1
00:00:02,400 --> 00:00:05,800
Speaker 1: Global business news twenty four hours a day at Bloomberg

2
00:00:05,840 --> 00:00:08,920
Speaker 1: dot com, the Radio plus Mobile Act and on your radio.

3
00:00:09,200 --> 00:00:13,160
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

4
00:00:13,200 --> 00:00:15,960
Speaker 1: This updates Rozzy you bi. Sector spider e t F s.

5
00:00:16,040 --> 00:00:18,040
Speaker 1: Why buy a single stock when you can invest in

6
00:00:18,079 --> 00:00:21,400
Speaker 1: the entire sector? Visits sector sp d r s dot

7
00:00:21,400 --> 00:00:25,480
Speaker 1: com are called sector e t F Companies added more

8
00:00:25,480 --> 00:00:29,040
Speaker 1: workers than projected in February. The two hundred fourteen thousand

9
00:00:29,160 --> 00:00:32,239
Speaker 1: increase in employment followed a revised one D nineties three

10
00:00:32,280 --> 00:00:35,320
Speaker 1: thousand rise in the prior month. Figures from the ADP

11
00:00:35,440 --> 00:00:39,760
Speaker 1: Research Institute show McKesson, a U S distributor of medical products,

12
00:00:39,760 --> 00:00:42,839
Speaker 1: will acquire rex All Health from its private owner for

13
00:00:42,880 --> 00:00:46,120
Speaker 1: two point two billion dollars to expand its presence in Canada.

14
00:00:46,560 --> 00:00:50,040
Speaker 1: Monsanto padding its full year profit forecast is lower prices

15
00:00:50,200 --> 00:00:54,120
Speaker 1: for its Glipha State herbside and a devalue to Argentine

16
00:00:54,160 --> 00:00:57,160
Speaker 1: pace so added to the pressure from a weaker agricultural

17
00:00:57,280 --> 00:01:00,400
Speaker 1: markets future is lower this morning. S and P eveny

18
00:01:00,440 --> 00:01:03,160
Speaker 1: futures down five points, now eveny futures down thirty eight

19
00:01:03,160 --> 00:01:06,040
Speaker 1: and NASDAK eveny futures down seven and a half tacks

20
00:01:06,080 --> 00:01:08,600
Speaker 1: in Germany's up two tens per cent. Attend your treasury

21
00:01:08,640 --> 00:01:11,319
Speaker 1: down three thirty seconds, the yield one point eight three percent.

22
00:01:11,760 --> 00:01:14,040
Speaker 1: Now I mix screwed oil down one percent or thirty

23
00:01:14,040 --> 00:01:16,760
Speaker 1: five cents to thirty four oh five of arel comic

24
00:01:16,800 --> 00:01:18,880
Speaker 1: school is up two tenths per cent or two dollars

25
00:01:18,880 --> 00:01:21,520
Speaker 1: to twelve thirty three, and ounce the euro a dollar

26
00:01:21,600 --> 00:01:24,480
Speaker 1: oh eight four eight they had one fourteen point one nine.

27
00:01:24,720 --> 00:01:28,400
Speaker 1: As a Bloomberg Business Flash, Tom and Mike A Karen,

28
00:01:28,560 --> 00:01:32,399
Speaker 1: I thank you so much from Washington d C on

29
00:01:32,480 --> 00:01:37,000
Speaker 1: Wall Street. The following is from Bloomberg View. Opinions and

30
00:01:37,080 --> 00:01:40,680
Speaker 1: commentary from Bloomberg columnists. I'm Megan mccartell, a columnist from

31
00:01:40,680 --> 00:01:43,160
Speaker 1: Bloomberg View. About a week ago, as it became clear

32
00:01:43,200 --> 00:01:45,800
Speaker 1: that Donald Trump was likely to be the Republican nominee,

33
00:01:45,800 --> 00:01:49,080
Speaker 1: I've noticed a new phenomenon among friends and family, lifelong

34
00:01:49,120 --> 00:01:51,960
Speaker 1: Republicans who were considering voting for Clinton in the fall.

35
00:01:52,080 --> 00:01:54,560
Speaker 1: So this weekend I asked Twitter for emails from people

36
00:01:54,640 --> 00:01:57,480
Speaker 1: like this party stalwarts who were committed not to vote

37
00:01:57,480 --> 00:01:59,840
Speaker 1: for Trump, no matter what I expected. If you do,

38
00:02:00,040 --> 00:02:02,560
Speaker 1: then I got a few hundred. Who are these voters?

39
00:02:02,640 --> 00:02:06,480
Speaker 1: They're drawn from all ages, demographics, geographies, from Virginia military

40
00:02:06,520 --> 00:02:09,760
Speaker 1: officers to Indiana farmers to blue state college students. And

41
00:02:09,760 --> 00:02:12,600
Speaker 1: while they talked about policy issues, most of their issues

42
00:02:12,639 --> 00:02:18,240
Speaker 1: revolved around character, bullying, impulsiveness, misogyny, and racism. Narcissism, especially

43
00:02:18,240 --> 00:02:21,520
Speaker 1: criticized as authoritarian streak, which I mean people worry about

44
00:02:21,600 --> 00:02:25,560
Speaker 1: strong men, fascist dictatorships, nuclear war. Almost all of them

45
00:02:25,560 --> 00:02:27,720
Speaker 1: hastened to tell me that they hated Hillary Clinton and

46
00:02:27,760 --> 00:02:29,560
Speaker 1: what she would do in office, but they feared that

47
00:02:29,600 --> 00:02:32,040
Speaker 1: Donald Trump would be no better on policy and thought

48
00:02:32,040 --> 00:02:34,919
Speaker 1: he would be quite possibly worse on everything else. Didn't

49
00:02:34,960 --> 00:02:38,360
Speaker 1: never Trump voters understand what this meant. People inquired losing

50
00:02:38,360 --> 00:02:42,160
Speaker 1: the Supreme Court for a generation, cementing Obamacare, raising taxes.

51
00:02:42,240 --> 00:02:44,840
Speaker 1: They did, but they were unwilling to be associated Donald

52
00:02:44,840 --> 00:02:47,200
Speaker 1: Trump in any way, even if that meant spending time

53
00:02:47,240 --> 00:02:49,320
Speaker 1: in the wilderness. If Hilly is elected, I think the

54
00:02:49,360 --> 00:02:52,080
Speaker 1: Republic will survive, said one. But if Trump is elected,

55
00:02:52,080 --> 00:02:54,239
Speaker 1: I have my doubts at will. They may be partisans,

56
00:02:54,240 --> 00:02:56,840
Speaker 1: but they put their country first of all. On Megan mccartell.

57
00:02:56,880 --> 00:02:58,959
Speaker 1: For more view, please get to Bloomberview dot Com or

58
00:02:59,040 --> 00:03:02,119
Speaker 1: view go on the bloom terminal. This has been Bloomberg

59
00:03:02,240 --> 00:03:07,079
Speaker 1: View and Bloomberview commentaries can be heard hourly weekdays on

60
00:03:07,240 --> 00:03:09,960
Speaker 1: Bloomberg Radio. Good Morning, all of you around the world,

61
00:03:09,960 --> 00:03:14,160
Speaker 1: Bloomberg Radio Plus Bloomberg Boston, Bloomberg nine sixty Waking up

62
00:03:14,200 --> 00:03:17,240
Speaker 1: the Bay Area of San Francisco, Bloomberg eleventh, three oh

63
00:03:17,240 --> 00:03:22,520
Speaker 1: in New York and here in Washington. Good morning, Michael.

64
00:03:23,200 --> 00:03:26,840
Speaker 1: We are in Washington for the after bath of Super Tuesday,

65
00:03:26,960 --> 00:03:31,200
Speaker 1: the series of primaries that were held yesterday. It is

66
00:03:31,240 --> 00:03:34,440
Speaker 1: not Super Tuesday that matters, however, according to Libby Cantrill,

67
00:03:34,480 --> 00:03:39,000
Speaker 1: who is a Pimcost political analyst, it is the fifteen

68
00:03:39,200 --> 00:03:42,760
Speaker 1: of March, when another series of primaries will be held

69
00:03:43,040 --> 00:03:46,160
Speaker 1: that could bring the contest to a close. We move

70
00:03:46,240 --> 00:03:49,160
Speaker 1: into a phase where there are a number of winner

71
00:03:49,200 --> 00:03:55,000
Speaker 1: take all primaries in very big states Florida, Illinois, Missouri, Ohio.

72
00:03:55,680 --> 00:03:59,520
Speaker 1: And Libby, you think that this could be It could

73
00:03:59,560 --> 00:04:02,040
Speaker 1: be over on the Republican side at the end of

74
00:04:02,120 --> 00:04:07,680
Speaker 1: the day. That day, Yeah, March fifteenth is undoubtedly going

75
00:04:07,760 --> 00:04:11,000
Speaker 1: to be a major inflection point. It is, as you

76
00:04:11,040 --> 00:04:14,720
Speaker 1: point out, Mike, the day that states have the choice

77
00:04:14,840 --> 00:04:18,479
Speaker 1: of whether they allocate delegates on either a proportional or

78
00:04:18,480 --> 00:04:22,200
Speaker 1: winner take all basis. But importantly it is also the

79
00:04:22,320 --> 00:04:27,040
Speaker 1: date of Florida and Ohio primaries, which are winner take

80
00:04:27,120 --> 00:04:30,200
Speaker 1: all of states, and those are states where Rubio and

81
00:04:30,320 --> 00:04:34,600
Speaker 1: John Kasik have to win, respectively in order to to

82
00:04:35,040 --> 00:04:38,520
Speaker 1: stay in the race at this point, given Trump, you know,

83
00:04:38,560 --> 00:04:42,000
Speaker 1: really runaway success so far. Um, I think, to the

84
00:04:42,080 --> 00:04:45,280
Speaker 1: chagrin and some of the so called establishment in d C,

85
00:04:46,360 --> 00:04:50,440
Speaker 1: the mass just won't work unless your Rubio takes Florida,

86
00:04:50,960 --> 00:04:54,440
Speaker 1: unless Kasik takes Ohio. So really it's going to be

87
00:04:54,480 --> 00:04:58,279
Speaker 1: in the flection point in that either the races is

88
00:04:58,320 --> 00:05:02,400
Speaker 1: effectively over at that point or it continues to sort

89
00:05:02,400 --> 00:05:06,080
Speaker 1: of limp along. Um. You know. At the with with

90
00:05:06,080 --> 00:05:08,080
Speaker 1: with Trump being the kind of the clear front runner,

91
00:05:09,680 --> 00:05:12,480
Speaker 1: Tom and I are in Washington for Super Tuesday. We're

92
00:05:12,480 --> 00:05:15,080
Speaker 1: looking for a place to go for this March fifteenth date.

93
00:05:15,120 --> 00:05:18,640
Speaker 1: I think Tom favors the Northern Marianas Islands, winner take

94
00:05:18,680 --> 00:05:23,680
Speaker 1: all nine delegates. Maybe that may be key. Uh does

95
00:05:23,680 --> 00:05:29,120
Speaker 1: the bond market does the bond market start paying attention

96
00:05:29,160 --> 00:05:32,480
Speaker 1: on March sixteen to what's been going on we were

97
00:05:32,520 --> 00:05:37,760
Speaker 1: just listening to Megan mccarnell read her latest Bloomberg View article,

98
00:05:37,839 --> 00:05:40,200
Speaker 1: where she noted that there are people in the Republican

99
00:05:40,240 --> 00:05:43,000
Speaker 1: Party who think the country is in grave danger if

100
00:05:43,000 --> 00:05:47,240
Speaker 1: Donald Trump becomes president. Oh yeah. From an economic perspective,

101
00:05:47,320 --> 00:05:52,719
Speaker 1: the hard thing about Donald Trump is that he's kind

102
00:05:52,720 --> 00:05:56,279
Speaker 1: of ideologically all over the map. Right. So on one hand,

103
00:05:56,880 --> 00:06:00,520
Speaker 1: if she opposes free trade, which has been part of

104
00:06:00,640 --> 00:06:04,159
Speaker 1: the Republican platform for for a long time in terms

105
00:06:04,240 --> 00:06:08,400
Speaker 1: of opening up trade, um, but then he he on

106
00:06:08,440 --> 00:06:13,400
Speaker 1: the other hand, has a much more aggressive tax policy

107
00:06:13,520 --> 00:06:17,520
Speaker 1: that you know, would add from estements around nine trillion

108
00:06:17,560 --> 00:06:19,279
Speaker 1: to twelve trillion dollars of it to the death. So

109
00:06:19,800 --> 00:06:22,080
Speaker 1: he's all over the place. That from a market's perspective,

110
00:06:22,080 --> 00:06:24,920
Speaker 1: it's hard to get your your arms wrapped around what

111
00:06:24,960 --> 00:06:28,560
Speaker 1: a Trump presidency would actually mean, which probably the bad

112
00:06:28,560 --> 00:06:32,800
Speaker 1: thing for the markets, right because markets don't typically like uncertainty.

113
00:06:34,040 --> 00:06:37,000
Speaker 1: Let me if we take it even forward to how

114
00:06:37,040 --> 00:06:40,120
Speaker 1: you advised PIMCO, when do we care about the electoral

115
00:06:40,160 --> 00:06:43,880
Speaker 1: process with our investments? I mean, I think it's way overdone.

116
00:06:44,400 --> 00:06:47,360
Speaker 1: The linkage is, but do we care before the conventions?

117
00:06:47,400 --> 00:06:50,120
Speaker 1: Do we care after the conventions. Can I ignore all

118
00:06:50,160 --> 00:06:55,320
Speaker 1: this until the third week of October, Yeah, we're I

119
00:06:55,360 --> 00:06:58,200
Speaker 1: think again, Marcis teams from the Republican side will be

120
00:06:58,440 --> 00:07:00,760
Speaker 1: will be an inflection point, and it will show. It

121
00:07:00,800 --> 00:07:04,479
Speaker 1: will indicate whether this goes to the convention honestly or

122
00:07:04,520 --> 00:07:08,640
Speaker 1: whether it's it's over. So the convention, which usually doesn't

123
00:07:08,680 --> 00:07:12,880
Speaker 1: matter um, could actually matter pretty, you know, pretty significantly

124
00:07:13,040 --> 00:07:16,000
Speaker 1: on on the Republican side. But I think from an

125
00:07:16,040 --> 00:07:21,880
Speaker 1: investor's perspective, we probably shouldn't really start caring until the

126
00:07:22,000 --> 00:07:24,840
Speaker 1: nominees are firmed up. I think on the Democratic side

127
00:07:24,840 --> 00:07:27,280
Speaker 1: it looks like that's probably gonna happen sooner than later.

128
00:07:27,600 --> 00:07:30,440
Speaker 1: But again the Republican side, that could happen as as

129
00:07:30,440 --> 00:07:33,640
Speaker 1: early as March fifteen, or could could last up until

130
00:07:33,680 --> 00:07:35,520
Speaker 1: the convention. So I don't think we should start really

131
00:07:35,560 --> 00:07:38,480
Speaker 1: focusing on it though, until we have a good idea

132
00:07:38,560 --> 00:07:40,480
Speaker 1: on both sides of the delegate mass is going to

133
00:07:40,520 --> 00:07:43,960
Speaker 1: work out to pretend to a firm winner on on

134
00:07:44,000 --> 00:07:48,480
Speaker 1: each side. Well. As you point out, Donald Trump's platform

135
00:07:48,600 --> 00:07:51,560
Speaker 1: is rather incoherent, but Hillary Clinton's is not. She wants

136
00:07:51,600 --> 00:07:55,000
Speaker 1: to do things like break up too Big to Fail banks. Uh,

137
00:07:55,280 --> 00:08:02,640
Speaker 1: extend uh taxation, Uh, the carried interest tax to two

138
00:08:02,680 --> 00:08:07,160
Speaker 1: people in the financial industry, and uh, I'm wondering if

139
00:08:07,200 --> 00:08:13,760
Speaker 1: if those sectors start to show some movement when it

140
00:08:13,840 --> 00:08:17,760
Speaker 1: becomes obvious that a she's wrapped up the Democratic nomination

141
00:08:17,840 --> 00:08:23,280
Speaker 1: and be uh, there may be a weaker Republican against her. Yeah, yeah,

142
00:08:23,320 --> 00:08:24,600
Speaker 1: I mean it's you know, it's a good point of

143
00:08:24,680 --> 00:08:28,640
Speaker 1: if you really look into her regulatory reform agenda, it's

144
00:08:28,720 --> 00:08:33,160
Speaker 1: really not as draconian as you might think just listening

145
00:08:33,280 --> 00:08:35,520
Speaker 1: to the rhetoric. I mean, she does want to do

146
00:08:35,600 --> 00:08:39,440
Speaker 1: some things at the margin, many of which would actually

147
00:08:39,520 --> 00:08:43,199
Speaker 1: require Congressional approval. So it's not even clear if she

148
00:08:43,320 --> 00:08:45,160
Speaker 1: were in the White House, you know, would she be

149
00:08:45,240 --> 00:08:49,520
Speaker 1: able to actually implement her regulatory reform agenda and on

150
00:08:49,720 --> 00:08:51,520
Speaker 1: you know, the other things that you talked about, make

151
00:08:51,640 --> 00:08:54,160
Speaker 1: on taxation, I mean, she she does want to address

152
00:08:54,240 --> 00:08:57,120
Speaker 1: the so called carry interest loophole, but so did the

153
00:08:57,160 --> 00:09:00,000
Speaker 1: Republican candidates. I mean, that's part of the Republican candidates

154
00:09:00,040 --> 00:09:05,679
Speaker 1: tax platform as well. So while the rhetorics might seem extreme, um,

155
00:09:05,720 --> 00:09:08,120
Speaker 1: you know, and and maybe this is just Pollyannis, but

156
00:09:08,640 --> 00:09:11,600
Speaker 1: just given the fact that Clinton has been a creature

157
00:09:11,640 --> 00:09:14,680
Speaker 1: of Washington. The fact that you know, her husband was

158
00:09:14,720 --> 00:09:18,800
Speaker 1: sort of the master triangulator and master compromiser. I would

159
00:09:18,800 --> 00:09:23,040
Speaker 1: think that she would want to compromise more than you

160
00:09:23,120 --> 00:09:26,120
Speaker 1: might think. Again, just given given where the rhetoric has been,

161
00:09:26,160 --> 00:09:28,760
Speaker 1: I think there's some there's some areas of compromises, maybe

162
00:09:28,800 --> 00:09:32,160
Speaker 1: on corporate tax or form, maybe on entitlements, um that

163
00:09:32,200 --> 00:09:34,240
Speaker 1: you could actually see some sort of deal even coming

164
00:09:34,280 --> 00:09:36,280
Speaker 1: together if she were in the White House with a

165
00:09:36,320 --> 00:09:39,040
Speaker 1: with a split Congress. Olivy, what will you look for

166
00:09:39,200 --> 00:09:42,800
Speaker 1: quickly from the Washington establishment within the Republicans of the

167
00:09:42,880 --> 00:09:45,679
Speaker 1: next forty eight hours, they've got one to three days

168
00:09:46,080 --> 00:09:49,240
Speaker 1: before they get ready ready for Michigan. What do they do? Yeah,

169
00:09:49,320 --> 00:09:51,640
Speaker 1: it's interesting and you see that, you know, Ryan and

170
00:09:51,679 --> 00:09:54,840
Speaker 1: McConnell has both said that they'll support whomever the nominee is.

171
00:09:54,960 --> 00:09:57,240
Speaker 1: But then they've been a little bit of quoticating a

172
00:09:57,280 --> 00:10:00,680
Speaker 1: little bit more given some of Trump's um more extreme

173
00:10:00,840 --> 00:10:04,280
Speaker 1: comments about promises and what have you. So you know,

174
00:10:04,360 --> 00:10:08,080
Speaker 1: it will be interesting. I think that they might, especially McConnell,

175
00:10:08,160 --> 00:10:10,520
Speaker 1: who has a very vulnerable Senate and we've talked about

176
00:10:10,559 --> 00:10:13,319
Speaker 1: on the Republican side, he might it might behoove him

177
00:10:13,320 --> 00:10:17,720
Speaker 1: to distance himself even more from McDonald Trump for you know,

178
00:10:17,800 --> 00:10:20,079
Speaker 1: for hopes that he can protect some of those vulnerable

179
00:10:20,120 --> 00:10:22,920
Speaker 1: Republican seats. So, you know, I think it's there. They

180
00:10:23,400 --> 00:10:26,839
Speaker 1: equivocate anymore, it's probably an indication that DC is not

181
00:10:26,880 --> 00:10:28,599
Speaker 1: gonna want to have a lot to do with a

182
00:10:28,640 --> 00:10:32,880
Speaker 1: Donald Trump nominee. Honestly, well, Olivia must be a signus spring.

183
00:10:32,960 --> 00:10:35,560
Speaker 1: We got through this without talking about your Denver Broncos.

184
00:10:35,640 --> 00:10:38,880
Speaker 1: Libby Cancrill, thank you so much. She is with Pimco.

185
00:10:38,960 --> 00:10:41,840
Speaker 1: As we look at our election process, Mike has been

186
00:10:41,880 --> 00:10:46,560
Speaker 1: just an amazing, amazing for eight hours. It has it

187
00:10:46,640 --> 00:10:50,360
Speaker 1: has developed as people had forecasts. But it's sort of

188
00:10:50,400 --> 00:10:53,400
Speaker 1: like watching a train wreck on the Adams Family. You

189
00:10:53,400 --> 00:10:55,200
Speaker 1: know what's going to happen, and when it happens, it

190
00:10:55,360 --> 00:10:58,960
Speaker 1: isn't any better. I'll stay tuned for coverage in perspective.

191
00:10:58,960 --> 00:11:02,040
Speaker 1: Here again Michigan six days from now, and then on

192
00:11:02,080 --> 00:11:05,360
Speaker 1: to Florida. I believe it's March Florida's March fifteenth. Right, Yes,

193
00:11:05,400 --> 00:11:08,080
Speaker 1: I've got something right. We'll be back when Yeah, we won't.

194
00:11:08,120 --> 00:11:10,360
Speaker 1: Peyton Manning makes it deceive. I think we'll have to

195
00:11:10,360 --> 00:11:12,960
Speaker 1: do this Florida from spring training in two weeks. It's

196
00:11:13,000 --> 00:11:14,160
Speaker 1: Bloomberg's surveillance