WEBVTT - Mauldin: Fed should issue 1% 40-year bonds for infrastructure 0:00:03.320 --> 0:00:07.920 Broadcasting live to New York, Bloomberg even to Washington, d C. 0:00:08.119 --> 0:00:13.400 Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg 0:00:14.280 --> 0:00:18.680 to the Country Channel one, and around the globe. The 0:00:18.720 --> 0:00:23.320 Bloomberg Radio Plus happened. Bloomberg dot Com. This is Bloomberg Surveillance. 0:00:24.239 --> 0:00:26.040 Good morning at seven thirty on Wall Street and Michael 0:00:26.079 --> 0:00:29.240 McKee along with Tom Keene, lots of news out there 0:00:29.320 --> 0:00:32.800 this morning. The latest news. Twitter gets the rights to 0:00:33.000 --> 0:00:36.280 stream NFL games on Thursday night. What does that mean 0:00:36.400 --> 0:00:39.760 for Twitter? Well, investors at the moment think it's good news. 0:00:39.760 --> 0:00:41.760 The stocks up two percent, but we don't know what 0:00:41.880 --> 0:00:45.519 they paid for it, so we shall see. Alegan shares, 0:00:45.680 --> 0:00:49.760 on the other hand, are lower by one percent. The 0:00:49.800 --> 0:00:52.519 new wills to limit the tax cutting power of corporate 0:00:52.560 --> 0:00:55.720 inversions from Treasury might put the merger between Fiser and 0:00:55.760 --> 0:00:59.640 Elegant in jeopardy, analysts say back. Analysts cutting projections for 0:00:59.680 --> 0:01:04.240 Goldman Sachs again, lopping cents off the average estament for 0:01:04.240 --> 0:01:07.199 Golden Sachs adjusted earnings for share over the past four weeks. 0:01:07.600 --> 0:01:11.320 The pre share profit now forecast to tumble from a 0:01:11.360 --> 0:01:15.000 year earlier to three dollars and thirty one Sex and 0:01:15.200 --> 0:01:19.000 Disney shares down two point three. Thomas Staggs Air apparent 0:01:19.080 --> 0:01:24.680 to CEO Bob Iger unexpectedly announcing his departure yesterday's succession 0:01:24.680 --> 0:01:28.760 at the world's largest entertainment company. Now we could say, 0:01:28.800 --> 0:01:32.280 in disarray. Now let's check in with Michael bar and 0:01:32.400 --> 0:01:35.360 get the latest world national headlines. Fighter, Mike, thank you 0:01:35.440 --> 0:01:37.720 very much. Voters go to the polls today for the 0:01:37.720 --> 0:01:42.360 Wisconsin and Republican and Democratic primaries. Republican Ted Cruz is 0:01:42.360 --> 0:01:45.840 aiming to clean up in Milwaukee. John Kasik has been 0:01:45.880 --> 0:01:49.280 focusing on madisone, and experts believe Donald Trump will do 0:01:49.360 --> 0:01:52.360 well in the northern part of the state. Hillary Clinton's 0:01:52.400 --> 0:01:55.720 lead in the Democratic delegated coality is commanding, but rival 0:01:55.760 --> 0:01:59.520 Bernie Sanders is leading in polling in Wisconsin. Mourners will 0:01:59.560 --> 0:02:02.320 gather to day to remember a Virginia state trooper who 0:02:02.360 --> 0:02:05.360 was killed by a gunman at a Richmond Greyhound bus station. 0:02:05.920 --> 0:02:09.400 Funerova Trooper Chad Dermeyer will be held this morning in Hampton. 0:02:10.120 --> 0:02:13.000 The U. S. Supremem Court has unanimously ruled that states 0:02:13.400 --> 0:02:17.680 can count everyone, not just eligible voters, in drawing voting districts. 0:02:18.120 --> 0:02:20.680 The court stopped short of saying that states must use 0:02:20.800 --> 0:02:25.160 total population. Decision rejected the challenge from Texas voters that 0:02:25.200 --> 0:02:27.760 it could have deluded the voting power of urban democrats 0:02:28.080 --> 0:02:31.640 to the benefit of rural Republicans. Global News twenty four 0:02:31.680 --> 0:02:35.359 hours a day, powered by our journalists. I'm Michael Barr, Mike. 0:02:36.320 --> 0:02:39.720 Thank you, Michael Penn now for the Bloomberg NBC Sports Update. 0:02:39.800 --> 0:02:41.720 John Statue, are you look as tired as Tom Keene 0:02:41.760 --> 0:02:43.560 staying up all night to watch that game? Yeah? That 0:02:43.639 --> 0:02:46.880 was worth the enough for though. My championships rare in 0:02:47.000 --> 0:02:51.280 Philadelphia and even rare. A championship game decided with zeros 0:02:51.320 --> 0:02:53.160 on the clock and the ball in the air last 0:02:53.240 --> 0:02:55.880 night in Houston, just after North Carolina's Marcus Page tied 0:02:55.960 --> 0:02:57.919 the n C Double A final with a three pointer 0:02:58.000 --> 0:03:00.560 with a very high degree of difficult he was looking 0:03:00.600 --> 0:03:03.840 like overtime. Instead, Villanova answered at half part with three 0:03:03.880 --> 0:03:06.120 seconds bright Art d I Canna flips to take it 0:03:06.240 --> 0:03:28.040 free cost with one to call, arguably the greatest finish 0:03:28.080 --> 0:03:30.480 to a championship game in Villanova seventy seven, North Carolina 0:03:30.600 --> 0:03:33.160 seventy four. Rangers in the playoffs sixth raight year. Finally 0:03:33.160 --> 0:03:35.280 clinted in the third try four to win at Columbus. 0:03:35.400 --> 0:03:37.680 Islanders close to kneel in their birth down five to 0:03:37.760 --> 0:03:40.240 win over Tampa Bay. After the rain out, it will 0:03:40.280 --> 0:03:42.240 be chilly with the Yankees and Astros set to go 0:03:42.280 --> 0:03:44.320 today for the opener to Stadium. The Mets play this 0:03:44.440 --> 0:03:47.880 safternoon in Kansas City. With the Bloomberg NBC Sports Update, 0:03:47.960 --> 0:03:51.520 I'm John Stave Jenner. Thank you, John Well. Right now 0:03:51.600 --> 0:03:55.480 we are looking at Twitter shares, the NFL rights going 0:03:55.480 --> 0:03:59.160 to Twitter for Thursday nights streaming. Twitter shares now up 0:03:59.160 --> 0:04:03.120 to play two percent. But we're keeping any on news 0:04:03.160 --> 0:04:05.240 from Twitter as to what they paid for this, whether 0:04:05.280 --> 0:04:08.920 they can actually make any money on it. You're listening 0:04:09.040 --> 0:04:12.240 to Bloomberg Surveillance. I'm Michael McKay with Tom Keating. This 0:04:12.280 --> 0:04:21.359 is Bloomberg Radio worldwide, and this is Bloomberg Surveillance. On 0:04:21.480 --> 0:04:24.960 a day when there is some renewed pessimism in the markets, 0:04:24.960 --> 0:04:27.600 all of a sudden, h the second quarter gets underway 0:04:28.040 --> 0:04:30.520 much the same as the first quarter did, with stocks 0:04:30.560 --> 0:04:33.400 falling around the world. SMP futures in the US off 0:04:33.400 --> 0:04:36.680 fourteen points seven tenths of a percent down. Futures are 0:04:36.760 --> 0:04:39.919 down a hundred and four points six tenths of a percent. 0:04:39.960 --> 0:04:42.240 In Europe, it's a six point drop for the stock 0:04:42.320 --> 0:04:46.080 six hundred. They're off one point seven percent. Time now 0:04:46.120 --> 0:04:48.080 for the Bloomberg nj I T STEM Report, brought to 0:04:48.080 --> 0:04:51.200 you by New Jersey Institute of Technology, investing more than 0:04:51.240 --> 0:04:53.520 a hundred and ten million dollars a year and applied 0:04:53.560 --> 0:04:56.839 research to solve problems that improve life. Learn more at 0:04:57.040 --> 0:05:00.960 of Stories of Innovation dot m j I T dot DU. 0:05:01.560 --> 0:05:04.120 Here's Baba Michael, thanks very much, and here's what's making 0:05:04.120 --> 0:05:07.560 news in science, technology, engineering and math and more on 0:05:07.560 --> 0:05:11.000 that touchdown scored by Twitter. According to a person familiar 0:05:11.000 --> 0:05:12.360 with the that of the company is one a deal 0:05:12.440 --> 0:05:16.520 to show Thursday night football National League games online, the 0:05:16.600 --> 0:05:20.200 NFL opening its field so called cord cutters, leaving the 0:05:20.240 --> 0:05:23.640 cable arena in favor of online video streaming. A person 0:05:23.760 --> 0:05:27.360 familiar with the matter had told Bloomberg that Facebook had 0:05:27.520 --> 0:05:30.719 ended its football streaming bid. That person had said Facebook 0:05:30.800 --> 0:05:34.200 likes its live videos to be commercial free and boxed 0:05:34.279 --> 0:05:38.120 at the NFL's traditional advertising model. Of course, Twitter has 0:05:38.200 --> 0:05:43.119 its Periscope live streaming Salesforce dot Com is acquiring meta 0:05:43.160 --> 0:05:47.960 Mind and artificial intelligence startup that specializes in deep learning services, 0:05:47.960 --> 0:05:51.400 which trains networks of computers to mimic the human brains 0:05:51.400 --> 0:05:55.880 ability to recognize and analyze pictures or text without explicit instructions. 0:05:56.080 --> 0:05:59.559 The company says the acquisition will help Salesforce offer AI 0:05:59.640 --> 0:06:03.800 cape of abilities to automate and personalized customer support, marketing, 0:06:03.839 --> 0:06:08.240 and many other business processes. And Toyota is investing five 0:06:08.240 --> 0:06:11.279 and a half million dollars in a collaboration with Microsoft. 0:06:11.640 --> 0:06:14.560 The carmaker says it plans to use data science through 0:06:14.640 --> 0:06:19.240 Microsoft's Azure cloud technology to develop services that helped to 0:06:19.360 --> 0:06:23.560 humanize the driving experience and, according to a statement, quote 0:06:23.880 --> 0:06:28.000 help free our customers from the tyranny of technology. And 0:06:28.160 --> 0:06:31.360 that's this morning's Bloomberg n j I T STEM report. Michael, 0:06:31.440 --> 0:06:34.240 not sure what that means, tyranny of technology. It means 0:06:34.600 --> 0:06:36.600 it means don't pitch back to me right now when 0:06:36.600 --> 0:06:41.839 I'm busy tweeting. Okay, it's that tyranny of technology. Bot 0:06:42.520 --> 0:06:45.000 thank you very much. Well, it is the data of 0:06:45.080 --> 0:06:48.599 the Wisconsin primary, and we may see some changes in 0:06:48.760 --> 0:06:53.120 the outlook for the presidential field where right now we 0:06:53.200 --> 0:06:57.680 have you know, it looks like the Republicans are unsettled 0:06:57.720 --> 0:06:59.719 and the Democrats are going with Hillary Clinton. But we 0:07:00.120 --> 0:07:03.240 lc John Malden of All the Economics keeping a close 0:07:03.279 --> 0:07:07.080 eye on all things political. He has produced a series 0:07:07.200 --> 0:07:12.360 of letters called the Open Letter to the next President 0:07:12.480 --> 0:07:15.160 on the challenges they face and what they should do. 0:07:15.200 --> 0:07:17.000 And I want to focus and we only have a 0:07:17.080 --> 0:07:21.280 few minutes unfortunately today, but on your suggestion to the 0:07:21.280 --> 0:07:24.400 president for domestic policy here and you have two ideas. 0:07:24.440 --> 0:07:27.240 One reform the corporate tax code, which of course is 0:07:27.280 --> 0:07:30.400 not rocket science for a lot of politicians. But too 0:07:31.280 --> 0:07:34.840 you're talking about if we see an economic economic downturn, 0:07:35.480 --> 0:07:39.800 basically the Fed should turn to helicopter money. It's not 0:07:39.920 --> 0:07:43.320 exactly helicopter money. What we've got is four trillion dollars 0:07:43.320 --> 0:07:47.240 sitting on the balance sheet of the Federal Reserve. It's 0:07:47.240 --> 0:07:52.040 sitting there doing nothing. And what will happen, as you know, 0:07:52.200 --> 0:07:54.280 and by the way, I know this for many of 0:07:54.320 --> 0:08:00.160 my conservative colleagues is heresy. But the chances that the 0:08:00.240 --> 0:08:05.040 next Federal Reserve after a downturn in a recession will 0:08:05.080 --> 0:08:07.880 give us que and probably negative rate. So we'll have 0:08:08.000 --> 0:08:11.280 another trillion dollars another two trillion of QUE that will 0:08:11.320 --> 0:08:13.920 do exactly what the last quee did, which is pretty 0:08:14.000 --> 0:08:18.160 much nothing. So I'm saying that the new president should 0:08:18.200 --> 0:08:20.800 come in sit down with the heads of Congress and said, guys, 0:08:21.040 --> 0:08:24.280 I want one amendment to the Federal Reserve Act. I 0:08:24.320 --> 0:08:26.720 don't want to revisit it. I don't want to get 0:08:26.760 --> 0:08:28.840 in depth and it just give me this one and 0:08:28.920 --> 0:08:32.720 allow the Federal Reserve to issue one pent forty year 0:08:33.400 --> 0:08:40.000 bonds for infrastructure construction. In fact, allow them as those 0:08:40.000 --> 0:08:44.360 bonds are starting to roll off now, um, I mean 0:08:44.400 --> 0:08:47.360 because they've got Jenny Mays and Treasure said, allow them 0:08:47.360 --> 0:08:51.040 to start buying them now. So it's a preemptive que. 0:08:51.880 --> 0:08:54.520 We're not going to increase the balance sheet of the 0:08:54.520 --> 0:08:58.839 Federal Reserve because we're just going to modify it. So 0:08:58.920 --> 0:09:02.400 let's see, I mean, to million dollars is two three 0:09:02.440 --> 0:09:08.160 million jobs minimum. That changes the economic dynamics. Otherwise, the 0:09:08.200 --> 0:09:11.320 next president is probably going to see a recession, and 0:09:12.280 --> 0:09:15.040 as we know, getting out of recessions and getting a 0:09:15.120 --> 0:09:19.640 recovery is a difficult process. So I think the next 0:09:19.679 --> 0:09:22.400 president is better off avoiding it. And you only do 0:09:22.480 --> 0:09:26.120 that with some massive stimulus. So let's do something for 0:09:26.120 --> 0:09:31.080 our children, which is um infrastructure that they'll actually have 0:09:31.120 --> 0:09:35.440 twenty years. It will make us more competitive and we 0:09:35.480 --> 0:09:38.000 get all these jobs. One minute to the break, you 0:09:38.040 --> 0:09:41.760 want to cut corporate taxes by a significant amount, big, Chuck, 0:09:42.000 --> 0:09:46.360 let's let's go bigger, go home, But no deductions for 0:09:46.480 --> 0:09:51.319 anything and on all your foreign earnings. So I mean, 0:09:52.400 --> 0:09:56.200 there's no point at that point of not reversing these 0:09:56.200 --> 0:09:59.680 corporate inversions because now companies can come back get cheaper. 0:09:59.720 --> 0:10:04.480 Tack is here and we'll actually get a lot more, 0:10:04.600 --> 0:10:06.360 especially if you get rid of the I think it's 0:10:06.400 --> 0:10:10.000 thirty four hundred little tax preferences. No, no, no, let's 0:10:10.000 --> 0:10:12.200 get rid of all of the lobbyists that because they 0:10:12.200 --> 0:10:15.040 won't be lobbying for tax preferences. And I mean I'm 0:10:15.080 --> 0:10:20.000 including even being from Texas, I'm including oil depletion allowances. 0:10:20.040 --> 0:10:24.400 Everything goes okay, All right. John Maldon from Allden Economics 0:10:24.400 --> 0:10:27.760 with us, thank you for coming by today. Um, we 0:10:27.840 --> 0:10:31.120 are gonna be talking more politics in a moment with 0:10:31.360 --> 0:10:35.600 Chuck Todd of NBC News on this Wisconsin primary day 0:10:35.720 --> 0:10:39.360 right now. Uh, they're talking about victories by Ted Cruz 0:10:39.720 --> 0:10:43.440 and Bernie Sanders. Let's see how Chuck sees it coming 0:10:43.520 --> 0:10:46.599 up and maybe asking him about what the possibilities of 0:10:46.679 --> 0:10:49.520 some of John's ideas getting through Congress at the White 0:10:49.520 --> 0:10:53.000 House would be. You know, let's say to a Bloomberg 0:10:53.480 --> 0:11:01.920 radio right now, futures are lower. Bloomberg Javans. 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