Speaker 1: This is Bloomberg Surveillance. If the British vote goes in
Speaker 1: favor of Bredgas, that will be another sign that you
Speaker 1: simply there aren't any givens anymore, bastor, don't believe the
Speaker 1: FED will tighten as much as their guide. I would
Speaker 1: argue that the FED tightening really began with the tapering
Speaker 1: of asset purchases in the end of quantity of easing.
Speaker 1: At least that's what financial markets told us. Bloomberg Surveillance
Speaker 1: your link to the world of economics, Cliinance and Investment
Speaker 1: on Bloomberg Rady and good morning everyone, Michael McKee and
Speaker 1: Tom Keen worldwide, Bloomberg Surveillan's Good morning, Coast to coast,
Speaker 1: Bloomberg twelve hundred, Boston. I'm picking myself up off with
Speaker 1: the floor. The Associated Press reporting that Bill Lee Spaceman,
Speaker 1: Bill Lee x Red Sox Pitcher running for Vermont governor.
Speaker 1: You don't need to know anything else this morning except
Speaker 1: that Good morning, Bloomberg twelve Boston, Bloomberg eleventh three O
Speaker 1: New York, the Yankees six wins in a row, five baseball,
Speaker 1: Good Morning Washington, nine FM, San Francisco Bay Area. All
Speaker 1: of you across Baseball America. Serious the next UM shut
Speaker 1: out one nineteen. We'll get to Wilbur Ross here in
Speaker 1: a moment. Public surveillance brought you is always by kna Resnick.
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Speaker 1: Where are you? Where do you suppose? Who do you
Speaker 1: suppose that ability would talk to it? You know, if
Speaker 1: he doesn't know, if he keeps it up for two weeks,
Speaker 1: he's gonna be on the Trump ticket. I mean, for
Speaker 1: what I know, Wilbur Ross with us w L. Ross,
Speaker 1: And it's like, you know, we could talk to Wilbur Ross, folks,
Speaker 1: full disclosure for four hours. We could spend the fourth
Speaker 1: hour on the art market where Mr Ross. We could
Speaker 1: spend half an hour on Yale University. We could spend
Speaker 1: two hours on his radio career. This was a few
Speaker 1: years back MacArthur was leaving the Philippines. But right now
Speaker 1: we need to talk about Wilbur Ross. Why don't you
Speaker 1: own a sports team? I mean, we all know you
Speaker 1: are well healed. Do you have an interest in owning
Speaker 1: the money making juggernaut of sports where you don't have
Speaker 1: to build your next stadium. Well, the biggest mistake I've
Speaker 1: made was not investing in the New York Yankees back
Speaker 1: when it was being bought from CBS. My friend Bob
Speaker 1: needle Lander very wisely did buy into it, and it's
Speaker 1: probably been the best investment he's made. What's the worst
Speaker 1: pro investment you've ever made? I mean, I mean, everybody
Speaker 1: talks about your successes and banking cold. What's the single
Speaker 1: dumbest thing you've ever done, like not owning the dreaded Yankees? Well,
Speaker 1: that was one. The other was waiting so long to
Speaker 1: buy my business from Roth Trial. I was a very
Speaker 1: late bloomer. I bought the business when I was in
Speaker 1: my sixties. That's late, Mike. What what would be the
Speaker 1: biggest mistake somebody would make today? I think probably the
Speaker 1: biggest mistake would be being too negative. I think there's
Speaker 1: so much discontent out there, so much people gnashing their
Speaker 1: teeth about this and that, that they're not perhaps focusing
Speaker 1: on all the good things that are going on from
Speaker 1: an investoral standpoint. Then tell me what what's good. What
Speaker 1: what's going to drive an investment. Well, what we've been
Speaker 1: doing of late is buying the distress bonds of oil
Speaker 1: and gas producers in this country. The shale people, mostly
Speaker 1: in the Permian Basin, some in the Eagle Forwards, some
Speaker 1: in a few other of the very low cost formations
Speaker 1: were inclined to think that when oil broke down through
Speaker 1: thirty dollars a barrel a bit ago, that that kind
Speaker 1: of mark the low Then, while we don't think it
Speaker 1: gets back to a hundred anytime soon, doesn't need to.
Speaker 1: If it gets into this fifties sixty dollar range, going
Speaker 1: to be fine for the low cost can service the debt.
Speaker 1: Or is it that somebody's going to buy those companies
Speaker 1: and the debt will still be valid. Well, in some
Speaker 1: cases it's one. Some cases will end up with the equity.
Speaker 1: But um, we we think that demand for petroleum will
Speaker 1: keep growing, albeit at a very small pace. We think
Speaker 1: the new production of coming in where the US is
Speaker 1: really going to be the swing producer. It's no longer
Speaker 1: going to be Opec as the swing producer because there
Speaker 1: are other than Iran. The Gulf countries are pretty much
Speaker 1: at their effective capacity right now. There's very little unused capacity,
Speaker 1: so US will be the big swing. And I think
Speaker 1: the reason it won't go back to a hundred is
Speaker 1: that long before a hundred, tremendous amount of US supply
Speaker 1: would come back. Then our our equities priced to perfection.
Speaker 1: Not in the Wilbur Ross world, but from your mortals.
Speaker 1: Do they look at central bankers affecting policy and the
Speaker 1: distortions of negative rates and can they bring that over
Speaker 1: to equity instability down the road? Well it maybe. I
Speaker 1: think that the fit of Reserve Board should have raised
Speaker 1: rates already earnestly hope they do so in June, because
Speaker 1: I think their vacillation on rates and making it into
Speaker 1: a spectative sport has caused more trouble than the low
Speaker 1: rates have produced good things. You and I had comments,
Speaker 1: i'm gonna say in March on your support of Mr
Speaker 1: Romney the last time around, and then your supportive Mr Trump,
Speaker 1: and many on Global Wall Street were surprised by the
Speaker 1: idea that you would support Mr Trump and your chastise
Speaker 1: Governor Romney. There's been a little bit of news flows
Speaker 1: since then. Bring us up to date on what you
Speaker 1: would suggest. Speaker Ryan needs to do well. I think
Speaker 1: that Speaker Ryan and more vodka place. Okay, continue, I
Speaker 1: think Speaker Ryan and Donald Trump have had a very
Speaker 1: good session. There was a news flash this morning suggesting
Speaker 1: that Speaker Ryan maybe getting ready to endorse Mr Trump,
Speaker 1: and I think that would be very constructive. If you
Speaker 1: see the New Yorker article in the Washington Post, Kaplan
Speaker 1: OpEd on not fascism, but elements of a certitude that
Speaker 1: led to that kind of scary word being used. Have
Speaker 1: you seen any indication that Mr Trump can move to
Speaker 1: the middle of the Republican Party or capture the attention
Speaker 1: of independent voters. Well, I think he has captured the
Speaker 1: intention of independent voters. He did very well in those
Speaker 1: primaries where people could cross over or where independence could vote.
Speaker 1: It's also fascinating to me that the recent exit polls
Speaker 1: have shown that something approaching of Bernie say Anders followers
Speaker 1: say they'll vote for Trump, and I think that's because
Speaker 1: they are interested in doing something outside of what's been
Speaker 1: happening in Washington, and the two figures who represent the
Speaker 1: most outside seemed to be Bernie Sanders and Donald Trump.
Speaker 1: What again, from an investor's point of view, what of
Speaker 1: Donald Trump's policies can you name one that makes economic sense. Yeah.
Speaker 1: I think if you look at the direction in which
Speaker 1: he's heading, he wants a stronger US. He wants a
Speaker 1: US that makes more intelligent deals in trade and more
Speaker 1: intelligent deals in providing defense for other countries. I think
Speaker 1: those are perfectly logical. But he's provided no roadmap to
Speaker 1: get there, no plan to get there. His tax cut proposal,
Speaker 1: according to the Tax Policy Center, would leave US eleven
Speaker 1: trillion dollars worse off. Uh. He doesn't seem to have
Speaker 1: any plan other than trust me, I'll think of something. Well,
Speaker 1: I don't think that's quite correct. In terms of the
Speaker 1: trade deficit that we have, I think he will work
Speaker 1: to revise some of the treaties we have. We have
Speaker 1: made some bad treaties. I do think he's right, and
Speaker 1: that if we pay for the defense of other countries
Speaker 1: they ought to contribute to that. It's enough we're putting
Speaker 1: our soldiers and sailors and airmen potentially in harm's way.
Speaker 1: At least they can do is to pay for it.
Speaker 1: Most countries in the developed world have far less defense
Speaker 1: spending as a percent of g d P than we do,
Speaker 1: and a portion of why we're spending so much as
Speaker 1: we're subsidizing them. I have to ask, as as somebody
Speaker 1: who's now lending his name to the Trump campaign, When
Speaker 1: you look at the things he says, the way he campaigns,
Speaker 1: doesn't it embarrass you? Well, his style is his style.
Speaker 1: It's certainly not my style. But it has been effective,
Speaker 1: and people say, well, is he really a good businessman?
Speaker 1: Name me another candidate who has ever become a major
Speaker 1: party nominee with spending as little money as he has spent.
Speaker 1: If that isn't the business coup of the year, I
Speaker 1: don't know what is. Should hitters like you who don't
Speaker 1: support Mr Trump, should they cut it checked the secretary
Speaker 1: of State? I mean, should they support Hillary Clinton? That
Speaker 1: would be another more gracious way of translating it. Um.
Speaker 1: I'm not a fan of Hillary Clinton, and so I
Speaker 1: think that they should stick with Trump. I also think
Speaker 1: if you believe in the two party system, and I
Speaker 1: think the two party system is one of the reasons
Speaker 1: why the US has not fallen into a lot of
Speaker 1: the problems that Europe has. If you believe in the
Speaker 1: two party system, you really should support your party's nominee.
Speaker 1: And the reason for that is, if what we say
Speaker 1: is well, I'll support the nominee accepted. It's him, and
Speaker 1: I don't like. Then you're gonna end up with We
Speaker 1: learned we could go on this well before ours. We
Speaker 1: learned all this in Civics one on one. Why is
Speaker 1: this nation having trouble respecting your view on the two
Speaker 1: party system? What is collapsed? I'm not true the nation
Speaker 1: is having trouble. I think that Donald Trump will be
Speaker 1: elected president and it will prove my theory to be correct. Oh,
Speaker 1: we should have you back soon. What are you doing tomorrow?
Speaker 1: Wilbert Ross with us for those important comments, John Tucker
Speaker 1: writing up a storm here of headlines. Mr Ross, of
Speaker 1: course with important comments, and we should point out he
Speaker 1: was a supporter of Governor Romney, as he's clearly now
Speaker 1: of Mr Trump. Futures up eight down, features up sixty four,
Speaker 1: that the two year yeld point nine three per cent. Alright,
Speaker 1: let's check in now with Michael Barr and get the
Speaker 1: latest world of national headlines. Mike Tom, thank you very much.
Speaker 1: It could be a long day for the head of
Speaker 1: the Transportation Security Administration d SA Administrator Peter Neffinger will
Speaker 1: be before the House Homeland Security Committee. Lawmakers are looking
Speaker 1: for answers today to the long lines at airport security.
Speaker 1: Defager will also likely be pressed by members to explain
Speaker 1: exactly what prompted the outsta of the agency. Top security
Speaker 1: official Kelly Hogan. Congressional Investigators say the government and spends
Speaker 1: about three fourth of its technology budget maintaining aging computer
Speaker 1: systems on partisan government accountability offices in its report today
Speaker 1: that the increasing cost of maintaining old equipment trains money
Speaker 1: that could go for modernization. Global News twenty four hours
Speaker 1: a day, powered by our und journalists and more than
Speaker 1: a hundred fifty news bureaus around the world. On Mike Labar, Michael,
Speaker 1: thanks so much. In currencies then one, ten, sixteen, some
Speaker 1: really smart conversations this morning on currencies. I'll be blunt,
Speaker 1: many different choices on dollar, strong dollar, stable dollar week,
Speaker 1: or really all over the map d X y point
Speaker 1: five three. This is Bloomberg's Surveillance. The news update brought
Speaker 1: to you by Bank of American Mary Lynch, seeing what
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