1 00:00:03,320 --> 00:00:07,920 Speaker 1: Broadcasting live to New York, Bloomberg even to Washington, d C. 2 00:00:08,119 --> 00:00:13,400 Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg 3 00:00:14,280 --> 00:00:18,680 Speaker 1: to the Country Channel one, and around the globe. The 4 00:00:18,720 --> 00:00:23,320 Speaker 1: Bloomberg Radio Plus happened. Bloomberg dot Com. This is Bloomberg Surveillance. 5 00:00:24,239 --> 00:00:26,040 Speaker 1: Good morning at seven thirty on Wall Street and Michael 6 00:00:26,079 --> 00:00:29,240 Speaker 1: McKee along with Tom Keene, lots of news out there 7 00:00:29,320 --> 00:00:32,800 Speaker 1: this morning. The latest news. Twitter gets the rights to 8 00:00:33,000 --> 00:00:36,280 Speaker 1: stream NFL games on Thursday night. What does that mean 9 00:00:36,400 --> 00:00:39,760 Speaker 1: for Twitter? Well, investors at the moment think it's good news. 10 00:00:39,760 --> 00:00:41,760 Speaker 1: The stocks up two percent, but we don't know what 11 00:00:41,880 --> 00:00:45,519 Speaker 1: they paid for it, so we shall see. Alegan shares, 12 00:00:45,680 --> 00:00:49,760 Speaker 1: on the other hand, are lower by one percent. The 13 00:00:49,800 --> 00:00:52,519 Speaker 1: new wills to limit the tax cutting power of corporate 14 00:00:52,560 --> 00:00:55,720 Speaker 1: inversions from Treasury might put the merger between Fiser and 15 00:00:55,760 --> 00:00:59,640 Speaker 1: Elegant in jeopardy, analysts say back. Analysts cutting projections for 16 00:00:59,680 --> 00:01:04,240 Speaker 1: Goldman Sachs again, lopping cents off the average estament for 17 00:01:04,240 --> 00:01:07,199 Speaker 1: Golden Sachs adjusted earnings for share over the past four weeks. 18 00:01:07,600 --> 00:01:11,320 Speaker 1: The pre share profit now forecast to tumble from a 19 00:01:11,360 --> 00:01:15,000 Speaker 1: year earlier to three dollars and thirty one Sex and 20 00:01:15,200 --> 00:01:19,000 Speaker 1: Disney shares down two point three. Thomas Staggs Air apparent 21 00:01:19,080 --> 00:01:24,680 Speaker 1: to CEO Bob Iger unexpectedly announcing his departure yesterday's succession 22 00:01:24,680 --> 00:01:28,760 Speaker 1: at the world's largest entertainment company. Now we could say, 23 00:01:28,800 --> 00:01:32,280 Speaker 1: in disarray. Now let's check in with Michael bar and 24 00:01:32,400 --> 00:01:35,360 Speaker 1: get the latest world national headlines. Fighter, Mike, thank you 25 00:01:35,440 --> 00:01:37,720 Speaker 1: very much. Voters go to the polls today for the 26 00:01:37,720 --> 00:01:42,360 Speaker 1: Wisconsin and Republican and Democratic primaries. Republican Ted Cruz is 27 00:01:42,360 --> 00:01:45,840 Speaker 1: aiming to clean up in Milwaukee. John Kasik has been 28 00:01:45,880 --> 00:01:49,280 Speaker 1: focusing on madisone, and experts believe Donald Trump will do 29 00:01:49,360 --> 00:01:52,360 Speaker 1: well in the northern part of the state. Hillary Clinton's 30 00:01:52,400 --> 00:01:55,720 Speaker 1: lead in the Democratic delegated coality is commanding, but rival 31 00:01:55,760 --> 00:01:59,520 Speaker 1: Bernie Sanders is leading in polling in Wisconsin. Mourners will 32 00:01:59,560 --> 00:02:02,320 Speaker 1: gather to day to remember a Virginia state trooper who 33 00:02:02,360 --> 00:02:05,360 Speaker 1: was killed by a gunman at a Richmond Greyhound bus station. 34 00:02:05,920 --> 00:02:09,400 Speaker 1: Funerova Trooper Chad Dermeyer will be held this morning in Hampton. 35 00:02:10,120 --> 00:02:13,000 Speaker 1: The U. S. Supremem Court has unanimously ruled that states 36 00:02:13,400 --> 00:02:17,680 Speaker 1: can count everyone, not just eligible voters, in drawing voting districts. 37 00:02:18,120 --> 00:02:20,680 Speaker 1: The court stopped short of saying that states must use 38 00:02:20,800 --> 00:02:25,160 Speaker 1: total population. Decision rejected the challenge from Texas voters that 39 00:02:25,200 --> 00:02:27,760 Speaker 1: it could have deluded the voting power of urban democrats 40 00:02:28,080 --> 00:02:31,640 Speaker 1: to the benefit of rural Republicans. Global News twenty four 41 00:02:31,680 --> 00:02:35,359 Speaker 1: hours a day, powered by our journalists. I'm Michael Barr, Mike. 42 00:02:36,320 --> 00:02:39,720 Speaker 1: Thank you, Michael Penn now for the Bloomberg NBC Sports Update. 43 00:02:39,800 --> 00:02:41,720 Speaker 1: John Statue, are you look as tired as Tom Keene 44 00:02:41,760 --> 00:02:43,560 Speaker 1: staying up all night to watch that game? Yeah? That 45 00:02:43,639 --> 00:02:46,880 Speaker 1: was worth the enough for though. My championships rare in 46 00:02:47,000 --> 00:02:51,280 Speaker 1: Philadelphia and even rare. A championship game decided with zeros 47 00:02:51,320 --> 00:02:53,160 Speaker 1: on the clock and the ball in the air last 48 00:02:53,240 --> 00:02:55,880 Speaker 1: night in Houston, just after North Carolina's Marcus Page tied 49 00:02:55,960 --> 00:02:57,919 Speaker 1: the n C Double A final with a three pointer 50 00:02:58,000 --> 00:03:00,560 Speaker 1: with a very high degree of difficult he was looking 51 00:03:00,600 --> 00:03:03,840 Speaker 1: like overtime. Instead, Villanova answered at half part with three 52 00:03:03,880 --> 00:03:06,120 Speaker 1: seconds bright Art d I Canna flips to take it 53 00:03:06,240 --> 00:03:28,040 Speaker 1: free cost with one to call, arguably the greatest finish 54 00:03:28,080 --> 00:03:30,480 Speaker 1: to a championship game in Villanova seventy seven, North Carolina 55 00:03:30,600 --> 00:03:33,160 Speaker 1: seventy four. Rangers in the playoffs sixth raight year. Finally 56 00:03:33,160 --> 00:03:35,280 Speaker 1: clinted in the third try four to win at Columbus. 57 00:03:35,400 --> 00:03:37,680 Speaker 1: Islanders close to kneel in their birth down five to 58 00:03:37,760 --> 00:03:40,240 Speaker 1: win over Tampa Bay. After the rain out, it will 59 00:03:40,280 --> 00:03:42,240 Speaker 1: be chilly with the Yankees and Astros set to go 60 00:03:42,280 --> 00:03:44,320 Speaker 1: today for the opener to Stadium. The Mets play this 61 00:03:44,440 --> 00:03:47,880 Speaker 1: safternoon in Kansas City. With the Bloomberg NBC Sports Update, 62 00:03:47,960 --> 00:03:51,520 Speaker 1: I'm John Stave Jenner. Thank you, John Well. Right now 63 00:03:51,600 --> 00:03:55,480 Speaker 1: we are looking at Twitter shares, the NFL rights going 64 00:03:55,480 --> 00:03:59,160 Speaker 1: to Twitter for Thursday nights streaming. Twitter shares now up 65 00:03:59,160 --> 00:04:03,120 Speaker 1: to play two percent. But we're keeping any on news 66 00:04:03,160 --> 00:04:05,240 Speaker 1: from Twitter as to what they paid for this, whether 67 00:04:05,280 --> 00:04:08,920 Speaker 1: they can actually make any money on it. You're listening 68 00:04:09,040 --> 00:04:12,240 Speaker 1: to Bloomberg Surveillance. I'm Michael McKay with Tom Keating. This 69 00:04:12,280 --> 00:04:21,359 Speaker 1: is Bloomberg Radio worldwide, and this is Bloomberg Surveillance. On 70 00:04:21,480 --> 00:04:24,960 Speaker 1: a day when there is some renewed pessimism in the markets, 71 00:04:24,960 --> 00:04:27,600 Speaker 1: all of a sudden, h the second quarter gets underway 72 00:04:28,040 --> 00:04:30,520 Speaker 1: much the same as the first quarter did, with stocks 73 00:04:30,560 --> 00:04:33,400 Speaker 1: falling around the world. SMP futures in the US off 74 00:04:33,400 --> 00:04:36,680 Speaker 1: fourteen points seven tenths of a percent down. Futures are 75 00:04:36,760 --> 00:04:39,919 Speaker 1: down a hundred and four points six tenths of a percent. 76 00:04:39,960 --> 00:04:42,240 Speaker 1: In Europe, it's a six point drop for the stock 77 00:04:42,320 --> 00:04:46,080 Speaker 1: six hundred. They're off one point seven percent. Time now 78 00:04:46,120 --> 00:04:48,080 Speaker 1: for the Bloomberg nj I T STEM Report, brought to 79 00:04:48,080 --> 00:04:51,200 Speaker 1: you by New Jersey Institute of Technology, investing more than 80 00:04:51,240 --> 00:04:53,520 Speaker 1: a hundred and ten million dollars a year and applied 81 00:04:53,560 --> 00:04:56,839 Speaker 1: research to solve problems that improve life. Learn more at 82 00:04:57,040 --> 00:05:00,960 Speaker 1: of Stories of Innovation dot m j I T dot DU. 83 00:05:01,560 --> 00:05:04,120 Speaker 1: Here's Baba Michael, thanks very much, and here's what's making 84 00:05:04,120 --> 00:05:07,560 Speaker 1: news in science, technology, engineering and math and more on 85 00:05:07,560 --> 00:05:11,000 Speaker 1: that touchdown scored by Twitter. According to a person familiar 86 00:05:11,000 --> 00:05:12,360 Speaker 1: with the that of the company is one a deal 87 00:05:12,440 --> 00:05:16,520 Speaker 1: to show Thursday night football National League games online, the 88 00:05:16,600 --> 00:05:20,200 Speaker 1: NFL opening its field so called cord cutters, leaving the 89 00:05:20,240 --> 00:05:23,640 Speaker 1: cable arena in favor of online video streaming. A person 90 00:05:23,760 --> 00:05:27,360 Speaker 1: familiar with the matter had told Bloomberg that Facebook had 91 00:05:27,520 --> 00:05:30,719 Speaker 1: ended its football streaming bid. That person had said Facebook 92 00:05:30,800 --> 00:05:34,200 Speaker 1: likes its live videos to be commercial free and boxed 93 00:05:34,279 --> 00:05:38,120 Speaker 1: at the NFL's traditional advertising model. Of course, Twitter has 94 00:05:38,200 --> 00:05:43,119 Speaker 1: its Periscope live streaming Salesforce dot Com is acquiring meta 95 00:05:43,160 --> 00:05:47,960 Speaker 1: Mind and artificial intelligence startup that specializes in deep learning services, 96 00:05:47,960 --> 00:05:51,400 Speaker 1: which trains networks of computers to mimic the human brains 97 00:05:51,400 --> 00:05:55,880 Speaker 1: ability to recognize and analyze pictures or text without explicit instructions. 98 00:05:56,080 --> 00:05:59,559 Speaker 1: The company says the acquisition will help Salesforce offer AI 99 00:05:59,640 --> 00:06:03,800 Speaker 1: cape of abilities to automate and personalized customer support, marketing, 100 00:06:03,839 --> 00:06:08,240 Speaker 1: and many other business processes. And Toyota is investing five 101 00:06:08,240 --> 00:06:11,279 Speaker 1: and a half million dollars in a collaboration with Microsoft. 102 00:06:11,640 --> 00:06:14,560 Speaker 1: The carmaker says it plans to use data science through 103 00:06:14,640 --> 00:06:19,240 Speaker 1: Microsoft's Azure cloud technology to develop services that helped to 104 00:06:19,360 --> 00:06:23,560 Speaker 1: humanize the driving experience and, according to a statement, quote 105 00:06:23,880 --> 00:06:28,000 Speaker 1: help free our customers from the tyranny of technology. And 106 00:06:28,160 --> 00:06:31,360 Speaker 1: that's this morning's Bloomberg n j I T STEM report. Michael, 107 00:06:31,440 --> 00:06:34,240 Speaker 1: not sure what that means, tyranny of technology. It means 108 00:06:34,600 --> 00:06:36,600 Speaker 1: it means don't pitch back to me right now when 109 00:06:36,600 --> 00:06:41,839 Speaker 1: I'm busy tweeting. Okay, it's that tyranny of technology. Bot 110 00:06:42,520 --> 00:06:45,000 Speaker 1: thank you very much. Well, it is the data of 111 00:06:45,080 --> 00:06:48,599 Speaker 1: the Wisconsin primary, and we may see some changes in 112 00:06:48,760 --> 00:06:53,120 Speaker 1: the outlook for the presidential field where right now we 113 00:06:53,200 --> 00:06:57,680 Speaker 1: have you know, it looks like the Republicans are unsettled 114 00:06:57,720 --> 00:06:59,719 Speaker 1: and the Democrats are going with Hillary Clinton. But we 115 00:07:00,120 --> 00:07:03,240 Speaker 1: lc John Malden of All the Economics keeping a close 116 00:07:03,279 --> 00:07:07,080 Speaker 1: eye on all things political. He has produced a series 117 00:07:07,200 --> 00:07:12,360 Speaker 1: of letters called the Open Letter to the next President 118 00:07:12,480 --> 00:07:15,160 Speaker 1: on the challenges they face and what they should do. 119 00:07:15,200 --> 00:07:17,000 Speaker 1: And I want to focus and we only have a 120 00:07:17,080 --> 00:07:21,280 Speaker 1: few minutes unfortunately today, but on your suggestion to the 121 00:07:21,280 --> 00:07:24,400 Speaker 1: president for domestic policy here and you have two ideas. 122 00:07:24,440 --> 00:07:27,240 Speaker 1: One reform the corporate tax code, which of course is 123 00:07:27,280 --> 00:07:30,400 Speaker 1: not rocket science for a lot of politicians. But too 124 00:07:31,280 --> 00:07:34,840 Speaker 1: you're talking about if we see an economic economic downturn, 125 00:07:35,480 --> 00:07:39,800 Speaker 1: basically the Fed should turn to helicopter money. It's not 126 00:07:39,920 --> 00:07:43,320 Speaker 1: exactly helicopter money. What we've got is four trillion dollars 127 00:07:43,320 --> 00:07:47,240 Speaker 1: sitting on the balance sheet of the Federal Reserve. It's 128 00:07:47,240 --> 00:07:52,040 Speaker 1: sitting there doing nothing. And what will happen, as you know, 129 00:07:52,200 --> 00:07:54,280 Speaker 1: and by the way, I know this for many of 130 00:07:54,320 --> 00:08:00,160 Speaker 1: my conservative colleagues is heresy. But the chances that the 131 00:08:00,240 --> 00:08:05,040 Speaker 1: next Federal Reserve after a downturn in a recession will 132 00:08:05,080 --> 00:08:07,880 Speaker 1: give us que and probably negative rate. So we'll have 133 00:08:08,000 --> 00:08:11,280 Speaker 1: another trillion dollars another two trillion of QUE that will 134 00:08:11,320 --> 00:08:13,920 Speaker 1: do exactly what the last quee did, which is pretty 135 00:08:14,000 --> 00:08:18,160 Speaker 1: much nothing. So I'm saying that the new president should 136 00:08:18,200 --> 00:08:20,800 Speaker 1: come in sit down with the heads of Congress and said, guys, 137 00:08:21,040 --> 00:08:24,280 Speaker 1: I want one amendment to the Federal Reserve Act. I 138 00:08:24,320 --> 00:08:26,720 Speaker 1: don't want to revisit it. I don't want to get 139 00:08:26,760 --> 00:08:28,840 Speaker 1: in depth and it just give me this one and 140 00:08:28,920 --> 00:08:32,720 Speaker 1: allow the Federal Reserve to issue one pent forty year 141 00:08:33,400 --> 00:08:40,000 Speaker 1: bonds for infrastructure construction. In fact, allow them as those 142 00:08:40,000 --> 00:08:44,360 Speaker 1: bonds are starting to roll off now, um, I mean 143 00:08:44,400 --> 00:08:47,360 Speaker 1: because they've got Jenny Mays and Treasure said, allow them 144 00:08:47,360 --> 00:08:51,040 Speaker 1: to start buying them now. So it's a preemptive que. 145 00:08:51,880 --> 00:08:54,520 Speaker 1: We're not going to increase the balance sheet of the 146 00:08:54,520 --> 00:08:58,839 Speaker 1: Federal Reserve because we're just going to modify it. So 147 00:08:58,920 --> 00:09:02,400 Speaker 1: let's see, I mean, to million dollars is two three 148 00:09:02,440 --> 00:09:08,160 Speaker 1: million jobs minimum. That changes the economic dynamics. Otherwise, the 149 00:09:08,200 --> 00:09:11,320 Speaker 1: next president is probably going to see a recession, and 150 00:09:12,280 --> 00:09:15,040 Speaker 1: as we know, getting out of recessions and getting a 151 00:09:15,120 --> 00:09:19,640 Speaker 1: recovery is a difficult process. So I think the next 152 00:09:19,679 --> 00:09:22,400 Speaker 1: president is better off avoiding it. And you only do 153 00:09:22,480 --> 00:09:26,120 Speaker 1: that with some massive stimulus. So let's do something for 154 00:09:26,120 --> 00:09:31,080 Speaker 1: our children, which is um infrastructure that they'll actually have 155 00:09:31,120 --> 00:09:35,440 Speaker 1: twenty years. It will make us more competitive and we 156 00:09:35,480 --> 00:09:38,000 Speaker 1: get all these jobs. One minute to the break, you 157 00:09:38,040 --> 00:09:41,760 Speaker 1: want to cut corporate taxes by a significant amount, big, Chuck, 158 00:09:42,000 --> 00:09:46,360 Speaker 1: let's let's go bigger, go home, But no deductions for 159 00:09:46,480 --> 00:09:51,319 Speaker 1: anything and on all your foreign earnings. So I mean, 160 00:09:52,400 --> 00:09:56,200 Speaker 1: there's no point at that point of not reversing these 161 00:09:56,200 --> 00:09:59,680 Speaker 1: corporate inversions because now companies can come back get cheaper. 162 00:09:59,720 --> 00:10:04,480 Speaker 1: Tack is here and we'll actually get a lot more, 163 00:10:04,600 --> 00:10:06,360 Speaker 1: especially if you get rid of the I think it's 164 00:10:06,400 --> 00:10:10,000 Speaker 1: thirty four hundred little tax preferences. No, no, no, let's 165 00:10:10,000 --> 00:10:12,200 Speaker 1: get rid of all of the lobbyists that because they 166 00:10:12,200 --> 00:10:15,040 Speaker 1: won't be lobbying for tax preferences. And I mean I'm 167 00:10:15,080 --> 00:10:20,000 Speaker 1: including even being from Texas, I'm including oil depletion allowances. 168 00:10:20,040 --> 00:10:24,400 Speaker 1: Everything goes okay, All right. John Maldon from Allden Economics 169 00:10:24,400 --> 00:10:27,760 Speaker 1: with us, thank you for coming by today. Um, we 170 00:10:27,840 --> 00:10:31,120 Speaker 1: are gonna be talking more politics in a moment with 171 00:10:31,360 --> 00:10:35,600 Speaker 1: Chuck Todd of NBC News on this Wisconsin primary day 172 00:10:35,720 --> 00:10:39,360 Speaker 1: right now. Uh, they're talking about victories by Ted Cruz 173 00:10:39,720 --> 00:10:43,440 Speaker 1: and Bernie Sanders. Let's see how Chuck sees it coming 174 00:10:43,520 --> 00:10:46,599 Speaker 1: up and maybe asking him about what the possibilities of 175 00:10:46,679 --> 00:10:49,520 Speaker 1: some of John's ideas getting through Congress at the White 176 00:10:49,520 --> 00:10:53,000 Speaker 1: House would be. You know, let's say to a Bloomberg 177 00:10:53,480 --> 00:11:01,920 Speaker 1: radio right now, futures are lower. Bloomberg Javans. 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