1 00:00:03,200 --> 00:00:06,640 Speaker 1: This is Bloomberg Surveillance. I'm not sure that I agree 2 00:00:06,640 --> 00:00:09,039 Speaker 1: that there are signs in Europe of economic strength. There 3 00:00:09,039 --> 00:00:12,200 Speaker 1: are signs in the United States. Perhaps there's no free 4 00:00:12,240 --> 00:00:16,599 Speaker 1: lance iconic higher wages and maintained profit margins and keep 5 00:00:16,680 --> 00:00:20,440 Speaker 1: low inflation. The economy has not been very evenly distributed, 6 00:00:20,600 --> 00:00:23,960 Speaker 1: and the people left behind have been really more or 7 00:00:24,040 --> 00:00:27,600 Speaker 1: less the middle class and lower middle class people. Bloomberg 8 00:00:27,640 --> 00:00:31,360 Speaker 1: Surveillance your link to the world of economics, finance and 9 00:00:31,520 --> 00:00:36,960 Speaker 1: investment on Bloomberg Radio. Good morning and uh T G 10 00:00:37,120 --> 00:00:39,400 Speaker 1: I F I Michael McKee along with Tom Keene. It 11 00:00:39,479 --> 00:00:42,880 Speaker 1: is seven am on Wall Street, one pm in Frankfurt, 12 00:00:43,520 --> 00:00:47,559 Speaker 1: the day after drug and it is a very different day, indeed, 13 00:00:47,560 --> 00:00:51,279 Speaker 1: shaking off yesterday's disappointed in the ECB, or perhaps just 14 00:00:51,360 --> 00:00:53,800 Speaker 1: a more sober view of what drgy Hath wrought. We 15 00:00:53,800 --> 00:00:58,360 Speaker 1: are seeing major market moves today. European stocks soaring, the 16 00:00:58,480 --> 00:01:01,400 Speaker 1: stock six hundred up seven points two point one percent. 17 00:01:01,840 --> 00:01:05,080 Speaker 1: Right now in Germany the docks two hundred and fifty 18 00:01:05,160 --> 00:01:10,080 Speaker 1: nine points higher two point seven percent. Bond yields curves 19 00:01:10,080 --> 00:01:13,360 Speaker 1: are flattening across Europe. The German two year yield is 20 00:01:13,400 --> 00:01:16,680 Speaker 1: now a negative forty six basis points. It was negative 21 00:01:16,840 --> 00:01:21,480 Speaker 1: fifty seven on Tuesday, and the euro still stronger one 22 00:01:21,640 --> 00:01:26,240 Speaker 1: eleven oh five, but down about seven tenths of eight 23 00:01:26,319 --> 00:01:30,399 Speaker 1: percent from yesterday. Here in the US, futures are also soaring, 24 00:01:30,560 --> 00:01:34,080 Speaker 1: SMP evening futures of eighteen points nine tenths, DOWI meeting 25 00:01:34,160 --> 00:01:36,360 Speaker 1: futures up eight tents a hundred and thirty nine points, 26 00:01:36,360 --> 00:01:40,200 Speaker 1: and NASTAC one futures forty seven points higher one point 27 00:01:40,280 --> 00:01:45,039 Speaker 1: one percent. Bonds are little changed in the United States, 28 00:01:45,480 --> 00:01:48,680 Speaker 1: but they are significantly higher than at this time yesterday morning. 29 00:01:49,000 --> 00:01:50,600 Speaker 1: The tenure note yield is all the way up to 30 00:01:50,600 --> 00:01:53,400 Speaker 1: one point nine five percent, five year one point for 31 00:01:53,760 --> 00:01:57,400 Speaker 1: seven percent, and the two year ninety four basis points, 32 00:01:57,840 --> 00:02:00,520 Speaker 1: quite a difference over the last few days. The dollar 33 00:02:00,640 --> 00:02:04,200 Speaker 1: index is stronger today, but way down from yesterday. At 34 00:02:04,200 --> 00:02:07,400 Speaker 1: this time it's ninety six point five five one, so 35 00:02:07,440 --> 00:02:10,320 Speaker 1: the dollar is weaker still on the back of the 36 00:02:10,440 --> 00:02:12,960 Speaker 1: e c B. Part of what's happening maybe less ECB 37 00:02:13,160 --> 00:02:18,400 Speaker 1: and more oil. Oil prices considerably firmer West Texas seventy 38 00:02:18,480 --> 00:02:21,320 Speaker 1: three nine cents higher two point four percent Brent crew 39 00:02:22,880 --> 00:02:25,440 Speaker 1: it got over forty one earlier this morning, we'll see 40 00:02:25,440 --> 00:02:27,560 Speaker 1: if it can make it there and hold that it's 41 00:02:27,560 --> 00:02:32,360 Speaker 1: one point eight percent higher right now, maybe helping Also 42 00:02:32,440 --> 00:02:35,240 Speaker 1: the International Energy Agency, did you see this story saying 43 00:02:35,240 --> 00:02:40,080 Speaker 1: prices may indeed have bottomed, putting a floor under oil 44 00:02:40,120 --> 00:02:43,800 Speaker 1: at least for the moment. With drogg E done, that's 45 00:02:43,800 --> 00:02:47,040 Speaker 1: a comedy hour to that's the comedy hour today. Although 46 00:02:47,160 --> 00:02:50,560 Speaker 1: you know, we had an agreement between Saudi Arabia and 47 00:02:50,639 --> 00:02:55,560 Speaker 1: Russia to freeze oil production that had nothing to it 48 00:02:56,080 --> 00:03:00,000 Speaker 1: and it seems to have worked. So you know, Tom 49 00:03:00,120 --> 00:03:02,720 Speaker 1: advice would be from the Wizard of Oz. Don't look 50 00:03:02,960 --> 00:03:05,720 Speaker 1: shout out this morning to Adam Sieminski used to hold 51 00:03:05,760 --> 00:03:09,200 Speaker 1: court at Peter Hooper's Deutsche Bank on oil and he 52 00:03:09,360 --> 00:03:16,200 Speaker 1: was so cynical about what big institutions say about hydrocarbons. Well, um, 53 00:03:16,240 --> 00:03:19,320 Speaker 1: what they say and what they and what hydrocarbons are 54 00:03:19,360 --> 00:03:21,840 Speaker 1: doing this morning match and we'll just since it's Friday, 55 00:03:21,840 --> 00:03:24,880 Speaker 1: we'll leave it at that. Uh, with dragging down, attention 56 00:03:24,960 --> 00:03:26,799 Speaker 1: is turning down to the Bank of Japan on Monday, 57 00:03:26,840 --> 00:03:29,919 Speaker 1: the Fed on Wednesday. Larry Lindsay is a former FED 58 00:03:29,960 --> 00:03:32,440 Speaker 1: governor now President of the Lindsay group. He is a 59 00:03:32,480 --> 00:03:35,680 Speaker 1: prolific author as a new book out Conspiracies of the 60 00:03:35,760 --> 00:03:37,440 Speaker 1: Ruling Class, And we want to ask you about that 61 00:03:37,480 --> 00:03:40,880 Speaker 1: in a moment. But if I might the FED, they 62 00:03:40,880 --> 00:03:44,280 Speaker 1: may fit into your ruling class definition, your assessment of 63 00:03:44,360 --> 00:03:47,880 Speaker 1: monetary policy and what central banks, including ours, should be 64 00:03:47,960 --> 00:03:54,400 Speaker 1: doing at this point. Well, Uh, the FED has definitely 65 00:03:54,560 --> 00:03:56,920 Speaker 1: been involved in a part of the ruling class, There's 66 00:03:56,960 --> 00:03:59,120 Speaker 1: no doubt about it. I think the issue is going 67 00:03:59,200 --> 00:04:01,840 Speaker 1: to be going for word. Uh, how are they going 68 00:04:01,920 --> 00:04:05,160 Speaker 1: to dig themselves out of a fairly deep hole. The 69 00:04:05,200 --> 00:04:07,040 Speaker 1: way we got in the hole was we had to 70 00:04:07,040 --> 00:04:10,000 Speaker 1: do some experimentation in order to figure out how to 71 00:04:10,920 --> 00:04:15,800 Speaker 1: deal with the last crash. Uh. We did the experimentation, 72 00:04:16,080 --> 00:04:18,800 Speaker 1: but no one ever thought about an exit strategy when 73 00:04:18,839 --> 00:04:21,080 Speaker 1: they were marching in. And I think it's gonna be 74 00:04:21,200 --> 00:04:24,800 Speaker 1: very difficult. My preference, I think, would be to begin 75 00:04:24,880 --> 00:04:27,719 Speaker 1: to run off the balance sheet before they raise rates. 76 00:04:28,120 --> 00:04:30,240 Speaker 1: If I were running a four trillion dollar hedge fund, 77 00:04:30,560 --> 00:04:33,960 Speaker 1: I definitely would liquidate my positions before I sent their 78 00:04:34,000 --> 00:04:37,400 Speaker 1: price down. But you know, the FED has a very 79 00:04:37,400 --> 00:04:40,320 Speaker 1: difficult challenge. I do not think that they're going to 80 00:04:40,400 --> 00:04:42,560 Speaker 1: raise next week. I don't think they're going to raise 81 00:04:42,680 --> 00:04:46,960 Speaker 1: until probably December at the earliest. We have this is 82 00:04:47,240 --> 00:04:49,280 Speaker 1: this is the high risk time to to do it. 83 00:04:49,760 --> 00:04:52,680 Speaker 1: It's high rist time economically. Uh. And when you have 84 00:04:52,720 --> 00:04:55,640 Speaker 1: a high risk time economically and the year is divisible 85 00:04:55,680 --> 00:04:59,280 Speaker 1: by four, you also have a high rist time politically. Uh. 86 00:04:59,360 --> 00:05:01,560 Speaker 1: There does see to be a feeling that inflation is 87 00:05:01,600 --> 00:05:03,960 Speaker 1: picking up. You look at the coorp rate moving higher. 88 00:05:04,440 --> 00:05:09,400 Speaker 1: We have the Phillips curve in action is you know, 89 00:05:09,480 --> 00:05:12,720 Speaker 1: the lower unemployment rate may be starting to have an 90 00:05:12,720 --> 00:05:18,560 Speaker 1: effect on wages. So why December. Well, there's there's two 91 00:05:18,560 --> 00:05:21,960 Speaker 1: pieces to this. First of all, yes, of course inflation 92 00:05:22,000 --> 00:05:24,560 Speaker 1: is going to move up. We had if you simply 93 00:05:24,560 --> 00:05:28,280 Speaker 1: were to take out the decline in energy and commodities 94 00:05:28,680 --> 00:05:31,440 Speaker 1: large which largely happened in the first half of last year, 95 00:05:32,200 --> 00:05:36,320 Speaker 1: you get a basically one point seven percent inflation rate. 96 00:05:36,640 --> 00:05:39,520 Speaker 1: You add any kind of tighter labor market to that, 97 00:05:39,800 --> 00:05:41,760 Speaker 1: and you're you're going to be by the end of 98 00:05:41,800 --> 00:05:45,680 Speaker 1: this year at are probably over two percent. And Uh, 99 00:05:45,800 --> 00:05:50,000 Speaker 1: wage inflation is happening. Uh. It's not rampant wage inflation, 100 00:05:50,360 --> 00:05:52,680 Speaker 1: but it's clear that labor is gaining a share of 101 00:05:52,760 --> 00:05:58,159 Speaker 1: the pie productivity is negative. Workers are getting nominal wage 102 00:05:58,200 --> 00:06:02,359 Speaker 1: hikes that are far higher than the added value of 103 00:06:02,360 --> 00:06:05,120 Speaker 1: output that they're putting out. So the share of compensations 104 00:06:05,120 --> 00:06:08,039 Speaker 1: going to workers that is going to ultimately put some 105 00:06:08,080 --> 00:06:11,760 Speaker 1: pressure on prices. So yes, I think the inflation dynamic 106 00:06:11,800 --> 00:06:14,320 Speaker 1: has started. On the other hand, we still have a 107 00:06:14,400 --> 00:06:16,200 Speaker 1: high risk world, and I think that is going to 108 00:06:16,240 --> 00:06:20,400 Speaker 1: be cautious um in when they move Larry, I want 109 00:06:20,400 --> 00:06:22,400 Speaker 1: to get back to the book if I could first, So, folks, 110 00:06:22,520 --> 00:06:26,080 Speaker 1: Bloomberg Surveillance is Friday brought you by Investo looking for 111 00:06:26,120 --> 00:06:29,760 Speaker 1: investment views experienced experts. Just to click away, go to 112 00:06:29,800 --> 00:06:34,400 Speaker 1: investco dot com, slash us to subscribe to the investco 113 00:06:34,480 --> 00:06:39,640 Speaker 1: blog and follow at investco us on Twitter. Conspiracies of 114 00:06:39,680 --> 00:06:44,719 Speaker 1: the Ruling Class, Lawrence B. Lindsay, and You've gotta love Larry, 115 00:06:44,839 --> 00:06:47,680 Speaker 1: how you start the book? I mean, I have no 116 00:06:47,760 --> 00:06:51,800 Speaker 1: clue how you time this puppy. The American public is angry. 117 00:06:52,040 --> 00:06:54,359 Speaker 1: Did you know we'd be Trump and Sanders when you 118 00:06:54,400 --> 00:07:00,640 Speaker 1: wrote this book? Well, it was. It was looking worse 119 00:07:00,680 --> 00:07:05,520 Speaker 1: and worse. Actually, at the beginning of we wrote that 120 00:07:07,080 --> 00:07:10,720 Speaker 1: Jeff Bush and Hillary Clinton were not the key to 121 00:07:10,760 --> 00:07:13,840 Speaker 1: their parties that you should look at Elizabeth Warren and 122 00:07:13,920 --> 00:07:17,280 Speaker 1: Ran Paul instead. And I think some people out there, 123 00:07:17,400 --> 00:07:21,000 Speaker 1: uh might risk might wish that we actually had Brandon 124 00:07:21,000 --> 00:07:24,040 Speaker 1: Elizabeth and who we ended up with. You take this back, folks. 125 00:07:24,040 --> 00:07:26,400 Speaker 1: And the only reason to read this book is page 126 00:07:26,400 --> 00:07:30,080 Speaker 1: forty three where Larry Lindsey kills it. I'm Thomas Hobbs 127 00:07:30,400 --> 00:07:33,160 Speaker 1: and John Locke. It's it's great that he does that 128 00:07:33,560 --> 00:07:36,960 Speaker 1: in frames how we got to an elite world? When 129 00:07:37,000 --> 00:07:39,560 Speaker 1: did this start in America? Is it a new thing 130 00:07:39,920 --> 00:07:43,040 Speaker 1: or we've been doing this since time began? Well, you 131 00:07:43,040 --> 00:07:45,920 Speaker 1: know the Hobbs Lock controversy. You know, Lock won the 132 00:07:45,960 --> 00:07:48,680 Speaker 1: American Revolution, right, That's really what it was all about. 133 00:07:49,480 --> 00:07:53,120 Speaker 1: And um and and they designed it so that we 134 00:07:53,160 --> 00:07:56,720 Speaker 1: would have a Lock world, hopefully forever. But around the 135 00:07:56,760 --> 00:08:00,280 Speaker 1: turn of the century, a new group emerged that would 136 00:08:00,280 --> 00:08:02,600 Speaker 1: think of his intellectually elite. I mean one of the 137 00:08:02,680 --> 00:08:06,880 Speaker 1: keys to the ruling class is that they think they 138 00:08:07,000 --> 00:08:09,160 Speaker 1: know how to run your life better than you. So 139 00:08:09,200 --> 00:08:13,440 Speaker 1: you're pinning the snood Wilson, it really is. Wilson really 140 00:08:13,480 --> 00:08:16,160 Speaker 1: started it. And uh, you know we we quote Wilson 141 00:08:16,200 --> 00:08:19,400 Speaker 1: a lot of the book. Uh I uh, you know 142 00:08:19,480 --> 00:08:22,280 Speaker 1: he he isn't the hero when you actually read what 143 00:08:22,360 --> 00:08:25,480 Speaker 1: he wrote that we were taught in school. Um but 144 00:08:25,600 --> 00:08:28,360 Speaker 1: you know, Wilson really didn't like the American system. Uh. 145 00:08:28,360 --> 00:08:33,600 Speaker 1: He wanted experts to run the country. Uh. He wanted 146 00:08:33,640 --> 00:08:37,280 Speaker 1: to dispense basically with separation of powers. And he just 147 00:08:37,440 --> 00:08:42,160 Speaker 1: was you know, into efficiency and efficiency and imposing his worldview. 148 00:08:42,760 --> 00:08:45,360 Speaker 1: And uh, you know that got deeper and deeper as 149 00:08:45,440 --> 00:08:48,800 Speaker 1: the century war on. And now we're at the point 150 00:08:48,800 --> 00:08:52,600 Speaker 1: where the way the country functions actually is the opposite 151 00:08:52,600 --> 00:08:56,480 Speaker 1: of what the constitution says. We have experts making decisions 152 00:08:56,520 --> 00:09:00,200 Speaker 1: and not elected representatives. I mean one, um on, one 153 00:09:00,280 --> 00:09:03,959 Speaker 1: great example that everyone here is familiar with who's listening, 154 00:09:04,520 --> 00:09:08,000 Speaker 1: is what the SCC did with the Internet. Now, I'm 155 00:09:08,000 --> 00:09:10,560 Speaker 1: not taking a position on whether regulation is a good 156 00:09:10,559 --> 00:09:11,920 Speaker 1: thing or a bad thing. I'm just looking at it 157 00:09:11,960 --> 00:09:15,160 Speaker 1: from a democratic point of view. Imagine you had five 158 00:09:15,480 --> 00:09:20,640 Speaker 1: unelected people vote three to two that they could now 159 00:09:20,720 --> 00:09:24,800 Speaker 1: regulate the Internet. They didn't ask the Congress, they simply 160 00:09:24,960 --> 00:09:28,880 Speaker 1: gave it to themselves. Again, not the merits of the regulation, 161 00:09:28,960 --> 00:09:33,400 Speaker 1: but think about the democratic process that's involved. That certainly 162 00:09:33,480 --> 00:09:36,040 Speaker 1: is not the way the Constitution was written, but it's 163 00:09:36,080 --> 00:09:38,880 Speaker 1: more typical of the way things are now. And uh, 164 00:09:39,000 --> 00:09:42,640 Speaker 1: you know that really conveys a sense of arrogance on 165 00:09:42,679 --> 00:09:44,440 Speaker 1: the part of the people in charge that they don't 166 00:09:44,480 --> 00:09:46,960 Speaker 1: even have to ask the people's representatives to do something 167 00:09:47,000 --> 00:09:50,760 Speaker 1: like that. When you say them from a democratic point 168 00:09:50,760 --> 00:09:54,320 Speaker 1: of view, you're you're talking small d democratic. Oh absolutely, 169 00:09:54,360 --> 00:09:57,800 Speaker 1: it's basically basic philosophy or or following the rule of law. 170 00:09:57,840 --> 00:10:01,760 Speaker 1: Another example, the Clean Water Act says that the e 171 00:10:01,840 --> 00:10:06,880 Speaker 1: p A can regulate navigable bodies of water. Now, you 172 00:10:07,000 --> 00:10:10,440 Speaker 1: and I and everybody listening knows what the word navigable means. 173 00:10:10,440 --> 00:10:12,880 Speaker 1: It means something you can navigate. I put a boat 174 00:10:12,880 --> 00:10:15,560 Speaker 1: on and drive it around. Well, the EPA decided that 175 00:10:15,640 --> 00:10:19,760 Speaker 1: was far too restrictive, so they've defined what they could 176 00:10:19,760 --> 00:10:23,480 Speaker 1: regulate as any standing body of water. Look, it doesn't 177 00:10:23,480 --> 00:10:25,240 Speaker 1: even have to be around for twelve months. Larry, We're 178 00:10:25,240 --> 00:10:27,280 Speaker 1: gonna come here to sit there, Larry Lindsay with us 179 00:10:27,320 --> 00:10:30,400 Speaker 1: in Washington with FM. We said good morning to all 180 00:10:30,880 --> 00:10:34,280 Speaker 1: in Washington. This is an a political book, the Republican, Lindsay, 181 00:10:34,400 --> 00:10:39,280 Speaker 1: going after everybody in conspiracies of the ruling class, how 182 00:10:39,280 --> 00:10:44,040 Speaker 1: to break their grip forever. It's an interesting book, very timely, 183 00:10:44,080 --> 00:10:46,880 Speaker 1: to say the least, Larry Lindsay and we will continue 184 00:10:46,960 --> 00:10:54,000 Speaker 1: Futures up eighteen. Let's check it now with Michael Baron. 185 00:10:54,040 --> 00:10:56,600 Speaker 1: Get the latest World of national headlines. Mike Tom, thank 186 00:10:56,600 --> 00:10:59,959 Speaker 1: you very much. Republican presidential candidates will fan out today 187 00:11:00,080 --> 00:11:03,560 Speaker 1: ahead of Tuesday's primaries in five states. Up for grabs 188 00:11:03,640 --> 00:11:08,080 Speaker 1: are three hundred sixty seven Republican delegates in Florida, Illinois, Missouri, 189 00:11:08,160 --> 00:11:11,680 Speaker 1: North Carolina, and Ohio, and the Northern Mariana Islands in 190 00:11:11,679 --> 00:11:15,760 Speaker 1: the Pacific. Last night, the Republican presidential candidates had a 191 00:11:15,880 --> 00:11:19,199 Speaker 1: toned down debate in Miami, discussing issues such as social 192 00:11:19,240 --> 00:11:22,960 Speaker 1: security and climate change. Almost two hundred cases of the 193 00:11:23,000 --> 00:11:26,160 Speaker 1: Zeka virus have been reported in the US. All of 194 00:11:26,160 --> 00:11:29,400 Speaker 1: the cases have been traced to travel abroad. Yesterday, health 195 00:11:29,440 --> 00:11:32,200 Speaker 1: officials made a plea to Congress to provide one point 196 00:11:32,280 --> 00:11:35,120 Speaker 1: nine billion dollars to fight the mosquito born virus in 197 00:11:35,280 --> 00:11:38,320 Speaker 1: Latin America and help it from spreading here in the US. 198 00:11:38,640 --> 00:11:41,800 Speaker 1: A proposal to make polygamy a felony crime in Utah 199 00:11:42,200 --> 00:11:45,480 Speaker 1: has failed again in the state Senate. Global News twenty 200 00:11:45,520 --> 00:11:48,559 Speaker 1: four hours a day, powered by our two hundred journalists 201 00:11:48,800 --> 00:11:51,000 Speaker 1: in more than one hundred fifty news bureaus from around 202 00:11:51,000 --> 00:11:54,520 Speaker 1: the world. I'm Michael Barr, Tom mca bar. Thanks so much. 203 00:11:54,600 --> 00:11:59,120 Speaker 1: Conspiracies of the ruling class with us. Larry Lindsay from 204 00:11:59,120 --> 00:12:07,400 Speaker 1: New York, Michael In, Tom Keene. Bloomberg Surveillance. Bloomberg Surveillance 205 00:12:07,400 --> 00:12:09,280 Speaker 1: is brought you by land Rover Adventure is yours for 206 00:12:09,320 --> 00:12:11,240 Speaker 1: the taking. Visit land Rover tye State dot com for 207 00:12:11,280 --> 00:12:14,439 Speaker 1: special lease and financing offers. Land Rover above and the 208 00:12:22,440 --> 00:12:25,839 Speaker 1: Global Business News twenty four hours a day. If Bloomberg 209 00:12:25,880 --> 00:12:28,920 Speaker 1: dot Com, the radio plus mobile lap and on your radio. 210 00:12:29,240 --> 00:12:33,079 Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow. 211 00:12:33,120 --> 00:12:36,160 Speaker 1: This updates brought to you by National Realty Returns on 212 00:12:36,200 --> 00:12:38,360 Speaker 1: cash and rented real estate find them at n r 213 00:12:38,440 --> 00:12:42,000 Speaker 1: I a dot net. US stock index futures are higher, 214 00:12:42,240 --> 00:12:44,880 Speaker 1: an indication stocks will trim their first weekly drop in 215 00:12:44,960 --> 00:12:48,840 Speaker 1: four and they're marrying a global equity rally as investors 216 00:12:48,840 --> 00:12:51,960 Speaker 1: reassess stimulus measures. In Europe. We checked the markets every 217 00:12:52,000 --> 00:12:54,680 Speaker 1: fifteen minutes throughout the trading day on bloomberg s and 218 00:12:54,679 --> 00:12:57,600 Speaker 1: p E. Many futures up nine ten per cent, up 219 00:12:57,600 --> 00:13:00,319 Speaker 1: about eighteen points. Dowie Mini futures have a hundred thirty 220 00:13:00,400 --> 00:13:03,720 Speaker 1: nine nasadacimity future is at forty six. The Dacks in 221 00:13:03,760 --> 00:13:06,920 Speaker 1: Germany's up two point seven percent ten. Your treasury down 222 00:13:06,920 --> 00:13:10,080 Speaker 1: four thirty seconds, the yield one point nine percent. Nim 223 00:13:10,160 --> 00:13:12,360 Speaker 1: X screwed oil of two point three percent, or eighty 224 00:13:12,360 --> 00:13:15,400 Speaker 1: eight cents to thirty eight seventy two. A barrel COMACS 225 00:13:15,440 --> 00:13:17,920 Speaker 1: gold is down three ten percent or three dollar sixty 226 00:13:17,960 --> 00:13:21,040 Speaker 1: cents to twelve sixty nine twenty announced the euro a 227 00:13:21,080 --> 00:13:24,080 Speaker 1: dollar eleven eighteen, the end one thirteen point seven too. 228 00:13:24,559 --> 00:13:27,520 Speaker 1: That's a Bloomberg business flash. Tom and Mike turn thanks 229 00:13:27,559 --> 00:13:30,800 Speaker 1: so much time for surveillance correction, many emails in many 230 00:13:30,840 --> 00:13:34,800 Speaker 1: tweets as well. When m McKee sent in a tweet, 231 00:13:35,200 --> 00:13:38,040 Speaker 1: actually threw a shoe at me, he said, Tom. Larry 232 00:13:38,120 --> 00:13:42,680 Speaker 1: Lindsay's book is not a political Michael discussed, well, it 233 00:13:42,800 --> 00:13:45,400 Speaker 1: is pretty clear that Larry is coming at the issues 234 00:13:45,559 --> 00:13:49,280 Speaker 1: from the right hand side, perhaps even the right, and 235 00:13:49,320 --> 00:13:51,600 Speaker 1: I don't mean the wing, not right, but the more 236 00:13:51,640 --> 00:13:56,720 Speaker 1: the libertarian view of the economy and the elites that 237 00:13:56,800 --> 00:13:59,240 Speaker 1: you note in your book that it's mostly the Democrats 238 00:13:59,240 --> 00:14:03,440 Speaker 1: who are the problem. Um, you talk more about the 239 00:14:03,440 --> 00:14:07,960 Speaker 1: problems of income inequality rising under Barack Obama and Bill 240 00:14:08,000 --> 00:14:10,960 Speaker 1: Clinton much more than under Republicans, et cetera. So I 241 00:14:10,960 --> 00:14:14,720 Speaker 1: don't think it's necessarily a and a political book, but 242 00:14:14,760 --> 00:14:18,960 Speaker 1: I did want to ask about the um the the 243 00:14:19,000 --> 00:14:22,400 Speaker 1: elites you were talking about starting with Woodrow Wilson. I mean, 244 00:14:22,640 --> 00:14:27,920 Speaker 1: what about the white male landowners of a highly educated 245 00:14:28,000 --> 00:14:31,240 Speaker 1: class that wrote the Constitution. I mean, did we not 246 00:14:31,480 --> 00:14:36,040 Speaker 1: start with elites running the country? Well, we we started 247 00:14:36,080 --> 00:14:39,120 Speaker 1: with King George and his ministers running the country. And 248 00:14:39,520 --> 00:14:43,720 Speaker 1: what the history of America was was sort of a 249 00:14:43,720 --> 00:14:48,400 Speaker 1: continual democratization. You know, we fought a civil war to 250 00:14:48,520 --> 00:14:51,840 Speaker 1: stop those elites from from running things the way they 251 00:14:51,880 --> 00:14:55,400 Speaker 1: did in the South. So, you know, I'm never claiming 252 00:14:55,640 --> 00:14:59,360 Speaker 1: that America has ever been perfect, but we are a 253 00:14:59,400 --> 00:15:02,360 Speaker 1: cause and or cause that believes, for the first time 254 00:15:02,400 --> 00:15:06,240 Speaker 1: in history that government is supposed to work for the 255 00:15:06,320 --> 00:15:10,160 Speaker 1: people rather than vice versa. And what I think we're 256 00:15:10,160 --> 00:15:12,840 Speaker 1: finding with the ruling classes that they really think that 257 00:15:12,920 --> 00:15:14,880 Speaker 1: the people work for the government, that that's what we're 258 00:15:14,920 --> 00:15:17,440 Speaker 1: there for. We're, you know, low hanging fruit to be 259 00:15:17,480 --> 00:15:20,800 Speaker 1: plucked in order to pay taxes. Uh, that's not what 260 00:15:20,840 --> 00:15:23,280 Speaker 1: the intent was. And I think the great strength of 261 00:15:23,280 --> 00:15:26,640 Speaker 1: America and what has driven American growth is the idea 262 00:15:26,880 --> 00:15:30,360 Speaker 1: that government is there to serve us and not us 263 00:15:30,400 --> 00:15:34,520 Speaker 1: to serve them. Doesn't any bureaucracy become rent seeking in 264 00:15:34,880 --> 00:15:42,000 Speaker 1: uh and inefficient, whether it's you know, government or incorporation. Absolutely, 265 00:15:42,040 --> 00:15:44,480 Speaker 1: there's no question about it. And that's why you what 266 00:15:44,640 --> 00:15:47,240 Speaker 1: you really need if you want to have economic dynamism 267 00:15:47,280 --> 00:15:52,320 Speaker 1: and political dynamism is um you know, as little concentration 268 00:15:52,360 --> 00:15:55,560 Speaker 1: of power within the bureaucracy as you possibly can. I 269 00:15:56,440 --> 00:15:59,240 Speaker 1: couldn't agree with you more. By the way, those facts 270 00:15:59,240 --> 00:16:02,200 Speaker 1: on an equality they are are facts, right, It's it's 271 00:16:02,200 --> 00:16:05,360 Speaker 1: not a it's not a political judgment. The I went 272 00:16:05,440 --> 00:16:08,280 Speaker 1: to the Census Bureau. They have three measures of inequality. 273 00:16:08,760 --> 00:16:12,239 Speaker 1: Inequality has been rising constantly ever since the Great Society, 274 00:16:12,680 --> 00:16:16,200 Speaker 1: and it has risen faster under Obama and Clinton than 275 00:16:16,240 --> 00:16:18,280 Speaker 1: it did under Bush and Reagan. That's just what the 276 00:16:18,320 --> 00:16:21,960 Speaker 1: Census Bureau numbers show. Uh. And it's not a political spin. 277 00:16:22,120 --> 00:16:24,680 Speaker 1: I think it's a bit ironic that the more people 278 00:16:24,720 --> 00:16:28,240 Speaker 1: talk about inequality, it just happens or I don't know 279 00:16:28,280 --> 00:16:31,000 Speaker 1: if there's cause and effect. It just happens that inequality 280 00:16:31,200 --> 00:16:33,080 Speaker 1: rises more when they say they're going to do something 281 00:16:33,120 --> 00:16:35,400 Speaker 1: about it. Well, that takes me kind of where I 282 00:16:35,440 --> 00:16:38,160 Speaker 1: want to go to an earlier book of years what 283 00:16:38,400 --> 00:16:41,800 Speaker 1: a president should know but most learned too late, a 284 00:16:41,840 --> 00:16:45,080 Speaker 1: primer written back in two thousand eight when we were 285 00:16:45,080 --> 00:16:48,160 Speaker 1: going to get a new president. Then. Uh, I watched 286 00:16:48,160 --> 00:16:52,480 Speaker 1: the debate last night, and without taking sides, I mean 287 00:16:52,920 --> 00:16:56,440 Speaker 1: all of them, the ignorance about economics and markets and 288 00:16:56,480 --> 00:17:01,920 Speaker 1: finance was stunning. What would you advise them to learn 289 00:17:02,280 --> 00:17:06,200 Speaker 1: before they come to office? Well, I think I think 290 00:17:06,240 --> 00:17:09,040 Speaker 1: that's right, and uh, you know, the ignorance is also 291 00:17:09,240 --> 00:17:11,960 Speaker 1: very much a bipartisan thing. It's it's it's really quite 292 00:17:12,200 --> 00:17:17,840 Speaker 1: quite shocking. I um, among other things, I think that 293 00:17:17,880 --> 00:17:21,399 Speaker 1: they have to respect the fact that they are there 294 00:17:21,440 --> 00:17:25,639 Speaker 1: to govern and not to rule, and that actually other people, 295 00:17:26,280 --> 00:17:29,480 Speaker 1: um be it the businesses or families or what have you, 296 00:17:29,760 --> 00:17:33,280 Speaker 1: actually know how to run their own business, uh better 297 00:17:33,320 --> 00:17:36,120 Speaker 1: than they do. And I think that's you know, that's 298 00:17:36,160 --> 00:17:40,960 Speaker 1: the core. The presidency is a very very difficult job. 299 00:17:41,680 --> 00:17:44,040 Speaker 1: And uh, you know, we have we have one candidates 300 00:17:44,040 --> 00:17:46,480 Speaker 1: as well I built a great business, and therefore you 301 00:17:46,480 --> 00:17:49,760 Speaker 1: know I can do this, Um, not quite so much. 302 00:17:50,200 --> 00:17:53,600 Speaker 1: You know. Among other things, he's got two boards of directors, 303 00:17:53,720 --> 00:17:56,159 Speaker 1: one with a hundred members, one with fourner and thirty 304 00:17:56,200 --> 00:17:58,960 Speaker 1: five that are always going to be looking over his shoulder. 305 00:17:59,320 --> 00:18:04,960 Speaker 1: He basically can't fire of the people who work for him, 306 00:18:05,320 --> 00:18:07,960 Speaker 1: and so it's a very tough job that requires a 307 00:18:08,080 --> 00:18:11,520 Speaker 1: very unique skill set. And uh, I think almost every 308 00:18:11,520 --> 00:18:13,880 Speaker 1: president goes in there not knowing how tough the job 309 00:18:13,960 --> 00:18:16,480 Speaker 1: is going to be. I had a vision of a 310 00:18:16,520 --> 00:18:18,760 Speaker 1: hostile takeover there when you're talking about those boards of 311 00:18:18,760 --> 00:18:21,680 Speaker 1: directors time, I just want to do my own surveillance 312 00:18:21,680 --> 00:18:25,119 Speaker 1: correction here a recency bias. When I said the watch 313 00:18:25,160 --> 00:18:27,600 Speaker 1: the debate last night, of course it was because it 314 00:18:27,640 --> 00:18:30,720 Speaker 1: was last night. Both sides demonstrate a lot of a 315 00:18:30,760 --> 00:18:33,840 Speaker 1: lot of ignorance. Larry, what do you want Washington? You 316 00:18:33,880 --> 00:18:36,080 Speaker 1: get out of your book? You served George Rubert Walker, 317 00:18:36,160 --> 00:18:40,520 Speaker 1: George w and Ronald Reagan before that, whoever's in the 318 00:18:40,640 --> 00:18:43,439 Speaker 1: chair in Washington in December. What do you want them 319 00:18:43,440 --> 00:18:46,800 Speaker 1: to learn? Well, I think the first thing that they're 320 00:18:46,840 --> 00:18:50,399 Speaker 1: going to have to learn is, uh, they're going to 321 00:18:50,520 --> 00:18:54,000 Speaker 1: have to go in there thinking about crisis management. What 322 00:18:54,160 --> 00:18:57,560 Speaker 1: worries me the most right now is that none of 323 00:18:57,560 --> 00:19:00,000 Speaker 1: the campaigns on either side of the aisle are really 324 00:19:00,440 --> 00:19:03,640 Speaker 1: thinking about how to run things in a crisis. Uh. 325 00:19:03,680 --> 00:19:05,960 Speaker 1: You know, we saw that, you know eight So I 326 00:19:06,000 --> 00:19:08,399 Speaker 1: went through that in two thousand one in the in 327 00:19:08,400 --> 00:19:11,080 Speaker 1: the attack on the World Trade Center. You really have 328 00:19:11,200 --> 00:19:17,080 Speaker 1: to have your administration designed to handle a crisis, because 329 00:19:17,080 --> 00:19:20,280 Speaker 1: that's when it really matters, That's when the presidency really matters. 330 00:19:20,520 --> 00:19:23,400 Speaker 1: And these people are talking about issues that that really 331 00:19:23,400 --> 00:19:26,600 Speaker 1: aren't crisis driven. And and so that would be that 332 00:19:26,640 --> 00:19:29,320 Speaker 1: would be the first thing. Um the second, and I 333 00:19:29,359 --> 00:19:32,879 Speaker 1: think the most important is going to be to begin 334 00:19:32,920 --> 00:19:37,920 Speaker 1: to roll back the degree of micro management that has occurring. 335 00:19:38,200 --> 00:19:40,600 Speaker 1: You know, we have a Congress there that's elected in 336 00:19:40,680 --> 00:19:44,440 Speaker 1: order to make judgments. The experts are great h at 337 00:19:44,520 --> 00:19:46,840 Speaker 1: make coming up with the ideas, but let the Congress 338 00:19:46,880 --> 00:19:48,720 Speaker 1: have some judgment here and whether or not they should 339 00:19:48,760 --> 00:19:50,960 Speaker 1: be implemented. Larry lindsay, thank you so much. The book 340 00:19:51,080 --> 00:19:55,480 Speaker 1: is Conspiracies of the Ruling Class. These futures up nineteen down, 341 00:19:55,480 --> 00:20:06,880 Speaker 1: Futures up from New York, Worldwide Bloomberg surveillance Bloomberg Surveillance 342 00:20:06,880 --> 00:20:08,840 Speaker 1: has brought you by your Mercedes Benz Tri State dealer. 343 00:20:08,840 --> 00:20:11,000 Speaker 1: No matter what the weather, Mercedes Benz Formatic All wheel 344 00:20:11,040 --> 00:20:13,280 Speaker 1: Drive brings space of mind and driving confidence. Visit your 345 00:20:13,280 --> 00:20:15,720 Speaker 1: Mercedes Benz Tri State dealer for a test drive to 346 00:20:15,840 --> 00:20:27,880 Speaker 1: day broadcasting live to New York, Bloomberg eleventh to Washington, 347 00:20:27,960 --> 00:20:32,960 Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, 348 00:20:33,080 --> 00:20:37,480 Speaker 1: Bloomberg to the Country Series Exam Channel one ninety and 349 00:20:37,680 --> 00:20:41,600 Speaker 1: around the globe. The Bloomberg Radio Plus happened. Bloomberg dot Com. 350 00:20:41,720 --> 00:20:45,760 Speaker 1: This is Bloomberg Surveillance. Good morning, it is seven thirty. 351 00:20:45,800 --> 00:20:49,239 Speaker 1: I'm Michael McKeon along with Tom Keen, and here are 352 00:20:49,280 --> 00:20:51,640 Speaker 1: some of the headlines that we're following from the corporate world. 353 00:20:51,720 --> 00:20:55,560 Speaker 1: Deutsche Bank says the industry's revenue will decline this Your 354 00:20:55,600 --> 00:20:59,000 Speaker 1: clients are considering pulling back from trading some fixed income securities. 355 00:20:59,040 --> 00:21:02,440 Speaker 1: They're refraining from doing deals. Deutscha cut against Bonus Pool 356 00:21:02,480 --> 00:21:07,480 Speaker 1: by eleven percent, rising legal expenses hurting earnings last year. Meanwhile, 357 00:21:07,480 --> 00:21:09,480 Speaker 1: people with knowledge of the matter say Deutsche's and talks 358 00:21:09,480 --> 00:21:12,200 Speaker 1: with JP Morgan Chase Goldman Saxon City Group to sell 359 00:21:12,200 --> 00:21:15,240 Speaker 1: the last batches of about one point one trillion dollars 360 00:21:15,240 --> 00:21:18,639 Speaker 1: in complex financial instruments. Deutsche shares up four and a 361 00:21:18,680 --> 00:21:21,320 Speaker 1: half percent this morning in European trading. Maybe still more 362 00:21:21,640 --> 00:21:25,400 Speaker 1: of the drug hangover. Intercontinental Exchange has decided to eat 363 00:21:25,440 --> 00:21:28,639 Speaker 1: would keep the London Stock Exchanges Group's namesake equity market 364 00:21:28,920 --> 00:21:32,199 Speaker 1: if it's successfully buys the parent company that according to 365 00:21:32,320 --> 00:21:35,240 Speaker 1: people familiar with the matter. Now let's check in with 366 00:21:35,280 --> 00:21:38,720 Speaker 1: Michael Barr. I've got the latest World and National Mike, 367 00:21:38,760 --> 00:21:41,240 Speaker 1: Thank you very much. There were no personal attacks during 368 00:21:41,359 --> 00:21:45,560 Speaker 1: last night's Republican presidential debate. Ted Cruz and Marco Rubio 369 00:21:45,680 --> 00:21:48,439 Speaker 1: have managed to be on the offensive against Donald Trump 370 00:21:48,520 --> 00:21:51,840 Speaker 1: during the debate on CNN. One issue that divided them 371 00:21:51,920 --> 00:21:55,840 Speaker 1: was Trump's comment that Islam hates the West. Marco Rubio 372 00:21:55,960 --> 00:21:58,439 Speaker 1: pointed out that Muslims are among the veterans laid to 373 00:21:58,560 --> 00:22:03,560 Speaker 1: rest at Arlington National Cemetery. On social security, Ohio Governor 374 00:22:03,640 --> 00:22:06,600 Speaker 1: John Kazi says he has a simple solution for dealing 375 00:22:06,600 --> 00:22:10,160 Speaker 1: with an inevitable shortfold. You've had well throughout your lifetime. 376 00:22:10,720 --> 00:22:12,880 Speaker 1: When the time comes for you to be on soul security. 377 00:22:12,920 --> 00:22:15,520 Speaker 1: You'll still get it. It will just simply be less. 378 00:22:15,680 --> 00:22:18,520 Speaker 1: And for those people who depend on that soul security, 379 00:22:18,560 --> 00:22:21,240 Speaker 1: they'll get their full benefit. Me And while Donald Trump 380 00:22:21,280 --> 00:22:23,480 Speaker 1: says he picked up the endorsement of former rival of 381 00:22:23,520 --> 00:22:26,720 Speaker 1: Ben Kurson, you and experts say the Islamic State group 382 00:22:26,800 --> 00:22:30,240 Speaker 1: is expanding in Olibya. According to a UN report, the 383 00:22:30,240 --> 00:22:33,920 Speaker 1: political and security vacuum in Libya is being exploited by 384 00:22:33,960 --> 00:22:37,159 Speaker 1: the Islamic State. Mourners will give their final goodbye to 385 00:22:37,240 --> 00:22:40,280 Speaker 1: former First Lady Nancy Reagan. Or funeral will take place 386 00:22:40,320 --> 00:22:43,760 Speaker 1: today at the Reagan Presidential Library in Simi Valley, California. 387 00:22:44,000 --> 00:22:46,560 Speaker 1: Global News twenty four hours a day, powered by our 388 00:22:46,720 --> 00:22:49,440 Speaker 1: twenty four hundred journalists and more than a hundred fifty 389 00:22:49,440 --> 00:22:53,240 Speaker 1: news bureaus from around the world. Not Michael bar Mike Michaels, 390 00:22:53,400 --> 00:22:58,679 Speaker 1: Time Now, the Bloomberg NBC Sports Update, John stash Our, alright, 391 00:22:58,680 --> 00:23:01,679 Speaker 1: Mike March Madness con French tournaments all over the country. 392 00:23:01,680 --> 00:23:03,680 Speaker 1: There's even gonna be a conference attorney in the Ivy 393 00:23:03,720 --> 00:23:05,760 Speaker 1: League starting next year for the first time. Big East 394 00:23:05,800 --> 00:23:08,080 Speaker 1: at the Garden st Al played the finale of the 395 00:23:08,160 --> 00:23:11,120 Speaker 1: quartet of games that advanced past Creighton eighty one seventy 396 00:23:11,160 --> 00:23:13,399 Speaker 1: three ISAIH. White Head twenty four points, twelve rebounds, and 397 00:23:13,400 --> 00:23:16,520 Speaker 1: the Pirates will play Xavier tonight Atlantic ten at the 398 00:23:16,560 --> 00:23:19,359 Speaker 1: Barkley Center. Fordham played the opener and lost to Richmond 399 00:23:19,400 --> 00:23:22,280 Speaker 1: seventy to fifty five. If they're going seven and twenty 400 00:23:22,280 --> 00:23:25,120 Speaker 1: five one and eighteen in the Big Ten, Rutgers has 401 00:23:25,160 --> 00:23:28,080 Speaker 1: fired Eddie Jordan after three seasons as coach. Hockey and 402 00:23:28,119 --> 00:23:30,800 Speaker 1: San Jose Keith Cocaine stopped all thirty shots Devils over 403 00:23:30,840 --> 00:23:32,960 Speaker 1: the Sharks three nothing. Jets still don't know who their 404 00:23:33,000 --> 00:23:36,720 Speaker 1: quarterback will be. Ryan Fitzpatrick's an unsigned free agent. Indications 405 00:23:36,720 --> 00:23:39,440 Speaker 1: the Jets are looking elsewhere, perhaps a trade for Colin Kaepernick, 406 00:23:39,560 --> 00:23:41,800 Speaker 1: who wants out in San Francisco. The Jets running back 407 00:23:41,840 --> 00:23:45,719 Speaker 1: situation is settled. They added Mac Fortape from Chicago and 408 00:23:45,760 --> 00:23:49,240 Speaker 1: then Kymrie Robinson from New Orleans, and they resigned bilal Pal. 409 00:23:49,400 --> 00:23:52,879 Speaker 1: Giants had another defensive player, linebacker Keenan Robinson, who was 410 00:23:52,880 --> 00:23:56,000 Speaker 1: in Washington. Giants had a had four defensive players after 411 00:23:56,040 --> 00:23:59,240 Speaker 1: having the NFL's worst defense last season. With the Bloomberg 412 00:23:59,280 --> 00:24:03,400 Speaker 1: NBC Sports up John stan Thank you, John, We're keeping 413 00:24:03,520 --> 00:24:06,680 Speaker 1: on oil prices this morning, the International Energy Agency saying 414 00:24:06,720 --> 00:24:09,680 Speaker 1: we may have seen a floor, and we're certainly off 415 00:24:09,680 --> 00:24:13,040 Speaker 1: the lows in the twenties that we saw in February. 416 00:24:13,080 --> 00:24:16,520 Speaker 1: Brent Crewd now approaching forty one dollar of barrow forty 417 00:24:16,640 --> 00:24:18,959 Speaker 1: sixty three, up one and a half percent. West Texas 418 00:24:19,000 --> 00:24:21,639 Speaker 1: is up two percent of the day. It's at thirty 419 00:24:21,680 --> 00:24:24,920 Speaker 1: eight fifty nine, and that's giving a lift two Equities 420 00:24:24,960 --> 00:24:28,440 Speaker 1: will continue to follow those developments. Maybe it's a little 421 00:24:28,440 --> 00:24:31,640 Speaker 1: bit of draggy as well. Here on Bloomberg Surveillance. You're 422 00:24:31,640 --> 00:24:40,680 Speaker 1: listening to Bloomberg Radio worldwide. Good morning and t g 423 00:24:40,840 --> 00:24:43,880 Speaker 1: i F. This is Bloomberg Surveillance. I'm Michael McKee along 424 00:24:43,920 --> 00:24:47,800 Speaker 1: with Tom Keene. As I mentioned, we're watching uh Green day. 425 00:24:48,000 --> 00:24:50,640 Speaker 1: On the screens. The stock six hundred is up by 426 00:24:50,720 --> 00:24:54,960 Speaker 1: eight points two point three percent. The SMP miny futures 427 00:24:55,000 --> 00:24:57,680 Speaker 1: are up nineteen points, that's a percentage point higher, and 428 00:24:57,760 --> 00:25:00,359 Speaker 1: Downie meanings are up a hundred and forty nine nine intense, 429 00:25:00,760 --> 00:25:04,320 Speaker 1: both of those gaining altitude as the morning goes on. 430 00:25:04,880 --> 00:25:06,800 Speaker 1: Time now for the Bloomberg n j I T STAM 431 00:25:06,800 --> 00:25:08,840 Speaker 1: Report brought to you by the New Jersey Institute of 432 00:25:08,880 --> 00:25:12,160 Speaker 1: Technology partnering with government and industry to apply the university's 433 00:25:12,160 --> 00:25:15,640 Speaker 1: world class research assets to innovate and spur economic growth. 434 00:25:15,720 --> 00:25:18,560 Speaker 1: Learn more at n j I T dot e DU. 435 00:25:18,680 --> 00:25:21,199 Speaker 1: Here's problem. Thanks in Good Morning, Michael coming up on 436 00:25:21,240 --> 00:25:23,360 Speaker 1: seven thirty five on Wall Street, and Here's what's making 437 00:25:23,400 --> 00:25:28,120 Speaker 1: news in science, Technology, engineering, and math. As federal prosecutors 438 00:25:28,119 --> 00:25:31,760 Speaker 1: battle with the tech industry, President Barack Obama plans to 439 00:25:31,800 --> 00:25:35,200 Speaker 1: attend the major tech conference today, the south By Southwest 440 00:25:35,240 --> 00:25:38,560 Speaker 1: Interactive Festival in Austin, Texas. The White House says he 441 00:25:38,640 --> 00:25:41,120 Speaker 1: plans to ask the creative types and attendance to help 442 00:25:41,119 --> 00:25:44,240 Speaker 1: solve problems like getting more people to participate in the 443 00:25:44,240 --> 00:25:47,600 Speaker 1: political process and countering the effects of climate change. He 444 00:25:47,640 --> 00:25:50,720 Speaker 1: also wants to talk about how the administration is using 445 00:25:50,760 --> 00:25:54,639 Speaker 1: technology to help make people's lives better, including by overhauling 446 00:25:54,680 --> 00:25:59,520 Speaker 1: the government's online processing, simplifying federal application forms, and increasing 447 00:25:59,560 --> 00:26:02,920 Speaker 1: access to government data. If you're following the legal battle 448 00:26:02,960 --> 00:26:06,000 Speaker 1: between Apple and the FBI over the government's demand for 449 00:26:06,040 --> 00:26:09,600 Speaker 1: Apple's help cracking a terrorist iPhone, mark your calendar. A 450 00:26:09,720 --> 00:26:12,800 Speaker 1: hearing on the government's motion to compel is now less 451 00:26:12,800 --> 00:26:15,800 Speaker 1: than two weeks away. It's been scheduled for March twenty two, 452 00:26:16,280 --> 00:26:20,120 Speaker 1: and proposals requiring banks to report any cybersecurity incident that's 453 00:26:20,119 --> 00:26:23,000 Speaker 1: had a significant impact on their systems will likely be 454 00:26:23,119 --> 00:26:25,920 Speaker 1: diluted in a final European Union rule do in June, 455 00:26:25,960 --> 00:26:29,439 Speaker 1: according to Bloomberg Intelligence. In addition, finds might only be 456 00:26:29,520 --> 00:26:32,119 Speaker 1: imposed when it can be proven that the failure to 457 00:26:32,160 --> 00:26:35,760 Speaker 1: maintain robust systems and controls was intentional or due to 458 00:26:35,880 --> 00:26:39,560 Speaker 1: gross negligence. And that's this morning's Bloomberg and j I 459 00:26:39,600 --> 00:26:42,760 Speaker 1: t Stand report. Michael Tom, thank you very much, Bob Moon. 460 00:26:43,280 --> 00:26:46,560 Speaker 1: Uh Tom. I had a brilliant idea for UM. We 461 00:26:46,560 --> 00:26:50,240 Speaker 1: were talking about with Larry Lindsay, all the tremendous ignorance 462 00:26:50,280 --> 00:26:54,640 Speaker 1: of the presidential candidates about economics, markets and finance. They 463 00:26:54,640 --> 00:26:58,119 Speaker 1: should listen. Two we get invite them to listen to 464 00:26:58,119 --> 00:27:02,200 Speaker 1: Bloomberg surveillance every day all across America were available as 465 00:27:02,200 --> 00:27:06,040 Speaker 1: they travel around to campaign. UM serious XM Channel one nineteen, 466 00:27:06,040 --> 00:27:09,200 Speaker 1: and of course our stations in San Francisco, Boston, Washington, 467 00:27:09,560 --> 00:27:13,399 Speaker 1: and New York. They could absolutely. I like that idea. 468 00:27:13,880 --> 00:27:17,320 Speaker 1: Every once in a while, a piece of research parachutes 469 00:27:17,359 --> 00:27:22,359 Speaker 1: in and you say, say what, she's out of Albany 470 00:27:22,480 --> 00:27:25,880 Speaker 1: in Chicago. Her name is Jill mus Lynsky, has never 471 00:27:25,880 --> 00:27:28,280 Speaker 1: been on the show, and we drag her on now 472 00:27:28,320 --> 00:27:31,600 Speaker 1: because their degrees in astronomy and physics from Chicago. That's 473 00:27:31,640 --> 00:27:34,720 Speaker 1: pretty cool, Jill, Good morning, Good morning. What does Advisor 474 00:27:34,760 --> 00:27:38,200 Speaker 1: Perspectives help us out with? What your organization is. Advisor 475 00:27:38,200 --> 00:27:42,320 Speaker 1: Perspectives is a newsletter and website for financial advisors and 476 00:27:42,440 --> 00:27:47,080 Speaker 1: wealth managers. Um, it's basically actual advice. Yeah, it's actual 477 00:27:47,160 --> 00:27:50,840 Speaker 1: advice and also brilliant research. Where you took the stuff 478 00:27:50,880 --> 00:27:53,199 Speaker 1: that Mike McKee reads every night before he goes to 479 00:27:53,520 --> 00:27:56,400 Speaker 1: sleep if the Broncos aren't playing. And the bottom line 480 00:27:56,480 --> 00:27:59,520 Speaker 1: is you looked at part time in full time dynamics 481 00:27:59,560 --> 00:28:03,640 Speaker 1: in America. I thought your study was absolutely brilliant. What 482 00:28:03,720 --> 00:28:06,560 Speaker 1: we are in our mail is it's part time America. 483 00:28:06,840 --> 00:28:10,359 Speaker 1: Is that true? Well? Um, in a way, yes, Uh. 484 00:28:10,520 --> 00:28:14,000 Speaker 1: Since the recession, it's definitely. Well. During the recession it 485 00:28:14,080 --> 00:28:19,160 Speaker 1: went up part timers. Obviously we're increasing, um, but since 486 00:28:19,200 --> 00:28:22,520 Speaker 1: the recession we've seen a gradual decline in the number 487 00:28:22,560 --> 00:28:25,880 Speaker 1: of part timers. But it's still not at pre recession levels. 488 00:28:26,240 --> 00:28:29,800 Speaker 1: Why isn't it matched to the unemployment rate? The unemployment 489 00:28:29,840 --> 00:28:32,680 Speaker 1: rate is pretty cool. But you make clear we're nowhere 490 00:28:32,760 --> 00:28:36,199 Speaker 1: near back to where we were pre crisis? Are we? Uh? No, 491 00:28:36,320 --> 00:28:38,040 Speaker 1: we're not. And I think that I have a lot 492 00:28:38,080 --> 00:28:40,800 Speaker 1: to do with just the way our economy has moved 493 00:28:40,880 --> 00:28:45,640 Speaker 1: from a goods producing two services and that kind of 494 00:28:45,840 --> 00:28:51,360 Speaker 1: plays more into the part timers um in in a way. Well, 495 00:28:51,360 --> 00:28:54,240 Speaker 1: how much of this is was just simply the depth 496 00:28:54,240 --> 00:28:57,640 Speaker 1: of the Great Recession. Well, it's it's interesting because the 497 00:28:57,680 --> 00:29:01,520 Speaker 1: recessions have actually had a substantial impact um the part timers, 498 00:29:02,080 --> 00:29:05,400 Speaker 1: especially this last one. Uh. When you look at the trends, 499 00:29:05,480 --> 00:29:09,840 Speaker 1: you can see that they the recession has really uh 500 00:29:10,560 --> 00:29:13,600 Speaker 1: caused cause us to not get back to the growth 501 00:29:13,640 --> 00:29:18,040 Speaker 1: that we were at before. Now, how quickly are we Well, 502 00:29:18,160 --> 00:29:20,840 Speaker 1: let me put it this way, Uh, your work assumes 503 00:29:20,920 --> 00:29:23,640 Speaker 1: that we're going to continue along the same path and 504 00:29:23,720 --> 00:29:26,479 Speaker 1: that the lines of part time and full time will cross. 505 00:29:27,480 --> 00:29:29,200 Speaker 1: How quickly are we going to get there? And what 506 00:29:29,560 --> 00:29:33,320 Speaker 1: threat is there that maybe we don't Well, the biggest 507 00:29:33,320 --> 00:29:38,520 Speaker 1: growth clearly is a cyclical downturn. Um. We we really 508 00:29:38,560 --> 00:29:41,680 Speaker 1: need to maintain the growth that we're seeing in order 509 00:29:41,760 --> 00:29:46,400 Speaker 1: to continue to get back to pre recession levels. But 510 00:29:46,480 --> 00:29:48,720 Speaker 1: we really need to avoid the cyclical downturn in order 511 00:29:48,760 --> 00:29:51,880 Speaker 1: to continue any kind of growth. Um, if we do 512 00:29:52,000 --> 00:29:55,240 Speaker 1: have a recession again, then it'll erase everything that that 513 00:29:55,320 --> 00:29:57,800 Speaker 1: we've we've done some far. The heart of the matter, 514 00:29:58,160 --> 00:30:00,600 Speaker 1: in the basic heart of the man mat or to me, 515 00:30:00,800 --> 00:30:03,320 Speaker 1: is the desire to get back to a run rate 516 00:30:03,360 --> 00:30:05,800 Speaker 1: of three percent GDP. And we can argue about plus 517 00:30:06,000 --> 00:30:09,640 Speaker 1: minus there's that Jill Malinsky, as we know, we haven't 518 00:30:09,680 --> 00:30:13,400 Speaker 1: seen that. Are you modeling in your work every day 519 00:30:13,520 --> 00:30:17,680 Speaker 1: the idea that will never get back there or is 520 00:30:17,680 --> 00:30:20,600 Speaker 1: there a new level that you're studying every day that's 521 00:30:20,680 --> 00:30:25,120 Speaker 1: sub two point eight sub two point four real gdp. Well, 522 00:30:25,120 --> 00:30:27,960 Speaker 1: the data that we're looking at is showing us that 523 00:30:28,640 --> 00:30:33,400 Speaker 1: we were just in a in an uncharted territory essentially. So, uh, 524 00:30:33,440 --> 00:30:36,200 Speaker 1: you know, this low trend growth is doesn't seem to 525 00:30:36,240 --> 00:30:39,200 Speaker 1: be going away, So we're just looking at it as 526 00:30:39,200 --> 00:30:42,120 Speaker 1: if it's going to be a continual thing. I Mean, 527 00:30:42,200 --> 00:30:45,360 Speaker 1: everyone hopes that at some point we can get back 528 00:30:45,360 --> 00:30:48,200 Speaker 1: to the three, but it's not looking like it's going 529 00:30:48,240 --> 00:30:51,680 Speaker 1: to happen. Congratulations on a fabulous piece of where Jill 530 00:30:51,760 --> 00:30:56,200 Speaker 1: Muslinski um Auto Chicago and with just a terrific essay. 531 00:30:56,240 --> 00:31:01,160 Speaker 1: You can see that at Advisor Perspectives. Uh. She calls 532 00:31:01,200 --> 00:31:04,480 Speaker 1: it financial sense and it's just a cogent feel on 533 00:31:04,560 --> 00:31:08,240 Speaker 1: the dynamics of part time and full time America. The 534 00:31:08,280 --> 00:31:11,000 Speaker 1: answer is better but not good enough is the summary 535 00:31:11,040 --> 00:31:14,240 Speaker 1: of that report. Features up eighteen from New York City. 536 00:31:14,320 --> 00:31:22,280 Speaker 1: This is Bloomberg Surveillance. We're cutting down to the opening bell. 537 00:31:22,320 --> 00:31:23,960 Speaker 1: Brought to you by the jam Grand Chercki, the most 538 00:31:23,960 --> 00:31:26,560 Speaker 1: awarded suv ever. The Grand Cherokee continues to raise the 539 00:31:26,600 --> 00:31:29,920 Speaker 1: bar with its luxurious interior and legendary four by four capability. 540 00:31:29,920 --> 00:31:38,200 Speaker 1: To have one at your local G dealer. Today, Global 541 00:31:38,240 --> 00:31:41,640 Speaker 1: Business News twenty four hours a day at Bloomberg dot Com, 542 00:31:41,880 --> 00:31:44,720 Speaker 1: the Radio plus Mobile Act and on your radio. This 543 00:31:45,120 --> 00:31:48,480 Speaker 1: is a Bloomberg Business Flash and I'm Karin Moscow. This 544 00:31:48,600 --> 00:31:51,080 Speaker 1: updates brought to you by Sector Spider a t f 545 00:31:51,160 --> 00:31:53,120 Speaker 1: so I buy a single stock when you can invest 546 00:31:53,160 --> 00:31:56,560 Speaker 1: in the entire sector. Visits Sector sp d r SA 547 00:31:56,720 --> 00:31:59,760 Speaker 1: dot com are called on six Sector e t f 548 00:32:00,200 --> 00:32:02,920 Speaker 1: U S stock index futures are higher and indication stocks 549 00:32:02,920 --> 00:32:06,200 Speaker 1: will trim their first weekly drop in four, mirroring a 550 00:32:06,240 --> 00:32:10,160 Speaker 1: global equity rally as investors reassess stimulus measures in Europe. 551 00:32:10,400 --> 00:32:13,240 Speaker 1: We checked the markets every fifteen minutes throughout the trading day. 552 00:32:13,240 --> 00:32:17,200 Speaker 1: On Bloomberg SNP EVENI futures of eighteen points, Dow EMUNI 553 00:32:17,240 --> 00:32:20,520 Speaker 1: futures of one hundred forty one, nazdac EMNY futures of 554 00:32:20,640 --> 00:32:23,600 Speaker 1: forty eight. The decks in Germany is up three percent now, 555 00:32:23,880 --> 00:32:25,880 Speaker 1: Cack in Paris up two point nine percent. In the 556 00:32:25,960 --> 00:32:28,560 Speaker 1: FT one hundred of one and a half percent. Ten 557 00:32:28,640 --> 00:32:31,120 Speaker 1: Your Treasury down five thirty seconds, the yield one point 558 00:32:31,200 --> 00:32:34,240 Speaker 1: nine five percent yield on the two year point nine 559 00:32:34,360 --> 00:32:37,560 Speaker 1: four percent. NIMEX screwed oil of two point one percent 560 00:32:37,640 --> 00:32:39,960 Speaker 1: or eighty cents to thirty eight sixty three A barrel 561 00:32:40,160 --> 00:32:43,000 Speaker 1: comas gold is down six tenths percent or seven dollars 562 00:32:43,000 --> 00:32:46,240 Speaker 1: seventy cents at twelve sixty five. Ten announced the euro 563 00:32:46,360 --> 00:32:48,920 Speaker 1: A dollar ten ninety four the end one thirteen point 564 00:32:49,040 --> 00:32:52,320 Speaker 1: seven seven. Banks and technology shares, which have led the 565 00:32:52,360 --> 00:32:56,040 Speaker 1: recent rebound. Inequities are higher in early trading. Morgan Stanley 566 00:32:56,040 --> 00:32:58,200 Speaker 1: and Goldman Sachs Group are both up more than one 567 00:32:58,240 --> 00:33:01,080 Speaker 1: point eight percent, while Netflix excess up two points six 568 00:33:01,080 --> 00:33:03,400 Speaker 1: percent this morning, and Amazon dot Com is up more 569 00:33:03,440 --> 00:33:06,440 Speaker 1: than one percent. That's a Bloomberg business flash, Tom and 570 00:33:06,480 --> 00:33:08,920 Speaker 1: Mike Karen, thank you very much. Well, we are a 571 00:33:09,000 --> 00:33:11,840 Speaker 1: radio station TOIME. We don't ordinarily take requests and dedications. 572 00:33:11,880 --> 00:33:16,880 Speaker 1: But Muhammad from Newport Beach wrote in uh and he 573 00:33:16,960 --> 00:33:20,840 Speaker 1: wanted to hear UM the latest hit UH music from 574 00:33:21,080 --> 00:33:27,280 Speaker 1: the country music recording star Merle Hazard. Uh and and 575 00:33:27,320 --> 00:33:29,760 Speaker 1: I listened to the song and we have to play this. 576 00:33:30,280 --> 00:33:41,080 Speaker 1: How religious rates? That's the question? How this was a 577 00:33:41,440 --> 00:33:43,680 Speaker 1: it's a it's an actual music video. You can look 578 00:33:43,680 --> 00:33:47,680 Speaker 1: at Muhammad Ailarian's Twitter feed and get the link to it. 579 00:33:47,880 --> 00:33:51,400 Speaker 1: UM put together by the folks at the PBS station 580 00:33:51,560 --> 00:33:55,840 Speaker 1: in Nashville. It is absolutely hilarious. UM. And Muhammad and 581 00:33:55,840 --> 00:33:58,440 Speaker 1: I were talking this morning, and he noted that you 582 00:33:58,440 --> 00:34:00,320 Speaker 1: don't need his book, You don't need anything else. You 583 00:34:00,360 --> 00:34:02,640 Speaker 1: listen to a song and it raises all the questions 584 00:34:03,000 --> 00:34:07,200 Speaker 1: that the average person wants it and and hits. As 585 00:34:07,240 --> 00:34:10,200 Speaker 1: he put it, they are much smarter about the economy 586 00:34:10,200 --> 00:34:14,280 Speaker 1: than the people who are running for president. A brilliant question. 587 00:34:14,320 --> 00:34:16,759 Speaker 1: So we've got the Federal Reserve meeting next weekend. We've 588 00:34:16,800 --> 00:34:19,239 Speaker 1: got the average Americans want to know who was the 589 00:34:19,320 --> 00:34:23,720 Speaker 1: singer Merle Uh. It's a country singer named Merl Hazard, 590 00:34:23,760 --> 00:34:28,120 Speaker 1: not Merggard, but Mr Haggard. If you're listening this morning, 591 00:34:28,560 --> 00:34:33,600 Speaker 1: Merle Haggard aged seventy eight. He founded the baker that did. 592 00:34:33,680 --> 00:34:36,120 Speaker 1: Can you play it again? Please? It does not sound 593 00:34:36,160 --> 00:34:40,160 Speaker 1: like the Bakersfield sound. I mean, can did we lose that? 594 00:34:42,680 --> 00:34:51,520 Speaker 1: The legis rates day low? That's the question. How rates 595 00:34:51,520 --> 00:34:54,440 Speaker 1: stay low? They seems like if they're going up and 596 00:34:54,520 --> 00:34:58,840 Speaker 1: they're going I mean, Richard Clarida has a band. Maybe 597 00:34:58,840 --> 00:35:05,560 Speaker 1: it's Richard Clarida. It's definitely the the grand old Opry sound, 598 00:35:05,640 --> 00:35:08,880 Speaker 1: and it does You're not old, you're seasoned, but you 599 00:35:08,960 --> 00:35:12,960 Speaker 1: remember he haf the old Yes TV show and it 600 00:35:14,400 --> 00:35:17,440 Speaker 1: late Roy Clark. Yeah, there are a few jokes out there. 601 00:35:17,560 --> 00:35:21,480 Speaker 1: John Shane is Merle Hazard's real name, and he has 602 00:35:21,600 --> 00:35:26,799 Speaker 1: done a number of other uh financial market parody songs. Yeah. 603 00:35:27,160 --> 00:35:30,920 Speaker 1: Dr Demente comes to economics, finance, investment and that. Mike, 604 00:35:31,040 --> 00:35:33,960 Speaker 1: let's get a grip on what happened yesterday. We were 605 00:35:34,000 --> 00:35:39,160 Speaker 1: all smart, we all had our sets of outcomes and 606 00:35:39,200 --> 00:35:46,040 Speaker 1: as Yakum Fell's magisterially said, it was extraordinary, extraordinary what 607 00:35:46,040 --> 00:35:51,920 Speaker 1: occurred yesterday, Well we had it was so broad and 608 00:35:51,400 --> 00:35:54,680 Speaker 1: uh and so much was done that it seems to 609 00:35:54,760 --> 00:35:56,880 Speaker 1: have taken markets twenty four hours to figure out what 610 00:35:56,920 --> 00:36:00,680 Speaker 1: they really think about it. The initial reaction was this 611 00:36:00,800 --> 00:36:03,160 Speaker 1: is great, and then all of a sudden while he said, 612 00:36:03,200 --> 00:36:05,560 Speaker 1: no more interest rate cuts, So that means hero is 613 00:36:05,600 --> 00:36:08,719 Speaker 1: going to be stronger, and that's terrible. I mean, they 614 00:36:08,719 --> 00:36:11,239 Speaker 1: seem now to have voted on the idea that this 615 00:36:11,320 --> 00:36:14,080 Speaker 1: is going to be a bank lending channel easing rather 616 00:36:14,160 --> 00:36:18,320 Speaker 1: than a currency exactly. And Catherine Man of o e 617 00:36:18,440 --> 00:36:23,080 Speaker 1: c t exprandise with her magistry or work on international 618 00:36:23,120 --> 00:36:27,480 Speaker 1: trade and codependency and dysfunction between nations including China and 619 00:36:27,480 --> 00:36:30,400 Speaker 1: the United States, she said exactly that, Michael. That she 620 00:36:30,480 --> 00:36:34,239 Speaker 1: said that the public is so weaned on rate change 621 00:36:34,800 --> 00:36:39,760 Speaker 1: and currency change and that that flows getting the way. 622 00:36:39,800 --> 00:36:43,600 Speaker 1: And am I right, Michael? This is monetary a set 623 00:36:43,680 --> 00:36:48,200 Speaker 1: of monetary exercises to try to flow money to the public. 624 00:36:48,760 --> 00:36:51,479 Speaker 1: Haven't we tried that before and it sort of didn't 625 00:36:51,520 --> 00:36:54,799 Speaker 1: work out well. There are interesting questions about what this 626 00:36:54,880 --> 00:37:00,600 Speaker 1: will do, whether or not the the idea behind the 627 00:37:00,960 --> 00:37:03,200 Speaker 1: lending program to banks that t l t r OH 628 00:37:03,320 --> 00:37:06,080 Speaker 1: is that banks can get a lower rate if they 629 00:37:06,160 --> 00:37:09,760 Speaker 1: lend more of the money out into the markets. So 630 00:37:10,120 --> 00:37:15,520 Speaker 1: UM that that that may help. The question is UM 631 00:37:15,920 --> 00:37:19,600 Speaker 1: doesn't help enough? Is there enough demand out there? Jane Foley, 632 00:37:19,640 --> 00:37:22,400 Speaker 1: we've been speaking to really across all of Bloomberg. It 633 00:37:22,440 --> 00:37:25,160 Speaker 1: seems like she's with us about every three hours, which 634 00:37:25,200 --> 00:37:28,279 Speaker 1: is appropriate given the whims. Jane, I'm gonna call it 635 00:37:28,320 --> 00:37:33,839 Speaker 1: weak euro boom strong euro and we've dampened pretty much 636 00:37:33,920 --> 00:37:37,440 Speaker 1: back to pre droggy. What does it symbolize? Was this 637 00:37:37,600 --> 00:37:42,480 Speaker 1: just an exercise in confusion or short or long covering 638 00:37:43,000 --> 00:37:46,160 Speaker 1: or is this something that you can rationalize. I think 639 00:37:46,160 --> 00:37:49,040 Speaker 1: there is some confusion out there. I think we would 640 00:37:49,040 --> 00:37:51,400 Speaker 1: certainly have to get that straight. But I need in 641 00:37:51,440 --> 00:37:53,480 Speaker 1: terms of a positioning. One thing that we can say 642 00:37:53,560 --> 00:37:56,440 Speaker 1: was at the market wasn't as short years as it 643 00:37:56,600 --> 00:37:59,120 Speaker 1: was last December, and of course we need to try 644 00:37:59,160 --> 00:38:01,240 Speaker 1: and work out why the it is. And the reason 645 00:38:01,400 --> 00:38:04,920 Speaker 1: perhaps is because the euro does have this safe haven behaviors. 646 00:38:04,960 --> 00:38:06,920 Speaker 1: Now I'm reluctant to call it a safe haven, but 647 00:38:07,440 --> 00:38:09,719 Speaker 1: the Eurozone does have a strong current accuntser up us, 648 00:38:09,840 --> 00:38:11,880 Speaker 1: meaning there is a surplus of favors, and many of 649 00:38:11,880 --> 00:38:16,000 Speaker 1: those savors right now are reluctant to invest in risky assets, 650 00:38:16,040 --> 00:38:19,360 Speaker 1: so they would rather hold euros and than move into 651 00:38:20,080 --> 00:38:22,880 Speaker 1: some other markets. Given the large amount of volatility that 652 00:38:22,920 --> 00:38:26,880 Speaker 1: we've had this year. The question therefore, was was Drugging 653 00:38:26,920 --> 00:38:28,960 Speaker 1: always going to be able to get the the euro 654 00:38:29,120 --> 00:38:31,920 Speaker 1: down if investors were going to be reluctant to to 655 00:38:32,040 --> 00:38:34,960 Speaker 1: short it given the current environment. But I think we 656 00:38:35,080 --> 00:38:38,120 Speaker 1: know the answer to that. It means it was going 657 00:38:38,120 --> 00:38:40,680 Speaker 1: to be difficult to get the euro lower. That's said, 658 00:38:41,239 --> 00:38:44,279 Speaker 1: I think it wasn't so much necessarily positioning that that 659 00:38:44,880 --> 00:38:48,400 Speaker 1: really made euro dollar go high. Estate It was that 660 00:38:48,560 --> 00:38:51,839 Speaker 1: comment from Drug indicating that he was reluctant to cut 661 00:38:51,880 --> 00:38:55,480 Speaker 1: into strates. Further that moving the money market, and therefore 662 00:38:55,480 --> 00:38:59,200 Speaker 1: it pushed up the value of euro don the the 663 00:38:59,200 --> 00:39:02,080 Speaker 1: the euro stunt and and of course this raises the 664 00:39:02,200 --> 00:39:04,239 Speaker 1: question is the easy to be going to cut into 665 00:39:04,280 --> 00:39:07,560 Speaker 1: strates again, and that there's a question mark over that. 666 00:39:07,680 --> 00:39:11,560 Speaker 1: I know yesterday's announcement for the EU to be suggests 667 00:39:11,560 --> 00:39:13,719 Speaker 1: that rather than use negative interest rates, and of course 668 00:39:13,719 --> 00:39:16,360 Speaker 1: there's been a lot of negative press about negative interest 669 00:39:16,440 --> 00:39:19,680 Speaker 1: rates recently, rather than go down that route, maybe instead 670 00:39:19,760 --> 00:39:21,680 Speaker 1: they're going to go to try and inject more money 671 00:39:21,680 --> 00:39:24,680 Speaker 1: into the real economy through these tell tros for new 672 00:39:24,719 --> 00:39:28,160 Speaker 1: teltros in June, and there will be a bonus given 673 00:39:28,480 --> 00:39:31,600 Speaker 1: to banks who who lend more. So from that point 674 00:39:31,600 --> 00:39:33,840 Speaker 1: of view, maybe there's going to be less focused on 675 00:39:33,880 --> 00:39:38,280 Speaker 1: negative interest rates and currency and more economy. And Michael, 676 00:39:38,320 --> 00:39:40,040 Speaker 1: this is what we heard from Peter Hooper of Deutch 677 00:39:40,400 --> 00:39:45,200 Speaker 1: as well, some real tangible initiatives to move money in. Yeah. Well, 678 00:39:45,239 --> 00:39:48,680 Speaker 1: the Fox Rebbel banker on your credit side have some 679 00:39:48,760 --> 00:39:51,759 Speaker 1: real questions about how well this will work, particularly the 680 00:39:52,480 --> 00:39:56,080 Speaker 1: corporate bond buying that they announced. Yeah, this is exactly right. 681 00:39:56,120 --> 00:39:58,360 Speaker 1: Even though you could stand back and say, well, surely 682 00:39:58,400 --> 00:39:59,759 Speaker 1: this is the right thing for center back to do, 683 00:40:00,040 --> 00:40:02,520 Speaker 1: try and focus on the real economy, push money through 684 00:40:02,840 --> 00:40:05,000 Speaker 1: into the real economy is due those means you've got 685 00:40:05,000 --> 00:40:06,840 Speaker 1: to be skeptical as to whether or not it really 686 00:40:06,960 --> 00:40:09,120 Speaker 1: can work. And you know, one of the primary reasons 687 00:40:09,160 --> 00:40:11,480 Speaker 1: to be skeptical is is that a lot of the 688 00:40:11,560 --> 00:40:15,960 Speaker 1: investment graded corporates don't actually need the money. So even 689 00:40:16,000 --> 00:40:18,360 Speaker 1: though the banks might get an extra bonus by lending 690 00:40:18,600 --> 00:40:20,920 Speaker 1: to them they don't need it. So from that point 691 00:40:20,920 --> 00:40:23,520 Speaker 1: of view, you've really got to question whether or not 692 00:40:23,880 --> 00:40:27,920 Speaker 1: this measure can be successful. But there's certainly part of 693 00:40:27,960 --> 00:40:30,480 Speaker 1: it for the for the global economy. I think you 694 00:40:30,560 --> 00:40:32,680 Speaker 1: can look back at the UCB and say it has 695 00:40:32,719 --> 00:40:36,160 Speaker 1: been a significant perpetrator really of currency wars. If we 696 00:40:36,280 --> 00:40:38,040 Speaker 1: go back to the middle of two thousand and fourteen, 697 00:40:38,040 --> 00:40:40,640 Speaker 1: we look at that negative discount rate back then and 698 00:40:40,680 --> 00:40:44,239 Speaker 1: see what that triggered. It triggered quite a big number 699 00:40:44,239 --> 00:40:46,840 Speaker 1: of ripples in the currency war. And maybe the USB 700 00:40:46,880 --> 00:40:48,960 Speaker 1: are finally pulling away from that, because after all, we 701 00:40:49,000 --> 00:40:51,600 Speaker 1: all know that currency wars are a zero sum game 702 00:40:51,640 --> 00:40:54,239 Speaker 1: and negative interest rates. Are all very concerned about that too. 703 00:40:54,280 --> 00:40:56,680 Speaker 1: So in a way, maybe they've done the right thing 704 00:40:56,719 --> 00:41:00,399 Speaker 1: and moving away from from negative rates currency wars. But yeah, 705 00:41:00,440 --> 00:41:02,000 Speaker 1: you've got to be skeptical as to whether or not 706 00:41:02,040 --> 00:41:05,600 Speaker 1: this Jane, thank you so much for the update. Thank 707 00:41:05,600 --> 00:41:08,360 Speaker 1: you so much for your contribution to the show and 708 00:41:08,400 --> 00:41:11,600 Speaker 1: across all of Bloomberg News. Ms fully is with Robbo Bank. 709 00:41:11,680 --> 00:41:15,160 Speaker 1: I love the idea, Michael, that she's writing smart research 710 00:41:15,280 --> 00:41:18,960 Speaker 1: off of a trading platform, off of she's in the trenches. 711 00:41:19,040 --> 00:41:23,400 Speaker 1: They're actually worried about eurout of four and six digits 712 00:41:23,400 --> 00:41:27,040 Speaker 1: one ten, two right now, And of course, let me 713 00:41:27,080 --> 00:41:29,640 Speaker 1: get the chart out on your dallar to Bloomberg Radio Plus. 714 00:41:29,640 --> 00:41:32,440 Speaker 1: I think that's I'm gonna do a three day chart, folks. 715 00:41:32,440 --> 00:41:35,640 Speaker 1: This is before, during, and how we've rolled over and 716 00:41:35,680 --> 00:41:38,640 Speaker 1: come in after. We're still a bit away somewhere. We 717 00:41:38,680 --> 00:41:44,560 Speaker 1: were at eight yesterday morning, but we're getting there. Okay, 718 00:41:44,600 --> 00:41:49,919 Speaker 1: over there, I'm listening to your excellent market summaries. What's 719 00:41:49,920 --> 00:41:52,080 Speaker 1: going on? No, I think, I think it's been a 720 00:41:52,120 --> 00:41:54,160 Speaker 1: fascinating week. And you know, again, as we said at 721 00:41:54,200 --> 00:41:57,279 Speaker 1: the end of the show yesterday, massive shout out to 722 00:41:57,320 --> 00:42:01,120 Speaker 1: everybody that's helped us work in real time before Draggy 723 00:42:01,280 --> 00:42:06,400 Speaker 1: and uh during the press conference, which was truly extraordinary, 724 00:42:06,760 --> 00:42:08,560 Speaker 1: the speed of news that was going on, and of 725 00:42:08,600 --> 00:42:11,080 Speaker 1: course is people try to figure out where do we 726 00:42:11,160 --> 00:42:14,440 Speaker 1: go from here, and most particularly what it means is 727 00:42:14,480 --> 00:42:17,719 Speaker 1: a follow on to other central banks. Part of that 728 00:42:17,760 --> 00:42:20,640 Speaker 1: will be March sixteen, Where are you, Mike for our 729 00:42:20,680 --> 00:42:22,960 Speaker 1: FED show March six Are you here? I think? Are 730 00:42:23,000 --> 00:42:25,120 Speaker 1: you there? Sitting next to you? This is a very 731 00:42:25,160 --> 00:42:28,840 Speaker 1: good thing. Spending two hours with scarlet food, which is 732 00:42:28,880 --> 00:42:33,799 Speaker 1: no downside. To analyze what the FED probably wouldn't do, 733 00:42:34,000 --> 00:42:36,400 Speaker 1: but what they're going to say could be really important. 734 00:42:36,440 --> 00:42:38,919 Speaker 1: It will be interesting to see the guidance that cherry 735 00:42:38,960 --> 00:42:42,400 Speaker 1: yelling gives after the history made yesterday. Stay with this 736 00:42:42,520 --> 00:42:48,040 Speaker 1: Worldwide on economics, finance, investment, and international relations. Bloomberg Surveillance