Speaker 1: Broadcasting live to New York Gloomberg Even to Washington, d C.
Speaker 1: Bloomber to Boston, Bloomberg twelve Honors, to San Francisco Bloomberg
Speaker 1: to the Country Series Exam Channel one ninety and around
Speaker 1: the globe the Bloomberg Radio plus Aben Bloomberg dot Com.
Speaker 1: This is Bloomberg Surveillance. Good morning and is seven thirty
Speaker 1: on Wall Street. I'm Michael McKee along with Lisa Brownwit
Speaker 1: sitting in this morning for Tom Keane. It's an earnings day,
Speaker 1: lots of numbers coming out, just crossing the Bloomberg three
Speaker 1: m company earnings for share of two dollars and five cents.
Speaker 1: That sales of seven point four one billion, and that
Speaker 1: exceeds the estimate of seven point three two billion, the
Speaker 1: consensus of analyst surveyed proctoring Gamble fiscal third quarter profit
Speaker 1: topping estimates eighty six cents to share excluding some items.
Speaker 1: Santalists have projected eighty two cents sales, though down six
Speaker 1: point fifteen point eight billion. That was the estimate. DuPont
Speaker 1: gonna merge this year, with Dow Chemical raised its earnings
Speaker 1: outlook for the year. UH to buy ten cents this
Speaker 1: year to three dollars, five cents, three dollars and twenty cents.
Speaker 1: Chrysler earnings a few moments ago on a European basis,
Speaker 1: sales were twenty six point six billion euros, not quite
Speaker 1: as high as the twenty seven point seven point eight
Speaker 1: twenty seven point eight that were forecasts. So lots of earnings. Uh.
Speaker 1: And of course Candra Moscow throughout the morning will have
Speaker 1: all those for you. But first we're gonna check in
Speaker 1: with Michael Barr and get the latest world and national headlines. Mike, Lisa,
Speaker 1: thank you very much. It is primary day in five
Speaker 1: Northeast states. Contests will be held in Connecticut, Delaware, Rhode Island, Pennsylvania,
Speaker 1: and Maryland. A strong day my Democrat Hillary Clinton could
Speaker 1: bring her almost within a few votes of clinching the nomination.
Speaker 1: Last night in the town Hall on MSNBC, Clinton said
Speaker 1: she wants rival Bernie Sanders support if she wins the nomination,
Speaker 1: just like she supported then Senator Barack Obama in two
Speaker 1: thousand eight. We got to the end in June and
Speaker 1: I did not put down conditions. I didn't say, you
Speaker 1: know what is senta Obama does, X, Y and Z.
Speaker 1: Maybe I'll support him. Republican presidential front runner Donald Trump
Speaker 1: had a message for rivals Ted Cruz and John Ksick.
Speaker 1: They ought to both drop out of the race, so
Speaker 1: we ought to unify the Republican Party. Trump campaigned in
Speaker 1: Wilkesbury Township, Pennsylvania yesterday. Global News twenty four hours a day,
Speaker 1: powered by our twenty four hundred journalists more than a
Speaker 1: hundred fifty news bureaus from around the world. I'm Michael Barr,
Speaker 1: Mike Lisa, thank you Mill Time Now for the Landrover
Speaker 1: Parcipani Bloomberg. NBC Sports Update with John stash Our. All right,
Speaker 1: Mike Nathan of Ald. He was just looking for a
Speaker 1: win after starting the season O and two, ended up
Speaker 1: flirting with a no hitter, lost in the seventh inning
Speaker 1: with the Yankees won three one at Texas, solo and
Speaker 1: runs by Jacobe Elsberry and Starling and Castro. Noah Syndergard
Speaker 1: tacked on nine more strike out though a no decision.
Speaker 1: Mets be Cincinnati five to three. Neil Walker's go ahead
Speaker 1: to run Homer seventh, then he came after Syndergarden was
Speaker 1: gone for Walker already eight home runs. Lucas dud to
Speaker 1: Michael Confordo also Homer Mets of Aty Homers. The last
Speaker 1: ten games they won nine in the last they let him.
Speaker 1: There'll be a new Stanley Cup champion. Chicago lost Game
Speaker 1: seven at St. Louis three to two. Nashville took Anaheim
Speaker 1: three one. They've got Game seven tomorrow, and the Islanders
Speaker 1: have Game one of Round two tomorrow at Tampa Bay.
Speaker 1: Deflate gate not over never is. Indications now Tom Brady
Speaker 1: will appeal his loss, perhaps to the U S Supreme Court.
Speaker 1: After the NFL one it's appeal putting Brady's four game
Speaker 1: suspension for the Patriots use of inflated football's fifteen months
Speaker 1: to go back on the draft Thursday, Eagles had to
Speaker 1: take quarterback, so starting QB Sam Bradford reportedly wants a
Speaker 1: trade out of Philly. For the Bloomberg NBC Sports Update,
Speaker 1: I'm John Stanshall, Thank you, John Well. We're looking at
Speaker 1: market that has no real enthusiasm, but at least is
Speaker 1: leaning towards a higher open S and p futures up
Speaker 1: by three points a tenth of a percent down future
Speaker 1: is thirty two higher. That is a two tents rise
Speaker 1: on the day you're listening to Bloomberg Radio worldwide. Welcome
Speaker 1: back to Bloomberg Surveillance. I might come McKey. Lisa Abramowitz
Speaker 1: is sitting in for Tom Keene today. We are on
Speaker 1: FED Watched. The meeting should get underwigh in about an
Speaker 1: hour and a half or so. It's two day meeting
Speaker 1: decision two pm tomorrow afternoon, and we will be uh
Speaker 1: presenting that to you here on Bloomberg Radio two pm.
Speaker 1: I'll be anchoring our coverage along with Scarlet Fou and
Speaker 1: Joe Weisenthal. So you'll want to tune in for that
Speaker 1: bond market ahead of that flattening a bit. The two
Speaker 1: year note yield is an eighty five basis points. The
Speaker 1: tenure is at one point nine one percent. Coming up,
Speaker 1: we're gonna be talking with Michael Pond. He is head
Speaker 1: of of course, Global inflation linked Research at the at
Speaker 1: Barclays and will get his view on maybe what the
Speaker 1: Fed should be doing. But first, the Bloomberg n j
Speaker 1: I t STEM Report brought to you by the New
Speaker 1: Jersey Institute of Technology, investing more than a ten million
Speaker 1: dollars a year and applied research to solve problems that
Speaker 1: improve life. Learn more stories of innovation dot n j
Speaker 1: I T dot E DU. Here's John Tucker and a
Speaker 1: good morning to you, Michael. Let's see what's the making
Speaker 1: news in science, technology engineering at MATH this morning. Mobile
Speaker 1: phones in India must include a panic button from the
Speaker 1: start of next year at satellite based location technology from
Speaker 1: eighteen as officials trying to make the nations safer for women.
Speaker 1: The emergency feature would be activated by pressing a designated
Speaker 1: key in a smartphone a phone or holding down the
Speaker 1: numbers five or nine on a basic device. This according
Speaker 1: to a statement from the Telecom Ministry in New Delhi.
Speaker 1: All manufacturers, includes companies such as Apple and Samsung Electronics,
Speaker 1: would need to comply or When he started powermat Technologies
Speaker 1: in two thousand six, Rain Polka and envisioned a cordless
Speaker 1: future where millions of consumers would watch television, charge their phones,
Speaker 1: and power up their kids toys without plugging into a
Speaker 1: wall socket. A decade on, pol Kind's vision remains a
Speaker 1: long way off. While powamts charging technology is increasingly being
Speaker 1: used in phones, cars, and Starbucks at cafes, widespread adoption
Speaker 1: remains elusive. But now competition is intensifying with rival technologies,
Speaker 1: and that is this morning's Bloomberg j I T Steam Report.
Speaker 1: Michael and Lisa, you're sitting next to our guest Michael Pond. Yes,
Speaker 1: Michael Pond is with US Barkley's head of Global Inflation
Speaker 1: linked Research on this day when arguably inflation discussions are
Speaker 1: as important as ever. This is sort of the big
Speaker 1: debate underpinning a lot of bond talk recently, which is
Speaker 1: is the bond market too complacent about inflation never rearing
Speaker 1: its head? And I want to start with oil. You know,
Speaker 1: people have been looking to oil as a proxy for
Speaker 1: inflation expectations over the past few years. Do you think
Speaker 1: that the link between oil and bonds will break down
Speaker 1: or has to break down? Well, Lisa, Mike John, thanks
Speaker 1: for having me on again. You know, there has been
Speaker 1: a decent correlation between oil and headline inflation. Headline inflation
Speaker 1: recently was was bouncing along zero for for quite a
Speaker 1: while because of the oil component. Oil often drives most
Speaker 1: of the volatility and headline inflation, and that could pass
Speaker 1: through into into core and again, consumers tend to focus
Speaker 1: on inflation that experience that they experienced most often, and
Speaker 1: that's things like gasoline prices, food prices, rather than broader
Speaker 1: price pressures in the economy, so that can influence volatility,
Speaker 1: and energy prices can influence consumer inflation expectations. Those have
Speaker 1: been trend ding down, and the FED has now started
Speaker 1: to become a bit more concerned that they are starting
Speaker 1: to lose credibility and their ability to get inflation back
Speaker 1: up to their two pc targets. So, you know, it's
Speaker 1: interesting because I was talking with prem Psera from TV
Speaker 1: Securities yesterday and she said that there is a risk
Speaker 1: that the FED will overshoot and will wait too long
Speaker 1: to raise rates and therefore will allow inflation to jump
Speaker 1: up more than they expect. Do you think this is
Speaker 1: a risk? It is a risk, but we think that
Speaker 1: would be a good problem to have. One of the
Speaker 1: things that cherry Yelling is uh noted recently is that
Speaker 1: monetary policy at the near zero lower bounds should be
Speaker 1: a symmetric that they should be looking to overshoot rather
Speaker 1: than undershoot, because when inflation is too high the economy
Speaker 1: is a bit too hot, they know what to do.
Speaker 1: They have one lever to pull, that's the short term
Speaker 1: interest rate, and they can keep pulling it until the
Speaker 1: economy slows down. When the economy is too often inflation
Speaker 1: is too low all of a sudden, they're in this
Speaker 1: experimental world with potentially negative rates or quantitative easing. It's
Speaker 1: monetary policy is difficult when when growth is too low
Speaker 1: and inflation is too low, and inflation expectations start to
Speaker 1: creep lower. They'd rather deal with the problem of too
Speaker 1: high inflation right now rather than persistently too low inflation
Speaker 1: expectations have been creeping higher. You know, you're the guy
Speaker 1: that has to follow inflation. I got just about a
Speaker 1: minute left. Is its starting to come back? Well, it's
Speaker 1: starting to come back. We we've bounced off the very
Speaker 1: lows of February, but uh most forward inflation expectations are
Speaker 1: still lower than where they were at year end, and
Speaker 1: even at current levels they're quite low. So the five
Speaker 1: year five year forward implied break even from the market
Speaker 1: based measures from TIPS is around one sixty. So again
Speaker 1: that's well below the fenced target. So the market is
Speaker 1: saying that the Fed won't achieve its inflation target even
Speaker 1: over the medium term. Michael Pond is with us from
Speaker 1: barclay Sees, the head of Global Inflation linked months. We
Speaker 1: do note that um the brake evens Lisa have been
Speaker 1: creeping a little bit higher. But interesting that, as Michael
Speaker 1: pointed out to US earlier, the consumer surveys of inflation,
Speaker 1: the Michigan surveys, suggests that people see less inflation out there. Yeah,
Speaker 1: it's it's been a strange thing. And then you know,
Speaker 1: the the US five year break events have actually reached
Speaker 1: the highest level UH in nine months, signaling that people
Speaker 1: are sort of more UH. We encouraged about the idea
Speaker 1: of inflation going forward. So we shall see which gauge
Speaker 1: is correct. We shall see. Well, right now, certainly the
Speaker 1: bond market is not betting on a lot of inflation
Speaker 1: to your note yield eight six basis points. This is
Speaker 1: Bloomerk surveillance on Bloomberg Radio. We are coumming down to
Speaker 1: the opening bell, less than two hours to go, and
Speaker 1: we'll fill that time by talking about the Fed. With
Speaker 1: the Fed and it's primary dire I almost forgotten