WEBVTT - Ross: Trump will win the election

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<v Speaker 1>This is Bloomberg Surveillance. If the British vote goes in

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<v Speaker 1>favor of Bredgas, that will be another sign that you

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<v Speaker 1>simply there aren't any givens anymore, bastor, don't believe the

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<v Speaker 1>FED will tighten as much as their guide. I would

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<v Speaker 1>argue that the FED tightening really began with the tapering

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<v Speaker 1>of asset purchases in the end of quantity of easing.

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<v Speaker 1>At least that's what financial markets told us. Bloomberg Surveillance

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<v Speaker 1>your link to the world of economics, Cliinance and Investment

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<v Speaker 1>on Bloomberg Rady and good morning everyone, Michael McKee and

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<v Speaker 1>Tom Keen worldwide, Bloomberg Surveillan's Good morning, Coast to coast,

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<v Speaker 1>Bloomberg twelve hundred, Boston. I'm picking myself up off with

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<v Speaker 1>the floor. The Associated Press reporting that Bill Lee Spaceman,

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<v Speaker 1>Bill Lee x Red Sox Pitcher running for Vermont governor.

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<v Speaker 1>You don't need to know anything else this morning except

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<v Speaker 1>that Good morning, Bloomberg twelve Boston, Bloomberg eleventh three O

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<v Speaker 1>New York, the Yankees six wins in a row, five baseball,

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<v Speaker 1>Good Morning Washington, nine FM, San Francisco Bay Area. All

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<v Speaker 1>of you across Baseball America. Serious the next UM shut

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<v Speaker 1>out one nineteen. We'll get to Wilbur Ross here in

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<v Speaker 1>a moment. Public surveillance brought you is always by kna Resnick.

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<v Speaker 1>Look Ahead, Gain insight, imagine more, get forward thinking advice

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<v Speaker 1>N R e z n I c K dot com.

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<v Speaker 1>Where are you? Where do you suppose? Who do you

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<v Speaker 1>suppose that ability would talk to it? You know, if

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<v Speaker 1>he doesn't know, if he keeps it up for two weeks,

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<v Speaker 1>he's gonna be on the Trump ticket. I mean, for

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<v Speaker 1>what I know, Wilbur Ross with us w L. Ross,

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<v Speaker 1>And it's like, you know, we could talk to Wilbur Ross, folks,

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<v Speaker 1>full disclosure for four hours. We could spend the fourth

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<v Speaker 1>hour on the art market where Mr Ross. We could

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<v Speaker 1>spend half an hour on Yale University. We could spend

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<v Speaker 1>two hours on his radio career. This was a few

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<v Speaker 1>years back MacArthur was leaving the Philippines. But right now

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<v Speaker 1>we need to talk about Wilbur Ross. Why don't you

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<v Speaker 1>own a sports team? I mean, we all know you

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<v Speaker 1>are well healed. Do you have an interest in owning

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<v Speaker 1>the money making juggernaut of sports where you don't have

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<v Speaker 1>to build your next stadium. Well, the biggest mistake I've

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<v Speaker 1>made was not investing in the New York Yankees back

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<v Speaker 1>when it was being bought from CBS. My friend Bob

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<v Speaker 1>needle Lander very wisely did buy into it, and it's

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<v Speaker 1>probably been the best investment he's made. What's the worst

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<v Speaker 1>pro investment you've ever made? I mean, I mean, everybody

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<v Speaker 1>talks about your successes and banking cold. What's the single

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<v Speaker 1>dumbest thing you've ever done, like not owning the dreaded Yankees? Well,

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<v Speaker 1>that was one. The other was waiting so long to

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<v Speaker 1>buy my business from Roth Trial. I was a very

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<v Speaker 1>late bloomer. I bought the business when I was in

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<v Speaker 1>my sixties. That's late, Mike. What what would be the

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<v Speaker 1>biggest mistake somebody would make today? I think probably the

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<v Speaker 1>biggest mistake would be being too negative. I think there's

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<v Speaker 1>so much discontent out there, so much people gnashing their

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<v Speaker 1>teeth about this and that, that they're not perhaps focusing

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<v Speaker 1>on all the good things that are going on from

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<v Speaker 1>an investoral standpoint. Then tell me what what's good. What

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<v Speaker 1>what's going to drive an investment. Well, what we've been

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<v Speaker 1>doing of late is buying the distress bonds of oil

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<v Speaker 1>and gas producers in this country. The shale people, mostly

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<v Speaker 1>in the Permian Basin, some in the Eagle Forwards, some

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<v Speaker 1>in a few other of the very low cost formations

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<v Speaker 1>were inclined to think that when oil broke down through

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<v Speaker 1>thirty dollars a barrel a bit ago, that that kind

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<v Speaker 1>of mark the low Then, while we don't think it

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<v Speaker 1>gets back to a hundred anytime soon, doesn't need to.

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<v Speaker 1>If it gets into this fifties sixty dollar range, going

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<v Speaker 1>to be fine for the low cost can service the debt.

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<v Speaker 1>Or is it that somebody's going to buy those companies

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<v Speaker 1>and the debt will still be valid. Well, in some

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<v Speaker 1>cases it's one. Some cases will end up with the equity.

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<v Speaker 1>But um, we we think that demand for petroleum will

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<v Speaker 1>keep growing, albeit at a very small pace. We think

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<v Speaker 1>the new production of coming in where the US is

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<v Speaker 1>really going to be the swing producer. It's no longer

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<v Speaker 1>going to be Opec as the swing producer because there

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<v Speaker 1>are other than Iran. The Gulf countries are pretty much

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<v Speaker 1>at their effective capacity right now. There's very little unused capacity,

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<v Speaker 1>so US will be the big swing. And I think

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<v Speaker 1>the reason it won't go back to a hundred is

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<v Speaker 1>that long before a hundred, tremendous amount of US supply

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<v Speaker 1>would come back. Then our our equities priced to perfection.

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<v Speaker 1>Not in the Wilbur Ross world, but from your mortals.

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<v Speaker 1>Do they look at central bankers affecting policy and the

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<v Speaker 1>distortions of negative rates and can they bring that over

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<v Speaker 1>to equity instability down the road? Well it maybe. I

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<v Speaker 1>think that the fit of Reserve Board should have raised

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<v Speaker 1>rates already earnestly hope they do so in June, because

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<v Speaker 1>I think their vacillation on rates and making it into

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<v Speaker 1>a spectative sport has caused more trouble than the low

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<v Speaker 1>rates have produced good things. You and I had comments,

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<v Speaker 1>i'm gonna say in March on your support of Mr

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<v Speaker 1>Romney the last time around, and then your supportive Mr Trump,

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<v Speaker 1>and many on Global Wall Street were surprised by the

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<v Speaker 1>idea that you would support Mr Trump and your chastise

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<v Speaker 1>Governor Romney. There's been a little bit of news flows

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<v Speaker 1>since then. Bring us up to date on what you

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<v Speaker 1>would suggest. Speaker Ryan needs to do well. I think

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<v Speaker 1>that Speaker Ryan and more vodka place. Okay, continue, I

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<v Speaker 1>think Speaker Ryan and Donald Trump have had a very

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<v Speaker 1>good session. There was a news flash this morning suggesting

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<v Speaker 1>that Speaker Ryan maybe getting ready to endorse Mr Trump,

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<v Speaker 1>and I think that would be very constructive. If you

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<v Speaker 1>see the New Yorker article in the Washington Post, Kaplan

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<v Speaker 1>OpEd on not fascism, but elements of a certitude that

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<v Speaker 1>led to that kind of scary word being used. Have

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<v Speaker 1>you seen any indication that Mr Trump can move to

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<v Speaker 1>the middle of the Republican Party or capture the attention

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<v Speaker 1>of independent voters. Well, I think he has captured the

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<v Speaker 1>intention of independent voters. He did very well in those

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<v Speaker 1>primaries where people could cross over or where independence could vote.

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<v Speaker 1>It's also fascinating to me that the recent exit polls

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<v Speaker 1>have shown that something approaching of Bernie say Anders followers

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<v Speaker 1>say they'll vote for Trump, and I think that's because

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<v Speaker 1>they are interested in doing something outside of what's been

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<v Speaker 1>happening in Washington, and the two figures who represent the

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<v Speaker 1>most outside seemed to be Bernie Sanders and Donald Trump.

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<v Speaker 1>What again, from an investor's point of view, what of

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<v Speaker 1>Donald Trump's policies can you name one that makes economic sense. Yeah.

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<v Speaker 1>I think if you look at the direction in which

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<v Speaker 1>he's heading, he wants a stronger US. He wants a

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<v Speaker 1>US that makes more intelligent deals in trade and more

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<v Speaker 1>intelligent deals in providing defense for other countries. I think

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<v Speaker 1>those are perfectly logical. But he's provided no roadmap to

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<v Speaker 1>get there, no plan to get there. His tax cut proposal,

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<v Speaker 1>according to the Tax Policy Center, would leave US eleven

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<v Speaker 1>trillion dollars worse off. Uh. He doesn't seem to have

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<v Speaker 1>any plan other than trust me, I'll think of something. Well,

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<v Speaker 1>I don't think that's quite correct. In terms of the

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<v Speaker 1>trade deficit that we have, I think he will work

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<v Speaker 1>to revise some of the treaties we have. We have

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<v Speaker 1>made some bad treaties. I do think he's right, and

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<v Speaker 1>that if we pay for the defense of other countries

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<v Speaker 1>they ought to contribute to that. It's enough we're putting

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<v Speaker 1>our soldiers and sailors and airmen potentially in harm's way.

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<v Speaker 1>At least they can do is to pay for it.

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<v Speaker 1>Most countries in the developed world have far less defense

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<v Speaker 1>spending as a percent of g d P than we do,

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<v Speaker 1>and a portion of why we're spending so much as

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<v Speaker 1>we're subsidizing them. I have to ask, as as somebody

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<v Speaker 1>who's now lending his name to the Trump campaign, When

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<v Speaker 1>you look at the things he says, the way he campaigns,

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<v Speaker 1>doesn't it embarrass you? Well, his style is his style.

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<v Speaker 1>It's certainly not my style. But it has been effective,

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<v Speaker 1>and people say, well, is he really a good businessman?

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<v Speaker 1>Name me another candidate who has ever become a major

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<v Speaker 1>party nominee with spending as little money as he has spent.

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<v Speaker 1>If that isn't the business coup of the year, I

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<v Speaker 1>don't know what is. Should hitters like you who don't

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<v Speaker 1>support Mr Trump, should they cut it checked the secretary

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<v Speaker 1>of State? I mean, should they support Hillary Clinton? That

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<v Speaker 1>would be another more gracious way of translating it. Um.

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<v Speaker 1>I'm not a fan of Hillary Clinton, and so I

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<v Speaker 1>think that they should stick with Trump. I also think

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<v Speaker 1>if you believe in the two party system, and I

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<v Speaker 1>think the two party system is one of the reasons

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<v Speaker 1>why the US has not fallen into a lot of

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<v Speaker 1>the problems that Europe has. If you believe in the

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<v Speaker 1>two party system, you really should support your party's nominee.

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<v Speaker 1>And the reason for that is, if what we say

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<v Speaker 1>is well, I'll support the nominee accepted. It's him, and

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<v Speaker 1>I don't like. Then you're gonna end up with We

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<v Speaker 1>learned we could go on this well before ours. We

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<v Speaker 1>learned all this in Civics one on one. Why is

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<v Speaker 1>this nation having trouble respecting your view on the two

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<v Speaker 1>party system? What is collapsed? I'm not true the nation

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<v Speaker 1>is having trouble. I think that Donald Trump will be

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<v Speaker 1>elected president and it will prove my theory to be correct. Oh,

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<v Speaker 1>we should have you back soon. What are you doing tomorrow?

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<v Speaker 1>Wilbert Ross with us for those important comments, John Tucker

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<v Speaker 1>writing up a storm here of headlines. Mr Ross, of

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<v Speaker 1>course with important comments, and we should point out he

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<v Speaker 1>was a supporter of Governor Romney, as he's clearly now

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<v Speaker 1>of Mr Trump. Futures up eight down, features up sixty four,

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<v Speaker 1>that the two year yeld point nine three per cent. Alright,

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<v Speaker 1>let's check in now with Michael Barr and get the

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<v Speaker 1>latest world of national headlines. Mike Tom, thank you very much.

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<v Speaker 1>It could be a long day for the head of

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<v Speaker 1>the Transportation Security Administration d SA Administrator Peter Neffinger will

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<v Speaker 1>be before the House Homeland Security Committee. Lawmakers are looking

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<v Speaker 1>for answers today to the long lines at airport security.

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<v Speaker 1>Defager will also likely be pressed by members to explain

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<v Speaker 1>exactly what prompted the outsta of the agency. Top security

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<v Speaker 1>official Kelly Hogan. Congressional Investigators say the government and spends

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<v Speaker 1>about three fourth of its technology budget maintaining aging computer

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<v Speaker 1>systems on partisan government accountability offices in its report today

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<v Speaker 1>that the increasing cost of maintaining old equipment trains money

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<v Speaker 1>that could go for modernization. Global News twenty four hours

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<v Speaker 1>a day, powered by our und journalists and more than

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<v Speaker 1>a hundred fifty news bureaus around the world. On Mike Labar, Michael,

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<v Speaker 1>thanks so much. In currencies then one, ten, sixteen, some

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<v Speaker 1>really smart conversations this morning on currencies. I'll be blunt,

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<v Speaker 1>many different choices on dollar, strong dollar, stable dollar week,

0:11:57.640 --> 0:12:01.000
<v Speaker 1>or really all over the map d X y point

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<v Speaker 1>five three. This is Bloomberg's Surveillance. The news update brought

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<v Speaker 1>to you by Bank of American Mary Lynch, seeing what

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<v Speaker 1>others have seen, but uncovering what others may not. Global

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<v Speaker 1>Research that helps You Harness Disruption voted top global research

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<v Speaker 1>firm five years running. Merrilynch, Chris Fenner, and Smith in

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<v Speaker 1>corporate