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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus Mobile Act and on your radio.

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

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Speaker 1: US dot index future is moving lower this morning. Let's

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Speaker 1: go to the First Word Breaking news desk for today's

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Speaker 1: morning call. Here's Bill Maloney. Good morning Bill, Good morning Karen.

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Speaker 1: We are seeing small losses in the equity futures as

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Speaker 1: crude futures dropped two and a half percent down futures

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Speaker 1: currently lower by twenty six points. SPS dropped five and

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Speaker 1: as the futures fall by eleven. The US ten yeld

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Speaker 1: at one point nine seven percent and Upan markets are rising,

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Speaker 1: led by one and a half percent gains in Germany

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Speaker 1: while you're Egyptian stocks jump six percent after currency devaluation

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Speaker 1: and dealing news. Fresh Market to be acquired by Apollo

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Speaker 1: for twenty fifty share and Starward Hotels gets offered for

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Speaker 1: seventy six dollars a share in cash. Finally, some of

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Speaker 1: the walls sheet upgrades and downgrades. Tesla raised out perform

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Speaker 1: at Bared price target three hundred, mont Santo cut neutral

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Speaker 1: versus by at City Group price target ninety five at Goldman,

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Speaker 1: Sachs and Fool and WR Grace cut to neutral, J

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Speaker 1: and J raised to neutral, and Echo Lab cut to

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Speaker 1: sell h C Holdings raised over a JP, Morgan Consolation

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Speaker 1: Brands raised it by its sun Trust and finally Far

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Speaker 1: America cut to neutral versus by over at ubs. Live

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Speaker 1: from the First Breaking news desk, Go on boll Maloney Karen,

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Speaker 1: thanks bail to hear live breaking news of your Bloomberg

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Speaker 1: type squawk A. Go on your terminal, that's squ a

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Speaker 1: w K go, that's a Bloomberg business flash. Tom and Mike, Karen,

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Speaker 1: thanks so much this morning Bloomberg Surveillance brought you by Investco.

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Speaker 1: Looking for investment views experienced expersure just to click away.

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Speaker 1: Go to investco dot com, slash us to subscribe to

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Speaker 1: the investco blog and follow at investco us on Twitter.

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Speaker 1: We're thrilled to bring you Seth Masters of Bernstein with

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Speaker 1: his exceptional expertise on defined contribution, Eisenhower X number of

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Speaker 1: other presidents. We get to a risk as set and

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Speaker 1: the four and when I see Alicia Munnell up at

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Speaker 1: Boston College, tell me of Americans aren't correctly funded? Can

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Speaker 1: I state that Arissa was a failure. Well, I think

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Speaker 1: the question is what would have happened without it would

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Speaker 1: have been worse. Okay, it would have been worse, but

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Speaker 1: come on, percent of us, whatever the good will is,

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Speaker 1: are actually not even close to where we need to be.

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Speaker 1: What do we do right? Well, I think we, first

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Speaker 1: of all don't have a lot of perfect choices. What

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Speaker 1: we have to do is be realistic. And one aspect

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Speaker 1: of that is that the defined benefit system that was

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Speaker 1: one of the major focuses of aristom, really is in

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Speaker 1: the process of winding down. That's just going to happen

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Speaker 1: organically over time, so most people will not have a

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Speaker 1: defined benefit pension going forward. Our children are very very

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Speaker 1: unlikely to benefit at all from that kind of system,

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Speaker 1: and we have to make sure that that wind down

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Speaker 1: happens in an orderly fashion, which is tricky because it

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Speaker 1: returns are low. The second thing is to find contribution

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Speaker 1: plans will in fact to be the future, and exactly

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Speaker 1: how that works um will depend on how well organized

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Speaker 1: they become. There they've been, they've been subject to some problems,

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Speaker 1: they're being tweaked, and I think they can improve. When

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Speaker 1: you say subject to some problems, I mean one of

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Speaker 1: the biggest problems is people don't well, people don't trust markets,

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Speaker 1: and people don't trust themselves to be involved in markets.

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Speaker 1: That's actually not true inside define contribution plans. So that's

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Speaker 1: what's so interesting. If you look at most individuals, they

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Speaker 1: really do save money in their DC plan if they

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Speaker 1: are automatically enrolled, and especially if they auto es if

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Speaker 1: if they're not, they're afraid of it, are they? Well,

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Speaker 1: that's exactly However, once people are in a defined contribution plan,

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Speaker 1: if they're especially enrolled automatically and their amount of contribution

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Speaker 1: grows a little bit every year as they are employed.

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Speaker 1: If they do have that, they tend to stay in

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Speaker 1: that plan and they actually don't fiddle very much with

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Speaker 1: their allocations. So it's the one place where people will

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Speaker 1: have a long horizon. That's the following question is do

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Speaker 1: people get the allocations right in that because they don't

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Speaker 1: fill with it because they may not feel like they

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Speaker 1: know enough about it, and generally they don't. So the

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Speaker 1: key challenges having three things be automated, the way you enroll,

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Speaker 1: the way you gradually increase your contribution over time, and finally,

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Speaker 1: the default option that you get into and increasingly more

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Speaker 1: and more companies have moved to a default option, which

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Speaker 1: is effectively a carefully designed strategy to start out relatively

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Speaker 1: aggressive when you're just starting out your work, and then

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Speaker 1: moved to a more conservative allocation, which probably is appropriate

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Speaker 1: once you start spending money. I want to rip up

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Speaker 1: the script here. With your immense abilities and skills working

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Speaker 1: at Princeton, at Oxford and having an international childhood, you

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Speaker 1: got languages at a young age. I want you to

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Speaker 1: speak to our global audience about how you get kids

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Speaker 1: to engage in languages. You speak English, I believe it's

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Speaker 1: good English, Mike mand Or and what else? Do you speak? French? French? Yes?

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Speaker 1: And and some German. Look. I think I was very

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Speaker 1: fortunate because I did grow up in France for part

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Speaker 1: of my childhood and just naturally glommed onto language. I

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Speaker 1: think it makes it a lot easier if you're in

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Speaker 1: a foreign country. Um and look, I think something we

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Speaker 1: all wrestle with because we live in a world with

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Speaker 1: lots of distractions. It's hard for kids. What do you

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Speaker 1: think of? What is it of the Upper West Side?

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Speaker 1: And rolls their kids in Mandarin by age four? Is

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Speaker 1: Mandarin a good place to start? I actually think it

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Speaker 1: is because speaking Mandarin is not as hard as you think.

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Speaker 1: It's very tricky to learn the tones, but there isn't

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Speaker 1: a lot of grammar in Mandarin. It's really like English,

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Speaker 1: a very idiomatic language, and if you get the rhythm

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Speaker 1: and the thought process, it's a fascinating speak Mandarin at all. No,

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Speaker 1: but they haven't been older. They're not old enough to

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Speaker 1: have been automatically enrolled in the programs. One thing I

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Speaker 1: read is that if you don't continue to speak it though,

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Speaker 1: you lose it rapidly. And that's one of the problems

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Speaker 1: with the Upper West Side and rolling their kids is

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Speaker 1: they go through eighth grade learning Mandarin and then they

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Speaker 1: can't remember. If I kind to get the well, you

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Speaker 1: certainly don't keep languages unmust use them some. I wish

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Speaker 1: I could use all my languages more. Um. I think

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Speaker 1: in Mandarin the thing that it is toughest to keep

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Speaker 1: is actually writing, because that that is very complicated. Yeah,

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Speaker 1: but I think, Look, I think it's true you have

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Speaker 1: to find ways to to stay kind. So what is

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Speaker 1: your track for seventh day grade and through high school?

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Speaker 1: For our listeners, what's your advice on engaging kids the

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Speaker 1: ugly American like me and Mike in languages. I think

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Speaker 1: the challenges really defined a way to have children start

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Speaker 1: learning a language early in life and then stick with it.

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Speaker 1: Ideally that really needs to have to love it, and

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Speaker 1: not every kid does, but the bottom line is they

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Speaker 1: have to love it. They really have a lot and

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Speaker 1: I think a lot of that is down to the teachers.

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Speaker 1: A teacher who can really inspire is a wonderful thing.

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Speaker 1: Seth Masters, thank you so much. He is with Bernstein

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Speaker 1: on your single digit world. And the challenges are defined

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Speaker 1: contribution retirement plan A little bit there, Mike, help me

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Speaker 1: here Rosetta stone three two four a BiblioTech can we

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Speaker 1: got a commercial there? It is extended my extended Uh French.

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Speaker 1: I believe that was French radios turning off the radios

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Speaker 1: turning off. Coast to coast oil dont seven fifty seven.

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Speaker 1: After a huge week last week, Brent crude was above

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Speaker 1: forty now down a full dollar eleven cents. Gold fractionally

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Speaker 1: lowered four dollars twelve uh the ounce. It is an

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Speaker 1: exceptionally busy economic week. Allen Zetner at Morgan Stanley dropping

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Speaker 1: a bombshell in her analysis of Janet Yellin's fed. Next,

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Speaker 1: this is Bloomberg's surveillance coming up the with all due

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