1 00:00:04,120 --> 00:00:08,400 Speaker 1: Broadcasting live to New York, Bloomberg eleven, Rio to Washington, 2 00:00:08,520 --> 00:00:12,640 Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve, under ex to 3 00:00:12,720 --> 00:00:17,160 Speaker 1: San Francisco, Bloomberg nine to the country Suies Exam Channel 4 00:00:17,200 --> 00:00:20,320 Speaker 1: one nine team, and around the globe the Bloomberg Radio 5 00:00:20,360 --> 00:00:24,320 Speaker 1: plus Appen Bloomberg got gone. This is taking stock. I'm 6 00:00:24,400 --> 00:00:27,080 Speaker 1: Kathleene Hayes along with Pim Fox. It's something that fed 7 00:00:27,200 --> 00:00:32,480 Speaker 1: your Janet Yellen mentioned in her commentary this week that 8 00:00:32,560 --> 00:00:35,120 Speaker 1: maybe there are long term structural problems is holding the 9 00:00:35,200 --> 00:00:39,600 Speaker 1: US economy back, things like a decline of work, more 10 00:00:39,680 --> 00:00:43,279 Speaker 1: structural issues. Well, we're going to be joined shortly by 11 00:00:43,320 --> 00:00:45,839 Speaker 1: a man who's taking these issues square on in his 12 00:00:45,880 --> 00:00:49,240 Speaker 1: new book, The Price of Prosperity, Why Rich Nations Fail 13 00:00:49,360 --> 00:00:51,199 Speaker 1: and How to Renew Them. He's got some answers to 14 00:00:51,280 --> 00:00:54,080 Speaker 1: some of Janet Yellen's dilemmas. Todd buck Holes will be 15 00:00:54,160 --> 00:00:57,440 Speaker 1: joining us shortly. All right, and right now, let's go 16 00:00:57,520 --> 00:00:59,800 Speaker 1: to Charlie pelleg and the Bloomberg news room for Bloomberg 17 00:00:59,840 --> 00:01:02,160 Speaker 1: this flash, and I thank you Phim, thank you Kathleen. 18 00:01:02,240 --> 00:01:05,160 Speaker 1: Let's begin with the big picture here. Stocks lower across 19 00:01:05,200 --> 00:01:08,240 Speaker 1: the board, we are brought to you by Bentley University. 20 00:01:08,280 --> 00:01:12,000 Speaker 1: What do rebooting America's oldest ski shop and crunching numbers 21 00:01:12,040 --> 00:01:15,640 Speaker 1: at Vista Print have in common? An MBA from Bentley 22 00:01:15,840 --> 00:01:20,360 Speaker 1: University that prepares graduates to innovate and lead because business 23 00:01:20,520 --> 00:01:25,240 Speaker 1: is everywhere, prepare here. Stocks are retreating amidst selling in 24 00:01:25,280 --> 00:01:27,920 Speaker 1: healthcare and tech shares that have been the market's weakest 25 00:01:28,000 --> 00:01:31,280 Speaker 1: all year. Apple heading for its biggest slide in five weeks, 26 00:01:31,360 --> 00:01:35,319 Speaker 1: dragging down technology after regulators in China said the latest 27 00:01:35,360 --> 00:01:39,559 Speaker 1: iPhones violated a design patent of a Chinese company. Apple 28 00:01:39,600 --> 00:01:43,360 Speaker 1: shares her down one percent. Turns out St. Louis Federal 29 00:01:43,400 --> 00:01:46,200 Speaker 1: Reserve President Jim Bullard is the missing dot. When the 30 00:01:46,200 --> 00:01:49,960 Speaker 1: FED released its economic projections in Washington earlier this week, 31 00:01:50,280 --> 00:01:52,880 Speaker 1: one of the seventeen officials sitting around the table did 32 00:01:52,920 --> 00:01:56,560 Speaker 1: not put forth an estimate for a long run interest 33 00:01:56,640 --> 00:02:00,000 Speaker 1: rate projection displayed in the FED so called dot plot. Today, 34 00:02:00,160 --> 00:02:03,680 Speaker 1: Bullard said it was his. Troy Gayski is senior portfolio 35 00:02:03,720 --> 00:02:06,840 Speaker 1: manager with Skybridge Capital. You know, all along the lines, 36 00:02:06,920 --> 00:02:09,040 Speaker 1: particularly last year, there's been a debate. Is the market 37 00:02:09,120 --> 00:02:10,960 Speaker 1: right is the FED rights? The market right is the 38 00:02:10,960 --> 00:02:13,000 Speaker 1: fed right, and it looks like the market's been right 39 00:02:13,360 --> 00:02:15,359 Speaker 1: for quite some time, so you know, two and a 40 00:02:15,400 --> 00:02:17,520 Speaker 1: half years out. He's also admitting that you really have 41 00:02:17,600 --> 00:02:20,440 Speaker 1: no predictive power over that, so stop pretending you do. 42 00:02:20,880 --> 00:02:23,960 Speaker 1: Viacom is forecasting earnings for the quarter ending in June 43 00:02:24,000 --> 00:02:27,320 Speaker 1: that lagged behind analysts analysts estimates, adding to the woes 44 00:02:27,360 --> 00:02:31,120 Speaker 1: of its leader under siege. CEO of Philip Domon. Viacom 45 00:02:31,160 --> 00:02:34,760 Speaker 1: shares roses. Investors speculated that the earnings forecast would put 46 00:02:34,840 --> 00:02:37,280 Speaker 1: him uh put more pressure on him to step down. 47 00:02:37,560 --> 00:02:40,960 Speaker 1: Viacom up one point one percent to thirty two on 48 00:02:40,960 --> 00:02:45,320 Speaker 1: Wall Street Now the other stories making news. Thank you, 49 00:02:45,400 --> 00:02:48,359 Speaker 1: Charlie from the Bloomberg newsroom. I'm Oliver Rennick. There's likely 50 00:02:48,400 --> 00:02:50,360 Speaker 1: to be a showdown over gun control next week on 51 00:02:50,440 --> 00:02:53,040 Speaker 1: Capitol Hill. In the wake of the Orlando massacres. Senate 52 00:02:53,120 --> 00:02:56,040 Speaker 1: Democrats pushed Republicans to allow a vote on their proposal 53 00:02:56,360 --> 00:02:58,400 Speaker 1: that the government be allowed to prevent anyone on a 54 00:02:58,520 --> 00:03:02,200 Speaker 1: terrorist watch list from buying a Republicans disagree, they see 55 00:03:02,200 --> 00:03:04,239 Speaker 1: a court should have to sign off on a no 56 00:03:04,440 --> 00:03:07,520 Speaker 1: bi order. The Russian track and field team is being 57 00:03:07,560 --> 00:03:11,000 Speaker 1: banned from the Olympics in Rio. The International Association of 58 00:03:11,040 --> 00:03:14,840 Speaker 1: Athletics Federations announced today the Russian Athletics Federation has not 59 00:03:15,080 --> 00:03:17,720 Speaker 1: done enough to prove they've cleaned up the team after 60 00:03:17,800 --> 00:03:21,600 Speaker 1: charges of systemic doping. Here's i Double a F President 61 00:03:21,760 --> 00:03:27,480 Speaker 1: Sebastian co. Although good progress has been made, the Double 62 00:03:27,520 --> 00:03:31,880 Speaker 1: a F Council was unanimous that Russa had not met 63 00:03:32,080 --> 00:03:36,960 Speaker 1: the reinstatement conditions and the Russian athletes could not credibly 64 00:03:37,160 --> 00:03:40,880 Speaker 1: return to international competition. The Duke of Cambridge is taking 65 00:03:40,880 --> 00:03:44,320 Speaker 1: on cyber bullies, Prince Williams launching a task force with Google, 66 00:03:44,360 --> 00:03:48,080 Speaker 1: Twitter and Snapchat to combat online of use. Social media 67 00:03:48,160 --> 00:03:51,720 Speaker 1: and messaging had transformed bullying from something there was not 68 00:03:51,800 --> 00:03:55,200 Speaker 1: only the torments of the classroom and playgrounds. That's something 69 00:03:55,240 --> 00:03:57,720 Speaker 1: that followed you home as well to the one safe 70 00:03:57,720 --> 00:04:01,240 Speaker 1: haven that children should have. William says becoming a father 71 00:04:01,280 --> 00:04:04,680 Speaker 1: has made him increasingly sensitive to the problem, especially for kids. 72 00:04:04,920 --> 00:04:06,840 Speaker 1: A judge has ruled it a New York man fatally 73 00:04:06,880 --> 00:04:09,120 Speaker 1: poisoned more than a decade ago by his wife will 74 00:04:09,160 --> 00:04:11,240 Speaker 1: not have to stay buried in a plot she owns, 75 00:04:11,560 --> 00:04:13,840 Speaker 1: and it's scheduled to be buried in forty eight year 76 00:04:13,840 --> 00:04:16,960 Speaker 1: old Stacy Caster died in prison last weekend. The judge 77 00:04:17,000 --> 00:04:19,000 Speaker 1: says the family of her husband can move his body 78 00:04:19,000 --> 00:04:22,320 Speaker 1: from his grave to another plot near Syracuse. Global News 79 00:04:22,320 --> 00:04:25,240 Speaker 1: twenty four hours a day, powered by journalists in more 80 00:04:25,240 --> 00:04:27,279 Speaker 1: than one hundred and fifty news bureaus around the world 81 00:04:27,520 --> 00:04:30,800 Speaker 1: from the Bloomberg News Room on Oliver Rennick, Charlie, and 82 00:04:30,880 --> 00:04:33,359 Speaker 1: we thank you and again recapping with you have stocks 83 00:04:33,400 --> 00:04:36,600 Speaker 1: law SMP five hundred index down four to two thousand, 84 00:04:36,720 --> 00:04:38,880 Speaker 1: seventy three, a drop of two tenths to one percent. 85 00:04:39,240 --> 00:04:41,600 Speaker 1: Gold is down one tenth of one percent, down to 86 00:04:41,680 --> 00:04:44,880 Speaker 1: dollar twenty to twelve ninety seven. I'm Charlie Pellett and 87 00:04:44,920 --> 00:04:50,120 Speaker 1: that's a Bloomberg Business flash. This is taking stock with 88 00:04:50,240 --> 00:04:53,720 Speaker 1: Kathleen Hayes and Pox on Bloomberg Radio. For a lot 89 00:04:53,720 --> 00:04:56,080 Speaker 1: of Americans in this election year, there is a sense 90 00:04:56,080 --> 00:04:59,080 Speaker 1: that something they've once had is slipping through their fingers. 91 00:04:59,080 --> 00:05:00,839 Speaker 1: Some would say that's why the likes of Donald Trump 92 00:05:00,880 --> 00:05:04,080 Speaker 1: and Bernie Sanders have done so well this year. A 93 00:05:04,120 --> 00:05:07,760 Speaker 1: new book, The Price of Prosperity, Right Rich Nation Failed 94 00:05:07,920 --> 00:05:10,279 Speaker 1: and How to Renew Them, goes to the heart of 95 00:05:10,279 --> 00:05:12,160 Speaker 1: this matter. What is wrong with this country? How can 96 00:05:12,240 --> 00:05:16,800 Speaker 1: we regain our past economic glory? Todd Buckles joins us now. 97 00:05:17,080 --> 00:05:19,839 Speaker 1: He is the author of many books, from New Ideas 98 00:05:20,160 --> 00:05:24,240 Speaker 1: from Dead CEOs to his current new book, Ted Todd 99 00:05:24,240 --> 00:05:26,680 Speaker 1: Welcomb Good to be with you. So what led you 100 00:05:26,720 --> 00:05:30,479 Speaker 1: to write this one? Well, you know, all my life, 101 00:05:31,080 --> 00:05:33,680 Speaker 1: I've heard friends and neighbors, starting when I was a 102 00:05:33,720 --> 00:05:36,600 Speaker 1: little kid growing up on the Jersey Shore, And the 103 00:05:36,640 --> 00:05:39,000 Speaker 1: book starts out with that. And I'm a kid and 104 00:05:39,040 --> 00:05:42,320 Speaker 1: my dad's flipping Hamburgers some summer day and I'm squatting 105 00:05:42,360 --> 00:05:45,600 Speaker 1: mosquitoes off of my legs, and some neighbors says, if 106 00:05:45,720 --> 00:05:48,040 Speaker 1: Nixon gets elected, I'm moving to Canada. And then a 107 00:05:48,080 --> 00:05:51,200 Speaker 1: few years later, of Carter gets elected, I'm moving to Canada. Oh, 108 00:05:51,279 --> 00:05:54,200 Speaker 1: if Reagan gets elected, I'm moving. And I figured Canada 109 00:05:54,279 --> 00:05:57,440 Speaker 1: must be a pretty crowded place, but it's not. But now, 110 00:05:57,520 --> 00:06:00,440 Speaker 1: for Kathleen, for the first time in my life, when 111 00:06:00,520 --> 00:06:04,039 Speaker 1: people bemoan the current state of US and the United 112 00:06:04,080 --> 00:06:07,320 Speaker 1: States and our politics and threatened to move, now, I 113 00:06:07,320 --> 00:06:09,680 Speaker 1: think they may not be bluffing. And I think that 114 00:06:09,760 --> 00:06:14,120 Speaker 1: there's been a decline in patriotism, a decline in hope. 115 00:06:14,400 --> 00:06:16,719 Speaker 1: And that's why, as you say, you see Bernie Sanders 116 00:06:16,800 --> 00:06:21,479 Speaker 1: and Donald Trump out there creating all sorts of all 117 00:06:21,480 --> 00:06:24,400 Speaker 1: sorts of passion and all kinds of millions of votes 118 00:06:24,960 --> 00:06:26,960 Speaker 1: because America is not the place it was, and the 119 00:06:27,040 --> 00:06:31,719 Speaker 1: question is can we become great again? Let me just 120 00:06:31,760 --> 00:06:35,239 Speaker 1: put to you that's something you talked about recently, Todd. 121 00:06:35,320 --> 00:06:38,719 Speaker 1: This has to do with tax cuts and trade agreements. 122 00:06:38,760 --> 00:06:41,520 Speaker 1: You said, you can argue all you want about these things, 123 00:06:41,560 --> 00:06:43,760 Speaker 1: tax cuts, trade agreements, but the fact is that the 124 00:06:43,800 --> 00:06:47,840 Speaker 1: president is a symbol for whether the country is interested 125 00:06:47,920 --> 00:06:52,360 Speaker 1: in strong economic growth or not. And as the former 126 00:06:52,520 --> 00:06:55,320 Speaker 1: White House Director of Economic Policy under George H. W. 127 00:06:55,600 --> 00:06:58,960 Speaker 1: Bush and also managed former managing director of the Tiger 128 00:06:59,320 --> 00:07:02,680 Speaker 1: Hedge Fund, what do you mean by that? Because it 129 00:07:02,800 --> 00:07:05,159 Speaker 1: seems as if you just described the problem, how do 130 00:07:05,240 --> 00:07:10,240 Speaker 1: we deal with it? How do we face these challenges successfully? Well, there, 131 00:07:10,280 --> 00:07:13,480 Speaker 1: of course many challenges, and in the book I point 132 00:07:13,480 --> 00:07:19,120 Speaker 1: out five factors that undermine prosperous countries and have throughout history. 133 00:07:19,400 --> 00:07:21,480 Speaker 1: We just just go to history for a moment. There 134 00:07:21,560 --> 00:07:24,760 Speaker 1: used to be Habsburgs wandering around Europe. There used to 135 00:07:24,840 --> 00:07:28,760 Speaker 1: be Ottomans, and they're gone. Those were very successful, prosperous empires, 136 00:07:28,960 --> 00:07:31,960 Speaker 1: but they were undermined from within, and so are we 137 00:07:32,040 --> 00:07:33,760 Speaker 1: now him. When you get to the question of what 138 00:07:33,840 --> 00:07:37,040 Speaker 1: can a president do well, first and foremost, the president 139 00:07:37,120 --> 00:07:41,120 Speaker 1: he or she needs to answer whether economic growth and 140 00:07:41,920 --> 00:07:45,480 Speaker 1: is a priority or not. It was a priority, certainly 141 00:07:45,560 --> 00:07:48,520 Speaker 1: under President Reagan, it was a priority under President Clinton, 142 00:07:48,800 --> 00:07:51,840 Speaker 1: Democratic president. I think if you if you speak to 143 00:07:51,920 --> 00:07:56,720 Speaker 1: many business people today about the Obama administration and how 144 00:07:56,800 --> 00:08:00,160 Speaker 1: it looks at the idea of people earning money and 145 00:08:00,280 --> 00:08:03,880 Speaker 1: the idea of companies earning profits, they feel almost as 146 00:08:03,920 --> 00:08:07,400 Speaker 1: if the Obama administration sat on a tank turret and 147 00:08:07,720 --> 00:08:11,240 Speaker 1: did a three sixty degree turn firing at every industry. 148 00:08:11,280 --> 00:08:14,000 Speaker 1: First it was the HMS, Then it was the oil industry, 149 00:08:14,120 --> 00:08:16,240 Speaker 1: Then it was the coal industry, then it was the 150 00:08:16,240 --> 00:08:20,480 Speaker 1: pharmaceutical industry. And according to the administration, they were virtually 151 00:08:20,520 --> 00:08:23,200 Speaker 1: all bad actors. And at some point they dragged in. 152 00:08:23,280 --> 00:08:26,280 Speaker 1: You remember Tim Cook from Apple was almost shackled and 153 00:08:26,360 --> 00:08:30,200 Speaker 1: dragged before the Senate for tax so called tax dodging. 154 00:08:30,480 --> 00:08:33,120 Speaker 1: So what does that mean. It means it's telling business 155 00:08:33,160 --> 00:08:37,400 Speaker 1: is that the US is no longer hospitable place to invest, 156 00:08:37,640 --> 00:08:40,480 Speaker 1: and so it's not surprising, therefore, that you see that 157 00:08:40,600 --> 00:08:44,280 Speaker 1: business investment has been the biggest laggard in this rather 158 00:08:44,320 --> 00:08:47,840 Speaker 1: tepid economic recovery. Patriotism, you think we need more of 159 00:08:47,880 --> 00:08:50,160 Speaker 1: it for everybody, people who have been born and raised 160 00:08:50,200 --> 00:08:53,400 Speaker 1: here for decades, and the newcomers. Absolutely. I think there's 161 00:08:53,400 --> 00:08:56,760 Speaker 1: a joint obligation that's missing from our society, and at 162 00:08:56,800 --> 00:08:59,960 Speaker 1: the end of the price of prosperity, I put four. 163 00:09:00,000 --> 00:09:04,320 Speaker 1: It's something I call the patriotist manifesto and their dual obligations. 164 00:09:04,679 --> 00:09:09,440 Speaker 1: I believe that any immigrant or would be immigrant needs 165 00:09:09,480 --> 00:09:13,400 Speaker 1: to embrace American history. I would make it a requirement 166 00:09:13,559 --> 00:09:16,400 Speaker 1: that if you're applying for citizenship or a green card, 167 00:09:16,480 --> 00:09:19,280 Speaker 1: I would require you to have your passport staffed, not 168 00:09:19,440 --> 00:09:21,959 Speaker 1: simply at the port of entry at JFK or l 169 00:09:22,000 --> 00:09:25,760 Speaker 1: A X, but at least five historical landmarks in the US. 170 00:09:26,800 --> 00:09:31,400 Speaker 1: But I also would put an obligation on Americans American citizens. 171 00:09:31,840 --> 00:09:35,199 Speaker 1: If a student is applying for a loan, I would 172 00:09:35,240 --> 00:09:39,440 Speaker 1: require them to get their passports staffed, whether it's at 173 00:09:39,480 --> 00:09:42,680 Speaker 1: Mount Vernon or the Museum of Tolerance in Ellis Island 174 00:09:42,760 --> 00:09:46,040 Speaker 1: and the like. I think it's very important that immigrants 175 00:09:46,080 --> 00:09:50,359 Speaker 1: feel that they have embraced American history, and American citizens 176 00:09:50,520 --> 00:09:55,240 Speaker 1: need to need to honor immigrants and respect the fact 177 00:09:55,280 --> 00:09:57,800 Speaker 1: that someone coming off the boat today has just as 178 00:09:57,880 --> 00:10:01,319 Speaker 1: much right to embrace. Thomas Jefferson in Alexander Hamilton's someone 179 00:10:01,360 --> 00:10:04,520 Speaker 1: who came Over on the Mayflower, give me about thirty seconds. 180 00:10:04,640 --> 00:10:10,320 Speaker 1: Robots and minimum wage. Wow, you know the minimum wage 181 00:10:10,840 --> 00:10:14,320 Speaker 1: is zero right at the minimum because companies can fire 182 00:10:14,679 --> 00:10:16,640 Speaker 1: folks if they don't want to pay the minimum wage. 183 00:10:16,920 --> 00:10:19,520 Speaker 1: When I when I travel, whether through the Guardian Airport 184 00:10:19,600 --> 00:10:22,360 Speaker 1: or any other airport in this country, I'm amazed by 185 00:10:22,400 --> 00:10:26,040 Speaker 1: the number of iPads I see that have replaced waiters 186 00:10:26,040 --> 00:10:28,840 Speaker 1: and waitresses. So sure, you can make the minimum wage 187 00:10:29,880 --> 00:10:32,440 Speaker 1: an hour, but you can't force businesses to hire. In 188 00:10:32,520 --> 00:10:36,400 Speaker 1: terms of robots, I worry about our education system. Uh. 189 00:10:36,720 --> 00:10:39,520 Speaker 1: People need critical thinking skills. You can't get by on 190 00:10:39,679 --> 00:10:43,000 Speaker 1: braun anymore. You need brains. Thank you very much for 191 00:10:43,040 --> 00:10:47,520 Speaker 1: sharing your brain with us. Is economist and author of 192 00:10:47,520 --> 00:10:51,120 Speaker 1: the new book The Price of Prosperity, Why rich Nations 193 00:10:51,200 --> 00:10:54,440 Speaker 1: Fail and How to renew them. You're listening to taking 194 00:10:54,480 --> 00:11:02,480 Speaker 1: Stock on Bloomberg Radio. This Hampton's communter minute is brought 195 00:11:02,520 --> 00:11:05,000 Speaker 1: to you by Landover. Visit your local Tri state area 196 00:11:05,080 --> 00:11:10,160 Speaker 1: Landover retailer for special lease and finance officers. Landover Above 197 00:11:10,280 --> 00:11:10,920 Speaker 1: and Beyond