080 --> 00:09:42,840
Speaker 1: to strike back at the world that's sanctioning them. In

153
00:09:42,880 --> 00:09:45,240
Speaker 1: this case, though, what we saw were missiles that are

154
00:09:45,280 --> 00:09:48,440
Speaker 1: old technology, and they were launched out to sea in

155
00:09:48,480 --> 00:09:50,760
Speaker 1: a way that would not be threatening to any land.

156
00:09:51,360 --> 00:09:54,160
Speaker 1: It was a rocky start in Brazil's cabinet for Chief

157
00:09:54,160 --> 00:09:57,760
Speaker 1: of Staff Luis Ignatio Lula da Silva, only an hour

158
00:09:57,800 --> 00:10:01,199
Speaker 1: after taking office, a federal judge issued then junction suspending

159
00:10:01,280 --> 00:10:05,360
Speaker 1: Lula's appointment. Protesters are demanding Lula stepped down over allegations

160
00:10:05,360 --> 00:10:09,240
Speaker 1: of corruption. Lula and his boss, Brazilian President Dilma Russof,

161
00:10:09,280 --> 00:10:13,240
Speaker 1: have denied any wrongdoing. Tensions surged and after phone recordings

162
00:10:13,240 --> 00:10:18,119
Speaker 1: released by a judge show that Russof appointed Lula, possibly,

163
00:10:18,280 --> 00:10:21,120
Speaker 1: according to critics, to shield him from a criminal probe.

164
00:10:21,520 --> 00:10:24,480
Speaker 1: Passengers aboard an American Airlines flight from Raleigh to North

165
00:10:24,600 --> 00:10:26,959
Speaker 1: to New York City say they were all shook up

166
00:10:27,280 --> 00:10:30,600
Speaker 1: after their plane was hit by lightning. American Airlines Flight

167
00:10:31,200 --> 00:10:34,400
Speaker 1: three was diverted from La Guardy at the JFK Airport yesterday.

168
00:10:34,679 --> 00:10:37,320
Speaker 1: No one was hurt. Global News twenty four hours a day,

169
00:10:37,400 --> 00:10:41,040
Speaker 1: powered by our journalists and more than a hundred fifty

170
00:10:41,080 --> 00:10:43,960
Speaker 1: news bureaus from around the world. Not Michael Barr. Michael

171
00:10:44,000 --> 00:10:45,920
Speaker 1: bar thanks so much. You got out your snow shovel

172
00:10:46,000 --> 00:10:49,280
Speaker 1: for Sunday. Oh yeah, I'm a set. We're all set

173
00:10:49,600 --> 00:10:52,640
Speaker 1: sledding Central Park. I didn't fall for it. I knew

174
00:10:52,640 --> 00:10:55,600
Speaker 1: spring wasn't ready yet. One of the three inches is

175
00:10:55,640 --> 00:10:58,079
Speaker 1: I think where we are right now? This is Bloomberg's

176
00:10:58,120 --> 00:11:03,720
Speaker 1: surveillance Bloomberg surveillance is brought to by sector Spider ETFs.

177
00:11:03,720 --> 00:11:05,400
Speaker 1: Why by a single stock when you can invest in

178
00:11:05,400 --> 00:11:08,520
Speaker 1: the entire sector. Visit sector spdrs dot com or call

179
00:11:08,679 --> 00:11:10,520
Speaker 1: one eight six Sector etf