1 00:00:00,440 --> 00:00:07,680 Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C, 2 00:00:07,920 --> 00:00:13,160 Speaker 1: Bloomberg to Boston, Bloomberg twelve unders to San Francisco, Bloomberg 3 00:00:14,040 --> 00:00:17,640 Speaker 1: to the country, US Exam Channel one ninety and around 4 00:00:17,680 --> 00:00:21,079 Speaker 1: the globe the Bloomberg Radio Bus and Bloomberg dot Com. 5 00:00:21,280 --> 00:00:25,160 Speaker 1: This is Bloomberg Surveillance. Good morning at seventh thirty on 6 00:00:25,239 --> 00:00:28,400 Speaker 1: Wall Street Time, Michael McKee along with Tom Keene or 7 00:00:28,480 --> 00:00:32,000 Speaker 1: two hours away from what looks like a higher open 8 00:00:32,320 --> 00:00:36,880 Speaker 1: on the day, with features up relatively strongly. SMP futures 9 00:00:36,880 --> 00:00:40,000 Speaker 1: eleven points higher right now, about half a percent. Here's 10 00:00:40,040 --> 00:00:42,320 Speaker 1: some of the corporate news we are watching this morning. 11 00:00:42,320 --> 00:00:46,120 Speaker 1: Warren Buffett's Berkshire Hathaway marketing bonds in Euros to help 12 00:00:46,159 --> 00:00:49,120 Speaker 1: repay a bank loan, offering bonds maturing in four, eight 13 00:00:49,159 --> 00:00:51,559 Speaker 1: and twelve years to pay off loans used in the 14 00:00:51,560 --> 00:00:54,680 Speaker 1: acquisition of precision cast parts. That's according to a person 15 00:00:55,000 --> 00:00:58,800 Speaker 1: familiar with the matter. Burberry shares up this morning speculation 16 00:00:58,840 --> 00:01:03,400 Speaker 1: the Intercontinental XJ also is financing a bid for the 17 00:01:03,400 --> 00:01:07,399 Speaker 1: London Stock Exchange Group. According to people familiar with the matter, 18 00:01:07,720 --> 00:01:10,360 Speaker 1: it will go to head to head with Deutsche bors 19 00:01:10,560 --> 00:01:14,160 Speaker 1: to win control of the UK company Prudential, the UK's 20 00:01:14,200 --> 00:01:17,200 Speaker 1: largest insurer, reporting a nineteen point three percent increase in 21 00:01:17,240 --> 00:01:21,120 Speaker 1: pre tax profit, and Norway's Sovereign Wealth Fund, the world's biggest, 22 00:01:21,120 --> 00:01:23,600 Speaker 1: had its worst year since two thousand and eleven. The 23 00:01:23,640 --> 00:01:26,640 Speaker 1: government pension fund global return two point seven percent in 24 00:01:26,640 --> 00:01:30,920 Speaker 1: two thousand fifteen, after rising seven point six percent the 25 00:01:31,000 --> 00:01:34,039 Speaker 1: previous year. Now, let's check in with Michael Barr in 26 00:01:34,040 --> 00:01:37,080 Speaker 1: the latest world national headlines. Mike, thank you very much. 27 00:01:37,120 --> 00:01:39,920 Speaker 1: Democrat Bernie Sanders scored an upset when in the Michigan 28 00:01:39,959 --> 00:01:45,240 Speaker 1: presidential primary last night, sanders rival Hillary Clinton easily won Mississippi. 29 00:01:45,480 --> 00:01:49,080 Speaker 1: Clinton spoke to supporters in Cleveland ahead of next week's 30 00:01:49,080 --> 00:01:53,920 Speaker 1: primaries in Ohio and other states. You're here tonight and 31 00:01:53,960 --> 00:01:58,680 Speaker 1: you're going to do everything you can in this next week, 32 00:01:59,200 --> 00:02:04,360 Speaker 1: along with people in Florida, Illinois, Missouri, North Carolina who 33 00:02:04,360 --> 00:02:08,120 Speaker 1: are going to the polls. Clinton is more than halfway 34 00:02:08,160 --> 00:02:11,240 Speaker 1: to the delegate account needed to win the nomination. Meanwhile, 35 00:02:11,320 --> 00:02:14,680 Speaker 1: Clinton and Sanders will hold their eighth debate tonight. For 36 00:02:14,760 --> 00:02:18,040 Speaker 1: the Republicans, Donald Trump stretch his lead and the delicate 37 00:02:18,040 --> 00:02:21,720 Speaker 1: account with wins in Michigan. Mississippi and Hawaii. Ted Cruz One, 38 00:02:21,800 --> 00:02:25,720 Speaker 1: Idaho pending on officials say US air strikes targeted and 39 00:02:25,800 --> 00:02:28,280 Speaker 1: may have killed a top commander of the Islamic State 40 00:02:28,400 --> 00:02:31,680 Speaker 1: terrorist group. The commander, who goes by the alias Omar 41 00:02:31,800 --> 00:02:35,080 Speaker 1: the Chechen, is said to have operated in both Syria 42 00:02:35,200 --> 00:02:39,160 Speaker 1: and Iraq. North Korea is publicizing what it claims as 43 00:02:39,200 --> 00:02:41,519 Speaker 1: a mock up of a key part of a nuclear 44 00:02:41,560 --> 00:02:44,280 Speaker 1: warhead lead to Kim John Un says his country has 45 00:02:44,280 --> 00:02:48,560 Speaker 1: developed miniaturized atomic bombs that can be placed on missiles. 46 00:02:48,760 --> 00:02:52,760 Speaker 1: Global News twenty four hours a day, powered by our journalists. 47 00:02:52,960 --> 00:02:56,320 Speaker 1: I'm Michael bar Mike. Thank m I got time now 48 00:02:56,360 --> 00:02:58,880 Speaker 1: for the Bloomberg NBC Sports updat and for that would 49 00:02:58,880 --> 00:03:01,640 Speaker 1: bring in John Stasha, Thanks Mike. Busy night for the 50 00:03:01,680 --> 00:03:03,920 Speaker 1: locals and hockey and whose Rangers were coming off a 51 00:03:04,000 --> 00:03:06,240 Speaker 1: loss to the Islanders where they have not lost back 52 00:03:06,240 --> 00:03:09,320 Speaker 1: to back games since mid December, and that street continues 53 00:03:09,360 --> 00:03:11,560 Speaker 1: with the four to win at Buffalo to state three 54 00:03:11,600 --> 00:03:14,120 Speaker 1: points ahead of the Red Hot Islanders were back home 55 00:03:14,160 --> 00:03:16,040 Speaker 1: from a six and one road trip, and who got 56 00:03:16,080 --> 00:03:19,080 Speaker 1: by Pittsburgh two to one on Lander's legal in the 57 00:03:19,160 --> 00:03:21,480 Speaker 1: third period. Nicks have not had back to back winds 58 00:03:21,520 --> 00:03:24,840 Speaker 1: since mid January. That Street continues out scored in each quarter, 59 00:03:25,120 --> 00:03:28,600 Speaker 1: you know, one nine four loss at Denver, seventeenth loss. 60 00:03:28,960 --> 00:03:31,680 Speaker 1: In the last twenty one games, Carmelo Anthony scored thirty 61 00:03:31,800 --> 00:03:35,560 Speaker 1: versus his former team in Toronto. Brook Lopez had thirty five, 62 00:03:35,680 --> 00:03:38,680 Speaker 1: but the Nets blew as sixteen point halftime league fell 63 00:03:38,760 --> 00:03:41,440 Speaker 1: to the Raptors one oh four ninety nine. Neither Fairleie, 64 00:03:41,520 --> 00:03:43,480 Speaker 1: Dickinson or Wagner had been to the n C Double 65 00:03:43,480 --> 00:03:46,480 Speaker 1: A tournament in the last decade. It's fdu who's going 66 00:03:46,560 --> 00:03:48,640 Speaker 1: having going to Staten Island to win the Northeast Final 67 00:03:48,680 --> 00:03:50,960 Speaker 1: on the road East. Seven seventy nine were at the 68 00:03:50,960 --> 00:03:55,200 Speaker 1: Bloomberg NBC Sports Update. I'm John Stashdland. Thanks Jenna. As 69 00:03:55,200 --> 00:03:58,400 Speaker 1: we mentioned, we're seeing strengths in the markets uh in 70 00:03:58,480 --> 00:04:01,440 Speaker 1: Europe no exception. The stock six hundred now up by 71 00:04:01,560 --> 00:04:06,440 Speaker 1: four points one point two percent. The ECB is meeting tomorrow. 72 00:04:06,440 --> 00:04:08,920 Speaker 1: We will have Mario Joggs press conference for you live 73 00:04:08,960 --> 00:04:13,400 Speaker 1: here on Bloomberg Surveillance eight thirty Wall Street Time. This 74 00:04:13,440 --> 00:04:21,680 Speaker 1: is Bloomberg Radio and this is Bloomberg Surveillance. I'm Michael 75 00:04:21,720 --> 00:04:27,480 Speaker 1: McKee along with Tom Keane. The markets change in psychology 76 00:04:27,520 --> 00:04:30,039 Speaker 1: from yesterday, shall we say where maybe there was some 77 00:04:30,080 --> 00:04:33,680 Speaker 1: consolidation going on. Right now we're looking at people buying 78 00:04:33,720 --> 00:04:37,480 Speaker 1: in SMP futures by eleven points, half a percent down, 79 00:04:37,520 --> 00:04:41,080 Speaker 1: futures ninety points higher. That's also half a percent on 80 00:04:41,320 --> 00:04:45,719 Speaker 1: the day. Gold Concomminate Lee is down nine dollars twelve 81 00:04:45,800 --> 00:04:49,360 Speaker 1: fifty three eight. Time now for the Bloomberg n j 82 00:04:49,640 --> 00:04:51,720 Speaker 1: I T STEM Report, brought to you by a New 83 00:04:51,800 --> 00:04:55,120 Speaker 1: Jersey Institute of Technology partnering with government and industry to 84 00:04:55,120 --> 00:04:58,320 Speaker 1: apply the university's world class research assets to innovate and 85 00:04:58,360 --> 00:05:01,160 Speaker 1: spur economic growth. Learn more at n j I T 86 00:05:01,800 --> 00:05:05,040 Speaker 1: dot e d U. Here's public Thanks and good morning, Michael. 87 00:05:05,160 --> 00:05:07,279 Speaker 1: Coming up on seven thirty five on Wall Street. And 88 00:05:07,279 --> 00:05:10,800 Speaker 1: here's what's making news in science, Technology, engineering and math. 89 00:05:11,200 --> 00:05:14,799 Speaker 1: Time to stretch STEM studies. The New York Times reports 90 00:05:14,800 --> 00:05:17,240 Speaker 1: the federal government is preparing to publish a rule on 91 00:05:17,320 --> 00:05:21,280 Speaker 1: Friday that will make international students earning degrees in science, technology, 92 00:05:21,320 --> 00:05:24,919 Speaker 1: engineering and math eligible to stay for three years of 93 00:05:25,040 --> 00:05:27,960 Speaker 1: on the job training. This is seven months longer than 94 00:05:28,080 --> 00:05:30,719 Speaker 1: under the two thousand eight rule. It replaces for the 95 00:05:30,760 --> 00:05:33,560 Speaker 1: STEM optional practical training program known as o p T. 96 00:05:34,160 --> 00:05:37,080 Speaker 1: It's set to take effect on May. This is fueling 97 00:05:37,120 --> 00:05:40,120 Speaker 1: the debate between industry leaders who say they're desperate for 98 00:05:40,160 --> 00:05:43,440 Speaker 1: skilled talent and tech workers complaining it's end run around 99 00:05:43,480 --> 00:05:46,440 Speaker 1: stalled the immigration reform and an assault on American workers. 100 00:05:46,880 --> 00:05:50,640 Speaker 1: And artificial intelligence system developed by Google beat a top 101 00:05:50,720 --> 00:05:54,039 Speaker 1: ranked player of the ancient brain challenging board game Go 102 00:05:54,720 --> 00:05:58,360 Speaker 1: in a televised match in South Korea. Google's self learning 103 00:05:58,440 --> 00:06:01,440 Speaker 1: deep mind technology seems to have Bastard one of the 104 00:06:01,480 --> 00:06:05,279 Speaker 1: most creative and complex games ever devised. And Tyson, the 105 00:06:05,320 --> 00:06:08,960 Speaker 1: big US chicken producer, is facing special challenges in China, 106 00:06:09,200 --> 00:06:12,200 Speaker 1: where consumers have been chasened by years of food safety scares. 107 00:06:12,400 --> 00:06:14,880 Speaker 1: The company has added to some of its chicken products 108 00:06:14,880 --> 00:06:17,560 Speaker 1: a quick response code that can be scanned with a 109 00:06:17,600 --> 00:06:20,960 Speaker 1: smartphone to see exactly where the bird was slaughtered and 110 00:06:21,000 --> 00:06:24,280 Speaker 1: when the meat arrived in the store cooler. That's this morning, 111 00:06:24,279 --> 00:06:28,120 Speaker 1: this Bloomberg and j I T. Stem report. Michael, thank you, 112 00:06:28,160 --> 00:06:31,359 Speaker 1: Bob Well. A lot to focus on China over the 113 00:06:31,360 --> 00:06:35,320 Speaker 1: past week as the Party Congress figures out what the 114 00:06:35,400 --> 00:06:38,440 Speaker 1: Chinese economy is going to be like command driven top down. 115 00:06:39,080 --> 00:06:43,080 Speaker 1: So their plans are to bring in growth this year 116 00:06:43,160 --> 00:06:46,680 Speaker 1: six and a half to seven on the year, and 117 00:06:46,680 --> 00:06:51,080 Speaker 1: to do that they are going to add short term stimulus. 118 00:06:51,120 --> 00:06:55,200 Speaker 1: We've already seen reserve ratio cut and they are going to, 119 00:06:55,360 --> 00:06:59,080 Speaker 1: they say, start cutting over capacity in some industries like 120 00:06:59,200 --> 00:07:03,960 Speaker 1: steel production. Asia Times colinist David Goldman follows what's going 121 00:07:04,000 --> 00:07:06,760 Speaker 1: on in China very closely. He joins us, Now, David, 122 00:07:07,560 --> 00:07:09,840 Speaker 1: let's start with the growth number six and a half 123 00:07:09,840 --> 00:07:13,000 Speaker 1: to seven percent, certainly lower than we have seen in years, 124 00:07:13,040 --> 00:07:18,080 Speaker 1: but still people say relatively ambitious. Well, that's a blend 125 00:07:18,400 --> 00:07:21,640 Speaker 1: of very strong growth in the consumer and tech sectors 126 00:07:21,720 --> 00:07:26,680 Speaker 1: and very bad growth, negative growth in fact in traditional cement, 127 00:07:26,920 --> 00:07:31,280 Speaker 1: steel and other smoke snack industries, which are in many 128 00:07:31,360 --> 00:07:35,040 Speaker 1: respects past. They're used by date. So what the GDP 129 00:07:35,200 --> 00:07:37,520 Speaker 1: never comes out is is much less important to me 130 00:07:37,560 --> 00:07:41,120 Speaker 1: than the kind of qualitative improvements we want to see 131 00:07:41,160 --> 00:07:43,080 Speaker 1: from a number of industries. And I think if you 132 00:07:43,200 --> 00:07:48,120 Speaker 1: follow what Chinese private tycoons are talking about, will have 133 00:07:48,160 --> 00:07:52,160 Speaker 1: a number of benchmarks. Who want to see a quantum 134 00:07:52,200 --> 00:07:54,880 Speaker 1: lead and efficiency of solar power. We want to see 135 00:07:54,920 --> 00:07:59,520 Speaker 1: improvement in the quality of local production of consumer goods 136 00:07:59,520 --> 00:08:03,080 Speaker 1: who want us a continued expansion of e commerce and 137 00:08:03,200 --> 00:08:06,680 Speaker 1: e finance, which is China's great success story. So I 138 00:08:06,680 --> 00:08:11,520 Speaker 1: think it's the qualitative supply side, bottom up aspect of 139 00:08:11,560 --> 00:08:14,680 Speaker 1: the Chinese economy that will make the difference as opposed 140 00:08:14,720 --> 00:08:18,000 Speaker 1: to aggregate demand management. And that's really what the government 141 00:08:18,000 --> 00:08:22,440 Speaker 1: has been saying. Well, in terms of that supply side, 142 00:08:22,480 --> 00:08:26,040 Speaker 1: they are going to try to address over capacity, cuts 143 00:08:26,040 --> 00:08:30,400 Speaker 1: in steel and cold production, and more promises to deal 144 00:08:30,480 --> 00:08:34,600 Speaker 1: with the zombie companies, particularly those on bank balance sheets. 145 00:08:34,880 --> 00:08:39,199 Speaker 1: What progress will they make, Well, it will be uneven 146 00:08:39,280 --> 00:08:43,680 Speaker 1: because governance in China is a work in progress, to 147 00:08:43,760 --> 00:08:47,480 Speaker 1: put it charitably, But it's much easier to shut old 148 00:08:47,520 --> 00:08:50,439 Speaker 1: companies down that it is, for example, to get to 149 00:08:50,559 --> 00:08:54,240 Speaker 1: Chinese to buy locally made rice cookers. One of the 150 00:08:54,280 --> 00:08:58,240 Speaker 1: proverbial issues that keeps coming up is that Chinese like 151 00:08:58,320 --> 00:09:02,679 Speaker 1: to buy Japanese rice hookers because basic consumer products are 152 00:09:02,760 --> 00:09:07,560 Speaker 1: simply better overseas. So the terman of shall Me, the 153 00:09:07,600 --> 00:09:11,600 Speaker 1: extremely successful low cost Chinese smartphone producer, is talking about 154 00:09:12,000 --> 00:09:16,960 Speaker 1: moving into basic consumer items, producing a higher quality products 155 00:09:17,320 --> 00:09:21,920 Speaker 1: at a lower cost. One of the proofstones of Chinese 156 00:09:21,920 --> 00:09:26,680 Speaker 1: productivity is going to be their semiconductor investment. As Bloomberg 157 00:09:26,720 --> 00:09:30,160 Speaker 1: has been reporting and many others, China's plans suspend about 158 00:09:30,200 --> 00:09:35,199 Speaker 1: a hundred sixty billion dollars two um reduce its foreign 159 00:09:35,200 --> 00:09:39,680 Speaker 1: dependency on semiconductor imports. Now the import about half. That's 160 00:09:39,720 --> 00:09:42,120 Speaker 1: going to be a critical test of how good they are. 161 00:09:42,480 --> 00:09:46,200 Speaker 1: The solar industry, which is now getting to grid parity 162 00:09:47,480 --> 00:09:49,959 Speaker 1: in China in terms of cost, is going to be 163 00:09:50,000 --> 00:09:52,679 Speaker 1: a critical issue because they've got to be shifting away 164 00:09:52,720 --> 00:09:56,720 Speaker 1: from coal, which is a terrible pollutant to renewables, as 165 00:09:56,720 --> 00:10:00,120 Speaker 1: well as nuclear and other cleaner sources of an G. 166 00:10:00,360 --> 00:10:03,640 Speaker 1: So I think it's going to be those industries which 167 00:10:03,679 --> 00:10:06,240 Speaker 1: we have to watch and where the real opportunities are. 168 00:10:06,679 --> 00:10:09,800 Speaker 1: I know some of the smartest tech venture capitalists in 169 00:10:09,800 --> 00:10:12,599 Speaker 1: the world are massively involved in China right now that 170 00:10:12,600 --> 00:10:16,320 Speaker 1: I think it's the world's biggest opportunity. They're really concentrating 171 00:10:16,520 --> 00:10:21,400 Speaker 1: on Internet, e commerce, finance, social media, UH and other 172 00:10:21,480 --> 00:10:29,640 Speaker 1: things which exploit the prospective deficiencies of distribution. Well, let's continue. 173 00:10:29,720 --> 00:10:34,320 Speaker 1: David Golden from Asia Times on China and what lies 174 00:10:34,360 --> 00:10:39,600 Speaker 1: ahead for the Chinese economy. The Chinese stock market finished 175 00:10:39,640 --> 00:10:42,720 Speaker 1: down on the day by one point three percent. That's 176 00:10:42,720 --> 00:10:45,679 Speaker 1: a thirty nine point dropped there. In Hong Kong it 177 00:10:45,800 --> 00:10:49,280 Speaker 1: was a fifteen point drop a tenth of a percent. 178 00:10:49,480 --> 00:10:52,079 Speaker 1: But stocks around the rest of the world are higher 179 00:10:52,280 --> 00:10:56,960 Speaker 1: stockic centered in Europe by one percent. Right now, this 180 00:10:57,080 --> 00:11:03,679 Speaker 1: is Bloomberg Surveillance. Bloomberg s Avalance is brought to you 181 00:11:03,720 --> 00:11:06,440 Speaker 1: by NYCB asked about their my community interest checking with 182 00:11:06,559 --> 00:11:10,160 Speaker 1: free NYCB online and mobile banking. Earn more. Getmore, visit 183 00:11:10,280 --> 00:11:12,600 Speaker 1: NYCB family dot com. Fort details