Speaker 1: This is Bloomberg Surveillance just certainly a heightened set of
Speaker 1: risks in the US economy right now. And that's because
Speaker 1: the United States isn't an island. We're part of a
Speaker 1: global economy with GDP on healthcare in ways that no
Speaker 1: other country does. The big argument about accessive low interest
Speaker 1: rates for very long term time is that warps the
Speaker 1: investment pattern, real investment. Bloomberg Surveillance your link to the
Speaker 1: world of economics, finance and investment on Bloomberg Radio. Kid
Speaker 1: Morning everyone, Bloomberg Surveillance. Good morning worldwide, Michael McKee and
Speaker 1: Tom Kim Bloomberg Radio plus Bloomberg dot Com. Particularly for
Speaker 1: those of you in Germany listening, Good morning, Michael. Look
Speaker 1: at that headline after those very challenging regional elections, huge
Speaker 1: turnout in Germany over the weekend. The Chancellor says goal
Speaker 1: remains to reinstate Schengen borders system. That is a lonely headline.
Speaker 1: Well morning on Golabarco. Holding a news conference after the
Speaker 1: election sits she is not changing her view on refugees.
Speaker 1: She's not going to be influenced by the vote stick
Speaker 1: to her course seeking European solutions Nichols with some terrific
Speaker 1: perspective on that. This morning, we thank him for his
Speaker 1: uh yeoman duties Bloomberg surveillance. This morning our four X
Speaker 1: brief brought you by Interactive Broker's winner of FX Weeks
Speaker 1: two thousand fifteen award for the Best Retail for X
Speaker 1: trading platform visit ib at I b k R dot
Speaker 1: Com Slash four x A turn to the market dollar
Speaker 1: affectually stronger off d X, y yen one thirteen sixty
Speaker 1: three euro one eleven twenty eight weeker euro. This morning,
Speaker 1: I noticed auzy the hydro carbons, the commodity currencies churning around,
Speaker 1: Ruble seventy point five, six eighty down to seventy within
Speaker 1: the commodity rally as well. Believe that David Wilson, who's
Speaker 1: trying to figure out if one company is gonna end
Speaker 1: up owning all the hotels, is that where we're heading,
Speaker 1: they own the Waldorf for a gazillion dollars. And in
Speaker 1: my right that the latest is that this group may
Speaker 1: be going after Starwood. Yeah, that's sort of how things
Speaker 1: are shaking out. And there's one War deal in the
Speaker 1: mix as well, Star Wars Hotels and Resorts worldwidees up
Speaker 1: eight percent in early trading. The hotel owner received a
Speaker 1: twelve point nine billion dollar takeover offer from a group
Speaker 1: led by China's and Bang Insurance and own the World.
Speaker 1: They bought it last year, and they just made a
Speaker 1: deal to buy sixteen hotels and resorts from Blackstone Group
Speaker 1: for six and a half billion dollars. So that's the
Speaker 1: other piece of the puzzle. We should point out. Star
Speaker 1: Wars already accepted an offer from Marriott International that was
Speaker 1: back in November. Marriott shares by the way up two
Speaker 1: and a half percent in early trading. And more on
Speaker 1: the deal front. You have fresh Market, the most active
Speaker 1: stock and early trading up about twenty four percent. The
Speaker 1: supermarket chain accepted a one point four billion dollar buyout
Speaker 1: offer from Apollo Global Management, and we reported in October
Speaker 1: that Fresh Market founder Ray Berry was working with Apollo.
Speaker 1: Barry and his son Brett will keep their steaks in
Speaker 1: the company. You've got energy stocks lower, with crude oil
Speaker 1: down more than a dollar a barrel in New York trading.
Speaker 1: Excen Mobile and Chevron both off about one percent, Kinder
Speaker 1: Morgan down one and a half percent, and Chesapeake Energy
Speaker 1: down six percent, just some of the declines that we're
Speaker 1: seeing in a darker Petroleum down two and a half percent.
Speaker 1: The oil national guest producer was selling five year and
Speaker 1: ten year notes and thirty year bonds and will use
Speaker 1: the proceeds to refinance maturing debt. As far as analyst
Speaker 1: calls go, You've got h c A Holdings up one percent.
Speaker 1: The largest shars owner of for profit hospitals was raised
Speaker 1: the equivalent of buy from hold of JP Morgan Chase,
Speaker 1: Tesla Motors up two percent. The electric carmaker raised the
Speaker 1: equip want to buy from neutral Robert W. Baird and
Speaker 1: Serious Logic up one and a half percent. The chipmaker
Speaker 1: received a by rating in new coverage that need them close.
Speaker 1: Natural Resources up three percent. The mining company said he
Speaker 1: will restart iron ore production at a Minnesota facility to
Speaker 1: meet customer demand. And one war for you. Three D
Speaker 1: Systems up twelve and a half percent. They make a
Speaker 1: three dimensional printers reported fiscal throw court results and three
Speaker 1: DS adjusted earnings beat analysts average estimate in a Bloomberg survey.
Speaker 1: Thank you, David will greatly appreciate it. He's a former
Speaker 1: chairman the SEC Bloomberg Helpy Board. Member Arthur, I've got
Speaker 1: to rip up the script and being insurance of China's
Speaker 1: not publicly traded. They have and you know you can
Speaker 1: read an Economist article here, a Bloomberg article there, all
Speaker 1: of the incestuous relationships with China government officials from where
Speaker 1: you sit. If they buy the wall door for billions,
Speaker 1: are they're part of a group trying to buy star
Speaker 1: Wars for billions? How should American government or finance react?
Speaker 1: I think over overjoyed. I think the fact that the
Speaker 1: Chinese choose to find their money works better for them
Speaker 1: in the US than in China or elsewhere is a
Speaker 1: great tribute to our economy. I think the government and
Speaker 1: people of the United States and business community should be
Speaker 1: delighted to have outside investment in US assets without a
Speaker 1: question SEC This week, UM Senate Banking Committee going to
Speaker 1: hold hearings on a couple of nominations. We've talked with
Speaker 1: you over the last week or so about how shorthanded
Speaker 1: the agency is. If you were on the banking having
Speaker 1: been on the other side, what would be your job
Speaker 1: interview question for for the candidates? Well, I would ask
Speaker 1: each candidate how they ranked the three major constituents of
Speaker 1: the sec our markets, US investors in corporate finance. Which
Speaker 1: one of those would be their priority and my priority?
Speaker 1: And I believe their priority and every chairman's priority, should
Speaker 1: place investor interests above all others. If they don't answer
Speaker 1: the question that way, where I chairman of the Banking Committee,
Speaker 1: I'd have some reservations. I suspect, however, that the present
Speaker 1: Chairman of the Banking Committee might have a different order
Speaker 1: of preference. Investor interests would be important, but I think
Speaker 1: he probably would place the other interests ahead of investor interests.
Speaker 1: Could least the Fairfax or Hester Pierce been nominated twenty
Speaker 1: years ago, I doubt it. Twenty years ago, they would
Speaker 1: have been looking for individuals who had some background insecurities regulations,
Speaker 1: securities law, academia, rather than the polarization that comes from
Speaker 1: individuals who were wedded to one ideology or another. Clearly,
Speaker 1: each of these new commissioners have an ideologic bent, and
Speaker 1: I suspect this makes it very difficult for the chairman
Speaker 1: to try to work through consensus solutions. That's the secret
Speaker 1: of a successful commission, if they're able to work together.
Speaker 1: We haven't seen one of those in many years. Arthur
Speaker 1: I hate to say it, but Mike and I actually
Speaker 1: remember what you say months ago, and I want to
Speaker 1: bring up something that you said months ago in the
Speaker 1: heat of whatever the moment Wasn't like folks that can't recall.
Speaker 1: Arthur Levitt said that the turmoil of our politics is
Speaker 1: good for the system, and it gets leavened out as
Speaker 1: we moved through the year to the conventions and on.
Speaker 1: We've had a little bit of an adjustment since then,
Speaker 1: including the Absolute Donny Book of the last ten days.
Speaker 1: Can you give our listeners confidence that we'll figure this
Speaker 1: out by the conventions, or possibly that we'll figure it
Speaker 1: out by the first Tuesday of November. My long winded
Speaker 1: answer to that would be no. If you, Arthur, I'm
Speaker 1: honored to ask your comment. With your father's public service
Speaker 1: and your public service and whatever anybody's politics, where did
Speaker 1: this come from? I've never seen anything like it. The
Speaker 1: biggest surprise of my life probably was the Bernie Madoff scandal.
Speaker 1: But the Trump emergence has has trump that I can't
Speaker 1: quite believe that the Donald Trump, whom I've met from
Speaker 1: time to time, is a likely candidate and possible winner
Speaker 1: of the presidency of this country. But we've survived up
Speaker 1: to now. Uh, and we've lived with presidents that looked
Speaker 1: great during the conventions and turned out to be inadequate. Uh.
Speaker 1: Maybe Trump will represent something different. I think the country
Speaker 1: is strong enough to endure almost any personality in the
Speaker 1: role of president. Arthur, thank you so much, wisdom for
Speaker 1: Arthur love it as we looked at this week my
Speaker 1: Arthur loved the former chairman of the SEC with us
Speaker 1: is wanted to thank you so much. Mike. My twitter
Speaker 1: feed this this weekend was surreal. Yeah. I don't want
Speaker 1: to get in the politics of it, but the fact
Speaker 1: is it was surreal. There was a point I couldn't
Speaker 1: keep track of whether it was speculation, rumor innuendo, her
Speaker 1: cold heart, all about the violence and folks, a political
Speaker 1: did a very interesting fact check of a certain presidential
Speaker 1: candidate um and all the things, all the lies he
Speaker 1: told during the past week. I urge people to take
Speaker 1: a look at that. We are trying to give you
Speaker 1: a perspective away from the zaniness of the lack of
Speaker 1: discourse of it. We think Richard has particularly this morning
Speaker 1: for careful discourse. Agree or disagree, futures negative five down
Speaker 1: features negative time Now to check in with Michael Barr
Speaker 1: and get the latest world in national headlines like Mike
Speaker 1: Tom thank you very much. The Republican and Democratic presidential
Speaker 1: candidates are getting ready for another big Tuesday, with primaries
Speaker 1: tomorrow in Ohio, Illinois, Missouri, North Carolina, and Florida. Ohio
Speaker 1: is a winner take all contest. Donald Trump is hoping
Speaker 1: to triumph in the state of rival and Ohio Governor
Speaker 1: John Kasi. Florida is the home state of another Republican rival,
Speaker 1: Senator Marco Rubio. President Obama could nominate someone to the
Speaker 1: Supreme Court as early as this week, and the Republican
Speaker 1: National Committee says it is launching an add and pr
Speaker 1: campaign to derail anyone the President picks to replace late
Speaker 1: Justice Anton and Scalia, who died last month. Authority say
Speaker 1: twenty nine people have been taken to hospitals following a
Speaker 1: train to railman in Southwest Kansas. The train traveling from
Speaker 1: Los Angeles to Chicago. The rail just outside of Dodge City.
Speaker 1: Overnight Global News twenty four hours a day, powered by
Speaker 1: our twenty four hundred journalists and more than a hundred
Speaker 1: fifty news bureaus from around the world. I'm Michael bar
Speaker 1: Mike TOMCNNA. Thanks someone. It's a dollar down a stick.
Speaker 1: Somebody said, what's the stick? A stick is one dollar
Speaker 1: seven fifty a barrel. This is jargon free. Bloomberg's surveillance
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