1 00:00:00,600 --> 00:00:07,880 Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C. 2 00:00:08,080 --> 00:00:13,320 Speaker 1: Bloomberg to Boston, Bloomberg twelve hundars to San Francisco, Bloomberg 3 00:00:14,200 --> 00:00:17,800 Speaker 1: to the country, US Exam General one ninety and around 4 00:00:17,840 --> 00:00:21,560 Speaker 1: the globe the Bloomberg Radio plus Bloomberg dot Com. This 5 00:00:21,880 --> 00:00:26,000 Speaker 1: is Bloomberg Surveillance. Good party at seventh thirty on Wall Street. 6 00:00:26,040 --> 00:00:29,760 Speaker 1: I'm Michael McKee along with Tom Keen. Interesting day, a 7 00:00:29,840 --> 00:00:33,680 Speaker 1: lot of central banks meeting. The Bank of England decision 8 00:00:33,720 --> 00:00:35,519 Speaker 1: will be out in half an hour. We'll have that 9 00:00:35,600 --> 00:00:38,960 Speaker 1: for you. Another story that everybody is following this morning. 10 00:00:39,000 --> 00:00:42,159 Speaker 1: Caterpillar says first quarter sales and profit will be below 11 00:00:42,479 --> 00:00:45,080 Speaker 1: the average analysts estimate sales nine point three to nine 12 00:00:45,080 --> 00:00:49,240 Speaker 1: point four billion dollars adjusted EPs sixty five to seventy cents, 13 00:00:49,680 --> 00:00:52,680 Speaker 1: But the company at the same time reafformed it's reaffirmed 14 00:00:52,680 --> 00:00:56,000 Speaker 1: its full year forecast forty two billion in revenue EPs 15 00:00:56,080 --> 00:00:58,720 Speaker 1: of three dollars fifty cents to four dollars. So they 16 00:00:59,000 --> 00:01:01,480 Speaker 1: must expect the me to get better in the long run. 17 00:01:01,600 --> 00:01:03,600 Speaker 1: In the short run, they're being punished in the markets. 18 00:01:03,680 --> 00:01:07,960 Speaker 1: Caterpillar and early trading down three. Pershing Square Holding is 19 00:01:08,000 --> 00:01:10,640 Speaker 1: the publicly traded security of Bill Ackman's activist hedge fund, 20 00:01:10,680 --> 00:01:13,959 Speaker 1: cutting its steak in Mondale to five point six percent, 21 00:01:14,240 --> 00:01:16,880 Speaker 1: sold about twenty million shares in the company. And we 22 00:01:16,920 --> 00:01:20,040 Speaker 1: have this word from Glaxo Smith Klein Chief executive Andrew 23 00:01:20,040 --> 00:01:23,200 Speaker 1: Witty will step down in two thousand seventeen. The board 24 00:01:23,360 --> 00:01:26,720 Speaker 1: will begin a search for a successor. Time now to 25 00:01:26,800 --> 00:01:29,000 Speaker 1: check in with Michael Barr and get the latest world 26 00:01:29,040 --> 00:01:32,640 Speaker 1: and national headlines. Mike, thank you very much. Presidential candidates 27 00:01:32,680 --> 00:01:37,040 Speaker 1: are reacting to President obama Supreme Court nominee. Republican presidential 28 00:01:37,080 --> 00:01:40,759 Speaker 1: candidate Ed Cruz says Mary Garland would side with President 29 00:01:40,760 --> 00:01:44,559 Speaker 1: Obama on major issues, including the Second Amendment. Crews agrees 30 00:01:44,600 --> 00:01:48,040 Speaker 1: with other Republicans not to vote on Obama nominee. However, 31 00:01:48,120 --> 00:01:51,080 Speaker 1: Hillary Clinton says Garland is someone with a long history 32 00:01:51,120 --> 00:01:54,400 Speaker 1: of bipartisan support. Clinton says the Senate should do their 33 00:01:54,440 --> 00:01:58,800 Speaker 1: constitutional duty and hold a vote on Garland. Russian President 34 00:01:58,880 --> 00:02:01,960 Speaker 1: Vladimir Putin says Russia could again build up its forces 35 00:02:02,000 --> 00:02:05,400 Speaker 1: in Syria in a few hours if necessary, but military 36 00:02:05,520 --> 00:02:09,240 Speaker 1: escalation is not our choice. Putin says Russia will keep 37 00:02:09,240 --> 00:02:13,400 Speaker 1: striking extremist groups. Putin also says Russia's military operation in 38 00:02:13,480 --> 00:02:16,639 Speaker 1: Syria created the conditions for peace talks to help resolve 39 00:02:16,680 --> 00:02:20,040 Speaker 1: the country's five year war. Security experts more in March, 40 00:02:20,160 --> 00:02:24,000 Speaker 1: madness isn't just a fun time for college basketball fans, 41 00:02:24,280 --> 00:02:27,360 Speaker 1: and it's also lucrative for hackers. Dan Lorman, his chief 42 00:02:27,360 --> 00:02:30,880 Speaker 1: security officer at Security Mentor, He says a popular trick 43 00:02:30,960 --> 00:02:35,160 Speaker 1: is sending fake links to unsuspecting fans. Really a surge 44 00:02:35,320 --> 00:02:40,519 Speaker 1: in emails to website sports websites, to anybody who's downloading 45 00:02:40,760 --> 00:02:45,040 Speaker 1: their brackets to office pools. Global News twenty four hours 46 00:02:45,040 --> 00:02:48,679 Speaker 1: a day, powered by our journalists. I'm Michael Barr, Mike, 47 00:02:49,720 --> 00:02:53,120 Speaker 1: Thank you, Michael. Time now for the Ray Katina Auto 48 00:02:53,200 --> 00:02:58,639 Speaker 1: Group Blueberg NBC Sports Update with John Steshaw. All right, Mike, 49 00:02:58,720 --> 00:03:00,959 Speaker 1: more like men against boys last night in Oakland. The 50 00:03:01,000 --> 00:03:04,239 Speaker 1: Warriors has six wins and the Knicks have forty one losses. 51 00:03:04,280 --> 00:03:08,000 Speaker 1: And sure enough, Golden State World to eighty five. Steph 52 00:03:08,040 --> 00:03:10,320 Speaker 1: Curry didn't even play the fourth quarter, still scored thirty 53 00:03:10,320 --> 00:03:13,440 Speaker 1: four points, had eight of thirteen threes. Warriors have won 54 00:03:13,720 --> 00:03:15,840 Speaker 1: fifty regular season home games in the row. They do 55 00:03:15,840 --> 00:03:18,480 Speaker 1: have a very tough road games center right at San Antonio, 56 00:03:18,560 --> 00:03:21,000 Speaker 1: Who's unbeaten at home this year. Rangers won to one 57 00:03:21,280 --> 00:03:24,680 Speaker 1: at Anaheim, the unlikely hero, defenseman Kevin Klein, scoring both 58 00:03:24,720 --> 00:03:27,239 Speaker 1: the goals. The game winner was six forty left in 59 00:03:27,280 --> 00:03:29,280 Speaker 1: the third. As the Rangers and what was their first 60 00:03:29,480 --> 00:03:32,440 Speaker 1: two game losing streaks since December, New York Area will 61 00:03:32,520 --> 00:03:35,160 Speaker 1: represented today tonight in the n C Double A Tournament. Seaton, 62 00:03:35,200 --> 00:03:37,840 Speaker 1: hall Iona and Stony Brook all in action, Yale and 63 00:03:37,920 --> 00:03:40,720 Speaker 1: Yukon as well. Last night in Dayton, Michigan held on 64 00:03:40,760 --> 00:03:43,480 Speaker 1: to beat Tulsa Holy crossed a tournament win for the 65 00:03:43,480 --> 00:03:47,040 Speaker 1: first time since nineteen fifty three, beating Southern opening round 66 00:03:47,040 --> 00:03:49,480 Speaker 1: of the n I T Monmouth. The top seed beat 67 00:03:49,480 --> 00:03:53,480 Speaker 1: buck Now Wagner one at St. Bonaventure. Hostro lost by 68 00:03:53,480 --> 00:03:57,280 Speaker 1: two at g W Princeton, fell overtime at Virginia Tech. 69 00:03:57,360 --> 00:04:00,200 Speaker 1: With the Bloomberg NBC Sports Update, I'm John stand them. 70 00:04:00,960 --> 00:04:03,360 Speaker 1: Thank you, John, And for those of you with Bloomberg's 71 00:04:03,400 --> 00:04:05,760 Speaker 1: b r KT bracket go you could fill out a 72 00:04:05,760 --> 00:04:08,360 Speaker 1: bracket You've got till noon, Tom Keen and I have 73 00:04:08,480 --> 00:04:11,600 Speaker 1: filled out ours. Will keep you abreast of our progress 74 00:04:11,640 --> 00:04:20,599 Speaker 1: throughout the tournament. Here. This is Bloomberg Surveillance your home 75 00:04:20,680 --> 00:04:24,359 Speaker 1: for Tom Keen and Michael McKee's terrible basketball picks and 76 00:04:24,400 --> 00:04:28,080 Speaker 1: the brackets and bad morning in the markets as well, 77 00:04:28,120 --> 00:04:30,919 Speaker 1: fed fallout and a lot of Central Bank action s 78 00:04:30,960 --> 00:04:33,760 Speaker 1: and p futures down by six points right now, three 79 00:04:33,760 --> 00:04:36,840 Speaker 1: tenths of a percent down, features off by that's a 80 00:04:36,920 --> 00:04:39,160 Speaker 1: three tenths decline, and the stock six hundred is off 81 00:04:39,200 --> 00:04:43,400 Speaker 1: four points one point two percent so far this morning. 82 00:04:43,760 --> 00:04:46,320 Speaker 1: Time now for the Bloomberg n j i T STEM Report, 83 00:04:46,320 --> 00:04:49,160 Speaker 1: brought to you by New Jersey Institute of Technology, partnering 84 00:04:49,160 --> 00:04:51,760 Speaker 1: with government and industry to apply the university's world class 85 00:04:51,800 --> 00:04:54,880 Speaker 1: research assets to innovate and spur economic growth. Learn more 86 00:04:54,920 --> 00:04:58,320 Speaker 1: at n j I T dot edu. Here's Bob my whole. 87 00:04:58,320 --> 00:05:01,560 Speaker 1: Good morning. Here's what's making news and science, technology, engineering, 88 00:05:01,640 --> 00:05:04,960 Speaker 1: and math. Under intense pressure from animal welfare groups, See 89 00:05:04,960 --> 00:05:08,159 Speaker 1: World says it will end all orca breeding as of today. 90 00:05:08,680 --> 00:05:11,039 Speaker 1: The theme park operator says killer whales currently in the 91 00:05:11,040 --> 00:05:13,400 Speaker 1: company's care will be the last generation of orcas at 92 00:05:13,480 --> 00:05:16,240 Speaker 1: Sea World. It made the announcement along with the Humane 93 00:05:16,240 --> 00:05:18,719 Speaker 1: Society of the United States and said it's forming a 94 00:05:18,720 --> 00:05:21,880 Speaker 1: new partnership with that organization. Its orcas will live out 95 00:05:21,880 --> 00:05:24,560 Speaker 1: their lives at the company's park habitats, and guests will 96 00:05:24,600 --> 00:05:26,880 Speaker 1: be able to view them in what it calls natural 97 00:05:27,040 --> 00:05:31,039 Speaker 1: encounters rather than theatrical shows. See World, which has stressed 98 00:05:31,040 --> 00:05:33,919 Speaker 1: its scientific research in the past, says it will increase 99 00:05:33,960 --> 00:05:38,080 Speaker 1: its focus on rescue operations. Analysis of scans of King 100 00:05:38,160 --> 00:05:43,760 Speaker 1: Tut's burial chamber have revealed two hidden rooms. Egypt's Antiquities 101 00:05:43,800 --> 00:05:46,120 Speaker 1: Minister made the announcement in Cairo today and says the 102 00:05:46,200 --> 00:05:48,080 Speaker 1: chambers will be scanned again at the end of the month. 103 00:05:48,360 --> 00:05:52,320 Speaker 1: One prominent researchers theorized the remains of Queen Nefertiti might 104 00:05:52,320 --> 00:05:55,400 Speaker 1: be inside. And if you're looking for a practical use 105 00:05:55,480 --> 00:05:57,599 Speaker 1: for a three D printer, look no further than Amos 106 00:05:57,680 --> 00:06:00,440 Speaker 1: Dudley's smile. He happens to be a student at and 107 00:06:00,600 --> 00:06:03,280 Speaker 1: J I T and used equipment at the school to 108 00:06:03,360 --> 00:06:06,440 Speaker 1: scan and print models of his teeth. Then he created 109 00:06:06,480 --> 00:06:08,720 Speaker 1: sets of clear braces on a three D printer at 110 00:06:08,720 --> 00:06:12,560 Speaker 1: the school price of materials less than sixty dollars, something 111 00:06:12,600 --> 00:06:15,760 Speaker 1: that can cost up to eight thousand dollars retail. The thing, 112 00:06:15,760 --> 00:06:19,120 Speaker 1: as Dudley says he isn't even interested in orthodotics, and 113 00:06:19,200 --> 00:06:22,360 Speaker 1: that's this morning's Bloomberg and j I t stand report. Michael, 114 00:06:22,880 --> 00:06:26,680 Speaker 1: if you have a teenager, you're interested in orthodotics that 115 00:06:26,800 --> 00:06:30,919 Speaker 1: we know. Alright, thank you, Bob mood Well. Jenny Aellen 116 00:06:31,160 --> 00:06:34,560 Speaker 1: uh defended the FED doing nothing and lowering their path 117 00:06:34,640 --> 00:06:38,200 Speaker 1: of interest rates going forward yesterday by saying they are 118 00:06:38,240 --> 00:06:40,839 Speaker 1: worried about what's going on in the rest of the world. 119 00:06:41,520 --> 00:06:45,000 Speaker 1: That's what they paid George Friedman to do. He's the 120 00:06:45,040 --> 00:06:48,680 Speaker 1: founder and chairman of Geopolitical Futures. He worries about what's 121 00:06:48,720 --> 00:06:50,960 Speaker 1: going on in the rest of the world for a living. 122 00:06:51,240 --> 00:06:52,839 Speaker 1: And I want to ask you about some of the 123 00:06:52,920 --> 00:06:56,840 Speaker 1: areas that Ms Yellen was talking about. Ms. Freedman and 124 00:06:57,279 --> 00:06:59,760 Speaker 1: uh he she started with China, So why don't we 125 00:07:00,080 --> 00:07:03,359 Speaker 1: start with China. A lot of concern about their growth. 126 00:07:03,960 --> 00:07:07,159 Speaker 1: And uh. One reason people are concerned about their growth 127 00:07:07,279 --> 00:07:13,640 Speaker 1: is that what it means for Chinese politics and Chinese society. Hi. Uh, yeah, 128 00:07:13,760 --> 00:07:17,960 Speaker 1: that's one worry. My bigger worries unemployment. The Chinese is 129 00:07:18,000 --> 00:07:21,360 Speaker 1: struggling with trying to keep full employment, and they're terrified 130 00:07:21,360 --> 00:07:24,360 Speaker 1: about the social unrest that will occur if there is unemployment, 131 00:07:24,840 --> 00:07:27,280 Speaker 1: and to stabilize the economy there has to be unemployment. 132 00:07:27,320 --> 00:07:29,760 Speaker 1: A lot of these factories that are second up capital 133 00:07:30,360 --> 00:07:33,120 Speaker 1: simply are unefficient and have to go out of business. 134 00:07:33,720 --> 00:07:38,760 Speaker 1: And with the Chinese are terrified of is a massive unemployment, uh, 135 00:07:39,520 --> 00:07:43,320 Speaker 1: destabilizing country. That's how the Chinese Communist Party started. What 136 00:07:43,400 --> 00:07:47,520 Speaker 1: are the odds that they get any kind of instability, Well, 137 00:07:47,520 --> 00:07:50,200 Speaker 1: it's hard to imagine that they won't get instability. Uh. 138 00:07:50,600 --> 00:07:55,040 Speaker 1: China is not a wealthy country. Over a billion people 139 00:07:55,080 --> 00:07:58,960 Speaker 1: live in extreme poverty. And if those people who went 140 00:07:59,000 --> 00:08:01,360 Speaker 1: to the coastal region to get wealthy to get laid 141 00:08:01,400 --> 00:08:04,000 Speaker 1: off and they're being laid off, where do they go. 142 00:08:04,280 --> 00:08:07,720 Speaker 1: They can't really go back to their villages. If they 143 00:08:07,800 --> 00:08:12,120 Speaker 1: stay in Shanghai and Long Thong, they become unstable. For us, 144 00:08:12,480 --> 00:08:16,400 Speaker 1: the Chinese are really facing a very serious problem. And 145 00:08:16,440 --> 00:08:18,520 Speaker 1: you know, everybody's kind of been waiting for the Chinese 146 00:08:18,520 --> 00:08:20,640 Speaker 1: to go back to the way they were. They're not 147 00:08:20,680 --> 00:08:24,160 Speaker 1: going to visit the union normal for China. Well then 148 00:08:24,880 --> 00:08:27,480 Speaker 1: what do we see in terms of Chinese policy to 149 00:08:27,480 --> 00:08:30,080 Speaker 1: deal with it? Well, right now what we see is 150 00:08:30,120 --> 00:08:34,240 Speaker 1: two things. A massive dictatorship that is clamping down on 151 00:08:34,280 --> 00:08:37,200 Speaker 1: the country, trying to hold it together, and a purge 152 00:08:37,200 --> 00:08:39,439 Speaker 1: of the Communist Party because a lot of the Communist 153 00:08:39,480 --> 00:08:44,360 Speaker 1: Party officials became extremely wealthy in this process. The government 154 00:08:44,440 --> 00:08:46,599 Speaker 1: is going to try to transfer their money to the 155 00:08:46,679 --> 00:08:49,199 Speaker 1: unemployed and so on. Is going to be resistance on that. 156 00:08:50,120 --> 00:08:55,360 Speaker 1: So we are now going to see massive dictatorship. Next 157 00:08:55,440 --> 00:08:57,320 Speaker 1: question is that's trying to go back to the way 158 00:08:57,320 --> 00:09:02,760 Speaker 1: it was before with the regional powers, where Shanghai basically 159 00:09:02,840 --> 00:09:05,360 Speaker 1: says to the rest of the country, Uh, we're not 160 00:09:05,360 --> 00:09:06,680 Speaker 1: gonna go with you, We're not going to do this 161 00:09:06,800 --> 00:09:09,840 Speaker 1: massive transfer. It will impoverish us. So they have some 162 00:09:10,040 --> 00:09:12,839 Speaker 1: huge difficult hours to make. What's your bed at How 163 00:09:12,880 --> 00:09:14,640 Speaker 1: it turns out, one of the problems for the rest 164 00:09:14,640 --> 00:09:17,400 Speaker 1: of the world is the opaqueness of what's happening in 165 00:09:17,520 --> 00:09:22,760 Speaker 1: Chinese politics. The personal struggles are opaque. The real problem 166 00:09:22,840 --> 00:09:25,920 Speaker 1: is very clear. Uh, there are those in the Chinese 167 00:09:25,920 --> 00:09:29,880 Speaker 1: Communist Party who have profited massively from this. The government 168 00:09:29,880 --> 00:09:31,680 Speaker 1: in the end is going to have to expropriate a 169 00:09:31,679 --> 00:09:34,040 Speaker 1: lot of their wealth and transferred to the poorer people. 170 00:09:34,559 --> 00:09:37,640 Speaker 1: They're going to resist. I don't see how this winds 171 00:09:37,720 --> 00:09:42,040 Speaker 1: up without at least massive instability in China, where regional 172 00:09:42,080 --> 00:09:48,720 Speaker 1: party organizations try to resist or simply ignore Beijing. That 173 00:09:48,800 --> 00:09:53,360 Speaker 1: may take place, but China still has to function as 174 00:09:53,360 --> 00:09:56,040 Speaker 1: an economy. So what does it mean for the rest 175 00:09:56,040 --> 00:10:00,480 Speaker 1: of the world for demand from the rest of the world. Well, 176 00:10:00,720 --> 00:10:04,200 Speaker 1: two problems. Chinese have demand for their goods and the 177 00:10:04,200 --> 00:10:08,040 Speaker 1: rest of the world has really decreased for two reasons. One, 178 00:10:08,760 --> 00:10:11,640 Speaker 1: the world is an at least stagnation is not the procession. 179 00:10:12,320 --> 00:10:15,120 Speaker 1: And second, other countries are a lot cheaper to buy from. 180 00:10:15,400 --> 00:10:20,560 Speaker 1: China's main advantage was low wages. Uh the lending policies 181 00:10:20,600 --> 00:10:23,160 Speaker 1: of the past few years have created inflation in China. 182 00:10:23,800 --> 00:10:27,240 Speaker 1: At this point, production in Mexico is cheaper than in China. 183 00:10:27,880 --> 00:10:31,800 Speaker 1: Production in Bangladesh is much cheaper than in China. China's 184 00:10:31,880 --> 00:10:34,839 Speaker 1: main advantage was its low wages. It gave it a 185 00:10:34,920 --> 00:10:39,200 Speaker 1: high growth its low sta advantage. It fantasizes about becoming 186 00:10:39,240 --> 00:10:43,120 Speaker 1: a high tech power. Doing that and competing with the 187 00:10:43,160 --> 00:10:46,960 Speaker 1: United States, Germany, South Korea, Japan. That's a tough game, 188 00:10:47,120 --> 00:10:48,880 Speaker 1: all right. We'll come back and talk more with George 189 00:10:48,880 --> 00:10:54,120 Speaker 1: Friedman from Geopolitical Futures here on Bloomberg Surveillance. You're listening 190 00:10:54,440 --> 00:11:01,959 Speaker 1: to Bloomberg Radio worldwide. Bloomberg Surveillance, brought you by the 191 00:11:02,000 --> 00:11:04,640 Speaker 1: Jeep Grand Cherokee, the most awarded suv ever. The Grand 192 00:11:04,679 --> 00:11:07,760 Speaker 1: Cherokee continues to raise the bar with its luxurious interior 193 00:11:07,760 --> 00:11:10,120 Speaker 1: and legendary four by four capability. 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