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Speaker 1: This is Bloomberg Surveillance. Goes on the East Coast wake

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Speaker 1: up every morning trying to extend their business franchises. Those

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Speaker 1: on the West coast wake up every morning trying to

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Speaker 1: destroy those franchises. In an environment where everybody's yield hungry.

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Speaker 1: If you're getting something with almost no coupon, and particularly

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Speaker 1: with a long duration, you're just buying volatility. When the

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Speaker 1: US markets done well, e ms if I performed, and

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Speaker 1: in Paris with the global markets about a week a year,

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Speaker 1: e ms AT underperformed. Bloomberg Surveillance your link to the

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Speaker 1: world of economics, finance and investment on Bloomberg Radio. Good

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Speaker 1: morning everyone, Michael McKee and Tom King Bloomberg Surveillance worldwide.

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Speaker 1: We say good morning to Paris listening on Bloomberg Radio

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Speaker 1: Plus and Bloomberg dot Com. So I know garya with

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Speaker 1: us with the O E. C. D. And we'll get

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Speaker 1: to the Secretary General in a moment with an important

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Speaker 1: new initiative on cities. McKee has gone, gone, gone, rid

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Speaker 1: Holes is here here here, that's a good thing. Barry

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Speaker 1: riddholes and had had a good time yesterday and after

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Speaker 1: a massive negotiation his people and our people got together,

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Speaker 1: and he said, yeah, I'll come back for another day

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Speaker 1: at Payne Bloomberg Surveillance this morning brought to you by Investco.

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Speaker 1: Don't settle for average in your portfolio. To Investco, the

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Speaker 1: right approach means investing with high conviction. Find out more

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Speaker 1: in investco dot com slash high Conviction assuring to the

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Speaker 1: market at Quiet. John Williams of San Francisco, speaking in Singapore,

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Speaker 1: made some important comments on negative rates and on the

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Speaker 1: dot plot. Will get to that some other news flow.

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Speaker 1: Michael Barrow will have that in New York, and of

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Speaker 1: course we'll have news for you around the nation Boston,

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Speaker 1: Bloomberg twelve FM, and Washington in Baltimore, early morning, San Francisco,

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Speaker 1: Good morning, nine Bay Area. And then we will move

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Speaker 1: on to course to Janet Yell and speak at twelve

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Speaker 1: New today the Economic Club of New York. Futures at

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Speaker 1: negative five, Dolt futures negative forty four. That speech will

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Speaker 1: be live on bloom Radio twelve. I will be uh Barry,

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Speaker 1: I'll be there. Um that Francine asked me what food

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Speaker 1: I'll be having at lunch. I told her that the

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Speaker 1: Poulay Rubert fantastic it is. But but there for the

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Speaker 1: speech now it will be an important speech in questions

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Speaker 1: by the former vice chairman, Alan Blinder of Princeton and

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Speaker 1: Glenn Hubbard of Columbia, Dean of the Columbia Business School.

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Speaker 1: I know Garia is o e c D Secretary General,

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Speaker 1: he celebrates ten years with them, but that does not

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Speaker 1: describe his public service to Mexico, which was in foreign

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Speaker 1: affairs and finance and an incredibly important moment for the

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Speaker 1: Republic of Mexico. And to begin our discussion, give us

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Speaker 1: an update on your Mexico oils obviously been a huge challenge.

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Speaker 1: My concern, Mr Secretary is in America. So much of

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Speaker 1: the media looks at really a negative news out of Mexico,

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Speaker 1: but there's much positive discussed that Uh. In the first

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Speaker 1: two years of the administration of present OPINIONO there was

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Speaker 1: the most important collection of structural change ever in the

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Speaker 1: O E c D, not just in Mexico. And of

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Speaker 1: course in Mexico you were correcting trends of thirty forty

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Speaker 1: years that had not been touched on competition, on labor issues,

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Speaker 1: on education issues, on telecom issues, on regulators, etcetera. The

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Speaker 1: genius there was not just you know, the design of

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Speaker 1: the reforms, which is kind of well known before, but

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Speaker 1: the question of putting together the majority, getting the votes

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Speaker 1: sometimes the two thirds of the votes that required constitutional

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Speaker 1: amendments without having a single simple majority, without the government

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Speaker 1: having a simple majority. So this is why Mexico is

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Speaker 1: growing at two points for today and some of the

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Speaker 1: countries in the region are growing at minus something. You know,

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Speaker 1: Mary hasn't learned this yet. But part of the reason

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Speaker 1: you have questions, you know what the answer will be.

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Speaker 1: Other nations do this, Mr Secretary Here, it's a combination

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Speaker 1: of political will, political competence, and also Mexico has a

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Speaker 1: very competent economic team. The governor's enter Blankments of Carston's

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Speaker 1: worldwide known Mr v Degarai worldwide, non very respected Mr

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Speaker 1: de Jardo, who has negotiated the t p P and

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Speaker 1: the free trade agreement, season charge of Economics and Trade.

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Speaker 1: So the the economics team is very competent. And then

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Speaker 1: the guy who runs energy, who is the one who

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Speaker 1: led through the Congress the energy changes, which are the

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Speaker 1: most important ones, which are now. Of course, maybe they

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Speaker 1: thought there was gonna price well it was gonna be

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Speaker 1: somewhat higher than it is today, but still they are

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Speaker 1: doing these uh these auctions for the for the capacity

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Speaker 1: to to exploit. For the first time, the private sector

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Speaker 1: doing electricity, oil, gas, et cetera. So it's a massive,

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Speaker 1: massive change, and sometimes, as you rightly say, this is

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Speaker 1: obscured by a cacophony of the news of the day,

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Speaker 1: which do not let you appreciate the substance of the

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Speaker 1: change it is. And I say this hopefully with objectivity

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Speaker 1: seen from the Secretary General of the u c D.

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Speaker 1: If I were finished, or if I were Turkish or Italian,

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Speaker 1: I think it would still be a very impressive collection

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Speaker 1: of reforms in Mexico. So let me ask a question

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Speaker 1: where I don't know the answer, unlike Tom who knows

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Speaker 1: his answers in advance. When when John Edwards ran for

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Speaker 1: presidents here a couple of cycles ago, he talked about

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Speaker 1: the two America's, it's a rich America and of poor America.

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Speaker 1: When we look as investors at Mexico, there is a

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Speaker 1: very sophisticated manufacturing sector, there is a substantial energy sector,

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Speaker 1: but there's also the other Mexico that, as you said,

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Speaker 1: sometimes dominates the headlines. And perhaps in a way that

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Speaker 1: is too excessive to excess, so we don't know learn

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Speaker 1: about all the good things that are taking place in

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Speaker 1: the in the finance and industrial sectors. What is it

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Speaker 1: gonna take for the second half of Mexico to catch

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Speaker 1: up with the first? We would ignore the other half

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Speaker 1: of Mexico, as you call it, at our peril. That

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Speaker 1: is the greatest challenge the catch up. Half of the

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Speaker 1: population in Mexico is in poverty, and about half of

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Speaker 1: that half is in extreme poverty. And therefore, if you

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Speaker 1: don't help those catch up, what you're gonna get is

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Speaker 1: is very you know, distorted to speed the economy but

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Speaker 1: also to speed society. So you have to invest on

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Speaker 1: issues like education, issues like health, on issues like skills,

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Speaker 1: like opportunities infrastructure for the most vulnerable. And you also

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Speaker 1: have to make sure that the vulnerability of the parents

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Speaker 1: is not reproduced into new generations. You have to cut

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Speaker 1: that that that that that vulnerable. This is critical, then,

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Speaker 1: Mestic secretary, how do you do that? And the backdrop

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Speaker 1: of this is the international pain we feel over Paris,

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Speaker 1: over Brussels, for that matter, over much of the Arab

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Speaker 1: spring of breaking that cycle of poverty that leads to

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Speaker 1: such tragedy, economic impoverishment and indeed terror in Mexical suggest

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Speaker 1: to break in Mexico, we have not seen people going

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Speaker 1: off and becoming you had is what they do is

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Speaker 1: that they first of all, uh in Mexico, there's a

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Speaker 1: very large informal sector. More than half of the population

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Speaker 1: of the workforce is informal, and that it does not

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Speaker 1: over well about their training possibilities, the loyal TVs of

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Speaker 1: either companies basically very precarious, perhaps short term contracts um

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Speaker 1: in in informality. That has to be addressed. But the

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Speaker 1: most important thing that has to be addressed is to

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Speaker 1: give these people a chance. The chance for that is

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Speaker 1: done through education, skilling, innovation, and not everybody going for

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Speaker 1: you know, university diploma, but some of everybody having the

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Speaker 1: skills to insert themselves in the economy today in the

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Speaker 1: modern day economy, which is now mostly an export lead

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Speaker 1: economy in Mexico with massive, massive trade and investment links

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Speaker 1: with the United States, but also one of the most

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Speaker 1: you know, better connected, better links throughout the world simply

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Speaker 1: because they have so many of these free trade agreements.

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Speaker 1: That's that's a if. As segue to the current election cycle,

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Speaker 1: We've had a number of candidates complain about job loss

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Speaker 1: in the United States and about NAFTA. How important is

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Speaker 1: NAFTA to Mexico and to the region as a source

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Speaker 1: of economic stimulus and and drive. I think NAFTA has

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Speaker 1: a potential to become the single most productive region in

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Speaker 1: the world. And that is because, um, you know, Canada,

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Speaker 1: I'm gonna make a caricature. Let's say has the raw materials. Uh,

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Speaker 1: the United States has a capital, and Mexico has very

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Speaker 1: highly productive labor force. Uh, and therefore they can all

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Speaker 1: get together. Um. And if you look at it as

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Speaker 1: one single economic zone. Mexico of course also has a

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Speaker 1: very rich endowment of raw materials, and it has its

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Speaker 1: own sources of funding and and savings, but not enough.

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Speaker 1: So the question is the complimentarity is there? The region

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Speaker 1: can actually just by getting closer and closer and closer together,

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Speaker 1: can become a real power in the world, a very

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Speaker 1: very strong trading balk Indeed, Okay, let's come back with

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Speaker 1: I know Gary of the o E c D, their

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Speaker 1: Secretary General, will talk about their new initiative on cities,

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Speaker 1: and I'm using evidence to link cities to their national budgets.

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Speaker 1: And national politics. It's with a Ford Foundation. We'll look

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Speaker 1: at that. With a Ford Foundation and the O E.

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Speaker 1: C D. You're in a good futures negative six town

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Speaker 1: futures negative forty. If there is a weight to the take,

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Speaker 1: you see it and yields in two basis points one

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Speaker 1: point eight six the German two year negative point four

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Speaker 1: nine two percent. And now this hour of Bloomberg surveillance,

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Speaker 1: it's part to by Westchester Subaru. Visit Westchester Subaru dot

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Speaker 1: com with our news. Here is Michael bar Tom Barry,

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Speaker 1: thank you very much. Hijacker claiming to be wearing an

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Speaker 1: explosives belt hijacked and egypt Air flight to land in

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Speaker 1: Cyprus this morning. The loane hijacker released most of the

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Speaker 1: fifty five passengers. The President of Cyprus has the takeover

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Speaker 1: the aircraft, who has not linked to terrorism. The Obama

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Speaker 1: administration will issue a proposed rule in hopes of increasing

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Speaker 1: medication based treatment for people addicted to opioids. President Obama

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Speaker 1: will participate today in a panel discussion at a drug

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Speaker 1: abuse summit in Atlanta. South Korea says North Korea has

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Speaker 1: fired a short arrange projectile from an area near its

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Speaker 1: eastern coast. North Korea's weapons test are seen as a

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Speaker 1: response to ongoing military drills between Washington and Soul. Global

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Speaker 1: News twenty four hours a day, powered by our twenty

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Speaker 1: four hundred journalists more than a hundred fifty news bureaus

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Speaker 1: from around the world. On Michael bar Berry, Tom Michael,

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Speaker 1: thanks so much, Oil thirty eight fifty nine, West Texas

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Speaker 1: Intermediate done eight cents, Brand under forty nine twenty two

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Speaker 1: and Barrel done a good dollar five Well I know

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Speaker 1: Garry of the O E C D. This is Bomberg Surveillance.

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Speaker 1: Bloomberg Surveillance brought to you by Commonwealth Financial Network. When

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Speaker 1: it's time to change the conversation, talk with a broker dealer.

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Speaker 1: Are I a that's ready to listen? Call eight six

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Speaker 1: six four six two three six three eight or visit

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Speaker 1: four hours a day at Bloomberg dot com, the Radio

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Speaker 1: Plus mobile app and on your radio. This is a

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Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. This updates brought

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Speaker 1: to you by National Realty Returns on cash and rented

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Speaker 1: real Estate. Visit them at n r I A dot net.

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Speaker 1: Oil leading commodities lower, pulling down stocks as well as

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Speaker 1: the currencies of raw material producing nations and helping to

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Speaker 1: lift government vaunts. WHI checked the markets every fifteen minutes

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Speaker 1: throughout the trading day on Bloomberg SNPE many futures down

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Speaker 1: six and a half points, DOWIE Mini futures down sixty

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Speaker 1: and NAS DOCU many futures down eleven and a half.

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Speaker 1: Dax in Germany's down to penns per set ten. Your

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Speaker 1: treasury up eight thirty seconds, the yeld one point eight

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Speaker 1: five percent, the yield done a two year point eight

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Speaker 1: five percent. Non ex scrut oil down two point two percent,

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Speaker 1: or eighty five cents to thirty and fifty four of

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Speaker 1: barrel comex gold is down to ten percent or two

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Speaker 1: dollars fifty cents at twelve nineteen fifty an ounce, the

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Speaker 1: euro A dollar twelve fourteen, the end one thirteen point

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Speaker 1: five six. And that's a Bloomberg business flash. Tom and

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Speaker 1: Barry Karen, thank you so much with us a Secretary

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Speaker 1: General of the O E C D. I know, GARYA,

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Speaker 1: you speaks six languages? Is that true? Six span? How

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Speaker 1: did you do that? It's like a very early It's

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Speaker 1: number four easier to do the number two. Yeah, it depends,

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Speaker 1: but yes, mostly you you you develop a certain method.

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Speaker 1: You know, Tom still working on Rosetta stone for English.

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Speaker 1: Thank you Spanish friends. You you start, you start very early.

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Speaker 1: This is the UH. I started with English when literally

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Speaker 1: in primary school, of course we had Spanish, and then

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Speaker 1: I did French and Italian in private class us in

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Speaker 1: the afternoon when I was a very young teenager. And

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Speaker 1: then I learned in my UH Coffee Exposure coffee organization

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Speaker 1: that was ambassador to a coffee of concision, I learned

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Speaker 1: Portuguese and I also learned the German. Very cool, UH,

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Speaker 1: Mr Secretary, you have a new initiative out with the

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Speaker 1: Ford Foundation which says we need to link our cities

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Speaker 1: much better to federal policies to just simply get things done.

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Speaker 1: Let's start with New York City or Boston, or Washington

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Speaker 1: or San Francisco. These are prosperous areas. Do they need

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Speaker 1: your cities initiative. It's not about prosperity, it's about the

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Speaker 1: level playing field. And also because in the most prosperous

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Speaker 1: very much indeed in need. So here the question of

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Speaker 1: inclusive growth is precisely about those that are most in need.

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Speaker 1: And the other thing is that, as you rightly say,

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Speaker 1: many of the instruments that are dedicated to leveling the

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Speaker 1: playing field are federal instruments. They're not necessarily city based instruments.

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Speaker 1: But they have to be operated, they have to be

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Speaker 1: done in the cities because of the population of the

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Speaker 1: O E. C D lives in cities. More than half

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Speaker 1: of the world's population now lives in cities. So it's

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Speaker 1: cities where the action is at, and that is where

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Speaker 1: we have to focus. This is where all the mayors getting,

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Speaker 1: you know, together, not all of them, but a bunch

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Speaker 1: of the mayors are getting together here in New York

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Speaker 1: UM led by uh, Mr de Blasio. He's gonna hostess

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Speaker 1: um the mayor of that. They're called Champion Mayors for

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Speaker 1: Inclusive Growth. UH. And precisely, the idea is to create

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Speaker 1: a hub where we're going to be able to exchange

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Speaker 1: all the information, all the experience, who is doing what

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Speaker 1: better and what is working better where? UH? And that

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Speaker 1: is going to benefit the poorest people, the most vulnerable people.

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Speaker 1: And bury what I like here is the word evidence

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Speaker 1: like they're they're actually keeping track of who is what

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Speaker 1: new doesn't Well, that's always that's always great for tracking

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Speaker 1: responsibility and who's who's accomplishing what. When I'm fascinated about UH,

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Speaker 1: Mr Secretary General, what are the basic things that a

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Speaker 1: What are the key three items that you would like

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Speaker 1: to see every city has as part of their UH

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Speaker 1: policies to to try and provide opportunity for everybody. Education, health, housing, skills, skills,

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Speaker 1: skills and and how does one go about getting UH

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Speaker 1: skills if you're in an area that has lead in

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Speaker 1: the water and problems with local education and a shortage

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Speaker 1: of qualified teachers and and a rounding tax base. What

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Speaker 1: can and I'm thinking of some rust belt cities that

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Speaker 1: are having difficult both in the United States and elsewhere,

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Speaker 1: how do you impart those skills two kids that are

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Speaker 1: hungry for getting out of bad situations. This is where

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Speaker 1: you use best practices. This is where you get those

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Speaker 1: success stories. This is because this is not the first

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Speaker 1: time or the only case in which you have this situation.

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Speaker 1: It has been done before, and it has been addressed

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Speaker 1: before by other countries and other parts of the world,

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Speaker 1: and it also is going to happen again, perhaps in

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Speaker 1: less developed countries. How do you address it? And this

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Speaker 1: the exchange of the information. And then as as you

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Speaker 1: were mentioning a moment, Ago and Thomas alluding to the

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Speaker 1: fact that the national programs, together with the local programs,

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Speaker 1: sometimes state programs, are absolutely critical. You join forces rather

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Speaker 1: than have parallel, divorced initiatives that are not that are

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Speaker 1: very fragmented. How come the roads are so good in Paris,

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Speaker 1: in in Zurich, in in how come the roads where

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Speaker 1: you're you're based in Paris? Right, yes, listen the reason

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Speaker 1: infrastructure is a very high priority, especially city infrastructure. Also,

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Speaker 1: you know road infrastructure of the European Commission is focusing

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Speaker 1: on on on on the question of linkage is by

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Speaker 1: road and by But but the greatest problem in countries

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Speaker 1: like Europe is that you have a workforce that is

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Speaker 1: very vulnerable to the advances of technology and they could

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Speaker 1: be substituted displays by technology if you don't upskill them.

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Speaker 1: So skills, skills, skills again is the name of the game.

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Speaker 1: Have to stay ahead of the root even when they

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Speaker 1: even when they already have assured in Europe. You know

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Speaker 1: they have that that they have the medicals, and they

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Speaker 1: have the education, and they have they have the infrastructure.

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Speaker 1: But the question is they still need the skills because

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Speaker 1: the skills don't fit what the market is requesting, and

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Speaker 1: therefore they are in danger of being displaced. Tom No,

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Speaker 1: I think, I think it's fascinating and something to continue you.

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Speaker 1: I'm gonna wander off the TV and you guys can

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Speaker 1: continue this discussion. Board Foundation in the o e c

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Speaker 1: D looking at inclusive growth in their city's campaign. We're

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Speaker 1: stilled to bring you the esteem. Secretary General of the

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Speaker 1: o e c D on hell A Gurrya, of course,

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Speaker 1: celebrating ten years of tenure. Their futures a negative seven

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Speaker 1: five to you got another five. He's like Lagardi, He's

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Speaker 1: like Legard. Richie won't go for a second, mon mine

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Speaker 1: is my third. You bring them back for another segment.

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Speaker 1: We should get them together. Would be actually a lot

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Speaker 1: of fun. I know, Gurry and Madame Legard together would

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Speaker 1: be really a wonderful. Our futures negative seven down, futures

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Speaker 1: negative sixty four. Coming up more with On Hill Gary

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Speaker 1: of the o e c D, Berry, Rid Hilton, Tom Keene.

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Speaker 1: This is Bloomberg Surveillance. Bloomberg Savman spunt you by n

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Speaker 1: y C Bay asked about their by community interest checking

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Speaker 1: with free n y C d online and Mobile banking.

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Speaker 1: Earn more, Get more. Visit NYC b family dot com

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Speaker 1: for details. Broadcasting live to New York, Bloomberg eleventh to Washington,

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Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco,

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Speaker 1: Bloomberg nine to the Country Series Exam Channel one ninety

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Speaker 1: and around the globe the Bloomberg Radio Plus Appen Bloomberg

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Speaker 1: dot Com. This is Bloomberg Surveillance. It's seven thirty on

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Speaker 1: Will Street. Good morning, I'm John Tucker, two hours away

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Speaker 1: from the opening Bill, and let's get you up to

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Speaker 1: date on the news you need to know this morning.

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Speaker 1: Investors awaiting a speech by Federal Reserve Chair Janet Yellen

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Speaker 1: twelve twenty Eastern at the New York Economic Club. You

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Speaker 1: can hear it lie right here on Bloomberg Radio and

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Speaker 1: Bloomberg Savanlean's host to Tom Keane will be there. The

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Speaker 1: US says it's gained access to the data on the

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Speaker 1: iPhone used by a terrorist no longer needs Apple's assistance.

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Speaker 1: Marking an end to a legal clash that was poised

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Speaker 1: to redraw boundaries between personal privacy and national security. Bank

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Speaker 1: of England says banks should begin building up capital earmark

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Speaker 1: to support Lunding when the economy turns down as the

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Speaker 1: outlook for UK financial stability worsens. One at Wall Street

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Speaker 1: Time Now for a look at news from around the world.

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Speaker 1: The latest on that hijacking. Here's Michael Barner John, thank

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Speaker 1: you very much. Officials say four crew members and three

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Speaker 1: passengers remain on board and egypt airplane that was hijack

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Speaker 1: today and forced to land in Cyprus. The plane was

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Speaker 1: undertulped from Alexandria, Egypt to Cairo. It left Egypt with

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Speaker 1: at least fifty five passengers and seven crew members. The

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Speaker 1: hijacker released most of the passengers on board. Egypt Minister

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Speaker 1: of Information says the hijack he claims he has a

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Speaker 1: bomb belt. We're not true whether what he has is

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Speaker 1: a true or or threat to the aircraft, but we

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Speaker 1: are dealing with it. As the hijacker asked negotiators to

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Speaker 1: deliver a letter to a woman in Cyprus, the Syrian

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Speaker 1: Antiquities officials says, mining experts have so far removed one

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Speaker 1: hundred fifty bombs planted by the Islamic State group inside

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Speaker 1: the archaeological site and the historic town of Palmyra. Syrian

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Speaker 1: troops captured the town from the Islamic State on Sunday,

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Speaker 1: and Antiquity's officials says the technical team removing explosives could

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Speaker 1: not reach some remote sites, including the burial places, because

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Speaker 1: there are hundreds of mines left. South Korea says North

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Speaker 1: Korea has fired a short range projectile from an area

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Speaker 1: near its eastern coast. Global News twenty four hours a day,

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Speaker 1: powered by our twenty four hundred journalists in more than

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Speaker 1: one hundred fifty news bureaus from around the world. I'm

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Speaker 1: Michael bar John alright, thanks Michael. Two on Wall Streets

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Speaker 1: and it's on app for the Bloomberg NBC Sports Update.

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Speaker 1: You know, John Stashart's funny but makes it to the

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Speaker 1: highlight tow reel sometimes. All right, John, Yeah, right now.

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Speaker 1: We begin with a shroud of secrecy surrounding Matt Harvey.

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Speaker 1: He was supposed to make his final spring training start

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Speaker 1: today and then get ready for his first ever Opening

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Speaker 1: Days starts Sunday in Kansas City. But he's not going

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Speaker 1: to pitch today. The Mets general managers Sandy Alder said,

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Speaker 1: there's a non baseball medical issues that we have to address.

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Speaker 1: Came up this morning as far as I know, and

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Speaker 1: there'll be some follow up tests and consultation that will

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Speaker 1: take place over the next couple of days. So he

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Speaker 1: just won't. He won't. He won't pitch tomorrow. Oh, this

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Speaker 1: is in cost and not to jump to conclusions. Stressed

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Speaker 1: it was not anything orthopedic related. Nick's had a ten

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Speaker 1: point lead to New Orleans, then squirrely ten point to

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Speaker 1: the third quarterfil nets two game win speke ended at

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Speaker 1: Miami one ten ninety nine. N I T Semifinals at

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Speaker 1: the Guarden Tonight, n C Double A women down to

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Speaker 1: the final four with wins by Oregon, Stained and the

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Speaker 1: three time defending national champions Connecticut. With the Bloomberg NBC

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Speaker 1: Sports Update, I'm all right, thanks, john SMP Future is

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Speaker 1: ahead of the market open on Wall Street. They are

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Speaker 1: down to six right now. That's down three tenths percent.

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Speaker 1: At own Future is fifty nine points lower. It's a

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Speaker 1: down three tenths. Nasdak ementis eleven points lower. As check

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Speaker 1: currencies right now, Euro one twelve or seven, the end

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Speaker 1: one thirteen sixties, Sterling eighty and the Swiss Frank at

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Speaker 1: point nine seven. And we also have Nimex crew that

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Speaker 1: is down eighty three cents right now two percent lower

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Speaker 1: at thirty eight fifty seven. You're listening to Bloomberg Surveillance

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Speaker 1: on Bloomberg Radio. This is Bloomberg Surveillance with your host

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Speaker 1: Tom Keene Barry Ridholtz filling in today and time now

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Speaker 1: for the Bloomberg and j I T STEM Report being

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Speaker 1: brought to you by New Jersey Institute of Technology, investing

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00:24:52,119 --> 00:24:54,000
Speaker 1: more than a hundred and ten million dollars a year

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00:24:54,000 --> 00:24:57,360
Speaker 1: and applied research to solve problems and improve life. Learn

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Speaker 1: more at Stories of Innovation dot nj I T dot

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Speaker 1: E d U. Here's Bob boom John. Thanks. Now, let's

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Speaker 1: see what's making news in science, technology, engineering, and math.

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Speaker 1: Apple may have won the court battle, but lost the

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Speaker 1: pr war. The FBI's decision to abandon its effort to

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Speaker 1: force Apple to help break into a terrorist handset marks

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Speaker 1: a wind for the company. Yet, analyst say the agency's

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Speaker 1: claim that it found a way to hack into the

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Speaker 1: device via an anonymous third party deals a blow to

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Speaker 1: customer's faith in the iPhones ability to protect their information

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Speaker 1: having a heat way a traffical heat Wayrologists may soon

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Speaker 1: be able to predict a likelihood of extreme heat in

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Speaker 1: the Eastern United States as much as fifty days in advance.

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Speaker 1: According to a new study published in Nature Geoscience, a

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Speaker 1: team scientists looking for links between heat waves and water

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Speaker 1: temperatures in the north Central Pacific found a correlation strong

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Speaker 1: enough they say it could be used to make skill

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Speaker 1: for prediction of extra warm and dry weather about seven

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Speaker 1: weeks before the temperatures rise, and climate scientists the National

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Speaker 1: Center for Atmospheric Research say they'll start trying to forecast

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Speaker 1: Eastern heat waves starting in May, and to protect scarce

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Speaker 1: supplies of water, Saudi Arabia will soon stop the farming

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Speaker 1: of alfalfa, so the country's largest dairy company is transferring

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Speaker 1: its growth to an unlikely source for the water intensive

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Speaker 1: crop to feed its one seventy thousand cows the drought

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Speaker 1: stricken American Southwest. And that's this morning's Bloomberg and j I.

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Speaker 1: T Stem Report. Bob Boom, thanks a lot, Good morning.

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Speaker 1: I'm John Tacker. You're listening to Bloomberg Surveillance, Tom keep

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Speaker 1: Barry Ridholtze filling in for Mike mckeeth this morning. We

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Speaker 1: have futures across the board slightly lowered down about three

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Speaker 1: tenths of a cent and Barry, good morning, Good morning,

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Speaker 1: Thank you. John. We are sitting here with Angel Garilla.

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Speaker 1: He is the O E c D Secretary General, and

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Speaker 1: we were speaking earlier about some of the judicial reforms

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Speaker 1: that we were seeing in UH in Mexico and and

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Speaker 1: how that's going to pave the way for UH growth

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Speaker 1: and and generally a catch up of the other Mexico.

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Speaker 1: The question I have for you UH is the budget.

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Speaker 1: What what sort of budget is there for some of

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Speaker 1: the big infrastructure programs that we were speaking about earlier. Well,

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Speaker 1: if you're talking about Mexico, the US Mexico, because in

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Speaker 1: the case of Mexico, they've been very careful with the budget. UM.

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Speaker 1: We had all these debt crisis in the past. So

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Speaker 1: now the debt to GDP ratio is less than half

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Speaker 1: that of the United States, maybe close to a third

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Speaker 1: UH and UM, and they're very careful about the deficits.

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Speaker 1: There's a culture in Mexico if a president would propose

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Speaker 1: a crazy deficit, the Congress would block it. If the

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Speaker 1: Congress would get a majority in order to pass a

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Speaker 1: crazy deficit uh, then the president would veto it, and

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Speaker 1: the market would be to this everybody. You know, once

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Speaker 1: you uh, once you've experience of these crazies that are

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Speaker 1: led by too much debt, you become very careful, very prudent.

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Speaker 1: They learned their lessons. So I think the budget, for example,

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Speaker 1: when the oil dropped, he said, okay, uhum, you have

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Speaker 1: all the options you want, except you can't raise taxes

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Speaker 1: and you can't raise the deficit. Oh well, that leaves

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Speaker 1: you like cut cut cut cut cut. That is exactly

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Speaker 1: what they did. But that provides confidence to the market.

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Speaker 1: Now that the judicial reforms don't cost a lot of money. Um.

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Speaker 1: Rule of law doesn't cost a lot of money. You know,

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Speaker 1: you have to have infrastructure, the police systems, communications, et cetera.

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Speaker 1: But mostly it requires political will. I think there is that.

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Speaker 1: And also the question of um uh preventing, identify and

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Speaker 1: sanctioning uh corruption and the conflict of interest, for which

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Speaker 1: also the legal framework has been upgraded. We had the

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Speaker 1: O c D. I've been working very closely with the

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Speaker 1: Mexican government on this. So so now let's look elsewhere

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Speaker 1: around the world and everybody seems to be concerned about

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Speaker 1: relatively flat growth. We just got some news out of Japan.

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Speaker 1: What is the O E c d S expectation for

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Speaker 1: how the that section of the world is going to

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Speaker 1: be growing in what it means for the for for trade. Well,

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Speaker 1: first of all, um, the Japanese pronouncement today is important.

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Speaker 1: It's about what they call abinomics. That was made by

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Speaker 1: the Prime Minister of Japan, Mr. Abbe, And one of

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Speaker 1: the very important things she said is they're going to

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Speaker 1: keep the increase from eight to ten percent in the

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Speaker 1: v A T in April of next year. Now that

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Speaker 1: this is far ahead, but that's quite important because, uh,

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Speaker 1: the the the first time more than of debt to

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Speaker 1: GDP actually two D to GDP. They need the revenue

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Speaker 1: and it was there were costs, there were doubts cost

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Speaker 1: us to whether they were gonna go through with this

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Speaker 1: increase in the v A T of next year. Well,

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Speaker 1: if you remember the last time we saw the v

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Speaker 1: A T increase, it really stopped the growth, the bounce

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Speaker 1: from amanoics two years ago, and and some people blame

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Speaker 1: that on on um on the economics happen, is that

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Speaker 1: what happened is it accelerated the purchases until the day before,

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Speaker 1: and then of course there was a slump afterwards. In

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Speaker 1: the end, it kind of balances out. It will not

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Speaker 1: have that much of an impact over the medium and

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Speaker 1: long term, and it will give additional revenues to the government.

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Speaker 1: We've been speaking with Abbi Garra. I'm sorry, Angel Guerrera,

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Speaker 1: Secretary General of the O E c D. How are

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Speaker 1: you looking on futures? Job pretty much unchanged at this point,

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Speaker 1: all down about three tenths of a percent. S and

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Speaker 1: P futures buried down five. The downminis fifty three points lower.

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Speaker 1: Bastic futures right now they are down eight points. And

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Speaker 1: you're listening to Bloomberg Surveillance Verry rid Holes, Tom Keane

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Speaker 1: right here on Bloomberg Radio Surveillance brought you by S

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Speaker 1: S and C. More experienced, superior technology, independence and expertise.

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Speaker 1: fund administration.