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Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C.

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Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg

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Speaker 1: to the country. See when he is exam General one

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Speaker 1: ninety and around the globe the Bloomberg Radio plus Avid

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Speaker 1: Bloomberg dot Com. This is Bloomberg Surveillance. Good Morning, seven

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Speaker 1: thirty on Wall Street and Michael McKee along with Tom Keane,

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Speaker 1: keeping an eye on what's happening in the news around

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Speaker 1: the world that the new might be trading on today.

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Speaker 1: Speaking of bond market, somebody is buying Volkswagen. Actually, the

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Speaker 1: European Central Bank buying corporate bonds and euros for a

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Speaker 1: second day, expanding its stimulus program, picking up some debt

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Speaker 1: from the troubled German carmaker. They also bought some of

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Speaker 1: tiremaker Continental and the French mobile company Orange Disaccording to

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Speaker 1: Bloomberg News, who cite a person familiar with the matter,

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Speaker 1: uh in in investors in Illinois not good news. Moody's

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Speaker 1: in Star Service lowering Illinois general obligation bond ratings by

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Speaker 1: one level to B double A two that's just two

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Speaker 1: steps above junk. The state has a budget impass. Can't

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Speaker 1: get a budget passed, you'd be asked as cutting managers

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Speaker 1: at its US wealthy unit and recruiting fewer advisors. They

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Speaker 1: said they picked up enough of them uh in the

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Speaker 1: past six months or so. Head count reduction mostly to

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Speaker 1: hit the middle and senior managers, but some of their

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Speaker 1: main offices in New Jersey and in New York. Emphasis

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Speaker 1: that's Asia's second largest software maker, plunged the most in

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Speaker 1: nine months. The chief operating officers said spending by clients

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Speaker 1: remains volatile. That's sort of the topic, d jour here,

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Speaker 1: what's happening with companies and their ability to make money

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Speaker 1: around the world. Let's chake in with John Tucker now

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Speaker 1: and get the list headlines from around the world. Good

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Speaker 1: morning to Michael and Tom. President Obama will try to

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Speaker 1: do some face to face mending among Democrats today. He

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Speaker 1: has a White House meeting with presidential candid at Bernie Sanders.

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Speaker 1: Sanders has been depression to drop out of the races.

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Speaker 1: Hillary Clinton has become the presumptive nominee. At least fifteen

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Speaker 1: or dead, dozens wounded after a suicide car bomb attack

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Speaker 1: rip through a commercial area of a majority Shade neighborhood

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Speaker 1: in Baghdad. Today, the House schedule to begin debate on

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Speaker 1: the bill that would restructure some of Puerto Rico's seventy

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Speaker 1: billion dollar dead and create a financial control board. Some bondholders, unions,

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Speaker 1: and island officials have lobbied against the bill, and rangers

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Speaker 1: in Yellowstone National Park have suspended efforts to recover the

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Speaker 1: body of a tourist who strayed from a boardwalk and

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Speaker 1: fell into a high temperature, acidic spring. Officials say twenty

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Speaker 1: three year old Colin Nathaniel Scott of Portland fell in

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Speaker 1: the spring yesterday. There are no remains left to recover.

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Speaker 1: Global News twenty four hours a day, powered by a

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Speaker 1: twenty four hundred journalists in more than one hundred fifty

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Speaker 1: news bureaus around the world. I'm John Tucker, Michael Toom,

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Speaker 1: Thank you John. Time now for the land Rover Parsippany

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Speaker 1: Bloomer and NBC Sports update. Here is Rob bus He,

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Speaker 1: Good morning, Mike Carlos, belt round homeward. For the third

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Speaker 1: straight game they've all come against the Angels. The Bats

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Speaker 1: came alive in a twelve six drupping for the Yankees

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Speaker 1: as they nailed down the Angels are going for a

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Speaker 1: four game sweep today Ivan Nova he gets the call.

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Speaker 1: Chris Palmley actually homeward twice as well. For New York.

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Speaker 1: The Mets they avoid a sweep of their own. In Pittsburgh.

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Speaker 1: They won six five and tended instincts to Wilmer Flores,

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Speaker 1: who had a blup single. Noah sinder Guard kept the

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Speaker 1: Mets around a good quality start. Addison Read earned his

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Speaker 1: first win of the year. The Mets road trip continues

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Speaker 1: tonight in Milwaukee, art Tolo Cologne facing Jimmy Nelson. Game

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Speaker 1: three NBA Finals, all Cleveland. The average margin of victory

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Speaker 1: for all three teams or both teams has been twenty

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Speaker 1: six points in all three games. One ninety is your final.

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Speaker 1: Cleveland still trails the series two games and one. Lebron

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Speaker 1: James had thirty two points. NHL Penguins try and hoist

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Speaker 1: their fourth Stanley Cup and to be the first time

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Speaker 1: at home they can do so. They host San Jose

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Speaker 1: to nights in game number five. That is eight o'clock

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Speaker 1: with your face off, that's your NBC Boomberg Sports update.

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Speaker 1: Thank you, Rob Well. We'll keep you an eye on

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Speaker 1: marks around the world. We've been talking about bond seventy

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Speaker 1: seven basis points, your US two year, your German two

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Speaker 1: year fifty five negative fifty five basis points. This morning,

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Speaker 1: this is surveillance. I am I coming key along with

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Speaker 1: Tom keenan Bloomberg surveillance. We're keeping eye not just on bonds,

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Speaker 1: but on equities and the news. There isn't any better.

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Speaker 1: SMP futures down six points down, features off by forty

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Speaker 1: five in Europe. It's a down day with the stock

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Speaker 1: six down three points right now. Time now for the

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Speaker 1: Bloomberg and j I T STEM Report, brought to you

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Speaker 1: by New Jersey Institute of Technology, investing more than a

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Speaker 1: hundred and ten million dollars a year and applied research

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Speaker 1: to solve problems and improve life. Learn more. It's Stories

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Speaker 1: of Innovation dot n j I T dot edu. Here's

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Speaker 1: Bob Michael, good morning. Here's what's making news in science, technology,

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Speaker 1: engineering and math. There will be no selling out by Spotify.

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Speaker 1: That's what the music streaming services chief exact Dive and

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Speaker 1: co founder Daniel Eck told reporters at a tech and

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Speaker 1: music conference in Stockholm today. He vould Spotify won't ever

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Speaker 1: sell out to a large US tech company because European entrepreneurs,

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Speaker 1: who frequently sell their companies to larger US businesses, are

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Speaker 1: holding back the region's technology sector. He says the startups

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Speaker 1: could grow to be gigantic if founders just wouldn't sell.

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Speaker 1: The legalization of recreational marijuana in states such as Washington

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Speaker 1: and Colorado has created a bigger challenge for state and

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Speaker 1: local law enforcement. There's no quick way to know if

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Speaker 1: a driver is stoned. That's partly because the science of

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Speaker 1: highs is well sketchy. May study from the Triple A

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Speaker 1: Foundation for Traffic Safety concluded there isn't a reliable link

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Speaker 1: between impairment and the level of tetrahydro cannabinol pot's mind

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Speaker 1: altering agent THC in a driver's blood. That usually means

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Speaker 1: a multipoint test examining such things as suspects, light sensitivity, balance,

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Speaker 1: and eyelid tremors. So authorities are looking to a team

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Speaker 1: of chemists to build a breathalyzer for we The scientists

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Speaker 1: are working on a device it looks something like a

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Speaker 1: game Boy that the texts the flow with th HC ions,

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Speaker 1: and the subtagenarian chemist leading this project is named Herb.

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Speaker 1: Of course, Herb Hill, professor at Washington State University. That's

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Speaker 1: this morning's Bloomberg and j I T Stem Report. I

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Speaker 1: just don't know what to say, Bob, thank you very much.

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Speaker 1: All that needed was Jefferson airplaying music in the background. Well,

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Speaker 1: you know when PILM makes you larger and makes you small.

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Speaker 1: But we're just talking with Rick Deverell from Credit Squecy

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Speaker 1: said his big worry in the year going forward is

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Speaker 1: China and the impossibility of another big slow down there.

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Speaker 1: And the man who keeps an eye on China for

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Speaker 1: HSBC is the cohead of Asian Economic Research, Frederick Newman.

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Speaker 1: He is joining us now. UH is Mr Deverel right

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Speaker 1: to be worried. There's no risk reel of a financial

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Speaker 1: crisis in China. China's financial system is strong. The problem

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Speaker 1: is growth really and the impact on the rest of

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Speaker 1: the world. And we've seen a bit of a pickup

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Speaker 1: and demand in the first few months of this year,

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Speaker 1: but it may roll over again in the second half

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Speaker 1: of this year. The Chinese government itself promised it will

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Speaker 1: shutter excess capacity to believes to higher unemployment. And China

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Speaker 1: was the engine of low economic growth, but it's sputtering

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Speaker 1: and I think that's bring in the world economy right now,

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Speaker 1: what does rollover mean when you when we're talking about

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Speaker 1: it in the context of Chinese growth, So it's probably

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Speaker 1: we look at in sequential terms. So we had a

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Speaker 1: sharp acceleration going to second quarter, the industrial productions picking up,

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Speaker 1: the construction sectors picked up. What it means to live

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Speaker 1: a second half, this impulse will fade, that is, we're

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Speaker 1: going to see a slow around sequentially, and annual terms

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Speaker 1: were still above six percent. Sounds great, but it's really

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Speaker 1: the sequential impulse that matters, and so commodity markets might

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Speaker 1: come under pressure again. And all the indicators we'd like

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Speaker 1: to track, imports, exports, industrial production, all of that will

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Speaker 1: again points out when I look at this, and to

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Speaker 1: our comments earlier Frederick Diamond, the idea of Korea UH

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Speaker 1: which we look at is the most vibrant and most

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Speaker 1: dynamic of South Korea's the most vibrant and dynamic Asian economy.

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Speaker 1: The chart of their exports, the new chronic weakness of exports. Culturally,

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Speaker 1: how does that consolidated big business of Korea react to

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Speaker 1: roll over exports? Do they just go to the government

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Speaker 1: say fix this, that's right? So there's a tremendous pressure

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Speaker 1: on the government to try to engineer more competitive current

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Speaker 1: like yeah, that's been the sort of the game plan

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Speaker 1: for many, many years. The problem is, you can't really

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Speaker 1: do this if you have a current account surviluce of

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Speaker 1: eight nine percent when interest rates globally or extraordinarily weak,

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Speaker 1: so you can't cut your interest rates further. But it's

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Speaker 1: hard to weaken your currency. So currency competitiveness is out.

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Speaker 1: And beyond that, you have to do your homework. You

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Speaker 1: have to become domestically more competitive. You have to improve.

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Speaker 1: But but to use the Swiss and analog here, I

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Speaker 1: mean the Swiss try to do this. They're building it

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Speaker 1: up euro Swissy this morning is challenged stronger. I mean,

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Speaker 1: what does Korea learn from the Swiss? Lesson? They're not Switzerland,

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Speaker 1: are they? They are in some ways Switzerland. They're safe

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Speaker 1: haven currency, perhaps better like Japan, right, it is the

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Speaker 1: safe haven currency in Asia, and so it is very

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Speaker 1: hard to go against the trent. Korea has to look

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Speaker 1: at other ways of growing. They have to do more

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Speaker 1: off showing, which is happening actually is hurting the domestic

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Speaker 1: labor market. But off showing is one way, and then

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Speaker 1: you have to improve the domestic economy, do all the

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Speaker 1: stuff that really they have been put off many years,

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Speaker 1: which is liberalized the domestic That brings us up, Mike,

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Speaker 1: because it's really the price we're paying for all the

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Speaker 1: other non orthodox things we're doing. Switzerland faces, Korea faces No. Well,

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Speaker 1: I'm wondering. We know that the Chinese have a major

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Speaker 1: impact on everybody else in their neighborhood, but what about

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Speaker 1: the Koreans with their economy and with their central bank

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Speaker 1: movement today? Um, do we get the same kind of

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Speaker 1: kind of effect? Is it as important to what happens

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Speaker 1: or is it more isolated? It's probably a bit more isolated. Um.

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Speaker 1: The big elephant in the room in Asia is China.

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Speaker 1: China is breathing down everybody's neck in terms of competitiveness,

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Speaker 1: and in fact, John is going upscale. That is, it's

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Speaker 1: less of a competitive threat to say, Vietnam and Thailand today,

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Speaker 1: it's becoming more of a threat to Taiwan and Korea

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Speaker 1: and possibly Japan at some point. So what Korea does

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Speaker 1: it This station in terms of cutting interest rates is

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Speaker 1: not going to really turn the dial. Uh, Taiwan might

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Speaker 1: be impacted a little bit, perhaps Japan at the margin,

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Speaker 1: but it's more an isolated story in that sense. I

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Speaker 1: think what is important about Korea's rate cup this morning

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Speaker 1: is what it says about the state of the global economy.

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Speaker 1: And look at Asia's exports. We've been seen a contraction

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Speaker 1: export volumes for seven months. We're gonna come back with

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Speaker 1: Fredick Norman talking about this with HSBC Hong Kong joining

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Speaker 1: us in our New York studios right now. What you

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Speaker 1: need to know the tenure yield one point six eight percent,

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Speaker 1: German tenure point zero four percent. Stay with us. Bloomberg

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: This updates brought to you by van Eck Vector's e

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Speaker 1: Eck Access the opportunities. US dot Indix futures are lower,

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Speaker 1: indicating declines for the SNP five hundred after a three

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Speaker 1: day advance took the benchmark close to an all time high.

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Speaker 1: We checked the markets every fifteen minutes throughout the trading

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Speaker 1: day on Bloomberg SNP EMNY futures down seven and a

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Speaker 1: half points so down, EMNY futures down fifty five, nasdack

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Speaker 1: Many futures down thirteen and the decks in Germany's down

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Speaker 1: one point three percent. Ten Your treasury of e thirty

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Speaker 1: seconds at one point six seven percent. No, i'm x

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Speaker 1: screw oil down one percent or fifty one cents to

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Speaker 1: fifty seventy three cents of barrel co make school It'll change,

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Speaker 1: down sixty cents to twelve sixty one seventy the euro

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Speaker 1: dollar thirteen thirty nine A and one oh six point

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Speaker 1: five to Restoration Hardware Holdings down nineteen percent this morning

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Speaker 1: after the upscale furniture chain posted a surprise loss and

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Speaker 1: cut its annual earnings forecast. And just a Big Energy

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Speaker 1: down two point eight percent after the natural gas producer

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Speaker 1: traded new shares for notes for the third time in

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Speaker 1: less than a month as it seeks to lighten its deadload.

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Speaker 1: That's a Bloomberg business flash. Tom and Mike Karen thinks

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Speaker 1: so much. That coffee table you got from Restoration Hardware,

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Speaker 1: it was like the size of Rhode Island. I guess

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Speaker 1: that just didn't work out for them. Well, it does

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Speaker 1: enable us to have the entire surveillance staff in one place,

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Speaker 1: at one place at one time. Yes, we can't put

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Speaker 1: them all on the same room. There's there's certain legal restrictions.

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Speaker 1: Peter book Bar of the Lindsay Group with a very

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Speaker 1: sharp note mikeynotes a toxic mix of low yields with

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Speaker 1: rising CRB index for Mr Bokar, Well, it's interesting because

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Speaker 1: there's uh, who was it? It might have been kitchen

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Speaker 1: because this morning is note excuse me for reading so

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Speaker 1: many notes I can't remember pointed out. But commodities are divergent.

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Speaker 1: You've got medals down, oil up kind of day or week,

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Speaker 1: and so it's hard to make sense of exactly what's happening.

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Speaker 1: Now we're talking with Frederick Nohman his HSB SES cohead

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Speaker 1: of Asian Economic Research, and we were talking offline Tom

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Speaker 1: a minute ago about some it's actually quite interesting. We

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Speaker 1: are fixated on Hillary and the Donald here and the

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Speaker 1: presidential race in the United States, but they're watching it

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Speaker 1: in Asia because both of these candidates have come out

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Speaker 1: against the Trans Pacific partnership and trade. Uh how much

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Speaker 1: does the US election play into what you do and

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Speaker 1: what you think about? It's hugely important because Asia lives

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Speaker 1: on trade, on exports, right, that's how we build prosperity

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Speaker 1: in Asia. Now with the domestic side being so restrained

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Speaker 1: by the build up in debt, we need experts perform better.

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Speaker 1: But there's you know, with with the political winds shifting

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Speaker 1: towards protectionism in the US, that will probably the outlook

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Speaker 1: for experts doesn't know very good. Koreas and particularly impacted

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Speaker 1: by that, Taiwan, all these small, highly trade dependent economies,

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Speaker 1: but even China. China needs experts to do better. And

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Speaker 1: with these uh known rising protectionism, that's that doesn't really

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Speaker 1: look good. Then for Asia, Well, we've we've got the

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Speaker 1: same kind of political winds blowing in Europe, the protectionists,

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Speaker 1: closed the borders, seal things up attitude. What about within

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Speaker 1: Asia itself? Uh, you mentioned they live on trade in

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Speaker 1: a different world so to speak. Yeah, this is very interesting.

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Speaker 1: China is in the mean to negotiating and pun Asian

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Speaker 1: free trade agreements. So while the West is pulling back

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Speaker 1: out of Asia, likely not to sign the TPP, it

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Speaker 1: looks like Asia China is actually negotiating its own free

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Speaker 1: trade agreement with Asia. And this is the first time

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Speaker 1: since the Second World War we see the US pulling

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Speaker 1: back in terms of leadership of the globe economic system

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Speaker 1: and China stepping up and building its its rival system,

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Speaker 1: so to speak. So it's important for geopolitical purposes, and

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Speaker 1: one of the reasons why Obama went to to Asian

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Speaker 1: and try to reassure allies that geopolitically we stand with you,

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Speaker 1: but on the ground trade is going towards China. I

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Speaker 1: just had a bad feeling of of anyone taking over

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Speaker 1: the Mandarin Hotel in Hong Kong, that iconic building from

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Speaker 1: the sixties. It's just I just please, Mr Trump, don't

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Speaker 1: take over the Mandarin Hotel in Hong Kong. There's too

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Speaker 1: much history there to say the least. When you look

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Speaker 1: at the political prism of the United States and Asia,

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Speaker 1: I think they know whose Secretary Clinton is. How do

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Speaker 1: they respond to a Mr Trump? He was not quite

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Speaker 1: as well known in fact in China, nobody really spoke

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Speaker 1: about him until about a couple of months ago. But

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Speaker 1: what really brought it onto the map was one of

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Speaker 1: the four Foreign Policy speech of suggesting, for example, the

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Speaker 1: rearmament of some of the allies in Asia, which obviously

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Speaker 1: raised some concern because the United States has kept a

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Speaker 1: very security umbrella across the region and has therefore kept

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Speaker 1: down political tensions, and that's now starting to freight a

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Speaker 1: little bit at the edges. I mean, I look at

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Speaker 1: this and I look at the state of Hong Kong,

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Speaker 1: and I don't want to get you in trouble here

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Speaker 1: with your general counsel. What is the relationship of Hong

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Speaker 1: Kong division? How has it changed in ten years? I

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Speaker 1: think of Donald saying, who was governor a decade ago

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Speaker 1: or so, what's the new relationship? Um? Well, the overwhelming

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Speaker 1: reality is that economically, Hong Kong is becoming part of

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Speaker 1: the China economy. We were tied at the hip economically,

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Speaker 1: and that that's the economic reality on the ground. If

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Speaker 1: you look at tourism, thirty eight million tourists from China

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Speaker 1: coming to Hong Kong every year. Um. You know, Hong

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Speaker 1: Kong has seven million people so you can imagine how

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Speaker 1: important been on that watch for a long time. I

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Speaker 1: tell people like that when I say I go to

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Speaker 1: Hong Kong, it's the airport, Mercedes, a hotel, thank you,

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Speaker 1: Mandarin or or the others, and then back to the airport.

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Speaker 1: That's not going to Hong Kong, your Hong Kong. How

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Speaker 1: has it changed, um, it has become probably a bit

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Speaker 1: more men, more Mandarin friendly. Over the years. For example,

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Speaker 1: the use of English language has declined quite a bit.

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Speaker 1: It's become much more Chinese. And that way, younger people

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Speaker 1: tend to speak more Mandarin than they do English. Older

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Speaker 1: people still speak English presently. If you go in a

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Speaker 1: cab and even older cab drivers speaks English. If you're younger,

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Speaker 1: cab drivers wouldn't speak English, speaks Chinese. So that's that's

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Speaker 1: the gravitational poll of China, and that's being felt across Asia,

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Speaker 1: but particularly in Hong Kong. So it doesn't feel British anymore,

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Speaker 1: less and less British. But you know, naturally, even twenty

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Speaker 1: years and almost twenty years after the handover, so it

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Speaker 1: is becoming gradually more Asian, more Chinese. In terms of

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Speaker 1: the field. It's just a random guess, um, how long

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Speaker 1: until Hong Kong isn't thought of as a separate place.

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Speaker 1: I think it'd be a while actually, to be honest,

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Speaker 1: there there is a there's a bit of a I

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Speaker 1: wouldn't say separate identity, but there are the people in

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Speaker 1: Hong Kong are quite conscious of the uh some of

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Speaker 1: the institutions have built up under the British if you

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Speaker 1: take the court system, if you take the financial system,

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Speaker 1: and so I think there is a realization that you

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Speaker 1: can have two systems and they will probably co exist

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Speaker 1: for quite some time. I know it's a heckn they

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Speaker 1: turn because it's often branded about, but there's really one country,

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Speaker 1: two systems. You know, how soon we think of maybe

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Speaker 1: the Hong Kong stock market is just an adjunct of Shanghai. Well.

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Speaker 1: But on the other end, you know, we think last

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Speaker 1: year we'd already the or in late two thousand fourteen

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Speaker 1: we had to connect come in and people thought that

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Speaker 1: two emerging. But the reality is the stocks are still

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Speaker 1: trading a thirty percent discount in Hong Kong, and and

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Speaker 1: there's separate listings, and we see companies delist in Hong

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Speaker 1: Kong and realist in China. Just recently for example, So

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Speaker 1: I think in terms of the investor base it's still

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Speaker 1: quite separate and probably take a few years before that

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Speaker 1: truly emerges. Next week, the MSc I people are supposed

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Speaker 1: to make a decision about China A shares and their

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Speaker 1: inclusion in the Emerging Market Index. Do people in China

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Speaker 1: cares it a big deal for them? It does? In fact,

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Speaker 1: last year one of the one of the reasons for

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Speaker 1: the rally, especially the last leg of expect everybody trying

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Speaker 1: our front run exactly exactly. So now it's coming back,

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Speaker 1: It's not quite as frothy it was last year. The

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Speaker 1: expectations um, but there's certainly it is a bit of

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Speaker 1: a buzz right now. There are things going on as well,

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Speaker 1: which is a shen Zen Hong Kong stock connect which

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Speaker 1: could come about. So we have Shanghai, but Shenzen is

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Speaker 1: also a big stock market, so there is further integration.

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Speaker 1: I think the Chinese are keen to develop the equ market.

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Speaker 1: I asked you earlier the tip point on the on

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Speaker 1: you said one hundreds of round number. What's the tip

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Speaker 1: point on Chinese weakness? When we see you on is

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Speaker 1: a seven point zero zero? Is there a break point

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Speaker 1: where we get a trite like brutal move. Well, the

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Speaker 1: controls are stronger than the Chinese have on the currency

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Speaker 1: than the Japanese, as they could hold a line. But

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Speaker 1: seven is a very important psychological barrier, and and in

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Speaker 1: currency trading, psychology matters just as much as fundamentals as

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Speaker 1: you know, right, So seven, I think is really a

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Speaker 1: sort of a line, if you will. One final question,

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Speaker 1: if we could the backdrop of HSBC is the exceptional

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Speaker 1: called by your Stephen Major to a one point five

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Speaker 1: percent US tenure. We say, good morning, Mr Major, listening

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Speaker 1: in London one point six seven percent this morning, how

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Speaker 1: does your world change in Asia? If you get Steve

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Speaker 1: Major's one point five percent, it's it actually anchors emerging

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Speaker 1: Asia because as long as US rates do not go up,

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Speaker 1: it actually means that capital will remain region. You don't

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Speaker 1: see capital flowing out. But if you know we at

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Speaker 1: some point ten years back up to three or three

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Speaker 1: and a half percent, then things get pretty dicey out there.

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Speaker 1: Now we're not there yet, Frecken, Thank you so much,

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Speaker 1: greatly appreciative visiting us in the arkey is with the

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Speaker 1: Hong Kong Shanghai. I love to say that like the

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Speaker 1: Hong Kong Shanghai, something romantic about it. Out of the

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Speaker 1: mandard on the way to our office, you go across

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Speaker 1: the little trolley tracks and there's Hong Kong. They will

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Speaker 1: keep your bar stool even if the hotel does go.

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Speaker 1: They renovated it and remain cheerful. Yes, they ruined Shanghai

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Speaker 1: today close no trade. Uh same in Hong Kong, Okay

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Speaker 1: one point holiday. They take the country and shut down,

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Speaker 1: leaves the country. Future is negative seven down. Future is

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Speaker 1: negative fifty two. The yield one point six seven percent.

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Speaker 1: Michael McKee mentioning the two year to four digits point

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Speaker 1: seven six seven zero, the two tens spread showing curve

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Speaker 1: flattening ninety point four basis points um. Really a flatter

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Speaker 1: yield curve getting into some remarkable space. They're not recession space,

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Speaker 1: but nevertheless, flatter yield curve. But yeah, one or six

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Speaker 1: point five zero. Another hour of Bloomberg's surveillance