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Speaker 1: Broadcasting live to New York, Kilomberg eleventh to Washington, d C,

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Speaker 1: bloom to Boston, Bluemberg twelve on its to San Francisco,

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Speaker 1: Bluebird nine to the Country Series at Channel one ninety

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Speaker 1: and around the globe the Bluemberg Radio Plus happened Bloomberg

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Speaker 1: dot com these bloomwork surveillance. Good morning, have you won

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Speaker 1: Bloomberg Surveillance? Tom Keene and joining me now, Scarlet Food

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Speaker 1: thrilled Scarlett with this morning, Scarlett, Let's get right to

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Speaker 1: the economic indicators. Economic indicators this morning marching by Commonwealth

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Speaker 1: Financial Network. When it's time to change the conversation and

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Speaker 1: talk with a broker dealer r I A that's ready

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Speaker 1: to listen, call eight six six four six two three

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Speaker 1: six three eight or visit Commonwealth dot com to learn more.

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Speaker 1: It's a quiet day the market US Manufacturing p M

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Speaker 1: I later in the day next week Housing housing housing

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Speaker 1: uh we all sorts of good things like case, Schiller

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Speaker 1: and even durable goods in there to give us an

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Speaker 1: important g D p uh tweak. Scarlett, I'm a major

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Speaker 1: here in a way. Did you stay for the third period?

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Speaker 1: I stayed until the bitter end because my son did

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Speaker 1: not want to leave, but I made him leave before

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Speaker 1: they announced the three stars of the game because I

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Speaker 1: knew that there would be no Rangers who would be

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Speaker 1: among the three stars. That's fair enough, right, um, Tom.

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Speaker 1: When I'm looking at the markets, what surprises me here

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Speaker 1: is that you've got so many individual companies down in

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Speaker 1: pre market trading, Alphabet, Microsoft on those disappointing results, Yet

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Speaker 1: when you look at futures, they're kind of met there

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Speaker 1: there little change. Everyone's emphasizing the macro over the micro today. Yeah,

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Speaker 1: the macro is five nothing. Pittsburgh. I mean, for those

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Speaker 1: you nationwikes, through is a die hard ring. You really

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Speaker 1: know how to twist the dagger. Die hard Rangers, And

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Speaker 1: I might I might point out, folks that she don's

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Speaker 1: the blades and actually, what position do you play when

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Speaker 1: you play women's hockey. I've attended a couple of practices.

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Speaker 1: I'm working on it, working. Yeah, that's it's a polite

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Speaker 1: way to put it. Are you like horn Quest in

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Speaker 1: front of the net? Pegs you get in front of

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Speaker 1: the net and just make it not nearly as effective. Yeah,

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Speaker 1: I'm working on that. Okay, Well, they're scarlet food with

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Speaker 1: their hockey. Update. Of course the Penguins, I guess they

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Speaker 1: play Saturday, and the Penguins doing better than good. They

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Speaker 1: they come down the ice quickly. Did you stay and

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Speaker 1: watch the game? Okay, yeah, that's probably all you needed.

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Speaker 1: It's different kind of hockey for those of you that

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Speaker 1: are not hockey fans. It's a wonderful time of year

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Speaker 1: here in New York. Scarlett. It is a quiet tape

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Speaker 1: this morning. It is a quiet tape, and we want

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Speaker 1: to bring in John Harriman of Mitsubishi ufj A Securities

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Speaker 1: right now to talk to us a little bit about

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Speaker 1: the eco data that's on tap that we've seen this week. John,

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Speaker 1: I know that you've been looking specifically at jobless claims

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Speaker 1: as this indicator of the strength in the labor market,

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Speaker 1: and they continue to trend lower. It's a really remarkable

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Speaker 1: scarlet that we the patterns we've been seeing for the

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Speaker 1: last i'd say two to three years. But what when

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Speaker 1: I look at this year, what jumps out at me

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Speaker 1: is this from a pure cyclical basis, the the year

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Speaker 1: two thousand sixteen is mirroring very closely, uh, the pattern

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Speaker 1: in jobs claim because we saw in the year two

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Speaker 1: thousand and also in the year nineteen eighty nine, and

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Speaker 1: if if you recall, those were years where the claims

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Speaker 1: were so low, they were at the absolute end of

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Speaker 1: the economic cycles for the nineteen eighties or the nineteen nineties,

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Speaker 1: and it was only after you know, almost ten years

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Speaker 1: of economic growth that you're able to achieve such low

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Speaker 1: level of claims. Were now tracking that remarkable performance this year.

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Speaker 1: Are you saying we're at maximum employment? No? No, No,

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Speaker 1: We're saying, is there's a chance there's a chance we

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Speaker 1: may actually set a new even lower record and an

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Speaker 1: annual cycle next year. There's a chance. But here's what

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Speaker 1: here's what's particuliar. When if you go back in nine

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Speaker 1: and in the year two thousand, when we had had

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Speaker 1: claimed solo, Chairman Screenspan, who was running the set at

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Speaker 1: the time, became nervous about this Phillips curve relationship. You know,

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Speaker 1: this this the idea that very low unemployment leads to

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Speaker 1: significant wage gains, which translates ultimately into a much higher

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Speaker 1: core and headline inflation. So he became very worried about that,

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Speaker 1: so he hyped rates, I would say just a little

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Speaker 1: bit too aggressively. In both of those episodes and the

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Speaker 1: following year after threw us into a recession. So what

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Speaker 1: I'm hoping what I pitched this says, and and maybe

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Speaker 1: you know, as I was on scholars Show recently, in

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Speaker 1: the TV show where I mentioned that I think Jerry

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Speaker 1: Yelling maybe actually the right person right now for the job,

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Speaker 1: because she, even with such low level claims, she may

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Speaker 1: go very gradually, very cautiously on the rate hikes, unlike

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Speaker 1: Sherman Greenspan, who previously moved right off sharply and quickly

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Speaker 1: slowed the economy and things unsfolded. But we don't, none

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Speaker 1: of us want that. I'll take your point clearer issue here. Yes,

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Speaker 1: the numbers are great, and all my mails says, these

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Speaker 1: guys are nuts. John Herman's nuts, scarlet nuts. I don't

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Speaker 1: care what claims are. I'm looking at my economy and

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Speaker 1: my joy, my village, my city. Let me use you

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Speaker 1: the basic Yelling question, is there slack in the economy.

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Speaker 1: I think there's still slack in the economy, tom. And

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Speaker 1: here's why. From the year two thousand and six through

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Speaker 1: last year. Uh, there's a group of people in economy

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Speaker 1: called their working age, but they're called not in the

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Speaker 1: labor force. That that group swelled to swell by seventeen

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Speaker 1: million people from twenty two thousand six through seventeen million

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Speaker 1: people up to about ninety four and a half ninety

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Speaker 1: five million people. What we've observed for the last i'd

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Speaker 1: say five months is that we're now the labor market

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Speaker 1: is sufficiently tight where employers when they go to higher uh,

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Speaker 1: they're actually even going into that pool of people what's

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Speaker 1: called not and pulling those people into ops. And that

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Speaker 1: has been something that Cherry Yelling argued back in two

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Speaker 1: thousand leven two that she was hopeful would happen. Uh.

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Speaker 1: And now we're finally, you know, seven, you know, five

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Speaker 1: six years later, finally starting to get that. So if

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Speaker 1: I was to Charley Yelling, I'd say, okay, look, uh,

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Speaker 1: you know, I I was on a hook five or

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Speaker 1: six years ago. I was looking for this kind of

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Speaker 1: pattern where the economy was strengthened enough we start drawing

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Speaker 1: down that reserve, that surplus pool of workers, as called

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Speaker 1: marchis are calling we do. We start drawing them down,

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Speaker 1: bring them back into health, their families, health economy, give

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Speaker 1: the economy a little more resilience, a little more depth.

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Speaker 1: We want some depth to the growth process. Here and

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Speaker 1: give a little more strength and and and she's getting it.

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Speaker 1: So if she goes slow, I mean, I know you

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Speaker 1: know everyone's while you get vice. Chaick Fish turns saying,

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Speaker 1: always worried about wage growth, he's worried about the tinness

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Speaker 1: of the labor market. He's worried about the Phillips curve.

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Speaker 1: And you just don't want to overreact the way we

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Speaker 1: did in nine or two thousand. Pushed these very sub

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Speaker 1: confessors soon and then slow us downing ourselves back with

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Speaker 1: John Herman and Mitsubishi UFJ with us this morning on

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Speaker 1: the Odditiesily I get Scarlo get tons of mill on

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Speaker 1: this with incredible jobless claims. There is another way to

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Speaker 1: put it. Futures up to down, futures up ten. This

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Speaker 1: our surveillance is brought to you by BMW mount Kisso.

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Speaker 1: Visit BMW mount Kisso dot com. Let's bring in Michael

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Speaker 1: barb with national and international headlines. Michael Scarlett, Tom, thank

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Speaker 1: you very much. President Barack Obama is in the UK.

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Speaker 1: He's having lunch right now with Queen Elizabeth. President Obama

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Speaker 1: has also waited until the heated Brexit debate. President Obama,

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Speaker 1: in an op ed piece and the telegraphers the UK

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Speaker 1: to stay part of the EU, saying the EU does

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Speaker 1: not moderate British influence, it magnifies it. London Mayor Boris

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Speaker 1: Johnson bristled at President obama suggestions, saying the US does

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Speaker 1: not follow its own advice. States would not dream of

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Speaker 1: subjugating itself in any way to any other international jurisdiction.

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Speaker 1: Uh they won't even sign up to the International Criminal Court.

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Speaker 1: Britain's will vote on the Brexit in June. President Obama

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Speaker 1: is set to become the first sitting president to visit Hiroshima, Japan,

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Speaker 1: since in atomic bomb destroyed the city during World War Two.

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Speaker 1: According to the Niek Business Daily, President Obama would be

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Speaker 1: accompanied by a Japanese Prime minister, Shinzo Abe, after Japan

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Speaker 1: hosted G seven summit in late May. Earlier this month,

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Speaker 1: Secretary of State John Kerry visited a Roshima and on

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Speaker 1: Topsy is scheduled for today for pop Icon Prince. He

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Speaker 1: was found dead in the suburban Minneapolis home in age

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Speaker 1: fifty seven. Global News twenty four hours a day, powered

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Speaker 1: by our twenty four hundred journalists and more than a

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Speaker 1: hundred fifty news bureaus from around the world. Michael bar Scarlett, Tom,

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Speaker 1: thank you so much, Michael. It is time now for

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Speaker 1: the land Rover Percippi Bloomberg NBC Sports Update. Let's bring

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Speaker 1: in John Stash Heart and John. You're gonna start with

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Speaker 1: the Rangers. The awful game last night, down five nothing,

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Speaker 1: the Rangers trail three one in the series. It's a

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Speaker 1: must win on Saturday. You were there, apparently, Yeah, I

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Speaker 1: was there. It was painful to the very end. Yeah,

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Speaker 1: maybe the the one still there at the end. Well,

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Speaker 1: the Rangers knew they were facing a hot team. Penguins

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Speaker 1: won four team of their last sixteen, but it has

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Speaker 1: been surprising how one side of the series has been

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Speaker 1: Penguins winning game four five nothing. First time the Rangers

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Speaker 1: has been shut out in four months an a Ranger team,

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Speaker 1: they went nearly four months without back to back losses.

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Speaker 1: Now trailing three games to one, facing elimination. Their coaching

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Speaker 1: lane Vigno, You know how a character for this group

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Speaker 1: to come up with this type of performance. I don't

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Speaker 1: think it was a matter of lack of will. We

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Speaker 1: just picked a very bad night to have a very

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Speaker 1: bad game. Had the bench Henry Lunk was second period

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Speaker 1: of Game five in Pittsburgh three o'clock tomorrow, Tampa Bay

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Speaker 1: scored late one nothing over Detroit to win the series.

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Speaker 1: Anaheim one at Nashville. That series tied to two. Chicago

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Speaker 1: double overtime win at St. Louis to stay alive. Islanders

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Speaker 1: have Game five at Florida tonight. The Warriors able to

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Speaker 1: win once without the injured Steph Curry, but not again. Houston,

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Speaker 1: on a game winning from James Harden, won ninety six.

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Speaker 1: Golden States, still leading two to one, didn't lose back

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Speaker 1: to back games all season. Toronto and Oklahoma's vide both

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Speaker 1: one for two one series leads. Not the loss for

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Speaker 1: the Yankees failed to get an extra base hit. The

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Speaker 1: normally reliable bullpen gave up five runs over the last

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Speaker 1: three innings. Oakland finished a sweep seven three. Yanks have

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Speaker 1: lost seven last eight. The Cubs won sixteen nothing at Cincinnati.

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Speaker 1: They out hit the Reds eighteen to nothing on no

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Speaker 1: hit her for Cubs. As Jake Grietta with the Bloomberg

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Speaker 1: NBC Sports Update, I'm John scar John, thanks so much. Yes,

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Speaker 1: we'll continue our discussion here in Penguins Rangers Hockey. When

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Speaker 1: Scarlett is re medicated five. Nothing. You have to keep

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Speaker 1: repeating that, don't you. Yes, I thought it was fair.

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Speaker 1: I think the penguins are playing like l A. King's.

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Speaker 1: They just come down. That's another painful memory. They come

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Speaker 1: down the ice very very fast. They escaped forward aggressively

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Speaker 1: like a few other teams in hockey. John Herman with

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Speaker 1: this Mitsubishi UFJ will continue our discussion here Oil forty

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Speaker 1: three fifty one a barrel. This is Bloomberg's Surveillance. The

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Speaker 1: sports report was brought to you by land Rover Parsippany.

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Speaker 1: Pera and Moscow. This updates brought to you by Sector

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Speaker 1: sector spd r s dot com are called one six

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Speaker 1: six Sector e t F. A busy morning for earnings.

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Speaker 1: McDonald's posting first quarter profit that beat analysts estimates with

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Speaker 1: all day breakfast and make pick value deals, fueling a

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Speaker 1: resurgence in its US business. It shares up one percent

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Speaker 1: this morning. General Electric is lower. It's down one point

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Speaker 1: one percent. It reported a sharp sales decline in oil

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Speaker 1: and transportation has its transformation around industrial May manufacturing hit

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Speaker 1: up against a sluggish global economy. Caterpillar cut its forecast

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Speaker 1: for the year. It shares her down two point two percent.

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Speaker 1: Honeywell beat stocks are falling, commodities retreating as investors wound

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Speaker 1: back enthusiastum that had sent gauges of both to this

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Speaker 1: year's highs earlier in the week. The end dropping is

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Speaker 1: the Bank of Japan weighs the possibility of offering negative

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Speaker 1: rate loans to banks. We check the markets every fifteen

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Speaker 1: minutes throughout the trading day on Bloomberg snp E Mini

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Speaker 1: future as little change this morning. DOWIE mini futures down too,

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Speaker 1: and NASDACI mini futures down eight The decks in Germany's

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Speaker 1: down half percent. Ten year treasury down five thirty seconds,

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Speaker 1: the yield one point eight seven percent. Nimax screwd oil

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Speaker 1: of seven tenths per cent or thirty two cents to

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Speaker 1: forty three fifty a barrel. Colmacs Gold is down two

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Speaker 1: tenths per cent or two dollar sixty cents at twelve

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Speaker 1: forty seven sixty announced the euro and all our twelve

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Speaker 1: fifty eighth p N one eleven point oh six. That's

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Speaker 1: a Bloomberg Business Flash, Tom and Scarlett Karen, thanks so much.

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Speaker 1: It is folks on a Friday on Wall Street. The

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Speaker 1: following is from Bloomberg View. Opinions and commentary from Bloomberg columnists.

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Speaker 1: I'm a entrepreneuru, a columnist for Bloomberg View. Donald Trump

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Speaker 1: says that Republicans want to slash SO Security and Medicare

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Speaker 1: and that their approach will cost them elections. He's right

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Speaker 1: that these programs are very popular. That's why Republicans have

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Speaker 1: been careful in their approach to them. They don't want

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Speaker 1: to cut Social Security benefits from their current level. They

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Speaker 1: want to slow their growth. The leading Republican proposed to

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Speaker 1: change Medicare guarantees that senior citizens will face no increase

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Speaker 1: in out of pocket expenses and the Congressional budget officers

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Speaker 1: will actually cut those expenses. Trump provides no realistic alternative

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Speaker 1: for making SO Security and medicare, solvents, cutting waste, fraud

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Speaker 1: and abuse, as he promises, cannot possibly make up social

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Speaker 1: securities ten trillion dollars shortfall, nor would raising taxes on

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Speaker 1: the rich raised nearly enough money. We face an inescapable

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Speaker 1: trade off. Either we raise middle class taxes to keep

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Speaker 1: middle class benefits rising, or we reign in the growth

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Speaker 1: of those benefits to keep those taxes down. While either

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Speaker 1: choice carries political risks for Republicans, standing for entitled reform

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Speaker 1: is the better option. I'm entrepreneuria. For more of you,

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Speaker 1: please go to Bloomberg View dot com or view go

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Speaker 1: on the Bloomberg terminal. This has been Bloomberg View and

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Speaker 1: Bloomber You. Commentaries could be heard hourly weekdays on Bloomberg Radio.

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Speaker 1: Michael McKee in Florida. He's off to do a panel.

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Speaker 1: Scarlet food picked a short straw. We said at the

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Speaker 1: Rangers one you didn't have to come in. She's here.

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Speaker 1: She'll be here all weekend. John John John Herman Mitsubishi

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Speaker 1: UFJ with John. There's a consensus belief that the first

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Speaker 1: quarter was moldy and it will get better. Yes, I

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Speaker 1: don't hear that consensus from you. What what's what's the

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Speaker 1: path to decent economy? Okay, so, uh, you know we well,

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Speaker 1: we've been forecasting for a long time and we continue

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Speaker 1: to forecast. Is the economy's potential. The average growth rate

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Speaker 1: that we're running is very close to two and that's

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Speaker 1: just productivity games plus of labor force growth, and unfortunately,

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Speaker 1: both of them are significantly slower than will be observed

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Speaker 1: over the last forty to fifty to sixty years. Unfortunately

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Speaker 1: this time around, we can do some things in the

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Speaker 1: government can do some things to change it. But until

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Speaker 1: we do those things, we continue to forecast around two

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Speaker 1: percent growth on average, not just this year but for

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Speaker 1: the comedy so um, so we do have we have

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Speaker 1: an inventory correction in the first quarter. Unfortunately, we also

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Speaker 1: have a ballooning foreign trade drag. So our exports are

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Speaker 1: slow because the rest of the world is slow. But

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Speaker 1: we're also we're not manufacturing as much stuff at home

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Speaker 1: that we consume that we used to, so we have

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Speaker 1: to import this. You know, I have to import those goods.

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Speaker 1: So in general softwaret quarter. Definitely we're above the street

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Speaker 1: on second quarter bounds and uh problems, and I think

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Speaker 1: also a little bit above the street on the third

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Speaker 1: quarter bounce and then we look for a fourth quarter

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Speaker 1: just a little bit below the streets. So on average

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Speaker 1: though around two percent this year, one point nine two

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Speaker 1: percent this year, about uh two, two point one, maybe

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Speaker 1: two point two next year. But again some of the

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Speaker 1: keys is this, if you can just keep this labor

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Speaker 1: you know of labor market growing and not overreact, don't

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Speaker 1: don't get you know, looped into this sort of academic

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Speaker 1: argument over the Phillips curve and expressions on just don't

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Speaker 1: get looped in patients and slow you know, we we

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Speaker 1: this is this recovery is more like a marathon. It's

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Speaker 1: not a sprint. So what we you know, in previous

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Speaker 1: recoveries in four or five or six years, we had

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Speaker 1: super strong gains and income. Everybody felt good, consumer conferences, roaring,

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Speaker 1: people would borrow and some one. This time it's been

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Speaker 1: very moderate, very slow, painstakingly slow. So this time it

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Speaker 1: has it's more like a marathon. You've got to just

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Speaker 1: time out and hopefully hopefully the expension last another four years.

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Speaker 1: Here's the thing. We have this pattern now developing since

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Speaker 1: the financial crisis, where GDP growth in the first quarter

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Speaker 1: is a little bit subpar. Uh Deutsche Bank actually included

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Speaker 1: this in their recent note. Where the first quarter, on average,

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Speaker 1: you see eight tenths of one percent growth, in the

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Speaker 1: second quarter you get average growth of about three point

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Speaker 1: one per cent, four times stronger than the first quarter.

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Speaker 1: What's going on there? Uh, some it was some seasonal

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Speaker 1: adjustments that the government was not correctly incorporating. And uh,

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Speaker 1: but what we're getting this time around is they've they've

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Speaker 1: attempted to correct for it. But what we're getting this

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Speaker 1: time is we've sort of have a double whammy hitting

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Speaker 1: in the first quarter. We had an overbuild of inventories

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Speaker 1: all last year when the dollar strengthen and companies brought

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Speaker 1: in a ton of inventories inexpensively, and now we're just

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Speaker 1: in the fourth quarter. In this quarter, we're trying to

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Speaker 1: correct them where you know, bring these inventories down, uh,

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Speaker 1: you know, burn them off, so to speak, and bring

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Speaker 1: things more into bounce. So we have that extra drag.

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Speaker 1: But what is also something to be mindful of is this, uh,

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Speaker 1: you know, business capex spending is very soft. Chairman green

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Speaker 1: Spencer is talking about this. We've been talking about it. Uh,

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Speaker 1: it's been really soft the entire decade, and it's been

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Speaker 1: the worst recovery in business capex uh on you know

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Speaker 1: since the early fifties, and Chairman Greenspan says in his lifetime,

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Speaker 1: which puts it back into the thirties. So this is very,

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Speaker 1: very bad. And we see we see CAPE spending on

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Speaker 1: equipment this quarter negative sharply they go two point five.

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Speaker 1: My stegment this is, you know, officials in Washington have

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Speaker 1: to ask themselves, where seven years into a recovery and

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Speaker 1: businesses are still unwilling to commit capital, to commit their

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Speaker 1: finances to you know, investment on on either equipment or

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Speaker 1: structures lasting to have the aspensos. Why are they unwilling

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Speaker 1: to make this commitment? And it's not the key for

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Speaker 1: really good growth you need you need to have this.

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Speaker 1: And and unfortunately when I talk to officials and Washington,

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Speaker 1: they're not really browt in on this, and they're not

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Speaker 1: and they're not doing the real job and they're not

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Speaker 1: doing the real job on this on this matter. But

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Speaker 1: until we get more consistent, more robust um, you know,

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Speaker 1: more passion out of businesses, you know, we're gonna stay

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Speaker 1: and unfortunately staying this kind of two percent average growth

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Speaker 1: rate where you know, first quarters a little bit on

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Speaker 1: the soft side and you get to bounce in the

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Speaker 1: second and third quarters, and that's where we're at. Unfortunately,

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Speaker 1: So given all that, there will still be people who

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Speaker 1: look at what the economies going through endpoint that the

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Speaker 1: Federal Reserve will look mainly at the market reaction and

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Speaker 1: how it's performing. And of late it's things have stabilized, right, conditions,

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Speaker 1: financial conditions of ease, stocks are right around their best

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Speaker 1: levels of the year. Does the Federals are sound more

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Speaker 1: hawkish as a result next week because of this stabilization.

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Speaker 1: I think, you know, I think you know, you're gonna

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Speaker 1: have many different voices on the effluence, but I think

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Speaker 1: Cherry Yellen is going to have kind of a steady

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Speaker 1: hand here. And I think you know, she in the

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Speaker 1: last several months has said, you know, not only were

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Speaker 1: just concerned about the financial conditions and song, but we're

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Speaker 1: also concerned about the global growth, the impact that the

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Speaker 1: strong dollar is having on our exports, on our manufacturing

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Speaker 1: activity and the like and song. And I think she's

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Speaker 1: going to have a steadier hand, and I don't think

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Speaker 1: she's just gonna flip flop on the basis of, you know,

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Speaker 1: a six week rally in stocks and that kind of thing.

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Speaker 1: I think she's going to have a more consistent hand,

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Speaker 1: and I at least that's what I hope she does,

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Speaker 1: because if does that, I think we can achieve you know,

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Speaker 1: even more games in stocks for example, but also get

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Speaker 1: the economy going a little bit more, help the job

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Speaker 1: market go hopefully, get you know, wages up just a

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Speaker 1: little bit more this year, next year and so on,

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Speaker 1: give consumers and businesses a little more confidence, and you know,

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Speaker 1: maybe we start to see you know, some borrowing and investment.

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Speaker 1: But you know, right now this, you know, consumers cautious

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Speaker 1: this first quarter. I think the savings rates up in

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Speaker 1: the first quarter. That's how cautious people are. Unbelievable. I

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Speaker 1: think you're totally right. Where does the savings rate go

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Speaker 1: in the next three months is unbelievable. Jenn Herman, thank

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Speaker 1: you so much. With UFJ Scarlett, it has been the

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Speaker 1: most interesting first quarter. We're now what to making three

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Speaker 1: weeks in the April. Companies have reported so far, well,

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Speaker 1: there's the there's the reporting which has been I haven't

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Speaker 1: seen a good sun of that, but it's been a

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Speaker 1: little saggy, to say the least, lackluster. Yeah, but what

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Speaker 1: what I would point out, certainly it's too early to

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Speaker 1: have any handle in the second quarter. But one of

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Speaker 1: the reigning debates in this weekend is is when does

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Speaker 1: the flip occur as we migrate from the first quarter

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Speaker 1: into this quarter. It's still the same this Yeah, there

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Speaker 1: is in Tracy ellen Away and I were saying on

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Speaker 1: Bloomberg Television yesterday that as the UK companies begin really

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Speaker 1: reporting in earnest as well, you wonder to what extent

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Speaker 1: some company executives will start blaming Brexit concerns as reasons

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Speaker 1: why their sales or their profits are not doing as well.

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Speaker 1: It's kind of like a Y two K cover all excuse.

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Speaker 1: I don't know if it's an excuse or not, but

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Speaker 1: you wonder whether you'll start to get that kind of

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Speaker 1: explanation in the in the earnings. Yeah, and of course

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Speaker 1: look this weekend to Bloomberg News coverage the president's trip

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Speaker 1: not only does Saudi Arabia, but of course in England

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Speaker 1: right now visiting the Queen and of course the strong

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Speaker 1: idea that of his op ed in the Daily Telegraph,

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Speaker 1: the Telegraph as well. He will move on to Germany

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Speaker 1: after his visit in England. Futures up one is a

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Speaker 1: churn of the market. Nasdaq Future has actually right on

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Speaker 1: the screen. Tenure yield up a basis point one point

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Speaker 1: eight eight percent. The junior yield has been a big

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Speaker 1: shift this week. We're at the point eight to higher

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Speaker 1: yields really across the curve. Higher oil prices Brent crude, barrel,

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Speaker 1: Scarlett fue and Tom Keane another hour of Bloomberg surveillance