1 00:00:00,560 --> 00:00:07,800 Speaker 1: Broadcasting Live to New York, Goolberg to Washington, d C, 2 00:00:08,039 --> 00:00:13,280 Speaker 1: Bloomberg to Boston, Bloomberg twelve Honors to San Francisco, BLUEMBERG 3 00:00:13,400 --> 00:00:16,880 Speaker 1: nine six, to the Country Series Exam Channel one ninety 4 00:00:17,120 --> 00:00:20,600 Speaker 1: and around the globe the Bloomberg Radio Bust Happen Bloomberg 5 00:00:20,640 --> 00:00:24,680 Speaker 1: dot Com. This is Bloomberg Surveillance. Good morning, eight thirty 6 00:00:24,680 --> 00:00:27,360 Speaker 1: on Wall Street. I Michael McKee along with Tom Keene. 7 00:00:27,400 --> 00:00:30,440 Speaker 1: Economic indicators are brought to you by Commonwealth Financial Network. 8 00:00:30,440 --> 00:00:32,760 Speaker 1: When it's time to change the conversation, talk with the 9 00:00:32,760 --> 00:00:34,919 Speaker 1: broker dealer r I A that's ready to listen, call 10 00:00:34,960 --> 00:00:37,400 Speaker 1: eight six six two three six three eight or visit 11 00:00:37,680 --> 00:00:41,519 Speaker 1: Commonwealth dot com to learn more. Our indicators would be 12 00:00:41,560 --> 00:00:43,600 Speaker 1: brought to you by Commonwealth dot com if we had 13 00:00:43,640 --> 00:00:47,600 Speaker 1: any um this morning the market p M I people 14 00:00:47,600 --> 00:00:49,240 Speaker 1: don't pay a whole love of attention to that much 15 00:00:49,240 --> 00:00:53,159 Speaker 1: shorter history than the I S M numbers. We do 16 00:00:53,240 --> 00:00:55,880 Speaker 1: have some fed speak out today, Jim Bullard saying there 17 00:00:55,920 --> 00:00:59,279 Speaker 1: were reasons to raise rates and reasons not to raise rates. 18 00:00:59,320 --> 00:01:01,240 Speaker 1: He didn't take up as hian John Williams from the 19 00:01:01,280 --> 00:01:04,240 Speaker 1: San Francisco Fed out just a few moments ago, suggesting 20 00:01:04,280 --> 00:01:06,760 Speaker 1: that the Fed should stick to its plan for raising 21 00:01:06,840 --> 00:01:09,680 Speaker 1: rates two to three times this year, which would suggest 22 00:01:09,760 --> 00:01:13,479 Speaker 1: that we could easily see a rate move in June 23 00:01:13,520 --> 00:01:17,160 Speaker 1: if they want to, you know, stay on the path top, 24 00:01:19,360 --> 00:01:23,120 Speaker 1: there is a path, you know. I think their data dependent. 25 00:01:23,400 --> 00:01:25,360 Speaker 1: It's just that simple. Do you want to bring in 26 00:01:25,360 --> 00:01:27,840 Speaker 1: our next guest? That's what John Williams says, Well, our 27 00:01:27,840 --> 00:01:32,440 Speaker 1: next guest is always data dependence. But will Advisers, thanks 28 00:01:32,480 --> 00:01:37,440 Speaker 1: for for stopping by this morning. You run money. We 29 00:01:37,440 --> 00:01:41,039 Speaker 1: should full disclosure for our boss, the man who owns 30 00:01:41,080 --> 00:01:44,080 Speaker 1: Bloomberg LP, Michael Bloomberg. Uh. You and you know what 31 00:01:44,120 --> 00:01:46,600 Speaker 1: our boss says. Our boss says, and God we trust 32 00:01:46,640 --> 00:01:50,360 Speaker 1: all others spring data. So data dependence exists even in 33 00:01:50,400 --> 00:01:53,320 Speaker 1: this building. Uh. And he provides a lot of data. 34 00:01:53,360 --> 00:01:55,400 Speaker 1: And when you look at the data, do you see 35 00:01:55,440 --> 00:01:58,480 Speaker 1: a reason for the Fed to raise interest rates? Or 36 00:01:58,680 --> 00:02:00,720 Speaker 1: even more important, let me understand or this question, do 37 00:02:00,760 --> 00:02:05,240 Speaker 1: you care? Well? I sure I care. I don't think 38 00:02:05,240 --> 00:02:08,200 Speaker 1: a quarter of a point makes that any difference really, 39 00:02:08,320 --> 00:02:10,120 Speaker 1: but it's a it's a question of the path we 40 00:02:10,160 --> 00:02:12,880 Speaker 1: get put on. And I do think that rising interest 41 00:02:12,960 --> 00:02:15,080 Speaker 1: rates at some point will take their toll on the 42 00:02:15,120 --> 00:02:18,160 Speaker 1: stock market, which is very very fully valued using more 43 00:02:18,639 --> 00:02:24,360 Speaker 1: conventional interest rate interest rate measures, But I personally don't 44 00:02:24,639 --> 00:02:27,360 Speaker 1: really see the argument for raising rates. I'm much closer 45 00:02:27,400 --> 00:02:30,400 Speaker 1: than Larry Summer's camp than I am to the so 46 00:02:30,520 --> 00:02:34,160 Speaker 1: called hard money camp. But nonetheless, the Fed, I think, 47 00:02:34,240 --> 00:02:36,720 Speaker 1: has made clear that we should expect a couple of 48 00:02:36,760 --> 00:02:40,320 Speaker 1: interest rate increases this year, and as I said, uh, 49 00:02:40,400 --> 00:02:43,400 Speaker 1: it may, it may cost the equity market a few points, 50 00:02:43,400 --> 00:02:44,959 Speaker 1: but other than that, I don't think it's going to 51 00:02:45,000 --> 00:02:47,120 Speaker 1: affect the real economy very much at the stage. But 52 00:02:47,280 --> 00:02:51,320 Speaker 1: you see stecular stagnation, Well, such a stagnation has become 53 00:02:51,360 --> 00:02:53,640 Speaker 1: this kind of term of art. What what we clearly 54 00:02:53,680 --> 00:02:57,480 Speaker 1: have is very slow growth. We have very poor productivity, 55 00:02:57,840 --> 00:02:59,640 Speaker 1: and as a result of that we have we're having 56 00:03:00,040 --> 00:03:03,520 Speaker 1: increasingly poor investment by by corporations. And those are all 57 00:03:03,560 --> 00:03:06,640 Speaker 1: worrisome problems that we should address. But at the moment, 58 00:03:06,680 --> 00:03:09,720 Speaker 1: of course, no problems are being addressed in Washington of 59 00:03:09,760 --> 00:03:13,120 Speaker 1: any sort. Because Steven want to congratulate you on of 60 00:03:13,160 --> 00:03:17,320 Speaker 1: the forty seven essays on Mr Trump, his taxes, his finances. 61 00:03:18,040 --> 00:03:21,200 Speaker 1: I thought you killed yourself trying to be balanced and 62 00:03:21,320 --> 00:03:24,240 Speaker 1: Donald Trump in the art of the text loophole. There's 63 00:03:24,240 --> 00:03:25,639 Speaker 1: one thing I want to clear up that I think 64 00:03:25,720 --> 00:03:28,760 Speaker 1: is crucial. You go after the idea that real estate 65 00:03:28,760 --> 00:03:32,760 Speaker 1: people play by a different rule book. Um. I understand 66 00:03:32,760 --> 00:03:35,720 Speaker 1: there's a great question about Mr Trump, but a frequent 67 00:03:35,720 --> 00:03:39,680 Speaker 1: guest of our, say Bill Rewden, from an uh distinguished 68 00:03:39,720 --> 00:03:43,520 Speaker 1: family of real estate people. It's not everybody in real 69 00:03:43,680 --> 00:03:48,680 Speaker 1: estate having the acquisition accusations that are made against Mr Trump. 70 00:03:48,760 --> 00:03:51,840 Speaker 1: Isn't Is he unique to real estate or do you 71 00:03:51,880 --> 00:03:54,240 Speaker 1: bundle it in as a group. No, I think it's 72 00:03:54,240 --> 00:03:56,280 Speaker 1: a group. But I don't think they're they're doing anything 73 00:03:56,280 --> 00:03:58,680 Speaker 1: evil or illegal. Let me be very clear about that. 74 00:03:58,760 --> 00:04:01,040 Speaker 1: I think what they're doing, which every one of us 75 00:04:01,040 --> 00:04:03,760 Speaker 1: in this room and every one of us listening probably does, 76 00:04:04,360 --> 00:04:06,560 Speaker 1: is they're taking advantage of the tax code as it 77 00:04:06,640 --> 00:04:10,040 Speaker 1: is written. I am a substantial beneficiary of the Carrot 78 00:04:10,080 --> 00:04:13,520 Speaker 1: interest provision. I think it's a terrible piece of law. 79 00:04:13,880 --> 00:04:16,040 Speaker 1: I think it should be changed, But at the moment 80 00:04:16,080 --> 00:04:17,880 Speaker 1: it's legal, there's the outrage. I mean, we got a 81 00:04:17,880 --> 00:04:20,560 Speaker 1: guy like you, who's fancy and with your work at 82 00:04:20,600 --> 00:04:23,640 Speaker 1: Lizard in that saying change the law that benefits me 83 00:04:23,720 --> 00:04:28,120 Speaker 1: every day. Where is Washington. Washington is nowhere on anything. Uh, 84 00:04:28,120 --> 00:04:30,479 Speaker 1: there's really nothing happening. There hasn't been a piece of 85 00:04:30,520 --> 00:04:33,440 Speaker 1: tax legislation in Washington as long as I can remember, 86 00:04:34,120 --> 00:04:36,760 Speaker 1: and so far there are other people who disagree with 87 00:04:36,800 --> 00:04:38,960 Speaker 1: me about that who have been effective in stopping this. 88 00:04:39,400 --> 00:04:41,599 Speaker 1: But I do think that as and when we have 89 00:04:41,680 --> 00:04:45,080 Speaker 1: a comprehensive piece of corporate tax, of of of overall 90 00:04:45,120 --> 00:04:48,040 Speaker 1: tax reform, which I expect there'll be a big effort 91 00:04:48,080 --> 00:04:50,480 Speaker 1: to do next year, I think certainly the carried interest 92 00:04:50,560 --> 00:04:52,400 Speaker 1: loophole will be in the mix. But look for the 93 00:04:52,440 --> 00:04:54,640 Speaker 1: real estate guys, it's simply the fact that they have 94 00:04:55,200 --> 00:04:58,440 Speaker 1: they have carried interests loophole is multiplied by ten available 95 00:04:58,520 --> 00:05:00,040 Speaker 1: to them, and they used and I don't play in 96 00:05:00,080 --> 00:05:04,360 Speaker 1: them for that. And President Trump lead a tax proposal 97 00:05:04,520 --> 00:05:11,960 Speaker 1: in Washington to agreement between disagreeing legislative participants. I think 98 00:05:11,960 --> 00:05:14,760 Speaker 1: it's going to be difficult for any president to get 99 00:05:14,800 --> 00:05:18,400 Speaker 1: to a tax bill because Washington is so polarized and 100 00:05:18,440 --> 00:05:21,560 Speaker 1: there are such differences of views. Whether Trump would be 101 00:05:21,560 --> 00:05:24,279 Speaker 1: better or worse at doing that than anybody else, I 102 00:05:24,320 --> 00:05:27,360 Speaker 1: don't know. As you know, he's written a cottage industry 103 00:05:27,360 --> 00:05:29,080 Speaker 1: of books on the art of the deal in one 104 00:05:29,120 --> 00:05:32,080 Speaker 1: form or another. So he thinks he's the world's greatest negotiator. 105 00:05:32,400 --> 00:05:34,600 Speaker 1: If it becomes president, we will find out because it 106 00:05:34,640 --> 00:05:37,680 Speaker 1: will take the world's greatest negotiator, and we'll love. People 107 00:05:37,720 --> 00:05:39,479 Speaker 1: have written that he's not as good as he thinks 108 00:05:39,480 --> 00:05:42,880 Speaker 1: he is. But interestingly enough, he wants to get rid 109 00:05:42,920 --> 00:05:46,400 Speaker 1: of the carried interest provision, but then the subject your 110 00:05:46,640 --> 00:05:49,920 Speaker 1: income to the pastor text, which would actually lower your taxes. 111 00:05:50,400 --> 00:05:51,960 Speaker 1: He also, and this is what I want to ask 112 00:05:52,000 --> 00:05:55,160 Speaker 1: you about, he also wants to rip up and basically 113 00:05:55,160 --> 00:06:00,000 Speaker 1: repeal Doud Frank as someone in the financial industry, good idea, 114 00:06:00,000 --> 00:06:03,320 Speaker 1: a bad idea. God frank is is deeply flawed, like 115 00:06:03,400 --> 00:06:06,240 Speaker 1: any major piece of legislation almost always is when it's 116 00:06:06,240 --> 00:06:08,800 Speaker 1: first passed, because it's passed by committee and all sorts 117 00:06:08,839 --> 00:06:11,479 Speaker 1: of compromises, and then you find out things that don't 118 00:06:11,520 --> 00:06:14,119 Speaker 1: really work well. I do think we're on the verge 119 00:06:14,160 --> 00:06:16,880 Speaker 1: of overregulating the major banks to the point where it's 120 00:06:16,880 --> 00:06:19,600 Speaker 1: difficult for them to earn a reasonable return on capital, 121 00:06:19,600 --> 00:06:22,159 Speaker 1: and they become like utilities that can't attract good people. 122 00:06:22,839 --> 00:06:25,479 Speaker 1: They become weaker institutions. So I think there's a reform 123 00:06:25,520 --> 00:06:28,599 Speaker 1: bill that's required, but repealing it would be a terrible idea. 124 00:06:28,680 --> 00:06:31,039 Speaker 1: We obviously had a huge financial crisis. We needed to 125 00:06:31,080 --> 00:06:33,400 Speaker 1: do something about it, and we did it very quickly. 126 00:06:33,440 --> 00:06:36,480 Speaker 1: Can you buy equity shares this morning? What do you mean? 127 00:06:36,520 --> 00:06:38,800 Speaker 1: Can I? Can you buy equity shares? Would you have 128 00:06:38,880 --> 00:06:41,920 Speaker 1: a are you I have an appetite to acquire shares 129 00:06:41,960 --> 00:06:45,520 Speaker 1: in American companies this morning? Well? Look, we are long 130 00:06:45,640 --> 00:06:48,160 Speaker 1: term investors. I don't know how to market time. I 131 00:06:48,200 --> 00:06:50,159 Speaker 1: don't know what the equity market is going to do today, 132 00:06:50,200 --> 00:06:52,839 Speaker 1: tomorrow or next week, but I do believe in the 133 00:06:52,880 --> 00:06:56,080 Speaker 1: fullness of time, equities still remain the place to be 134 00:06:56,160 --> 00:06:58,200 Speaker 1: on a long term basis in the US is the place. 135 00:06:58,520 --> 00:07:01,080 Speaker 1: What's great about fullness of him, Michael McKay is for 136 00:07:01,200 --> 00:07:04,000 Speaker 1: most of it's the Friday for Rattner at the end 137 00:07:04,000 --> 00:07:06,760 Speaker 1: of the month, or the end or the end of 138 00:07:06,760 --> 00:07:10,840 Speaker 1: the decade. Steve Rattner, thank you so much on the 139 00:07:10,880 --> 00:07:17,240 Speaker 1: equity market and Mr Trump, futures are flat. Savannans Back 140 00:07:17,280 --> 00:07:19,800 Speaker 1: to by Westchester SUBARUVI? Is it Westchester Subaru dot com? 141 00:07:19,880 --> 00:07:22,480 Speaker 1: Here's Michael Barr with news headlines Mike Tom thank you 142 00:07:22,560 --> 00:07:25,240 Speaker 1: very much. The top of US commander in Afghanistan says 143 00:07:25,320 --> 00:07:29,280 Speaker 1: the death of Taliban leader Mohammad Aktar Mansur could have 144 00:07:29,320 --> 00:07:33,240 Speaker 1: a positive effect on peace efforts. General John W. Nicholson 145 00:07:33,360 --> 00:07:36,680 Speaker 1: says Mansour was an obstacle to peace and rejected the 146 00:07:36,760 --> 00:07:40,400 Speaker 1: chance offered by Afghan President astrof Ghani to participate in 147 00:07:40,440 --> 00:07:43,080 Speaker 1: the process. The general says the death will have a 148 00:07:43,120 --> 00:07:47,560 Speaker 1: disruptive effect on the insurgency. President Obama talked about Mansour's 149 00:07:47,560 --> 00:07:51,720 Speaker 1: death while in Vietnam. He is an individual who, as 150 00:07:51,760 --> 00:07:58,520 Speaker 1: head of the Taliban, was specifically targeting US personnel and 151 00:07:58,600 --> 00:08:03,360 Speaker 1: troops inside Afghanistan. The President, while in Hanois, also announced 152 00:08:03,400 --> 00:08:06,800 Speaker 1: lifting the ban on selling arms to Vietnam. A submarine 153 00:08:06,840 --> 00:08:09,040 Speaker 1: has joined the search for the wreckage of egypt Air 154 00:08:09,160 --> 00:08:12,280 Speaker 1: Flight eight oh four. The air A three twenty went 155 00:08:12,320 --> 00:08:14,720 Speaker 1: down over the Mediterranean Sea on a round compariss to 156 00:08:14,800 --> 00:08:18,240 Speaker 1: Cairo with sixty six people on board. Crews are looking 157 00:08:18,320 --> 00:08:21,000 Speaker 1: for the all important black boxes as they tried to 158 00:08:21,040 --> 00:08:23,360 Speaker 1: piece together what caused the plane to crash last week. 159 00:08:23,840 --> 00:08:27,320 Speaker 1: British Prime Minister David Cameron is warning of economic consequences 160 00:08:27,680 --> 00:08:30,400 Speaker 1: if Britain's vote next month to leave the European Union, 161 00:08:30,880 --> 00:08:35,000 Speaker 1: calling it a self destruct option, camera warn that Britain 162 00:08:35,040 --> 00:08:38,280 Speaker 1: would be plunged into a do it yourself recession. Global 163 00:08:38,360 --> 00:08:40,640 Speaker 1: News twenty four hours a day, powered by our twenty 164 00:08:40,679 --> 00:08:43,319 Speaker 1: four journalists in more than a hundred fifty news bureaus 165 00:08:43,320 --> 00:08:46,720 Speaker 1: around the world. Now Micha Labar, Minke Time, Thank you, Michael, 166 00:08:47,120 --> 00:08:51,560 Speaker 1: Coming up now the Landrover, Pertimpani, Bloomberg NBC Sports Update 167 00:08:51,679 --> 00:08:54,880 Speaker 1: with John Stash, Thanks Black. The Warriors, of course, made 168 00:08:54,920 --> 00:08:57,720 Speaker 1: regular season history with seventy three wins when they're in trouble. 169 00:08:57,760 --> 00:09:00,200 Speaker 1: As far as repeating as nbah amps not only lost 170 00:09:00,240 --> 00:09:03,000 Speaker 1: at Oklahoma City last night, he got obliterated one thirty 171 00:09:03,080 --> 00:09:04,920 Speaker 1: three to one oh five. At one point, the Thunder 172 00:09:05,000 --> 00:09:08,120 Speaker 1: led by forty one. They scored forty five points in 173 00:09:08,200 --> 00:09:10,040 Speaker 1: the third quarter, and they started that court with the 174 00:09:10,080 --> 00:09:12,960 Speaker 1: twenty five point lead. Kevin ran thirty three points, Russell 175 00:09:13,080 --> 00:09:16,120 Speaker 1: Westbrook had thirty. The Thunder of now won six of 176 00:09:16,200 --> 00:09:18,880 Speaker 1: eight against the NBA's top two teams, the Spurs and Warriors. 177 00:09:18,960 --> 00:09:21,719 Speaker 1: The series two one Okay see Game four tomorrow. Game 178 00:09:21,760 --> 00:09:24,320 Speaker 1: four in the East tonight in Toronto with Cleveland up 179 00:09:24,320 --> 00:09:26,880 Speaker 1: to one. Standley Cup playoffs. Pittsburgh led two games to one, 180 00:09:26,960 --> 00:09:29,599 Speaker 1: but Tampa Bay, with a backup goalie, has taken the 181 00:09:29,679 --> 00:09:32,120 Speaker 1: last two. They tied the Penguins late in regulation last night. 182 00:09:32,160 --> 00:09:34,240 Speaker 1: They won four three on a goal in the opening 183 00:09:34,280 --> 00:09:36,920 Speaker 1: minute of overtime. Weekend sweeps for the Mets and Yankees 184 00:09:36,960 --> 00:09:39,080 Speaker 1: after losing six and seven, Mets took care of Milwaukee 185 00:09:39,200 --> 00:09:41,880 Speaker 1: three to one. Noah synder Guard superb again. You struck 186 00:09:41,920 --> 00:09:44,599 Speaker 1: out eleven Mets game at app on the Nationals and 187 00:09:44,720 --> 00:09:47,679 Speaker 1: in Washington tonight. Yankees off after a fifth strade victory 188 00:09:47,760 --> 00:09:51,040 Speaker 1: five four in Oakland. Homers for Bryan McKinnon, Jacoby Ellsberry, 189 00:09:51,120 --> 00:09:53,719 Speaker 1: Michael Pinata got just a second win, and again the 190 00:09:53,840 --> 00:09:57,080 Speaker 1: three headed bullpen Dellan Matances, Andrew Miller. All this, Chapman 191 00:09:57,320 --> 00:10:00,120 Speaker 1: shutting the door with three hitless innings of relief as 192 00:10:00,160 --> 00:10:02,679 Speaker 1: he did twelve years ago. Sir Joe Garcia one of 193 00:10:02,679 --> 00:10:05,640 Speaker 1: the Byron Nelson Golf outside Dallas a playoff with Brooks Pepca, 194 00:10:05,880 --> 00:10:07,880 Speaker 1: who led by three shots on the back night Jordan 195 00:10:07,960 --> 00:10:10,679 Speaker 1: Speed fell out of contention. He shot seventy four wait 196 00:10:10,720 --> 00:10:14,280 Speaker 1: at the Bloomberg NBC Sports update. I'm John Stash. John, 197 00:10:14,400 --> 00:10:18,880 Speaker 1: thank you so much. The Rendner quoting the Glaciers, the 198 00:10:18,960 --> 00:10:21,560 Speaker 1: New Testament, the Epistle to the Glaciers in the fullest 199 00:10:21,600 --> 00:10:23,959 Speaker 1: of time. I think I learned that from the Red 200 00:10:24,040 --> 00:10:29,120 Speaker 1: Sox theology. It was Red Sox philosophy to philosophy. Yeah, 201 00:10:29,120 --> 00:10:30,959 Speaker 1: if you're a Red Sox investor, you were definitely a 202 00:10:31,080 --> 00:10:34,000 Speaker 1: long term and in my ute, in the fullest of time, 203 00:10:34,200 --> 00:10:37,520 Speaker 1: maybe we would go five hundred. Well, John and I 204 00:10:37,600 --> 00:10:40,360 Speaker 1: were talking, you can vote on this weather saying thunder 205 00:10:40,440 --> 00:10:45,360 Speaker 1: and lightning prevailed yesterday. It was a too much of 206 00:10:45,400 --> 00:10:47,880 Speaker 1: a cliche or silly. You know. The lightning is showing 207 00:10:47,960 --> 00:10:51,920 Speaker 1: good team spirit. The Pittsburgh's need to pick it up, 208 00:10:52,559 --> 00:10:57,760 Speaker 1: particularly in their zone. Lightning beating the Penguins. I need 209 00:10:57,840 --> 00:11:03,160 Speaker 1: to asper The sports report brought to you by Landroper Parsipani. 210 00:11:03,240 --> 00:11:06,080 Speaker 1: The spring sales event is happening now. Visit Landroper Parsipani 211 00:11:06,160 --> 00:11:08,520 Speaker 1: dot com. Landrover Above and Beyond