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Speaker 1: Broadcasting live to New York, Gloomberg to Washington, d C,

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Speaker 1: Bloomber to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg

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Speaker 1: nine six to the Country Series Channel one ninety and

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Speaker 1: around the globe the Bloomberg Radio plus Bloomberg dot Com.

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Speaker 1: This is Bloomberg Surveinglets Good Morning at seven thirty on

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Speaker 1: Wall Street and Michael McGee along with Tom Keane. It

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Speaker 1: is a mini merger Monday. So far we got a

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Speaker 1: couple of deals. Feiser going to buy Antacore Pharmaceuticals. They

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Speaker 1: are spending five point two billion dollars to do that,

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Speaker 1: and a couple of exploration and production companies in the

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Speaker 1: oil space getting together. Range Resources is going to buy

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Speaker 1: Memorial Resources. That's a three point three billion dollars stock deal.

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Speaker 1: They're also assuming one point one billion dollars in debts,

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Speaker 1: so the total value of the deal four point for billion.

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Speaker 1: New York Times reporting Warren Buffett and Dan Gilbert, the

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Speaker 1: founder of Quick and Longs, teaming up in a bid

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Speaker 1: for Yahoo. They've made it to the second round of bidding. Um.

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Speaker 1: Mr Buffet's conglomerate Berkshire Hathaway going to provide financing like

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Speaker 1: he did. You remember when they teamed with the Three

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Speaker 1: G Capital to take over h J, Hines and Craft.

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Speaker 1: He's going to leave the negotiations and the deal with

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Speaker 1: Yahoo to Mr Gilbert. Let's check out with Michael Barr

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Speaker 1: Now the latest world and national headlines. Michael Fank, thank

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Speaker 1: you very much. Presumptive Republican presidential nominee Donald Trump says

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Speaker 1: it does not look like he's going to have a

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Speaker 1: very good relationship with British from Minister David Cameron. Trump's

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Speaker 1: comments were broadcast today on I t V s Good

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Speaker 1: Morning Britain. Trump is still unhappy with Cameron's criticism of

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Speaker 1: him after Trump's call for all Muslims to be temporarily

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Speaker 1: banned from entering the US. In the interview, Trump also

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Speaker 1: called London's new mayor City Cohn rude for calling him ignorant.

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Speaker 1: Hillary Clinton and Bernie Sanders are giving up for tomorrow's

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Speaker 1: primaries in Kentucky and Oregon. Clinton and Sanders campaign and

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Speaker 1: the Bluegrass State. Yesterday, Turkish shelling and airstrikes by the

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Speaker 1: US led military coalition have killed twenty seven Islamic State

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Speaker 1: militants in Syria. The US, Japan, and South Korea will

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Speaker 1: hold their first joint military exercises and at tracking North

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Speaker 1: Korean missiles. All three nations will send destroyers to participate

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Speaker 1: in the drills in waters off Hawaii. In late June,

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Speaker 1: Global News twenty four hours a day, powered by were

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Speaker 1: twenty four hundred journalists and more than a hundred fifty

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Speaker 1: news buraus from around the world. Now, michael'bar mine, Thank you, Michael.

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Speaker 1: Time now for the Landrover Paricipani Bloomberg NBC Sports Update

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Speaker 1: with John Stash, Thanks Mike. The Yankees were struggling but

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Speaker 1: have seemingly corrected some problems with a seven and three

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Speaker 1: homestand the Mets meanwhile, we're winning and then went four

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Speaker 1: and seven on the road. They've gone from first place

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Speaker 1: down to third. They got swept at Colorado, losing four

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Speaker 1: to three. Mets had a three one leave but Carlos

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Speaker 1: Gonzalez homeward in the sixth naing Ryan Rayburn won it

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Speaker 1: in the seventh for the Rockies with a pinch hit

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Speaker 1: to run shot Yankster at home runs from Brian McCann.

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Speaker 1: Carlos Beltron beat the White Sox seven five for Beltron's

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Speaker 1: career home run number four hundred NBA Playoffs Toronto followed

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Speaker 1: the same script as Round one. Losing games won four

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Speaker 1: and six, but winning games two, three, five, and seven,

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Speaker 1: Raptors pulled away from Miami. They won the fourth quarter

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Speaker 1: of thirty to eleven. They won Game seven, one, six

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Speaker 1: eighty nine. It will be much tougher in the East

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Speaker 1: Finals against Cleveland. Phil Jackson, criticized for not considering someone

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Speaker 1: other than Kurt Rambis, will speak with ex Pacers coach

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Speaker 1: Frank Vogel about coaching the Knicks. Game one of the

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Speaker 1: NHL's West Finals, the St. Louis two one over Sandusey

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Speaker 1: Jason Day wire to wire win Players Championship, third win

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Speaker 1: this year for the world number one. Day finished fifteen

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Speaker 1: under par and won by four shots. With the Bloomberg

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Speaker 1: NBC Sports Zone, I'm Johnson, Yeah, we don't think enough

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Speaker 1: for about golf and how nice it would be to

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Speaker 1: pre professional golfer and playing nice weather, which we have

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Speaker 1: not had here in the Northeast this spring. So far,

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Speaker 1: we're seeing a little green on the screen though. SMP

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Speaker 1: features up by a point right now, DAL features up

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Speaker 1: by three, NASDAQ features up by six. As we get

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Speaker 1: ready for the first day of trading on this week.

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Speaker 1: This is slumberk Surveillance. I'm Michael McKee along with Tom

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Speaker 1: Keane Oil. The story of the day in the markets,

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Speaker 1: Brent crewed up two percent, West Texas sixteen up to

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Speaker 1: as well, closing in on fifty dollars. Haven't been there

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Speaker 1: since November. We will keep an eye on it, of course,

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Speaker 1: and keep you informed of every significant move. But now

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Speaker 1: we're gonna turn to Bob Moon and the n j

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Speaker 1: I T STEM Report, brought to you by a New

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Speaker 1: Jersey Institute of Technology, investing more than a hundred and

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Speaker 1: ten million dollars a year and applied research to solve

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Speaker 1: problems and improve life. Learn more Stories of Innovation Dot,

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Speaker 1: n j I T DOT E d U POP Michael,

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Speaker 1: Good morning. Here's what's making news and science, technology, engine,

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Speaker 1: ring and math. A Boston hospital confirms the story first

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Speaker 1: reported by The New York Times today that a cancer

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Speaker 1: patient has received the first penis transplant in the United States.

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Speaker 1: Massachusetts General Hospital says today that a sixty four year

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Speaker 1: old patient from Halifax, Massachusetts, received the transplant of an

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Speaker 1: organ from a deceased donor in a fifteen hour procedure

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Speaker 1: last week. The Times reports it's part of a program

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Speaker 1: that ultimately aims to help combat veterans. A gene editing

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Speaker 1: tool known as Crisper has become the must have technology

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Speaker 1: in genetic engineering, and Biogen has let it be known

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Speaker 1: that it's in early discussions with companies to get its

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Speaker 1: own access to the technology. Biogen's head of cell and

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Speaker 1: gene Therapy says Crisper is clearly a must have to

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Speaker 1: gain greater expertise in gene therapy, and the company is

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Speaker 1: talking about potential deals with some companies that have Crisper tools.

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Speaker 1: He didn't specify the nature or scope of the potential

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Speaker 1: deals or the companies in the discussions. The appeal of

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Speaker 1: Crisper is its low cost and ease abuse in slicing

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Speaker 1: out flawed portions of DNA or even replacing them with

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Speaker 1: useful strands. Drug makers, including novartists, Regenera, on Pharmaceuticals, Johnson

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Speaker 1: and Johnson, and Beer already obstruct deals with Crisper companies.

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Speaker 1: And that's this morning's Bloomberg and j I T Stem Report. Michael,

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Speaker 1: all right, thank you very much, Bob moon. Well, it's

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Speaker 1: deadline day for companies to file their thirteen FS. What

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Speaker 1: did they buy? In the most recent quarter Berkshire apparently

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Speaker 1: buying Apple nine point eight one million shares in Apple.

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Speaker 1: According to their thirteen f UH no longer shows any

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Speaker 1: stakes in H, A, T and T. So we'll continue

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Speaker 1: to follow the release of the thirteen fs as the

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Speaker 1: day goes on. Berkshire Hathaway out with theirs, and if

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Speaker 1: they have any more interesting investments, we will pass those along.

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Speaker 1: I mentioned oil prices a second ago. The reason I

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Speaker 1: did that is because we're going now to Thomas McDonald

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Speaker 1: of Jaguar Growth Partners. He's managing partner there. They specifically

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Speaker 1: invest in Latin America and front and center in Latin

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Speaker 1: America today Venezuela, where the President has declared a state

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Speaker 1: of emergency and has ordered the seizure of factories that

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Speaker 1: have stopped production and the jailing of their owners. That

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Speaker 1: came after a company that produces beer stopped producing beer

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Speaker 1: because they couldn't get any hops because the government prohibited it.

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Speaker 1: So leaving aside the inanity of that all, uh, Thomas Uh.

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Speaker 1: We were talking earlier today with Pique Burliger from Pique

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Speaker 1: Vurlger Associates, and he said one of the things that's

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Speaker 1: really affecting the oil market these days, is the collapse

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Speaker 1: of Venezuelan production. What is going on with that country

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Speaker 1: or are we about to see them uh implode default.

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Speaker 1: I don't know what they have out there, but what's

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Speaker 1: the risk from Venezuela right now? Well, thanks Michael, very

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Speaker 1: good to speak to you again. Venezuela unfortunately has continued,

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Speaker 1: uh now for over the past fifteen years, a path

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Speaker 1: with with very um difficult solutions required to for them

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Speaker 1: to turn things around. As you mentioned, the state of

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Speaker 1: emergency that was declared today as an extension of a

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Speaker 1: state of emerging put in place a couple of months ago,

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Speaker 1: which you know, certainly, according to some people in Venezuela's

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Speaker 1: by definition illegal. What it doing is giving the company,

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Speaker 1: the country and the government the ability to appropriate and

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Speaker 1: really take measures into their own hands. Not good, certainly

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Speaker 1: from a social perspective. The economy is in ruins and

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Speaker 1: has been for years. I think, uh, they're you know,

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Speaker 1: trading partners in the relative recent pasts have been Cuba

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Speaker 1: and China. US exposure is very limited and has become

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Speaker 1: less so certainly over the fat last fifteen years. With

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Speaker 1: the beginning of of Hugo Chaves and continuation of of

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Speaker 1: the now President Maduto. So it's it's um, it's uneasy

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Speaker 1: territory absolutely for Venezuela. It's really Venezuela is I would say, uh,

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Speaker 1: in many ways very different now and kind of the

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Speaker 1: the outcast and an outlier of what's happening in the

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Speaker 1: rest of Latin America, which is of course good news

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Speaker 1: for everybody. UM, including Columbia is certainly that benefited from

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Speaker 1: really a brain drain from Venezuela as it related to

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Speaker 1: folks working in the oil and gas industries. They moved

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Speaker 1: over beginning and again in the early two thousands of Colombia. Uh.

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Speaker 1: Political stability in the rest of the region, and unclear

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Speaker 1: really what's going to happen in Venezuela, but certainly not

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Speaker 1: good situation today. We gotta take a break in just

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Speaker 1: a minute. It very quickly. Suppose Maduro leaves, would you

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Speaker 1: invest in a new Venezuelan government, Well, we would need

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Speaker 1: for not only Maduto to leave, but to understand who

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Speaker 1: comes in in the case specifically in Venezuela. Again, unfortunately

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Speaker 1: for them, they have not been able to organize a

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Speaker 1: concentrated opposition and as a results have not been able

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Speaker 1: to lay out appropriate reforms plans and institute uh a

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Speaker 1: platform that that you can get your arms around. We

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Speaker 1: would need not only from Maduto to leave, but also

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Speaker 1: for a solid opposition to be in place with a

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Speaker 1: very clear path to resolving some major issues that are

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Speaker 1: are need to be fixed in order for the way

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Speaker 1: to get back on its feet. Well, let's come back

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Speaker 1: with Thomas McDonald from Jaguar Growth Partners. No change in

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Speaker 1: the Venezuelan government yet, but certainly a lot of change

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Speaker 1: in other Latin American governments, in Argentina and in Brazil. Absolutely,

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Speaker 1: Venezuela the news over the weekend, it was just grim.

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Speaker 1: No other way to paint it here again one thirty

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Speaker 1: sharing this morning on Venezuela's stay with as Bloomberg Surveillance.

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Speaker 1: Bloomberg's Aveillance is brought to you by n y C

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Speaker 1: d ask about their my community interest checking with free

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Speaker 1: New York Community Bank online and mobile banking. Earn more,

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Speaker 1: get more. Visit my NYCB dot com for details. Global

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Speaker 1: business news twenty four hours a day at Bloomberg dot com,

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Speaker 1: the Radio plus Mobile Act and on your radio. This

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Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. This

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Speaker 1: update is brought to you by Sector Spider E t

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Speaker 1: F S M. I buy a single stock when you

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Speaker 1: can invest in the entire sector. Visits sector spd r

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Speaker 1: s dot com are called one six six sector et

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Speaker 1: f or. In Buffetts, Berkshire Hathaway disclosing a Steak and Apple.

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Speaker 1: Berkshire held a nine point eight one million shares of

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Speaker 1: the iPhone maker as of March thirty one. According to

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Speaker 1: a regulatory filing, the whole thing was valued at more

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Speaker 1: than one billion dollars at the end of the first quarter,

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Speaker 1: and Apple shares are up two point two per cent

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Speaker 1: this morning. Fiser agreed to acquire anac Are Pharmaceuticals and

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Speaker 1: a transaction valued at about five point two billion dollars

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Speaker 1: to gain control of an experimental treatment for a skin

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Speaker 1: condition known as egzima, and a core is up fifty

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Speaker 1: four percent this morning. Range Resources, the Texas based natural

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Speaker 1: gas producer, and grain to buy Memorial Resource Development in

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Speaker 1: a three point three billion dollar all stock deal. And

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Speaker 1: Gannette escalating his hostile takeover for a Tribune Publishing raising

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Speaker 1: it's all cash offer for the owner of the Chicago Tribune.

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Speaker 1: In Los Angeles, Times to about eight hundred sixty four

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Speaker 1: million dollars in Tribune up twenty two percent. This morning

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Speaker 1: smp E many futures up two and a half points

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Speaker 1: now e many futures have fourteen NASDA give any futures

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Speaker 1: up eleven ten year Treasury down five thirty seconds, the

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Speaker 1: yield one point seven one percent. Nimex screwed oil up

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Speaker 1: two point two percent or one dollar to forty seven

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Speaker 1: twenty one A barrel Comex gold up a ten percent

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Speaker 1: or ten dollars fifty cents to twelve eighty three twenty

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Speaker 1: announced the euro dollar thirteen seventeen the yen one oh

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Speaker 1: eight point nine four. As a Bloomberg business flash, Tom

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Speaker 1: and Mike Karen thanks so much as you for Dennis

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Speaker 1: Gartman say many times there's something comforting about stuff. If

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Speaker 1: you drop it, and you drop it on your foot,

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Speaker 1: it hurts you. Thomas McDonald is with Jaguar Growth Partners

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Speaker 1: looking at Latin America, and he does this through the

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Speaker 1: prism of his previous employment a few years ago with Annexed.

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Speaker 1: They make stuff that if you drop it on your foot,

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Speaker 1: it hurts. Thomas McDonald can South America generate a manufacturing

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Speaker 1: economy and critically, is it the first symbol that the

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Speaker 1: next five years or ten years they can stay not

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Speaker 1: within but generate that economy out to a global export juggernaut. Michael, thanks,

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Speaker 1: very good question, very funny. I haven't heard Annixter described

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Speaker 1: that way before, but Tom sure my friends got to

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Speaker 1: chuckle out of that. Um Well, I think the answer.

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Speaker 1: The answer is yes, long term. However, uh, in important

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Speaker 1: things have to happen in advance of that kind of

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Speaker 1: manufacturing base getting established and providing not only export, but also,

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Speaker 1: I would say as importantly manufacturing for local consumption, which

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Speaker 1: we can talk about um in the case for example

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Speaker 1: today of of Brazil and in Argentina. Interesting corallarias I'd say,

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Speaker 1: Argentina is is probably six months ahead. They had the land,

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Speaker 1: the historic election of Makari, which was a great, uh

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Speaker 1: you know, historical milestone. And yet what really matters is

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Speaker 1: what happened after that. Well, I agree with that, but

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Speaker 1: but the basic idea is it's a north south axis

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Speaker 1: and granted commodities had a lot to push against that,

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Speaker 1: and it helps South America look out in broader from

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Speaker 1: where you sit, is there regenerational change for South America?

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Speaker 1: I guess to look north, but far more importantly to

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Speaker 1: look east and west, up to the left and up

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Speaker 1: to the right. Generational change. Yes, However, significant reforms have

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Speaker 1: to take place, historic reforms that have been needed since

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Speaker 1: the Parentus Idea era in in Argentina and certainly over

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Speaker 1: the last twenty to thirty years in Brasilt specifically social security,

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Speaker 1: fiscal and label labor reforms need to be need to

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Speaker 1: be uh, need to occur, and frankly, the best time

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Speaker 1: for these events to occur is today, when things are

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Speaker 1: going well. Heavy painful reforms are never enacted, and yet

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Speaker 1: you've got political momentum, political support. UH. The question is

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Speaker 1: how will society react. The impact of the early reforms,

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Speaker 1: The tariff eliminations and pricing subsidy eliminations that have occurred

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Speaker 1: in Argentina over the last three or four months are

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Speaker 1: being felt by people who are now paying for electricity,

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Speaker 1: paying for water effectively, and inflation is up twenties thirty percent.

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Speaker 1: The expectation is that that's going to taper off over

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Speaker 1: the next couple of months, but that's a heavy burden

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Speaker 1: for the society and the consumption class to bear in

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Speaker 1: order for the broader reforms to take place and get momentum.

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Speaker 1: You need to get over this hump in Brazil is

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Speaker 1: in the first any Dilma's out stair isn't necessary and

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Speaker 1: historic milestone, that's great. What really matters is what PEMIN

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Speaker 1: is able to do over the next really three to

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Speaker 1: six months, which can happen while Dilma is working through

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Speaker 1: her defense early signals again literally since the vote took

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Speaker 1: place Thursday morning, we were in uh S. I'll follow

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Speaker 1: last week. It was very interesting, it was historic, but

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Speaker 1: but but that's that's really noise. What has to happen

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Speaker 1: is the ministers that have been put in place, and

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Speaker 1: think of the finance miner, very minister, very good signal.

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Speaker 1: He over the weekend announced uh really nominal stability of

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Speaker 1: physical expenditures in the short term. That's slightly better than expected.

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Speaker 1: They've got to work on social security reform again, labor

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Speaker 1: and fiscal reform, and if we see things happen in

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Speaker 1: the next two to four or five months, that bodes

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Speaker 1: very well for the near medium and certainly long term

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Speaker 1: for Brazil. Your your point about the export opportunity is

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Speaker 1: very important, no question about it. However, what really matters

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Speaker 1: for these countries, and you've already seen it in Mexico.

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Speaker 1: To bring it further north. When we began investing in

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Speaker 1: Mexico and near late nineties early two thousand's, the majority

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Speaker 1: of the manufacturing there was export based. It was first

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Speaker 1: to the US and then elsewhere. China came in lower

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Speaker 1: labor costs. UH, and that that took away some of

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Speaker 1: the manufacturing activity from Mexico. The good news from Mexico,

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Speaker 1: the middle class grew and now the manufacturing is roughly

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Speaker 1: fifty fifty domestic consumption and export. That's a healthier business

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Speaker 1: man for any of these countries. Uh. It's going to

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Speaker 1: take time, but that's I think what they really want

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Speaker 1: to strive for is and and certainly the numbers in

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Speaker 1: the case of Brazil, ten million families have come into

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Speaker 1: the middle class over the last ten millionaires. That's forty

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Speaker 1: million people of the population who before never bought a house,

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Speaker 1: never bought a car, never bought white goods, never had

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Speaker 1: any consumer finance. Those are drivers of the economy that

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Speaker 1: are really longer term, more important. And Thomas McDonald was

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Speaker 1: ja Growth Products Partners right there. Michael. The question I

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Speaker 1: always asked this morning by somebody and you're going to

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Speaker 1: be a better position to answer this that I am

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Speaker 1: is how important are the Olympics to Brazil given the

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Speaker 1: change in government and given all the concerns about pollution

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Speaker 1: and the zeke virus, Well, those are the pollution, zekea

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Speaker 1: virus absolutely are issues that are are headwinds for this Olympics.

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Speaker 1: I I and I think it's it's really unfortunate that

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Speaker 1: I don't think the Olympics are going to be a

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Speaker 1: significant event for Brasil, and they should have been, they

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Speaker 1: could have been, and this will be go down I

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Speaker 1: think in history as a real lost opportunity for Brazil.

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Speaker 1: The real beneficiaries long term, medium term will be the

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Speaker 1: residents of Rio because despite poor spending, poor management there

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Speaker 1: there will be things are things being done to the

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Speaker 1: physical infrastructure and physical plant of the city of Rio

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Speaker 1: that otherwise would have never been done that will benefit

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Speaker 1: And at the at the end of the day, that's

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Speaker 1: really it. I think Brazil is a country that people

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Speaker 1: are fantastic, They'll be great hosts. Um they'll manage this,

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Speaker 1: I think, despite certainly the political turmoil, but but it

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Speaker 1: will not register. I don't think anything significant unfortunately. Again,

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Speaker 1: I think for for real, real and Brazil lost opportunity

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Speaker 1: about the northern parts of South America. Um, you know,

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Speaker 1: your Columbia's and countries like that, they get kind of

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Speaker 1: lost in the in the story because there's so much

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Speaker 1: going on down with Argentina and Brazil and of course Venezuelans. Yes,

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Speaker 1: well they are, they're kind of under the radar. For

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Speaker 1: I think for many folks, we we really think highly

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Speaker 1: of the Indian region generally, which really encompasses Columbia, Peru,

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Speaker 1: and then uh to to some extent Chile, although Chile

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Speaker 1: is a much more developed uh and as a result,

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Speaker 1: much more efficient, much more expensive market. But if you

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Speaker 1: combine really Colombia, Peru and Chile, you've got population similar

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Speaker 1: to that of Mexico, uh more, much more so than

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Speaker 1: that of Argentina. You in our world, we think about

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Speaker 1: it as a region, though none of the none of

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Speaker 1: the cities or countries on our own are large enough

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Speaker 1: and yet historically very stable growth, relatively politically relative political stability.

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Speaker 1: In the case of Colombia. Um, the drain brain that

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Speaker 1: they experienced that the brain drains are they experienced in

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Speaker 1: the in the eighties, which was really driven by concerns

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Speaker 1: about security has flipped. And what you see now over

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Speaker 1: the last probably eight or so years is an influx

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Speaker 1: of really talented people, not only as I mentioned before,

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Speaker 1: Venezuela's related specifically to their own gas sector, but really

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Speaker 1: from the US and Europe that we're educated and worked

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Speaker 1: up here, have great skills, experience coming back because of

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Speaker 1: loyalty and patriotic reasons. Really right and so really very

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Speaker 1: very well educated. Uh, not only executive class, but also

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Speaker 1: in the government. Thank you so much, Thomas McDonald with

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Speaker 1: his Cheguar Growth partners. Mike, I was just not transfixed.

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Speaker 1: It's not the right word. The horror and that's the

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Speaker 1: that's the right word for the medical and health conditions

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Speaker 1: in Venezuela. You wonder what the International group is going

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Speaker 1: to help, Well, there's nothing you can do. They won't

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Speaker 1: let money in. So yeah, fortunately, but it is there somehow.

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Speaker 1: We'll be talking about that address more. We'll call upon

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Speaker 1: some of our good guests on Latin America here in

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Speaker 1: the coming days. Futures up three, down, features up eleven.

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Speaker 1: The yield curve, well, it was curve flattening earlier. It's

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Speaker 1: actually turned around a little bit. One point seven on

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Speaker 1: the tenure of the two year point seven seven percent.

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Speaker 1: Michael McKee and Tom Keena, You're Monday. Bloomberg surveillance