1 00:00:02,320 --> 00:00:05,760 Speaker 1: Bloombal Business News twenty four hours a day at Bloomberg 2 00:00:05,800 --> 00:00:08,840 Speaker 1: dot com, the Radio plus Mobil and on your radio. 3 00:00:09,160 --> 00:00:12,960 Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow. 4 00:00:13,000 --> 00:00:15,319 Speaker 1: This update is brought to you by marks Paneth l LP, 5 00:00:15,560 --> 00:00:18,280 Speaker 1: ranked among the top three forensic accounting firms in New 6 00:00:18,360 --> 00:00:20,360 Speaker 1: York by the New York Law Journal for the six 7 00:00:20,480 --> 00:00:24,279 Speaker 1: year in a row. Visit marks Panet dot com. UBS 8 00:00:24,320 --> 00:00:27,920 Speaker 1: Group Chief Executive Sergio or Matti says negative interest rates 9 00:00:27,920 --> 00:00:32,080 Speaker 1: are encouraging risky lending practices among some banks, potentially posing 10 00:00:32,080 --> 00:00:35,239 Speaker 1: a threat to the water financial system. He spoke earlier 11 00:00:35,280 --> 00:00:38,559 Speaker 1: today to Bloomberg's Tom Keene and Francine lack Claw. I 12 00:00:38,640 --> 00:00:43,280 Speaker 1: think in general the European banking system is clearly as 13 00:00:43,280 --> 00:00:46,680 Speaker 1: a huge over capacity. The problem is really to create 14 00:00:47,200 --> 00:00:50,400 Speaker 1: an environment in which we learned from the mistakes of 15 00:00:50,440 --> 00:00:53,160 Speaker 1: the of the past. Is that not every bank should 16 00:00:53,200 --> 00:00:55,880 Speaker 1: try to copy the other, but lad dank us to 17 00:00:55,920 --> 00:00:59,320 Speaker 1: find his own ways to to to leave through the 18 00:00:59,360 --> 00:01:03,000 Speaker 1: next make sea and sub s grap CEO Sergio or 19 00:01:03,080 --> 00:01:07,200 Speaker 1: Mahdi has heard earlier on Bloomberg Television. US Dock index futures, meanwhile, 20 00:01:07,240 --> 00:01:10,280 Speaker 1: are lower this morning after a surgeon share sent the 21 00:01:10,440 --> 00:01:12,680 Speaker 1: s n P five hundred two and almost two month high. 22 00:01:12,920 --> 00:01:15,320 Speaker 1: We checked the markets every fifteen minutes throughout the trading 23 00:01:15,400 --> 00:01:17,960 Speaker 1: day on Bloomberg SNP emity futures down two and a 24 00:01:18,000 --> 00:01:21,040 Speaker 1: half points now e Many futures down nineteen and nazdak 25 00:01:21,080 --> 00:01:23,760 Speaker 1: Emny futures down two and a half dacks. In Germany's 26 00:01:23,840 --> 00:01:26,160 Speaker 1: up six tenths per cent. Ten your treasury down five 27 00:01:26,160 --> 00:01:29,560 Speaker 1: thirty seconds. They yield one point eight four percent. Ni 28 00:01:29,640 --> 00:01:31,960 Speaker 1: Max screwed oil down one point four percent, or forty 29 00:01:31,959 --> 00:01:34,560 Speaker 1: eight cents to thirty three ninety two. A barrel Gomex 30 00:01:34,600 --> 00:01:37,440 Speaker 1: school that it'll change down forty cents to twelve thirty forty. 31 00:01:37,480 --> 00:01:40,080 Speaker 1: Announced the euro a dollar O eight five three, the 32 00:01:40,240 --> 00:01:42,640 Speaker 1: N one four teen point four zero, and that's a 33 00:01:42,640 --> 00:01:47,080 Speaker 1: Bloomberg business flash. Tom and Mike, thank you, Karen so 34 00:01:47,160 --> 00:01:50,480 Speaker 1: much greatly appreciated. A trip to Washington for Super Tuesday 35 00:01:50,520 --> 00:01:53,360 Speaker 1: and Super Wednesday means you need to speak to people 36 00:01:53,440 --> 00:01:56,200 Speaker 1: without hysteria. We just did that with E. J. Dione 37 00:01:56,560 --> 00:01:59,360 Speaker 1: of the Brookings Institution and of course the Washington Post 38 00:01:59,640 --> 00:02:02,760 Speaker 1: to Mr Deal and there's only one person in Washington 39 00:02:03,080 --> 00:02:06,440 Speaker 1: to speak to out of wake Forest. He has carved 40 00:02:06,480 --> 00:02:11,480 Speaker 1: a career in journalism, including plastered on the back wall 41 00:02:11,560 --> 00:02:15,080 Speaker 1: of the Palm Restaurant, his effort with the Capital Gang 42 00:02:15,120 --> 00:02:18,160 Speaker 1: on CNN for ages, and of course with Bloomberg for 43 00:02:18,480 --> 00:02:22,000 Speaker 1: a continued age. Albert our Hunt joins us right now. 44 00:02:22,000 --> 00:02:23,959 Speaker 1: Wonderful to have you here, sir Tom. It's great to 45 00:02:24,000 --> 00:02:26,120 Speaker 1: be here with all those years of experience that you have. 46 00:02:26,520 --> 00:02:29,919 Speaker 1: Yesterday Judd Gregg gave us a view in Vin Webber 47 00:02:30,000 --> 00:02:33,919 Speaker 1: gave us Is it their Republican party? No, it's not. 48 00:02:34,680 --> 00:02:37,560 Speaker 1: It is a party and revolver party that's angry at 49 00:02:37,600 --> 00:02:41,560 Speaker 1: party rank and file, that's full of anxiety. The establishment 50 00:02:41,639 --> 00:02:44,600 Speaker 1: is in a panic mode. They want to stop Donald Trump. 51 00:02:44,880 --> 00:02:46,720 Speaker 1: They're not going to be able to in all likelyhood. 52 00:02:46,720 --> 00:02:49,080 Speaker 1: Do you so, Mice got so much good perspective on this? 53 00:02:49,200 --> 00:02:54,200 Speaker 1: One more question? Do you assume that the establishment Republicans 54 00:02:54,240 --> 00:02:57,959 Speaker 1: will migrate to Secretary Clinton or do they just sit out? 55 00:02:58,040 --> 00:03:01,399 Speaker 1: What's your experience on that will divide, some will set out, 56 00:03:01,480 --> 00:03:04,959 Speaker 1: some few will migrate to her if you will find 57 00:03:05,040 --> 00:03:09,239 Speaker 1: some fig leaf of independent party, frivolous candidate of sorts. 58 00:03:09,440 --> 00:03:12,360 Speaker 1: But let me say one thing yesterday. About about about yesterday, 59 00:03:12,680 --> 00:03:16,360 Speaker 1: Tom I learned politics from a great Speaker of the House, 60 00:03:16,360 --> 00:03:20,560 Speaker 1: Thomas P. O'Neil, who one time said all politics are local. Well, 61 00:03:20,600 --> 00:03:22,960 Speaker 1: in journalism, it's if you're looking for the great story. 62 00:03:22,960 --> 00:03:24,920 Speaker 1: Now the country matters in the long run. But the 63 00:03:24,960 --> 00:03:28,680 Speaker 1: great story occurred yesterday. Both Trump and Clinton one, but 64 00:03:28,720 --> 00:03:32,560 Speaker 1: they didn't win decisively enough to brush aside their challengers. 65 00:03:32,680 --> 00:03:36,600 Speaker 1: Ted Cruz won three contests yesterday, Marco Rubio one his first, 66 00:03:36,720 --> 00:03:39,000 Speaker 1: We got a good contest for another two or three weeks, 67 00:03:39,080 --> 00:03:42,120 Speaker 1: and the Democratic side, Burnie one four out of eleven. Well, 68 00:03:42,120 --> 00:03:44,160 Speaker 1: you're saying we have a good contest for the next 69 00:03:44,200 --> 00:03:47,800 Speaker 1: couple of weeks, Let's talk about the tactics and the 70 00:03:47,880 --> 00:03:51,320 Speaker 1: strategy we move into. We start to move into the 71 00:03:51,320 --> 00:03:54,840 Speaker 1: winner take all primaries, and that could change the delegate 72 00:03:54,840 --> 00:03:58,400 Speaker 1: account significantly. But will it. Is there a place where 73 00:03:58,440 --> 00:04:01,680 Speaker 1: you can see a Marco will be a winning breaking 74 00:04:01,760 --> 00:04:04,560 Speaker 1: through and taking the momentum away from Trump. I think 75 00:04:04,600 --> 00:04:06,800 Speaker 1: it's very difficult. I think the greatest hope for those 76 00:04:06,800 --> 00:04:09,680 Speaker 1: anti Trump factions really is that you have a broker 77 00:04:09,720 --> 00:04:13,240 Speaker 1: convention where Donald Trump comes in with and UH and 78 00:04:13,280 --> 00:04:17,480 Speaker 1: the like, because their their winner take all begins on 79 00:04:17,560 --> 00:04:20,320 Speaker 1: the fifteenth of March. Minkey, but not all states are 80 00:04:20,320 --> 00:04:23,279 Speaker 1: winner take all. So uh and and where Mitch mcconal 81 00:04:23,360 --> 00:04:25,640 Speaker 1: made a huge miscalculation with saying everybody got to get 82 00:04:25,640 --> 00:04:28,000 Speaker 1: out so someone could take on Trump one on one. No, 83 00:04:28,560 --> 00:04:31,240 Speaker 1: because if that happens, Trump's gonna win Ohio off case 84 00:04:31,240 --> 00:04:34,320 Speaker 1: he gets out, If if Marco gets out, Trump wins Florida. 85 00:04:34,440 --> 00:04:36,080 Speaker 1: You want to have those three or four people in 86 00:04:36,120 --> 00:04:38,160 Speaker 1: the field right now at some point you want to 87 00:04:38,160 --> 00:04:39,720 Speaker 1: take him on one on one. But it's gonna be 88 00:04:39,760 --> 00:04:42,080 Speaker 1: hard for any of them. Where's the money right now, 89 00:04:42,720 --> 00:04:45,600 Speaker 1: the donors to the party, the people who will keep 90 00:04:45,640 --> 00:04:49,440 Speaker 1: the the other candidates running well. Cruz has a lot 91 00:04:49,440 --> 00:04:52,000 Speaker 1: of money. Cruiz has this guy Mercer, Robert Mercer, and 92 00:04:52,040 --> 00:04:54,159 Speaker 1: he's got others who kicked in big. He's got a 93 00:04:54,160 --> 00:04:57,680 Speaker 1: couple of super pacts. Rubio really needed to win the 94 00:04:57,720 --> 00:05:00,359 Speaker 1: Minnesota caucuses. I know that seems kind of funny right now, 95 00:05:00,400 --> 00:05:03,520 Speaker 1: but he needed one win and then if he wins Flourty, 96 00:05:03,520 --> 00:05:05,520 Speaker 1: he'll get the money. There's also outside money coming in. 97 00:05:05,520 --> 00:05:07,880 Speaker 1: The Ricketts families now spending money just to take on 98 00:05:08,000 --> 00:05:11,839 Speaker 1: Donald Trump. Excuse me, what is the biggest smoke filled 99 00:05:11,880 --> 00:05:14,920 Speaker 1: room you've ever been in? How smokey? Was the classic 100 00:05:15,080 --> 00:05:18,520 Speaker 1: l hunt? It was nineteen seventy six Republican Convention when 101 00:05:18,720 --> 00:05:23,479 Speaker 1: Ford and Reagan went in dead tide and uh, Ford beating. 102 00:05:23,560 --> 00:05:25,480 Speaker 1: But it was a smoke filled room, and it was 103 00:05:26,080 --> 00:05:28,720 Speaker 1: rooms and it was fabulous. It was a lot of fun. 104 00:05:30,040 --> 00:05:32,240 Speaker 1: You had a lot of power brokers. Drew Lewis back 105 00:05:32,320 --> 00:05:35,800 Speaker 1: to that, No, we won't. I kind of wish we would, 106 00:05:35,839 --> 00:05:38,200 Speaker 1: but we won't. Drew Lewis, who just died a week 107 00:05:38,279 --> 00:05:40,720 Speaker 1: or so ago, was the guy that delivered that convention 108 00:05:40,920 --> 00:05:43,839 Speaker 1: to Gerald Ford. I know there is no Drew Lewis 109 00:05:43,920 --> 00:05:48,600 Speaker 1: today in the in the Gan squirming up in that belcony. 110 00:05:48,720 --> 00:05:51,479 Speaker 1: It was like being a Pittsburgh Penguins fan watching the 111 00:05:51,520 --> 00:05:55,440 Speaker 1: Washington Capital Tom suffer through the game last night. It 112 00:05:55,560 --> 00:05:59,320 Speaker 1: wasn't It wasn't the outcome he was hoping for. Uh. 113 00:05:59,520 --> 00:06:03,360 Speaker 1: We want uh the Florida primary, particularly because Rubio is 114 00:06:03,400 --> 00:06:06,000 Speaker 1: taking his hopes on it. He's twenty points behind right 115 00:06:06,000 --> 00:06:08,719 Speaker 1: now in the polls there. We take those polls seriously, 116 00:06:08,839 --> 00:06:12,920 Speaker 1: is Trump really that strong? Uh? How does Florida play out? 117 00:06:13,000 --> 00:06:15,320 Speaker 1: What Rubio would say, as he was twenty points down 118 00:06:15,320 --> 00:06:18,960 Speaker 1: in Virginia and lost by two, it's his home state. Uh, 119 00:06:19,000 --> 00:06:21,840 Speaker 1: he hopes to get Jeb Bush's endorsement. I'm not sure 120 00:06:21,839 --> 00:06:24,800 Speaker 1: he will, and I don't endorsements matter all that much. 121 00:06:24,839 --> 00:06:27,720 Speaker 1: But he looks it's Stewart died for him there. And 122 00:06:27,760 --> 00:06:30,960 Speaker 1: don't forget Ohio is the same day. John Casey has 123 00:06:31,000 --> 00:06:34,000 Speaker 1: to beat Trump in Ohio. In terms of the way 124 00:06:34,200 --> 00:06:37,840 Speaker 1: we campaign, Trump has upended all the rules. He drops 125 00:06:37,880 --> 00:06:40,960 Speaker 1: in that makes a few appearances, flies back home to 126 00:06:41,000 --> 00:06:44,280 Speaker 1: New York almost every night. Has he permanently changed the 127 00:06:44,320 --> 00:06:48,280 Speaker 1: way your campaign the retail uh, you know, connection with 128 00:06:48,320 --> 00:06:50,200 Speaker 1: the voters or is this just kind of a one 129 00:06:50,240 --> 00:06:53,240 Speaker 1: off Donald Trump as a celebrity campaign. I hope it's 130 00:06:53,240 --> 00:06:56,240 Speaker 1: one off, because I think retail politics make people at 131 00:06:56,320 --> 00:06:59,840 Speaker 1: least more aware presidents and more aware candidates. I thought 132 00:06:59,880 --> 00:07:02,760 Speaker 1: New Hampshire voters did themselves a big disservice by voting 133 00:07:02,800 --> 00:07:05,039 Speaker 1: for Donald Trump. You know, not not because I'm so 134 00:07:05,120 --> 00:07:08,279 Speaker 1: much against Trump, though, am because I thought exactly the 135 00:07:08,279 --> 00:07:10,960 Speaker 1: point you made, you really want retail politics. You have 136 00:07:11,040 --> 00:07:14,440 Speaker 1: taught it pen that there's a habit of people moving 137 00:07:14,440 --> 00:07:16,840 Speaker 1: to the middle when they get to the general election. 138 00:07:17,240 --> 00:07:20,000 Speaker 1: I think Secretary Clinton is schooled that. I'm making a 139 00:07:20,080 --> 00:07:23,440 Speaker 1: bet there is Mr Trump or whoever takes the Republican 140 00:07:23,520 --> 00:07:27,400 Speaker 1: not have any ability to move to the middle. Very limited. 141 00:07:27,560 --> 00:07:29,800 Speaker 1: I mean, there's no proof for that. What Donald Trump's 142 00:07:29,800 --> 00:07:32,080 Speaker 1: appeal is he tells it like it is, and he 143 00:07:32,160 --> 00:07:35,640 Speaker 1: has views which I consider outrageous. I don't think you 144 00:07:35,640 --> 00:07:38,200 Speaker 1: can deport eleven million people. I don't think you can 145 00:07:38,240 --> 00:07:41,720 Speaker 1: start a trade war against Mexico and China. I don't 146 00:07:41,720 --> 00:07:43,600 Speaker 1: think you can build a wall which the Mexicans will 147 00:07:43,600 --> 00:07:46,360 Speaker 1: pay for. But if he backtracks on those times, then 148 00:07:46,360 --> 00:07:49,120 Speaker 1: he loses, you know, he loses all his credentials. But 149 00:07:49,240 --> 00:07:51,800 Speaker 1: those angry, alienated people I ain't try will have a 150 00:07:51,880 --> 00:07:53,800 Speaker 1: very hard time moving to the center. There are people 151 00:07:53,800 --> 00:07:56,160 Speaker 1: on both sides, in both parties to say this is 152 00:07:56,360 --> 00:07:58,800 Speaker 1: what they call a base election more than they moved 153 00:07:58,840 --> 00:08:02,120 Speaker 1: to the center election. Get your base voters out yesterday. 154 00:08:01,920 --> 00:08:06,440 Speaker 1: The South carry today for Donald Trump and for Hillary Clinton. 155 00:08:06,600 --> 00:08:08,840 Speaker 1: And those Southern voters who voted for Clinton had nothing 156 00:08:08,840 --> 00:08:10,760 Speaker 1: in common with other Southern voters who voted for Trump. 157 00:08:10,840 --> 00:08:12,680 Speaker 1: Like a question to you to start with your twenty 158 00:08:12,760 --> 00:08:15,560 Speaker 1: years of experience in Washington, unlike else one hundred years 159 00:08:15,560 --> 00:08:18,880 Speaker 1: in Washington. But are we moving to our version of 160 00:08:18,880 --> 00:08:22,400 Speaker 1: a parliamentary system? Is there some chaos here that will 161 00:08:22,440 --> 00:08:25,080 Speaker 1: make us we're like the British fractured Republican Party. That 162 00:08:25,120 --> 00:08:27,960 Speaker 1: would give you the possibility of having a number of parties, 163 00:08:27,960 --> 00:08:30,720 Speaker 1: But the two party system is so entrenched in American 164 00:08:30,760 --> 00:08:33,280 Speaker 1: politics that it's hard to imagine you could have three 165 00:08:33,360 --> 00:08:36,880 Speaker 1: or four viable parties election after election. You could have 166 00:08:37,240 --> 00:08:39,200 Speaker 1: a lot of soul searching in the Republican Party about 167 00:08:39,200 --> 00:08:41,720 Speaker 1: what party they're gonna be. Yeah, I basically agree with 168 00:08:41,760 --> 00:08:44,640 Speaker 1: Mike tom But I don't rule out the fact Republican 169 00:08:44,640 --> 00:08:48,120 Speaker 1: Party could totally fracture after this election. I really think 170 00:08:48,120 --> 00:08:51,560 Speaker 1: it's possible because I think that that Trump faction is 171 00:08:51,600 --> 00:08:53,840 Speaker 1: not going to go away. And I don't think that 172 00:08:53,920 --> 00:08:56,280 Speaker 1: can be a comment. This is critical. What do you 173 00:08:56,320 --> 00:08:58,520 Speaker 1: want to wake forest the land of the Whigs? What 174 00:08:58,640 --> 00:09:01,560 Speaker 1: do you Chuck Todd? Then should the Whigs all the time? Now? 175 00:09:01,960 --> 00:09:06,960 Speaker 1: What do you foresee is the offshoot of a Republican 176 00:09:07,000 --> 00:09:09,560 Speaker 1: party of one hundred and fifty years, Well, it would 177 00:09:09,559 --> 00:09:11,319 Speaker 1: be true. It would be two Republican parties could be 178 00:09:11,360 --> 00:09:14,439 Speaker 1: the Party of Paul Ryan, the Party of John Kaik, 179 00:09:14,520 --> 00:09:16,600 Speaker 1: the Party of Marco Rubio, even and the Party of 180 00:09:16,679 --> 00:09:19,360 Speaker 1: Donald Trump and the Party of Ben car Is the 181 00:09:19,480 --> 00:09:24,160 Speaker 1: angry outsiders. Uh. And I'm I'm not I'm not forecasting 182 00:09:24,200 --> 00:09:26,320 Speaker 1: that time. I'm saying that I think, unlike in the 183 00:09:26,320 --> 00:09:28,520 Speaker 1: past you have said, well, that's the ludicrous proposition, it's 184 00:09:28,559 --> 00:09:30,880 Speaker 1: not gonna happen. I don't think it's I don't think 185 00:09:30,880 --> 00:09:33,319 Speaker 1: it's far out anymore. It's such a small base it 186 00:09:33,360 --> 00:09:37,200 Speaker 1: would be hard, it seems to sustain a movement like that. 187 00:09:37,320 --> 00:09:40,319 Speaker 1: The UK Party in England can't get above ten or 188 00:09:40,360 --> 00:09:42,800 Speaker 1: fifteen in the polls. But I want to ask you 189 00:09:42,880 --> 00:09:48,040 Speaker 1: quickly before we go here. Uh. Traditional politics would have 190 00:09:48,120 --> 00:09:51,000 Speaker 1: us starting to speculate about who if vice presidential choice 191 00:09:51,000 --> 00:09:53,160 Speaker 1: would be, because how they're going to help a ticket 192 00:09:53,200 --> 00:09:55,760 Speaker 1: down the road. In Trump's case, it's sort of probably 193 00:09:55,800 --> 00:09:58,559 Speaker 1: gonna be anybody who will take the job, right, Lady Gaga, 194 00:09:59,040 --> 00:10:01,440 Speaker 1: I think that's the leading right now. But does it 195 00:10:01,520 --> 00:10:06,240 Speaker 1: matter who Hilary picks less so than um. I Look, 196 00:10:06,280 --> 00:10:08,840 Speaker 1: if Bernie really gave her a contest all the way 197 00:10:08,920 --> 00:10:11,920 Speaker 1: until June, I really was convinced there was a good 198 00:10:12,000 --> 00:10:14,880 Speaker 1: chance ship pick Elizabeth Warren just to energize that base. 199 00:10:14,960 --> 00:10:17,640 Speaker 1: Two women all that, I think since that's not gonna 200 00:10:17,800 --> 00:10:20,000 Speaker 1: seems that's not going to occur now, I think she'll 201 00:10:20,040 --> 00:10:22,800 Speaker 1: move more to something very conventional like Tim Caine or 202 00:10:22,880 --> 00:10:26,120 Speaker 1: maybe the Hudge secretary wholelyan cash Show twenty seconds. Who 203 00:10:26,120 --> 00:10:29,920 Speaker 1: in the Republican establishment are you most focused on? Paul Ryan? 204 00:10:30,280 --> 00:10:33,880 Speaker 1: Paul And what do you like what he did yesterday? Yeah, 205 00:10:34,080 --> 00:10:37,319 Speaker 1: well he's horrified. He is a Jack Kemp Republican. If 206 00:10:37,320 --> 00:10:39,520 Speaker 1: my dear friend Jack camp were alive today, he would 207 00:10:39,559 --> 00:10:41,880 Speaker 1: be mortified by Donald Trump and there's no way in 208 00:10:41,920 --> 00:10:44,280 Speaker 1: the world he could support Donald Trump. Thank you so 209 00:10:44,360 --> 00:10:47,480 Speaker 1: much for joining us this morning. Al Hunter, of course, 210 00:10:47,600 --> 00:10:50,240 Speaker 1: writing for Bloomberg View, I featured one of his columns, 211 00:10:50,559 --> 00:10:54,720 Speaker 1: uh today the Republican model is good for Mr Trump. 212 00:10:54,760 --> 00:10:58,800 Speaker 1: El Hunt, of course with Bloomberg View. In Bloomberg News, 213 00:10:58,840 --> 00:11:00,440 Speaker 1: we need to do a dated chow. Did you know 214 00:11:00,520 --> 00:11:03,319 Speaker 1: their markets going on? Even as we handle Super Wednesday 215 00:11:03,920 --> 00:11:07,679 Speaker 1: here in Washington. Futures negative three, doubt, futures negative seventeen. 216 00:11:07,720 --> 00:11:11,920 Speaker 1: Michael McKee and Tom keenan support of FM Washington. This 217 00:11:12,000 --> 00:11:13,319 Speaker 1: is Bloomberg's surveillance