WEBVTT - Levitt: SEC should put investors first

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<v Speaker 1>This is Bloomberg Surveillance just certainly a heightened set of

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<v Speaker 1>risks in the US economy right now. And that's because

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<v Speaker 1>the United States isn't an island. We're part of a

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<v Speaker 1>global economy with GDP on healthcare in ways that no

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<v Speaker 1>other country does. The big argument about accessive low interest

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<v Speaker 1>rates for very long term time is that warps the

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<v Speaker 1>investment pattern, real investment. Bloomberg Surveillance your link to the

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<v Speaker 1>world of economics, finance and investment on Bloomberg Radio. Kid

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<v Speaker 1>Morning everyone, Bloomberg Surveillance. Good morning worldwide, Michael McKee and

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<v Speaker 1>Tom Kim Bloomberg Radio plus Bloomberg dot Com. Particularly for

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<v Speaker 1>those of you in Germany listening, Good morning, Michael. Look

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<v Speaker 1>at that headline after those very challenging regional elections, huge

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<v Speaker 1>turnout in Germany over the weekend. The Chancellor says goal

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<v Speaker 1>remains to reinstate Schengen borders system. That is a lonely headline.

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<v Speaker 1>Well morning on Golabarco. Holding a news conference after the

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<v Speaker 1>election sits she is not changing her view on refugees.

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<v Speaker 1>She's not going to be influenced by the vote stick

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<v Speaker 1>to her course seeking European solutions Nichols with some terrific

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<v Speaker 1>perspective on that. This morning, we thank him for his

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<v Speaker 1>uh yeoman duties Bloomberg surveillance. This morning our four X

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<v Speaker 1>brief brought you by Interactive Broker's winner of FX Weeks

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<v Speaker 1>two thousand fifteen award for the Best Retail for X

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<v Speaker 1>trading platform visit ib at I b k R dot

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<v Speaker 1>Com Slash four x A turn to the market dollar

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<v Speaker 1>affectually stronger off d X, y yen one thirteen sixty

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<v Speaker 1>three euro one eleven twenty eight weeker euro. This morning,

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<v Speaker 1>I noticed auzy the hydro carbons, the commodity currencies churning around,

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<v Speaker 1>Ruble seventy point five, six eighty down to seventy within

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<v Speaker 1>the commodity rally as well. Believe that David Wilson, who's

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<v Speaker 1>trying to figure out if one company is gonna end

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<v Speaker 1>up owning all the hotels, is that where we're heading,

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<v Speaker 1>they own the Waldorf for a gazillion dollars. And in

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<v Speaker 1>my right that the latest is that this group may

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<v Speaker 1>be going after Starwood. Yeah, that's sort of how things

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<v Speaker 1>are shaking out. And there's one War deal in the

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<v Speaker 1>mix as well, Star Wars Hotels and Resorts worldwidees up

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<v Speaker 1>eight percent in early trading. The hotel owner received a

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<v Speaker 1>twelve point nine billion dollar takeover offer from a group

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<v Speaker 1>led by China's and Bang Insurance and own the World.

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<v Speaker 1>They bought it last year, and they just made a

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<v Speaker 1>deal to buy sixteen hotels and resorts from Blackstone Group

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<v Speaker 1>for six and a half billion dollars. So that's the

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<v Speaker 1>other piece of the puzzle. We should point out. Star

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<v Speaker 1>Wars already accepted an offer from Marriott International that was

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<v Speaker 1>back in November. Marriott shares by the way up two

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<v Speaker 1>and a half percent in early trading. And more on

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<v Speaker 1>the deal front. You have fresh Market, the most active

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<v Speaker 1>stock and early trading up about twenty four percent. The

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<v Speaker 1>supermarket chain accepted a one point four billion dollar buyout

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<v Speaker 1>offer from Apollo Global Management, and we reported in October

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<v Speaker 1>that Fresh Market founder Ray Berry was working with Apollo.

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<v Speaker 1>Barry and his son Brett will keep their steaks in

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<v Speaker 1>the company. You've got energy stocks lower, with crude oil

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<v Speaker 1>down more than a dollar a barrel in New York trading.

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<v Speaker 1>Excen Mobile and Chevron both off about one percent, Kinder

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<v Speaker 1>Morgan down one and a half percent, and Chesapeake Energy

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<v Speaker 1>down six percent, just some of the declines that we're

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<v Speaker 1>seeing in a darker Petroleum down two and a half percent.

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<v Speaker 1>The oil national guest producer was selling five year and

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<v Speaker 1>ten year notes and thirty year bonds and will use

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<v Speaker 1>the proceeds to refinance maturing debt. As far as analyst

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<v Speaker 1>calls go, You've got h c A Holdings up one percent.

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<v Speaker 1>The largest shars owner of for profit hospitals was raised

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<v Speaker 1>the equivalent of buy from hold of JP Morgan Chase,

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<v Speaker 1>Tesla Motors up two percent. The electric carmaker raised the

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<v Speaker 1>equip want to buy from neutral Robert W. Baird and

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<v Speaker 1>Serious Logic up one and a half percent. The chipmaker

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<v Speaker 1>received a by rating in new coverage that need them close.

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<v Speaker 1>Natural Resources up three percent. The mining company said he

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<v Speaker 1>will restart iron ore production at a Minnesota facility to

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<v Speaker 1>meet customer demand. And one war for you. Three D

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<v Speaker 1>Systems up twelve and a half percent. They make a

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<v Speaker 1>three dimensional printers reported fiscal throw court results and three

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<v Speaker 1>DS adjusted earnings beat analysts average estimate in a Bloomberg survey.

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<v Speaker 1>Thank you, David will greatly appreciate it. He's a former

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<v Speaker 1>chairman the SEC Bloomberg Helpy Board. Member Arthur, I've got

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<v Speaker 1>to rip up the script and being insurance of China's

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<v Speaker 1>not publicly traded. They have and you know you can

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<v Speaker 1>read an Economist article here, a Bloomberg article there, all

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<v Speaker 1>of the incestuous relationships with China government officials from where

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<v Speaker 1>you sit. If they buy the wall door for billions,

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<v Speaker 1>are they're part of a group trying to buy star

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<v Speaker 1>Wars for billions? How should American government or finance react?

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<v Speaker 1>I think over overjoyed. I think the fact that the

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<v Speaker 1>Chinese choose to find their money works better for them

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<v Speaker 1>in the US than in China or elsewhere is a

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<v Speaker 1>great tribute to our economy. I think the government and

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<v Speaker 1>people of the United States and business community should be

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<v Speaker 1>delighted to have outside investment in US assets without a

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<v Speaker 1>question SEC This week, UM Senate Banking Committee going to

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<v Speaker 1>hold hearings on a couple of nominations. We've talked with

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<v Speaker 1>you over the last week or so about how shorthanded

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<v Speaker 1>the agency is. If you were on the banking having

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<v Speaker 1>been on the other side, what would be your job

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<v Speaker 1>interview question for for the candidates? Well, I would ask

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<v Speaker 1>each candidate how they ranked the three major constituents of

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<v Speaker 1>the sec our markets, US investors in corporate finance. Which

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<v Speaker 1>one of those would be their priority and my priority?

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<v Speaker 1>And I believe their priority and every chairman's priority, should

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<v Speaker 1>place investor interests above all others. If they don't answer

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<v Speaker 1>the question that way, where I chairman of the Banking Committee,

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<v Speaker 1>I'd have some reservations. I suspect, however, that the present

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<v Speaker 1>Chairman of the Banking Committee might have a different order

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<v Speaker 1>of preference. Investor interests would be important, but I think

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<v Speaker 1>he probably would place the other interests ahead of investor interests.

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<v Speaker 1>Could least the Fairfax or Hester Pierce been nominated twenty

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<v Speaker 1>years ago, I doubt it. Twenty years ago, they would

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<v Speaker 1>have been looking for individuals who had some background insecurities regulations,

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<v Speaker 1>securities law, academia, rather than the polarization that comes from

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<v Speaker 1>individuals who were wedded to one ideology or another. Clearly,

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<v Speaker 1>each of these new commissioners have an ideologic bent, and

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<v Speaker 1>I suspect this makes it very difficult for the chairman

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<v Speaker 1>to try to work through consensus solutions. That's the secret

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<v Speaker 1>of a successful commission, if they're able to work together.

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<v Speaker 1>We haven't seen one of those in many years. Arthur

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<v Speaker 1>I hate to say it, but Mike and I actually

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<v Speaker 1>remember what you say months ago, and I want to

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<v Speaker 1>bring up something that you said months ago in the

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<v Speaker 1>heat of whatever the moment Wasn't like folks that can't recall.

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<v Speaker 1>Arthur Levitt said that the turmoil of our politics is

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<v Speaker 1>good for the system, and it gets leavened out as

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<v Speaker 1>we moved through the year to the conventions and on.

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<v Speaker 1>We've had a little bit of an adjustment since then,

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<v Speaker 1>including the Absolute Donny Book of the last ten days.

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<v Speaker 1>Can you give our listeners confidence that we'll figure this

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<v Speaker 1>out by the conventions, or possibly that we'll figure it

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<v Speaker 1>out by the first Tuesday of November. My long winded

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<v Speaker 1>answer to that would be no. If you, Arthur, I'm

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<v Speaker 1>honored to ask your comment. With your father's public service

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<v Speaker 1>and your public service and whatever anybody's politics, where did

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<v Speaker 1>this come from? I've never seen anything like it. The

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<v Speaker 1>biggest surprise of my life probably was the Bernie Madoff scandal.

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<v Speaker 1>But the Trump emergence has has trump that I can't

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<v Speaker 1>quite believe that the Donald Trump, whom I've met from

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<v Speaker 1>time to time, is a likely candidate and possible winner

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<v Speaker 1>of the presidency of this country. But we've survived up

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<v Speaker 1>to now. Uh, and we've lived with presidents that looked

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<v Speaker 1>great during the conventions and turned out to be inadequate. Uh.

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<v Speaker 1>Maybe Trump will represent something different. I think the country

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<v Speaker 1>is strong enough to endure almost any personality in the

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<v Speaker 1>role of president. Arthur, thank you so much, wisdom for

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<v Speaker 1>Arthur love it as we looked at this week my

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<v Speaker 1>Arthur loved the former chairman of the SEC with us

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<v Speaker 1>is wanted to thank you so much. Mike. My twitter

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<v Speaker 1>feed this this weekend was surreal. Yeah. I don't want

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<v Speaker 1>to get in the politics of it, but the fact

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<v Speaker 1>is it was surreal. There was a point I couldn't

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<v Speaker 1>keep track of whether it was speculation, rumor innuendo, her

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<v Speaker 1>cold heart, all about the violence and folks, a political

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<v Speaker 1>did a very interesting fact check of a certain presidential

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<v Speaker 1>candidate um and all the things, all the lies he

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<v Speaker 1>told during the past week. I urge people to take

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<v Speaker 1>a look at that. We are trying to give you

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<v Speaker 1>a perspective away from the zaniness of the lack of

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<v Speaker 1>discourse of it. We think Richard has particularly this morning

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<v Speaker 1>for careful discourse. Agree or disagree, futures negative five down

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<v Speaker 1>features negative time Now to check in with Michael Barr

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<v Speaker 1>and get the latest world in national headlines like Mike

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<v Speaker 1>Tom thank you very much. The Republican and Democratic presidential

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<v Speaker 1>candidates are getting ready for another big Tuesday, with primaries

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<v Speaker 1>tomorrow in Ohio, Illinois, Missouri, North Carolina, and Florida. Ohio

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<v Speaker 1>is a winner take all contest. Donald Trump is hoping

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<v Speaker 1>to triumph in the state of rival and Ohio Governor

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<v Speaker 1>John Kasi. Florida is the home state of another Republican rival,

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<v Speaker 1>Senator Marco Rubio. President Obama could nominate someone to the

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<v Speaker 1>Supreme Court as early as this week, and the Republican

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<v Speaker 1>National Committee says it is launching an add and pr

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<v Speaker 1>campaign to derail anyone the President picks to replace late

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<v Speaker 1>Justice Anton and Scalia, who died last month. Authority say

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<v Speaker 1>twenty nine people have been taken to hospitals following a

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<v Speaker 1>train to railman in Southwest Kansas. The train traveling from

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<v Speaker 1>Los Angeles to Chicago. The rail just outside of Dodge City.

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<v Speaker 1>Overnight Global News twenty four hours a day, powered by

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<v Speaker 1>our twenty four hundred journalists and more than a hundred

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<v Speaker 1>fifty news bureaus from around the world. I'm Michael bar

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<v Speaker 1>Mike TOMCNNA. Thanks someone. It's a dollar down a stick.

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<v Speaker 1>Somebody said, what's the stick? A stick is one dollar

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<v Speaker 1>seven fifty a barrel. This is jargon free. Bloomberg's surveillance

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