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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot Com, the radio plus mobile LAP and on your radio.

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow

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Speaker 1: futures are higher this morning. Let's go to the First

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Speaker 1: Word Breaking news desk for today's morning call, and here's

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Speaker 1: Bill Maloney. Good morning Bill, Good morning Karen. US futures

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Speaker 1: are maintaining their games since the last time we spoke.

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Speaker 1: Deaf futures currently hired by thirty five points says he's

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Speaker 1: game four and as a futures rise by six the

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Speaker 1: US Tenniel at one point eight nine percent and w

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Speaker 1: t I Crew futures hit forty one dollars a barrel.

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Speaker 1: Main Europan markets are all sit trading higher this morning.

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Speaker 1: Spain games point seven per cent on the US economic

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Speaker 1: front at ten o'clock, Michigan sentiment estimate ninety two point

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Speaker 1: two and FED speak at nine eleven and two thirty

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Speaker 1: after develos and at Adobe, Beat shares are up five

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Speaker 1: percent pre market, and JP Morgan boosted's buy back by

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Speaker 1: an additional one point nine billion. In deal news trans

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Speaker 1: Canada by Columbia Hipeline Group for ten point two billion

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Speaker 1: and another News, Tiffany EPs, beat revenues, war inline shares,

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Speaker 1: our little changed pre market finding some of your wall

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Speaker 1: sheet upgrades and downgrades. Patterson U T I cut to

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Speaker 1: neutral at City Group, fleet Core race to buy It

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Speaker 1: ever Core I s I A most Energy, cut to

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Speaker 1: equal weight at Morgan Stanley, PayPal cut to hold at Steeple,

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Speaker 1: Micrond cutting neutral at Susquehanna, and finally SeaWorld race to

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Speaker 1: outperform over at Wells Fargo. Live from the First Breaking

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Speaker 1: News Desk on Bill Maloney car all right, thanks to

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Speaker 1: Billian to hear live breaking news over your Bloomberg type

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Speaker 1: squaw go in your terminal. That's s q u a

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Speaker 1: w k go. That's a Bloomberg business flash, Tom and

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Speaker 1: Mike karen I, thanks so much. Bloomberg Surveillance is Friday,

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Speaker 1: brought you by Investo. Looking for investment views. Experienced experts

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Speaker 1: are just a click away. Go to investco dot com

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Speaker 1: slash us to subscribe to the investco blog and follow

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Speaker 1: at investo US on Twitter. Where this Benjamin Friedman of

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Speaker 1: Harvard University dart in the Door in nineteen seventy two,

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Speaker 1: has written a few definitive books, Thinking Broader and with

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Speaker 1: greater perspective on our economy and of course productivity front

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Speaker 1: and center. But Michael McKee, there's something a little more

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Speaker 1: urgent right now than a broader discussion of capital, labor

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Speaker 1: and total factor productivity. Well, it's not as urgent in

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Speaker 1: the United States, which is struggling along with about two

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Speaker 1: pc growth, but certainly in Japan it has become a

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Speaker 1: central issue, as has uh. Europe adopted it, and that

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Speaker 1: is negative interest rates. Benjamin Friedman has been looking at

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Speaker 1: monetary policy tools, and this morning Christine Leguard of the

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Speaker 1: i m F came out and endorsed negative rates. Others

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Speaker 1: are suggesting that they may work in some circumstances and backfire,

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Speaker 1: and others. What do you think. I think they're helpful,

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Speaker 1: but in a very, very modest way. The ability to

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Speaker 1: stimulate the economy through negative rates in the banking system

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Speaker 1: is very modest. Fortunately, we in the United States were

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Speaker 1: sufficiently proactive in our monetary policy that we managed to

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Speaker 1: engineer a recovery and now an expansion from the crisis

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Speaker 1: a few years ago, and we didn't need to do that.

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Speaker 1: I think the Europeans and even more so the Japanese,

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Speaker 1: are in terrible trouble. So they're trying every tool they have.

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Speaker 1: Is it useful, Probably a little bit, but I sure

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Speaker 1: wouldn't look for much in the way of major results.

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Speaker 1: All right, let's talk about the moral consequences of economic growth.

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Speaker 1: He wrote a fabulous book that people are bringing back

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Speaker 1: to the force there is. It has become a thing

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Speaker 1: people talking about on the internet, etcetera, um, where you

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Speaker 1: question whether the financial system is serving us well. And

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Speaker 1: there's certainly a whole lot of voters out there who

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Speaker 1: would suggest the answer this year is no. Yeah, I

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Speaker 1: think alas, I'm sorry to say, the current election campaign

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Speaker 1: is exactly what the book was about. The Thesis of

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Speaker 1: the book is that when the broad bulk of the

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Speaker 1: population has a sense of getting ahead and its material

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Speaker 1: living standard, then the politics, the social relations, ultimately what

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Speaker 1: I call the moral character of the society is in

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Speaker 1: good shape and improves also. And by contrast, whenever the

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Speaker 1: bulk of the citizenry has a sense that they're not

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Speaker 1: getting ahead and they don't have optimism that that's going

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Speaker 1: to turn around anytime soon, then not only is there

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Speaker 1: no progress on these political, social, moral fronts, but often

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Speaker 1: there's a period of retrenchment, retreat, and bad things happen.

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Speaker 1: The American people are not foolish. They know that it's

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Speaker 1: now been nearly twenty years since they've had any improvement

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Speaker 1: in their standard of living. It's not just a matter

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Speaker 1: of the crisis. Even in even in the years of

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Speaker 1: the two thousands leading up to the crisis, although the

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Speaker 1: g d P was moving forward at some quite acceptable rate,

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Speaker 1: people don't live by b dps. They live by their

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Speaker 1: standard of living and the fruits of that incremental production

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Speaker 1: we're accruing to a very narrow slice of people within

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Speaker 1: your study, professor, just because of time, I've got to

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Speaker 1: be rude here, but this is critical within your study

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Speaker 1: of this nation. Can policy makers affect in drive forward

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Speaker 1: economic growth, Yes, they certainly can, and they have done

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Speaker 1: so in the past. And we've seen that in the

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Speaker 1: period of the Great Depression. We've seen that in the

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Speaker 1: period of the nineteen sixties, we've seen that in the

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Speaker 1: period in the nineteen nineties. So it's absolutely within the

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Speaker 1: power of government to drive the economy forward and to

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Speaker 1: deliver a higher standard of living to the people. Now

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Speaker 1: we haven't done that for twenty years. Could the Big

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Speaker 1: dig happen today in Boston. For those of you world,

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Speaker 1: why Benjamin Friedman single handedly got rid of the Northeast Expressway.

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Speaker 1: Now could the Big Dig, that huge infrastructure project in Boston,

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Speaker 1: Could that happen today? I'm very skeptical for just the

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Speaker 1: reasons you're hinting at. I think one of the consequences,

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Speaker 1: and it's a familiar one of this stagnation of people's

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Speaker 1: standards of living, is that our politics becomes dysfunctional. And

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Speaker 1: for real listeners who don't know the Big Dig was

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Speaker 1: a huge construction project paid for by the federal government,

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Speaker 1: I find it very difficult in our current situation of

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Speaker 1: political stalemate to picture that if the President were to

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Speaker 1: propose a project like that, or think of new airport construction,

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Speaker 1: think of newport facilities, think of regenerating the American highways

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Speaker 1: and bridges and port I find it very difficult to

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Speaker 1: imagine he'd get such a program through the Congress. Professor Freedman,

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Speaker 1: thank you so much, Benjamin Freedman. Folks that can't say

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Speaker 1: enough about the timelessness of the moral consequences of economic growth.

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Speaker 1: That has been over ten years and it is still

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Speaker 1: exceptionally maybe even more fresh today, uh than it than

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Speaker 1: it was then. Mike, I can say this is a

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Speaker 1: life changing event. The day I stood in downtown Boston

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Speaker 1: and looked across at the North End with no highway

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Speaker 1: in the way because they tore it down, was and

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Speaker 1: that was twelve or fourteen billion dollars at the time,

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Speaker 1: maybe even twenty billion, was just stunning, just stunning. I

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Speaker 1: think even more important than the view. With the jobs

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Speaker 1: that created and the stimulus that created for the Massachusetts economy,

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Speaker 1: we say good morning the g E Senior Management. They're

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Speaker 1: moving to Boston. This is Bloomberg's surveillance time now where

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