1 00:00:03,320 --> 00:00:06,680 Speaker 1: This is Bloomberg Surveillance. We want to give the Seed credit. 2 00:00:06,760 --> 00:00:08,960 Speaker 1: They have come a long way from where they were 3 00:00:08,960 --> 00:00:11,280 Speaker 1: in the yearly nineties when they didn't even communicate anything 4 00:00:11,320 --> 00:00:15,360 Speaker 1: to the market. Begin remains the most important single Ocasian currency, 5 00:00:15,560 --> 00:00:18,640 Speaker 1: that together with Austie, which I think is the property 6 00:00:18,840 --> 00:00:21,760 Speaker 1: for all of Asia's growth ultimately. And we still are 7 00:00:21,760 --> 00:00:23,560 Speaker 1: going to have a crisis at some point. It'll be 8 00:00:23,600 --> 00:00:25,360 Speaker 1: a big one. And that's where the new tools and 9 00:00:25,400 --> 00:00:27,920 Speaker 1: dot Frank the title to the resolution Authority, that's where 10 00:00:27,920 --> 00:00:31,200 Speaker 1: they come in. Bloomberg Surveillance, your link to the world 11 00:00:31,200 --> 00:00:37,280 Speaker 1: of economics, finance, and investment on Bloomberg Radio. Good morning everyone, 12 00:00:37,320 --> 00:00:40,080 Speaker 1: Michael mckeem Tom Keene from our news bureau in Washington, 13 00:00:40,159 --> 00:00:44,240 Speaker 1: this Super Tuesday Bloomberg with coverage all through the day 14 00:00:44,520 --> 00:00:47,559 Speaker 1: on Super Tuesday, of course Mark Halperin and John Heilman 15 00:00:48,080 --> 00:00:50,519 Speaker 1: this evening a special two hour with all due respect, 16 00:00:50,560 --> 00:00:55,680 Speaker 1: look for that on television on radio. The markets quite essent. 17 00:00:55,840 --> 00:00:59,400 Speaker 1: To use a word from Helen Greenspan uh this morning, 18 00:00:59,440 --> 00:01:02,960 Speaker 1: fistures up fifteen, down, features up one nineteen. UM. I 19 00:01:02,960 --> 00:01:04,679 Speaker 1: guess the one thing I would point out is two 20 00:01:04,760 --> 00:01:09,319 Speaker 1: stand spread still under a hundred basis points um. This morning, 21 00:01:09,560 --> 00:01:14,560 Speaker 1: Bloomberg Surveillance brought to by Cone residuc Accounting, Tax Advisory 22 00:01:14,880 --> 00:01:18,400 Speaker 1: and the affordable housing industry. Your business needs transformative advice 23 00:01:18,959 --> 00:01:22,520 Speaker 1: from the industry leading experts at Cone Resnick. Find out 24 00:01:22,520 --> 00:01:27,280 Speaker 1: why at Cone Resnick dot com. Michael, what do you have? Well, first, 25 00:01:27,600 --> 00:01:30,720 Speaker 1: let me remind everybody that although this is Super Tuesday, 26 00:01:30,760 --> 00:01:34,040 Speaker 1: it is also the day that the automakers report their 27 00:01:34,200 --> 00:01:36,920 Speaker 1: February sales. Fiat Chrysler as usual, first out of the 28 00:01:36,959 --> 00:01:41,080 Speaker 1: box sales up by eleven point eight percent. The consensus 29 00:01:41,120 --> 00:01:45,319 Speaker 1: forecast was for up nine point two percent, so Fiat Chrysler, 30 00:01:45,360 --> 00:01:47,960 Speaker 1: as they often do, beating estimates to start the day. 31 00:01:48,000 --> 00:01:51,080 Speaker 1: We'll see how that turns out as the day goes on. 32 00:01:51,560 --> 00:01:54,120 Speaker 1: Jason Furman was with us, the chairman of the President's 33 00:01:54,120 --> 00:01:56,560 Speaker 1: Council of Economic Advisors. He had to race to the 34 00:01:56,560 --> 00:01:58,520 Speaker 1: White House, but he wanted to hear our next guest. 35 00:01:58,920 --> 00:02:01,480 Speaker 1: He did indeed at a pose it of course, from 36 00:02:01,480 --> 00:02:05,360 Speaker 1: the Peterson Institute is the president of the Peterson Institute 37 00:02:05,400 --> 00:02:09,520 Speaker 1: for International Economics, former policymaker for the Bank of England's 38 00:02:09,560 --> 00:02:12,800 Speaker 1: Monetary Policy Committee, and it is that hat. We kind 39 00:02:12,800 --> 00:02:14,320 Speaker 1: of want you to put on this morning at him, 40 00:02:14,320 --> 00:02:19,040 Speaker 1: because yesterday Tom and I spoke with Alan Greenspan about 41 00:02:19,120 --> 00:02:21,080 Speaker 1: his views of the economy, and I have never heard 42 00:02:21,160 --> 00:02:25,480 Speaker 1: him so cautious and perhaps a doer about the prospects. 43 00:02:25,520 --> 00:02:29,079 Speaker 1: He says that there is just so much uncertainty out 44 00:02:29,120 --> 00:02:32,120 Speaker 1: there that it is very very hard to make a 45 00:02:32,120 --> 00:02:35,480 Speaker 1: coherent forecast for what's going to happen, and he worries, 46 00:02:35,560 --> 00:02:39,040 Speaker 1: given China, given oil, and given the political climate, that 47 00:02:39,120 --> 00:02:42,640 Speaker 1: we could be in his words, in trouble. Well, Michael, 48 00:02:42,639 --> 00:02:44,359 Speaker 1: thank you guys for having me in a week when 49 00:02:44,360 --> 00:02:47,160 Speaker 1: you had Jason who was a rock star and obviously 50 00:02:47,240 --> 00:02:50,000 Speaker 1: the Japan chairman. It's very gorgeous to be part of it. 51 00:02:50,520 --> 00:02:53,720 Speaker 1: Um I. You know, he has the forecasting insights. But 52 00:02:54,200 --> 00:02:56,280 Speaker 1: there's so much going on that is still consistent with 53 00:02:56,280 --> 00:02:58,960 Speaker 1: the optimistic view that Chairman Greenspan used to give us, 54 00:02:59,080 --> 00:03:01,160 Speaker 1: that we live in a world which is more and 55 00:03:01,160 --> 00:03:05,280 Speaker 1: more weightless. Intangibles are such an important part of the economy. Yes, 56 00:03:05,320 --> 00:03:07,880 Speaker 1: the productivity growth is not triumph the way it should be, 57 00:03:08,120 --> 00:03:11,000 Speaker 1: but there still is some innovation going on that we 58 00:03:11,080 --> 00:03:13,280 Speaker 1: are less energy dependent than we ever used to be. 59 00:03:13,320 --> 00:03:17,040 Speaker 1: He didn't foresee the the obviously the fracking in the US, 60 00:03:17,120 --> 00:03:19,880 Speaker 1: but the idea that we are much less energy dependent 61 00:03:19,960 --> 00:03:22,959 Speaker 1: economy in the sense of not meeting importance of the 62 00:03:23,000 --> 00:03:26,280 Speaker 1: same sort. But when we start talking uncertainty, my colleagues 63 00:03:26,280 --> 00:03:28,640 Speaker 1: side of Pearson Institute are publishing later this week something 64 00:03:28,680 --> 00:03:31,800 Speaker 1: we call reality check for the world economy. We think 65 00:03:31,840 --> 00:03:37,000 Speaker 1: that people have leapfrogged what is reasonable into excessive worry. 66 00:03:37,240 --> 00:03:41,360 Speaker 1: That China has a floor under it, both in terms 67 00:03:41,360 --> 00:03:45,160 Speaker 1: of policy and the actual growth that energy markets, that 68 00:03:45,280 --> 00:03:48,440 Speaker 1: declining oil prices is on net clearly good for the 69 00:03:48,440 --> 00:03:53,320 Speaker 1: world economy, despite recent interpretations that the US economy, while 70 00:03:53,440 --> 00:03:56,760 Speaker 1: probably it's slightly elevated risk of recession, remains very much 71 00:03:56,840 --> 00:04:00,600 Speaker 1: not in recession. And so I don't want to complacent. 72 00:04:00,680 --> 00:04:02,920 Speaker 1: There are things the world should be worrying about. But 73 00:04:03,160 --> 00:04:05,960 Speaker 1: it's just not as bad a world as some people 74 00:04:06,000 --> 00:04:10,120 Speaker 1: are saying. When you say it's not as bad a 75 00:04:10,160 --> 00:04:13,600 Speaker 1: world as some people are saying, how good you know, 76 00:04:13,680 --> 00:04:16,120 Speaker 1: looking at the other direction, how good is that? Because 77 00:04:16,120 --> 00:04:19,160 Speaker 1: people don't feel it, it seems that seems to be 78 00:04:19,200 --> 00:04:21,920 Speaker 1: fueling a lot of the political discontent. No, I think 79 00:04:21,960 --> 00:04:26,000 Speaker 1: that's a fair point Michael, especially on Super Tuesday. Um. 80 00:04:26,040 --> 00:04:28,880 Speaker 1: Although there again, that's less about the economy and about 81 00:04:28,880 --> 00:04:31,320 Speaker 1: who gets what I mean, the very sad cases. A 82 00:04:31,320 --> 00:04:34,000 Speaker 1: lot of the terrible politics we're seeing in the U 83 00:04:34,200 --> 00:04:37,120 Speaker 1: S and in Western Europe have to do with basically 84 00:04:37,160 --> 00:04:40,440 Speaker 1: white males seeing their relative status go down, especially less 85 00:04:40,520 --> 00:04:43,919 Speaker 1: educated white males, And that's less about economic failures and 86 00:04:44,000 --> 00:04:46,800 Speaker 1: more about adjustment. Doesn't mean it's not real, doesn't mean 87 00:04:46,800 --> 00:04:49,320 Speaker 1: it's not serious, but it means from an investment point 88 00:04:49,320 --> 00:04:51,120 Speaker 1: of view, you have to look at us a political risk, 89 00:04:51,200 --> 00:04:55,479 Speaker 1: not that the economics is working. But more importantly, you know, 90 00:04:55,520 --> 00:04:57,400 Speaker 1: when you say is it better? No, you've had on 91 00:04:57,440 --> 00:05:00,240 Speaker 1: our mutual friend Mohammad al Arian, he coined phrase new normal. 92 00:05:00,320 --> 00:05:03,560 Speaker 1: I think there's some real value to that. That part 93 00:05:03,600 --> 00:05:07,440 Speaker 1: of the thing is the US, Western Europe, China, Japan 94 00:05:07,520 --> 00:05:10,000 Speaker 1: are all growing at slower rates than they used to. 95 00:05:10,120 --> 00:05:12,120 Speaker 1: But in a sense that's the good news. These are 96 00:05:12,160 --> 00:05:15,480 Speaker 1: mostly sustainable rates. They're not built on huge amounts of leverage. 97 00:05:15,480 --> 00:05:17,920 Speaker 1: Of those, China's still doing a bit and not built 98 00:05:17,960 --> 00:05:21,720 Speaker 1: among huge amounts of debt. And sorry, no, no, I'm 99 00:05:21,760 --> 00:05:24,080 Speaker 1: not sorry. It's just I think it's an important insight 100 00:05:24,800 --> 00:05:27,400 Speaker 1: that low growth is expected from where you sit at 101 00:05:27,400 --> 00:05:31,599 Speaker 1: the Peterson Institute. Is America getting used to low growth? 102 00:05:32,000 --> 00:05:34,320 Speaker 1: Or as part of the angst on this Super Tuesday 103 00:05:34,839 --> 00:05:37,960 Speaker 1: is it's too precent g d P and we're not 104 00:05:38,000 --> 00:05:40,880 Speaker 1: going to take this anymore. That's a really good point comment. 105 00:05:40,920 --> 00:05:44,040 Speaker 1: I think that's right. And you know, twenty years ago, 106 00:05:44,920 --> 00:05:48,080 Speaker 1: before he was world famous, Paul Krugman wrote a book 107 00:05:48,080 --> 00:05:51,159 Speaker 1: called The Age of Diminished Expectations, which is a great title. 108 00:05:51,680 --> 00:05:54,479 Speaker 1: And what we're seeing now is is the backlash when 109 00:05:54,480 --> 00:05:58,360 Speaker 1: those expectations have come true. We're seeing the backlash as 110 00:05:58,400 --> 00:06:01,200 Speaker 1: you indicate, But I mean it's not just about the 111 00:06:01,240 --> 00:06:03,720 Speaker 1: actual growth level. As the data came out just the 112 00:06:03,720 --> 00:06:06,960 Speaker 1: other day. You know, the the U. S worker hasn't 113 00:06:07,000 --> 00:06:10,120 Speaker 1: been getting fairly paid for what productivity growth there has been. 114 00:06:10,160 --> 00:06:12,760 Speaker 1: There's been, you know, very large amounts of money going 115 00:06:12,800 --> 00:06:15,800 Speaker 1: to capital and also very low growth in wages for 116 00:06:15,839 --> 00:06:19,760 Speaker 1: a long time. And that's again that's not because of 117 00:06:19,760 --> 00:06:23,160 Speaker 1: the two percent growth. It's an excuse. We there are 118 00:06:23,200 --> 00:06:27,479 Speaker 1: ways of dealing with that. Do you assume that the 119 00:06:27,560 --> 00:06:32,599 Speaker 1: growth that we need comes from technological progress or can 120 00:06:32,640 --> 00:06:37,479 Speaker 1: we manage and manipulate ourselves to a better trajectory. I'm 121 00:06:37,560 --> 00:06:40,120 Speaker 1: sorry to be giving so many greatest hits of other 122 00:06:40,160 --> 00:06:42,880 Speaker 1: people today, but you know, sometimes people get it right. 123 00:06:43,000 --> 00:06:46,159 Speaker 1: Larry Summers had his column a couple of weeks ago 124 00:06:46,240 --> 00:06:49,159 Speaker 1: talking about cheap lunches versus free lunches. One thing which 125 00:06:49,160 --> 00:06:51,760 Speaker 1: you've heard me say before, Tom, is you know we're 126 00:06:51,760 --> 00:06:55,880 Speaker 1: throwing away eight percent of GDP on healthcare in ways 127 00:06:55,880 --> 00:06:57,960 Speaker 1: that no other country does. And if we got more 128 00:06:58,040 --> 00:07:01,359 Speaker 1: efficient about that, that not to bias ten years of 129 00:07:01,440 --> 00:07:06,040 Speaker 1: improved growth or longer. Uh. Similarly, the under use of 130 00:07:06,080 --> 00:07:08,760 Speaker 1: a lot of our young people, I mean, Bernie Sanders 131 00:07:08,880 --> 00:07:13,120 Speaker 1: is vastly exaggerating the extent of youth unemployment, but underemployment 132 00:07:13,200 --> 00:07:16,440 Speaker 1: under utilization is real, and we take advantage of that. 133 00:07:16,520 --> 00:07:19,080 Speaker 1: So there are ways to grow, even if the trend 134 00:07:19,160 --> 00:07:21,760 Speaker 1: rate of growth doesn't have to be that high. But 135 00:07:22,240 --> 00:07:25,200 Speaker 1: if we speak to Judd greg of New Hampshire or 136 00:07:25,280 --> 00:07:29,240 Speaker 1: Jason Furman working with the President, obviously with a affiliation 137 00:07:29,280 --> 00:07:34,160 Speaker 1: to the Democratic Party, a common ground they have is 138 00:07:34,200 --> 00:07:37,160 Speaker 1: we need growth and we need a public policy to 139 00:07:37,320 --> 00:07:40,360 Speaker 1: drive it forward. That's where they differ. What is the 140 00:07:40,400 --> 00:07:46,160 Speaker 1: Peterson Institute prescription to get the polarity of our politics 141 00:07:46,600 --> 00:07:50,600 Speaker 1: onto a common ground. Does it just take a crisis? God, 142 00:07:50,640 --> 00:07:52,840 Speaker 1: I hope not. It would be a terrible commentary and 143 00:07:52,920 --> 00:07:55,800 Speaker 1: a terrible thing in reality if it takes an overt 144 00:07:55,840 --> 00:07:58,160 Speaker 1: crisis to get agreement or get progress, And then you're 145 00:07:58,200 --> 00:08:01,600 Speaker 1: risking things going crazy because sometimes Mussolini comes up in 146 00:08:01,640 --> 00:08:10,119 Speaker 1: a crisis. No, we think that we there he's learned 147 00:08:10,120 --> 00:08:15,920 Speaker 1: from Fred. But but look, I mean the growth things 148 00:08:15,960 --> 00:08:18,840 Speaker 1: that have to be done. There is room for fiscal 149 00:08:18,880 --> 00:08:21,600 Speaker 1: policy in the US, as I'm sure Jason spoke about, 150 00:08:21,880 --> 00:08:24,080 Speaker 1: and it can take the form of public investment. Not 151 00:08:24,200 --> 00:08:27,120 Speaker 1: all of public investment is going to be wonderful immediate payoff, 152 00:08:27,360 --> 00:08:30,440 Speaker 1: But just like the private investors on your program to 153 00:08:30,560 --> 00:08:33,160 Speaker 1: talk about you need a good portfolio. And that's what 154 00:08:33,240 --> 00:08:35,600 Speaker 1: we need is a good, strong portfolio of public investment. 155 00:08:35,880 --> 00:08:38,280 Speaker 1: We need to reinvest in our community colleges and our 156 00:08:38,440 --> 00:08:41,440 Speaker 1: our public sector education and the best parts of our 157 00:08:41,480 --> 00:08:44,679 Speaker 1: private sector education. Instead of ripping people off with false claims, 158 00:08:44,960 --> 00:08:47,320 Speaker 1: given them the actual skills and training that they need. 159 00:08:47,480 --> 00:08:49,319 Speaker 1: And in the short term, frankly, it would be good 160 00:08:49,360 --> 00:08:51,640 Speaker 1: to sign the Transpacific Partnership deal. It's not going to 161 00:08:51,720 --> 00:08:53,920 Speaker 1: be huge, but it's going to add growth, and it's 162 00:08:53,920 --> 00:08:56,240 Speaker 1: going to add a few tenths per cent of growth, 163 00:08:56,240 --> 00:08:58,280 Speaker 1: which is meaningful when you're only growing at two percent. 164 00:08:59,720 --> 00:09:07,120 Speaker 1: Thank Jerry Brown ran for president on a platform of limits, 165 00:09:07,200 --> 00:09:09,319 Speaker 1: that we were at the limits of growth and the 166 00:09:09,440 --> 00:09:12,920 Speaker 1: limits of society's ability to make things better and we 167 00:09:12,960 --> 00:09:16,440 Speaker 1: had to learn to live with it. Was he just premature? 168 00:09:16,760 --> 00:09:21,640 Speaker 1: Was he wrong? Uh? Can someone do something to actually 169 00:09:21,720 --> 00:09:26,400 Speaker 1: change the outlook long term? We can, definitely, Michael, I 170 00:09:26,400 --> 00:09:29,040 Speaker 1: mean Jerry Brown was premature running for president because the 171 00:09:29,120 --> 00:09:31,640 Speaker 1: Jerry Brown of today might be a good candidate for president. 172 00:09:31,960 --> 00:09:34,120 Speaker 1: But the limits of growth stuff in the seventies that 173 00:09:34,200 --> 00:09:37,160 Speaker 1: you're referring to that many people spoke about, was I 174 00:09:37,200 --> 00:09:39,840 Speaker 1: think wrong. It was the idea that humans would just 175 00:09:39,920 --> 00:09:43,720 Speaker 1: quickly run up against population constraints, energy constraints, food constraints. 176 00:09:44,000 --> 00:09:47,959 Speaker 1: And going back to what Tom said, innovation has come reorganization. 177 00:09:48,080 --> 00:09:53,319 Speaker 1: Innovation isn't just about technology. It's about better administration, better organization, 178 00:09:53,440 --> 00:09:56,680 Speaker 1: better work habits as well as technology, and things have 179 00:09:56,840 --> 00:09:59,199 Speaker 1: changed and we have gotten things better. I'm sorry to 180 00:09:59,240 --> 00:10:01,880 Speaker 1: sound raw. Raw. One has to take very seriously, as 181 00:10:01,920 --> 00:10:04,480 Speaker 1: I know you do Robert Gordon inside another recent star 182 00:10:04,840 --> 00:10:08,079 Speaker 1: Robert Gordon's really fascinating work on the are we in 183 00:10:08,120 --> 00:10:11,120 Speaker 1: the midst of the technological slowdown, but there are still 184 00:10:11,280 --> 00:10:14,720 Speaker 1: meaningful things you can do. There's still low hanging fruit 185 00:10:14,760 --> 00:10:19,560 Speaker 1: and reform in utilization of underused resources, in efficiency, and 186 00:10:19,640 --> 00:10:23,439 Speaker 1: frankly in opening up to the world. Well an agenda 187 00:10:23,520 --> 00:10:27,320 Speaker 1: to look forward to after Super Wednesday. Adam Posing is 188 00:10:27,320 --> 00:10:30,760 Speaker 1: with the Peterson Institute. Dr Poston, thank you uh so much. 189 00:10:30,800 --> 00:10:34,600 Speaker 1: We will continue this conversation from Washington to try to 190 00:10:34,640 --> 00:10:37,200 Speaker 1: give you a mix of people away from this area, 191 00:10:37,559 --> 00:10:40,320 Speaker 1: away from the horse race coming up. We are thrilled 192 00:10:40,360 --> 00:10:43,840 Speaker 1: to speak to you from the gentleman from Minnesota. Then 193 00:10:43,880 --> 00:10:47,080 Speaker 1: Webber will join us on the state of his Republican 194 00:10:47,160 --> 00:10:53,719 Speaker 1: Party from Washington. This is Bloomberg Surveillance. Now let's check 195 00:10:53,720 --> 00:10:55,679 Speaker 1: in with Michael Barr and get the latest world of 196 00:10:55,800 --> 00:10:58,560 Speaker 1: national headlines. Michael, Mike Ton, thank you very much. Voters 197 00:10:58,679 --> 00:11:02,079 Speaker 1: roll head to the polls day for Super Tuesday primaries. 198 00:11:02,120 --> 00:11:05,640 Speaker 1: Republican Donald Trump and the Democrat Hillary Clinton are hoping 199 00:11:05,679 --> 00:11:09,480 Speaker 1: to stretch their leads. Democrat Bernie Sanders and Republican Senators 200 00:11:09,480 --> 00:11:13,680 Speaker 1: Ted Cruz and Marco Rubill are looking to blunt that momentum. 201 00:11:13,720 --> 00:11:17,120 Speaker 1: Bloomberg will have NonStop Super Tuesday coverage throughout the night, 202 00:11:17,440 --> 00:11:19,840 Speaker 1: starting with a special edition of With All Due Respect 203 00:11:20,040 --> 00:11:23,120 Speaker 1: starting at five pm All Street time. The Pentagon once 204 00:11:23,160 --> 00:11:28,480 Speaker 1: thirty four point seven billion dollars through one for cyber security. 205 00:11:28,760 --> 00:11:31,679 Speaker 1: Defense Secretary Ash Carter says it is in part to 206 00:11:31,800 --> 00:11:36,200 Speaker 1: be up the offensive military capabilities, including the fight against 207 00:11:36,240 --> 00:11:39,400 Speaker 1: the Islamic State Group. Funeral services will be held today 208 00:11:39,440 --> 00:11:42,520 Speaker 1: for Ashley Gwinden, the Virginia police officer who was shot 209 00:11:42,559 --> 00:11:45,000 Speaker 1: and killed on her first day on the job. Global 210 00:11:45,040 --> 00:11:47,480 Speaker 1: News twenty four hours a day, powered by our twenty 211 00:11:47,520 --> 00:11:49,959 Speaker 1: four hundred journalists and more than a hundred fifty news 212 00:11:50,000 --> 00:11:52,600 Speaker 1: bureaus from around the world. I am Michael Barn, Mike 213 00:11:52,800 --> 00:11:56,640 Speaker 1: Tom Michael Barr, Thank you so much from Washington and 214 00:11:56,720 --> 00:12:01,040 Speaker 1: support of Bloomberg One f m Michael McKee and Tom 215 00:12:01,120 --> 00:12:07,680 Speaker 1: Keene Bloomberg Surveillance. The news update was brought to you 216 00:12:07,679 --> 00:12:10,080 Speaker 1: by Mercedes Benz. This month, your Mercedes Benz tri state 217 00:12:10,120 --> 00:12:12,480 Speaker 1: dealers welcome Spring with a limited time offer on select 218 00:12:12,559 --> 00:12:14,840 Speaker 1: models like the sport E c L A and Versatile 219 00:12:14,960 --> 00:12:17,520 Speaker 1: G l A. Each engineered in price to move. Visit 220 00:12:17,679 --> 00:12:24,400 Speaker 1: mb USA dot com today global business news twenty four 221 00:12:24,400 --> 00:12:27,520 Speaker 1: hours a day at Bloomberg dot com, the radio plus 222 00:12:27,559 --> 00:12:31,160 Speaker 1: mobil and on your radio. This is a Bloomberg Business 223 00:12:31,240 --> 00:12:35,400 Speaker 1: Flash and I'm Karen Moscow. Future is moving higher this morning. 224 00:12:35,480 --> 00:12:37,559 Speaker 1: Let's go to the First Word Breaking news desk for 225 00:12:37,600 --> 00:12:40,720 Speaker 1: today's morning call, and here's Bill Maloney. Good morning Bill, 226 00:12:40,920 --> 00:12:43,920 Speaker 1: Good morning Karen. Us Futures are made tending their games. 227 00:12:43,920 --> 00:12:46,440 Speaker 1: Since the last time we spoke down, futures hired by 228 00:12:46,440 --> 00:12:49,160 Speaker 1: a hundred and eighteen points says he's game fifteen and 229 00:12:49,320 --> 00:12:52,400 Speaker 1: as a futures rise by thirty CREWD pictures are hire 230 00:12:52,440 --> 00:12:55,720 Speaker 1: by two point one percent and main upayer markets are climbing, 231 00:12:56,000 --> 00:12:59,200 Speaker 1: led by one point seven percent gains in Italy on 232 00:12:59,280 --> 00:13:01,720 Speaker 1: the U second M front at ninety five market US 233 00:13:01,800 --> 00:13:04,400 Speaker 1: Manufacturing p M I and at ten o'clock I s 234 00:13:04,520 --> 00:13:09,000 Speaker 1: M Manufacturing and construction spending. After develous night, GoPro expects 235 00:13:09,080 --> 00:13:12,520 Speaker 1: records substantial night loss into one and worked a Q 236 00:13:12,720 --> 00:13:17,520 Speaker 1: and revenue trailed estimates regarding errings this morning. Metronic EPs, inline, 237 00:13:17,840 --> 00:13:23,040 Speaker 1: auto zone EPs feet and dollar try RPS view trailed estimates. Finally, 238 00:13:23,040 --> 00:13:25,559 Speaker 1: some of the q Well Street upgrades and downgrades. At 239 00:13:25,559 --> 00:13:29,600 Speaker 1: Bank of America, Linear Technology cut to underperform report, mcmurran 240 00:13:29,720 --> 00:13:32,560 Speaker 1: raised to neutral, Kaiser Lunham raised to buy a Deutsche 241 00:13:32,600 --> 00:13:35,840 Speaker 1: Bank at Goldman Sachs ds W, and Steve Madden cut 242 00:13:35,880 --> 00:13:38,520 Speaker 1: to sell. Workday raised over it at JP Morgan with 243 00:13:38,559 --> 00:13:41,240 Speaker 1: a price target of eighty five. And finally at RBC, 244 00:13:41,640 --> 00:13:46,079 Speaker 1: United Technologies raised outperform and Valiant cut to sector perform. 245 00:13:46,280 --> 00:13:49,760 Speaker 1: Live from the First Breaking News deskcom Bill Maloney Karen alright, 246 00:13:49,760 --> 00:13:52,400 Speaker 1: thanks Bill to hear live breaking news over your Bloomberg 247 00:13:52,440 --> 00:13:55,120 Speaker 1: type squawk go on your terminal, that's sq you a 248 00:13:55,320 --> 00:13:58,040 Speaker 1: w K go and that's a Bloomberg business flash. Tom 249 00:13:58,040 --> 00:14:01,760 Speaker 1: and Mike Karen, thanks so much. From Washington and Bloomberg 250 00:14:01,800 --> 00:14:05,720 Speaker 1: Surveillance were brought of by Investco. Invesco believes it's time 251 00:14:05,760 --> 00:14:09,720 Speaker 1: to bench the benchmarks to consider active management and factor 252 00:14:09,760 --> 00:14:14,320 Speaker 1: based strategies. Find out more at investco dot com. Slash 253 00:14:14,760 --> 00:14:17,599 Speaker 1: high Conviction. I think it's the most important interview of 254 00:14:17,640 --> 00:14:20,880 Speaker 1: the day. It is certainly the most interesting interview of 255 00:14:20,920 --> 00:14:24,200 Speaker 1: the day. He is from Walker, Minnesota, off of Leech Lake, 256 00:14:24,240 --> 00:14:27,000 Speaker 1: where he catches fish. The size of your leg. Then 257 00:14:27,040 --> 00:14:30,600 Speaker 1: Webber where us, of course for decades his support of 258 00:14:30,640 --> 00:14:33,560 Speaker 1: a beleaguered Republican Party. Let me get the knitting out 259 00:14:33,560 --> 00:14:36,160 Speaker 1: of the way. We spoke with Senator Greg earlier. I 260 00:14:36,200 --> 00:14:40,080 Speaker 1: asked him about his nominee come the convention. He said 261 00:14:40,160 --> 00:14:44,120 Speaker 1: he would support the nominee. Could you support Mr Trump 262 00:14:44,240 --> 00:14:47,320 Speaker 1: is a nominee of your Republican Party. I can't say that. 263 00:14:47,480 --> 00:14:49,760 Speaker 1: I mean, I have great respect for Judd Gregg. He's 264 00:14:49,800 --> 00:14:51,760 Speaker 1: a good friend of mine who came into Congress together, 265 00:14:51,800 --> 00:14:54,560 Speaker 1: and his judgment is good. But I've seen what Donald 266 00:14:54,560 --> 00:14:56,640 Speaker 1: Trump has said, and I'm not ready to say that 267 00:14:56,640 --> 00:14:58,680 Speaker 1: I could vote for him. No, you go back to 268 00:14:58,720 --> 00:15:01,800 Speaker 1: the Fabrican fire. Were the linkage, frankly, back to World 269 00:15:01,880 --> 00:15:05,360 Speaker 1: War Two and your support of Senator Doll twenty years ago. 270 00:15:06,040 --> 00:15:11,000 Speaker 1: I I the shock and awe of your establishment. What's 271 00:15:11,120 --> 00:15:14,960 Speaker 1: your to do list for your Republican establishment in the 272 00:15:15,000 --> 00:15:17,400 Speaker 1: next twenty four hours or for that matter, the next 273 00:15:17,440 --> 00:15:21,160 Speaker 1: twenty four days. Well, we still have you know, a 274 00:15:21,200 --> 00:15:24,160 Speaker 1: couple of candidates in there that could challenge Donald Trump 275 00:15:24,240 --> 00:15:26,560 Speaker 1: very seriously if you have three, if you count Senator Cruz. 276 00:15:26,720 --> 00:15:29,200 Speaker 1: But but Governor Kasick is running a friend of mine, 277 00:15:29,240 --> 00:15:32,760 Speaker 1: also friend of Jedd Gregg's uh and Senator Rubio. And 278 00:15:32,800 --> 00:15:34,560 Speaker 1: you gotta do what you can to help those people 279 00:15:34,600 --> 00:15:37,360 Speaker 1: and and prepare for a long fight all the way 280 00:15:37,400 --> 00:15:40,120 Speaker 1: to the convention. It doesn't look as if there's any 281 00:15:40,120 --> 00:15:43,680 Speaker 1: way of stopping Donald Trump short of a convention fight anymore. 282 00:15:43,680 --> 00:15:45,680 Speaker 1: He's this guy. He's got too big a lead, and 283 00:15:45,720 --> 00:15:48,160 Speaker 1: the polls say that he's going to expand that lead 284 00:15:48,200 --> 00:15:51,640 Speaker 1: substantially tonight. But you can slow him down in the winter. 285 00:15:51,720 --> 00:15:54,680 Speaker 1: Take all states that begin coming March fifteen, go to 286 00:15:54,720 --> 00:15:57,280 Speaker 1: the convention and have a chance of nominating another kind 287 00:15:57,320 --> 00:16:01,160 Speaker 1: of Republicans. Smoke filled rooms, they returned, Yeah, but you 288 00:16:01,440 --> 00:16:05,480 Speaker 1: gotta smoke outside now, Yeah, you sidewalk, you know, And 289 00:16:05,480 --> 00:16:08,360 Speaker 1: it would be different. There was a time, obviously when 290 00:16:08,400 --> 00:16:11,320 Speaker 1: both parties chose their candidates and if you might call 291 00:16:11,360 --> 00:16:15,200 Speaker 1: them smoke filled rooms, but quote brokered conventions. The difference 292 00:16:15,240 --> 00:16:17,720 Speaker 1: now is we don't have bosses to broker a convention. 293 00:16:17,760 --> 00:16:20,560 Speaker 1: It would be a genuinely open convention where people would 294 00:16:20,600 --> 00:16:23,760 Speaker 1: come in nobody having a majority, and obviously people would 295 00:16:23,760 --> 00:16:26,600 Speaker 1: try to influence folks, but there's there's there's no mare 296 00:16:26,760 --> 00:16:30,160 Speaker 1: daily to deliver the votes of Illinois anymore, for instance. 297 00:16:30,480 --> 00:16:32,480 Speaker 1: So it's it would be quite a different situation. And 298 00:16:32,520 --> 00:16:35,200 Speaker 1: that that that's because we've changed the way in which 299 00:16:35,280 --> 00:16:40,160 Speaker 1: we nominate candidates, largely to primaries. Uh, I like to 300 00:16:40,200 --> 00:16:44,000 Speaker 1: the story from my native Minnesota, Hubert Humphrey won the 301 00:16:44,040 --> 00:16:48,960 Speaker 1: Democratic nomination for president without entering a single primary. That's 302 00:16:48,960 --> 00:16:53,160 Speaker 1: as recently. That's because we chose our presidential candidates differently 303 00:16:53,200 --> 00:16:56,520 Speaker 1: in those days. That's not possible anymore. We do. We everybody, 304 00:16:56,560 --> 00:16:59,400 Speaker 1: almost everybody's chosen through a primary or an open clock 305 00:16:59,440 --> 00:17:01,960 Speaker 1: a system. And so the convention would be genuinely open. 306 00:17:02,000 --> 00:17:04,920 Speaker 1: It would not be broken, and not be smoke filled 307 00:17:05,000 --> 00:17:07,440 Speaker 1: rooms because smoking is not permitted, as you pointed out, 308 00:17:08,560 --> 00:17:11,720 Speaker 1: like I said, the smoke filled street corners. If Donald 309 00:17:11,720 --> 00:17:16,080 Speaker 1: Trump is the Republican nominee, what happens to the Republican Party? 310 00:17:16,200 --> 00:17:18,760 Speaker 1: Both in the short term how bad would it be 311 00:17:18,800 --> 00:17:21,720 Speaker 1: in the fall? And over the long term? Does does he, 312 00:17:21,960 --> 00:17:23,600 Speaker 1: as some people have said, rent the party and then 313 00:17:23,640 --> 00:17:25,840 Speaker 1: it comes the establishment comes back, or does he blow 314 00:17:25,880 --> 00:17:28,639 Speaker 1: it up? It's it's hard to say that, you know, 315 00:17:28,760 --> 00:17:32,360 Speaker 1: it's so just a temporary diversion and everything else returns 316 00:17:32,359 --> 00:17:34,520 Speaker 1: to normal after this election. I think it changes it 317 00:17:34,640 --> 00:17:38,639 Speaker 1: quite substantially. I think in the the most obvious political 318 00:17:38,760 --> 00:17:40,680 Speaker 1: damage that he does to us is with the Hispanic 319 00:17:40,720 --> 00:17:44,480 Speaker 1: and the Asian communities. UH. The Hispanic community, quite properly 320 00:17:44,520 --> 00:17:48,920 Speaker 1: and quite understandably, is mobilizing massively against Donald Trump all 321 00:17:48,960 --> 00:17:51,159 Speaker 1: across the country, and he's got an eight plus percent 322 00:17:51,240 --> 00:17:54,399 Speaker 1: disapproval rating that could wreck the Republican Party's chances with 323 00:17:54,480 --> 00:17:57,760 Speaker 1: the fastest growing segment of the electorate UH for for 324 00:17:57,840 --> 00:18:00,720 Speaker 1: a long long time to come. But I also emphasized 325 00:18:00,720 --> 00:18:04,199 Speaker 1: to people it's not just the politics of it. There 326 00:18:04,200 --> 00:18:07,480 Speaker 1: are fundamental issues in which he is trying to reorient 327 00:18:07,560 --> 00:18:10,959 Speaker 1: the Republican Party. Immigration is a notable one where the 328 00:18:11,000 --> 00:18:13,560 Speaker 1: party that used to stand for fairly open the immigration 329 00:18:13,600 --> 00:18:17,400 Speaker 1: policies now is has been favor of walls and deporting 330 00:18:17,440 --> 00:18:20,560 Speaker 1: people and things like that. Also trade, I mean, the 331 00:18:20,600 --> 00:18:25,120 Speaker 1: Republican Party really has led as America has led since 332 00:18:25,160 --> 00:18:26,960 Speaker 1: the end of World War Two, towort a more open, 333 00:18:27,119 --> 00:18:30,960 Speaker 1: more liberal trading system. Donald Trump basically is talking about 334 00:18:31,000 --> 00:18:34,439 Speaker 1: starting trade wars with Mexico, are closest neighbor, and China, 335 00:18:34,640 --> 00:18:37,840 Speaker 1: the second largest economy in the world and trashing the 336 00:18:37,920 --> 00:18:42,440 Speaker 1: system of multilateral trade negotiations that the United States has 337 00:18:42,520 --> 00:18:44,560 Speaker 1: led in the world since the end of World War Two. 338 00:18:44,560 --> 00:18:47,760 Speaker 1: He's basically americantilist. Those are a couple of big things 339 00:18:47,800 --> 00:18:50,720 Speaker 1: that that would change in the in the Republican Party 340 00:18:50,760 --> 00:18:54,159 Speaker 1: on an issues in philosophical level which haven't been talked 341 00:18:54,200 --> 00:18:56,479 Speaker 1: about enough in my view, while we focus all this 342 00:18:56,800 --> 00:19:00,520 Speaker 1: attention on insider versus outsider an establishment, as as if 343 00:19:00,520 --> 00:19:03,639 Speaker 1: if Donald Trump came down and had a cocktroll party 344 00:19:03,680 --> 00:19:06,399 Speaker 1: in Georgetown, everybody'd be fine with my chop in here quickly. 345 00:19:06,440 --> 00:19:08,200 Speaker 1: We want you to stay on for the next section 346 00:19:09,080 --> 00:19:12,720 Speaker 1: thirty seconds. Suppose Hillary Clinton's elected because people are disgusted 347 00:19:12,800 --> 00:19:15,639 Speaker 1: with Donald Trump January twenty she takes the oath of 348 00:19:15,640 --> 00:19:18,120 Speaker 1: office January twenty one, two Republicans in the House start 349 00:19:18,160 --> 00:19:20,359 Speaker 1: impeachment proceedings. I mean, is this what we're gonna face? 350 00:19:20,640 --> 00:19:22,679 Speaker 1: It could be pretty ugly. You know, who knows what 351 00:19:22,720 --> 00:19:25,760 Speaker 1: the direction of the FBI investigation is going to be. 352 00:19:26,080 --> 00:19:28,920 Speaker 1: I expect that she will be interviewed. I don't mean indicted, 353 00:19:28,960 --> 00:19:32,240 Speaker 1: but interviewed sometime before the election, and that these these 354 00:19:32,240 --> 00:19:34,760 Speaker 1: issues are not going to be totally resolved. I don't 355 00:19:34,760 --> 00:19:37,000 Speaker 1: think that they would jump on impeachment though right away. 356 00:19:37,040 --> 00:19:38,959 Speaker 1: I think that her issues are going to be with 357 00:19:39,040 --> 00:19:43,000 Speaker 1: the FBI and with the galities. Cannot believe. On Super Tuesday, 358 00:19:43,160 --> 00:19:46,840 Speaker 1: we're talking whoever with We're thrilled to have him with 359 00:19:46,880 --> 00:19:50,479 Speaker 1: this Good Morning Serious the next time Channel one nineteen 360 00:19:50,520 --> 00:19:52,880 Speaker 1: in the Great State of Minnesota, we say, good morning, 361 00:19:52,920 --> 00:19:57,280 Speaker 1: Bloomberg nine sixties, San Francisco, Bloomberg twelve, Boston, Bloomberg eleventh, 362 00:19:57,320 --> 00:20:00,080 Speaker 1: three oh in New York, and of course Bloomberg on 363 00:20:00,440 --> 00:20:07,680 Speaker 1: FM Washington and Baltimore. Stay with us coming up the 364 00:20:07,840 --> 00:20:09,840 Speaker 1: with all due respect, highlight brought you by land Rover. 365 00:20:09,920 --> 00:20:11,399 Speaker 1: If it's in your nature to cast off the every 366 00:20:11,480 --> 00:20:13,480 Speaker 1: day and seek adventure, the Discovery Sport was built to 367 00:20:13,520 --> 00:20:15,879 Speaker 1: help your search. Visit Landrover Chi state dot com for 368 00:20:16,080 --> 00:20:18,720 Speaker 1: special offers during the only Adventure Sales event. Land Rover 369 00:20:18,960 --> 00:20:26,360 Speaker 1: Above and Beyond broadcasting live to New York, Gloomberg eleventh, 370 00:20:26,400 --> 00:20:31,280 Speaker 1: RYO to Washington, d C, Bloomberg to Boston, Bloomberg twelve 371 00:20:31,320 --> 00:20:36,000 Speaker 1: hundreds to San Francisco, Bloomberg to the Country Series Exam 372 00:20:36,080 --> 00:20:39,560 Speaker 1: Channel one ninety and around the globe. The Bloomberg Radio 373 00:20:39,560 --> 00:20:45,680 Speaker 1: plus Aben Bloomberg dot Com. This is Bloomberg Surveillance. Good morning, 374 00:20:45,680 --> 00:20:47,800 Speaker 1: It's a thirty on Wall Street at Michael McKee along 375 00:20:47,840 --> 00:20:49,879 Speaker 1: with Tom Keene. You can have a kendicators brought to 376 00:20:49,880 --> 00:20:52,680 Speaker 1: you by Commonwealth Financial Network. When it's time to change 377 00:20:52,680 --> 00:20:54,840 Speaker 1: the conversation, talk with a broker dealer r I A 378 00:20:54,960 --> 00:20:58,160 Speaker 1: that's ready to listen. Call four six two three six 379 00:20:58,200 --> 00:21:01,560 Speaker 1: three eight to visit Commonwealth dot com UM to learn more. 380 00:21:01,960 --> 00:21:04,680 Speaker 1: No numbers out at eight thirty this morning. Ten o'clock 381 00:21:04,800 --> 00:21:07,240 Speaker 1: this morning is the big one I s M Manufacturing. 382 00:21:07,240 --> 00:21:10,240 Speaker 1: Everybody wants to know where we are. First look of 383 00:21:10,280 --> 00:21:13,720 Speaker 1: the month, the market US Manufacturing pm I also comes 384 00:21:13,720 --> 00:21:19,280 Speaker 1: out the their final number at They saw contraction in 385 00:21:19,320 --> 00:21:22,360 Speaker 1: their preliminary number and that has people worried a little bit. Uh. 386 00:21:22,359 --> 00:21:24,879 Speaker 1: Ten o'clock is also construction spending. And of course all 387 00:21:24,920 --> 00:21:29,199 Speaker 1: day we're getting domestic vehicle sales for February. Christs are 388 00:21:29,240 --> 00:21:31,960 Speaker 1: the only one out so far better than forecast eleven 389 00:21:32,000 --> 00:21:35,840 Speaker 1: point eight percent uh and the estimate was for them 390 00:21:35,840 --> 00:21:37,760 Speaker 1: to be up nine point two percent. Here's some good 391 00:21:37,800 --> 00:21:40,600 Speaker 1: news if you live north of the border. Fourth quarter 392 00:21:40,640 --> 00:21:43,919 Speaker 1: GDP in Canada up eight tenths of eight percent better 393 00:21:44,320 --> 00:21:47,520 Speaker 1: than forecast. Very good, good news from Mr Trudeau. You 394 00:21:47,560 --> 00:21:51,000 Speaker 1: want to you want to get lucky. We're in Washington 395 00:21:51,040 --> 00:21:53,480 Speaker 1: today Super Tuesday. Michael McKee and Tom keenan support of 396 00:21:54,320 --> 00:21:57,760 Speaker 1: FM Washington. Please listen and say thank you. We say 397 00:21:57,840 --> 00:22:00,359 Speaker 1: thank you to all in Washington and Baltom. Where this 398 00:22:00,480 --> 00:22:05,080 Speaker 1: someone you know and many Republicans know nationwide, if not worldwide. 399 00:22:05,119 --> 00:22:10,080 Speaker 1: Vin Webber of Minneapolis, he's already inflicted upon US Vikings chats. 400 00:22:10,600 --> 00:22:12,600 Speaker 1: They have a new stadium going up. Did you know 401 00:22:12,640 --> 00:22:16,480 Speaker 1: they'll have Super Bowl l I I in Minneapolis? Here 402 00:22:16,480 --> 00:22:18,760 Speaker 1: and choose. Michael McKee, would you like to brief Mr 403 00:22:18,840 --> 00:22:21,680 Speaker 1: Webber and how you win a Super Bowl with your 404 00:22:21,720 --> 00:22:25,760 Speaker 1: Denver Broncos. My Denver Broncos actually won for the first 405 00:22:25,760 --> 00:22:28,879 Speaker 1: time in twenty years. We we noticed that, and the 406 00:22:29,000 --> 00:22:32,880 Speaker 1: Vikings are but the Vikings are improving steadily. We're very 407 00:22:32,880 --> 00:22:36,240 Speaker 1: happy with our quarterback Daddy Bridgewater. Were very happy with 408 00:22:36,280 --> 00:22:39,840 Speaker 1: our coach, Coaches Zimmer. Their team has been improving regularly 409 00:22:39,880 --> 00:22:42,280 Speaker 1: all along. We had a disappointing end to the season 410 00:22:42,320 --> 00:22:44,440 Speaker 1: this year, but we're ready to play the Super Bowl 411 00:22:44,600 --> 00:22:53,000 Speaker 1: in our own new Stadium. We see Vin Webber your team. 412 00:22:53,240 --> 00:22:56,960 Speaker 1: The Republicans have to improve off of Super Tuesday, after 413 00:22:57,000 --> 00:23:00,800 Speaker 1: the convention and frankly after the election. Whatever he happens. 414 00:23:00,880 --> 00:23:05,199 Speaker 1: Jeff Bush exits early. Mr Casey of Ohio seems to 415 00:23:05,240 --> 00:23:08,280 Speaker 1: be picking up establishment support. But what is your new 416 00:23:08,320 --> 00:23:13,040 Speaker 1: prescription for the Grand Old Party? The party? It's not 417 00:23:13,119 --> 00:23:15,520 Speaker 1: so much a new prescription, it's getting back to the 418 00:23:15,520 --> 00:23:17,359 Speaker 1: prescription that used to work. We have to become the 419 00:23:17,400 --> 00:23:19,879 Speaker 1: party of economic growth again. An awful lot of this 420 00:23:19,920 --> 00:23:23,719 Speaker 1: frustration that shows itself in support for building walls and 421 00:23:23,880 --> 00:23:27,600 Speaker 1: deporting people and starting trade wars is a frustration with 422 00:23:27,640 --> 00:23:29,879 Speaker 1: an economy that just isn't growing very fast. That you 423 00:23:29,920 --> 00:23:33,680 Speaker 1: were down around one percent now at two percent now 424 00:23:33,800 --> 00:23:36,600 Speaker 1: is considered probably pretty good growth. It's not good growth. 425 00:23:36,760 --> 00:23:40,560 Speaker 1: Three percent pluses is healthy growth, and we have to 426 00:23:40,560 --> 00:23:43,800 Speaker 1: shoot for four. Uh. That's what the Republican Party needs 427 00:23:43,840 --> 00:23:46,680 Speaker 1: to identify itself as. Again. You hate to keep going 428 00:23:46,720 --> 00:23:49,600 Speaker 1: back to Reagan, but Reagan, you know, did create a 429 00:23:49,640 --> 00:23:52,440 Speaker 1: generation of imaging and branding, if you will, for the 430 00:23:52,440 --> 00:23:54,840 Speaker 1: Republican Party. And the main point that he made was 431 00:23:54,880 --> 00:23:57,639 Speaker 1: we were the party of economic growth. If the party 432 00:23:57,640 --> 00:24:00,960 Speaker 1: talks about that and talks about inclusion. A lot of 433 00:24:01,000 --> 00:24:04,399 Speaker 1: these other issues will become secondary. But people are frustrated 434 00:24:04,440 --> 00:24:06,720 Speaker 1: that they're not living in any economy that's growing, and 435 00:24:06,760 --> 00:24:09,160 Speaker 1: an economy that doesn't grow rapidly can't produce a better 436 00:24:09,200 --> 00:24:11,159 Speaker 1: standard of living for the next generation than it does 437 00:24:11,240 --> 00:24:14,320 Speaker 1: for this one. It's understandable people are concerned, but they're 438 00:24:14,359 --> 00:24:18,639 Speaker 1: grasping at the wrong solutions, led by somebody who's willing 439 00:24:18,680 --> 00:24:21,639 Speaker 1: to exploit their concern Well, Reagan came to office. I 440 00:24:21,640 --> 00:24:24,720 Speaker 1: mean he did talk much more positively than any of 441 00:24:24,760 --> 00:24:27,479 Speaker 1: the candidates. The shining city on the hill, by the way, 442 00:24:27,520 --> 00:24:31,480 Speaker 1: there was no wall around that shining But he had 443 00:24:32,160 --> 00:24:35,400 Speaker 1: basically four ideas, four things he wanted to get done, 444 00:24:35,400 --> 00:24:37,400 Speaker 1: and chief among them was tax cuts. In other words, 445 00:24:37,440 --> 00:24:41,240 Speaker 1: he had an enervating idea, one particular thing he brought 446 00:24:41,359 --> 00:24:43,520 Speaker 1: to the table saying we're gonna do this and it's 447 00:24:43,520 --> 00:24:45,920 Speaker 1: gonna help growth. Leaving a side of the argument of 448 00:24:45,960 --> 00:24:49,080 Speaker 1: whether it worked or not. Nobody seems to have that 449 00:24:49,200 --> 00:24:51,360 Speaker 1: one idea for what to do any well. I think 450 00:24:51,359 --> 00:24:53,200 Speaker 1: that there are I don't think there's one idea. I 451 00:24:53,240 --> 00:24:54,800 Speaker 1: think that there are a series of ideas. First of all, 452 00:24:54,800 --> 00:24:57,200 Speaker 1: I think tax reform is is very much a part 453 00:24:57,240 --> 00:24:59,280 Speaker 1: of that. I don't think you can get quite the 454 00:24:59,320 --> 00:25:02,680 Speaker 1: bang for simple across the board reductions that you did 455 00:25:03,000 --> 00:25:05,320 Speaker 1: when the top rate was at seventy as it was 456 00:25:05,359 --> 00:25:07,760 Speaker 1: when President Reagan came in. But I still think that 457 00:25:07,840 --> 00:25:10,199 Speaker 1: you can actually give the economy a good boost by 458 00:25:10,200 --> 00:25:14,000 Speaker 1: bringing rates down, broadening the base, also deregulation to a 459 00:25:14,000 --> 00:25:17,080 Speaker 1: substantial extent. I think that it's underappreciated how much we 460 00:25:17,080 --> 00:25:19,879 Speaker 1: are increasing the regulatory burden on the economy. That was 461 00:25:19,920 --> 00:25:22,439 Speaker 1: also part of what President Reagan did, particularly the energy here. 462 00:25:22,480 --> 00:25:25,040 Speaker 1: William Cohen of May will join us later. He has 463 00:25:25,080 --> 00:25:28,400 Speaker 1: spoken of a brown America and you're in Minneapolis, Jeff 464 00:25:28,480 --> 00:25:32,240 Speaker 1: Lakedown in Arizona's got a lot more focused on the diversity, 465 00:25:32,320 --> 00:25:36,240 Speaker 1: the new diversity of America. With the language that we've 466 00:25:36,280 --> 00:25:40,119 Speaker 1: heard in the last hours, days, and even the last months. 467 00:25:40,520 --> 00:25:47,080 Speaker 1: How does your Republican party do inclusive, do diversity? Well? 468 00:25:47,119 --> 00:25:49,320 Speaker 1: They have they have to. They have to do what 469 00:25:49,359 --> 00:25:51,840 Speaker 1: many Republican leaders are done, which is to simply denounce 470 00:25:51,920 --> 00:25:55,240 Speaker 1: what we've heard the last several days and say very clearly, uh, 471 00:25:55,280 --> 00:25:57,919 Speaker 1: there's no place in this party for racism or David 472 00:25:58,040 --> 00:26:01,240 Speaker 1: Duke or the Ku Klex Klan. And you know, even 473 00:26:01,240 --> 00:26:05,720 Speaker 1: in Minnesota, my state where we have a relatively white population, 474 00:26:05,760 --> 00:26:09,200 Speaker 1: still we have the largest Somali population in America because 475 00:26:09,240 --> 00:26:11,520 Speaker 1: they fled when things got really bad over there and 476 00:26:11,560 --> 00:26:15,439 Speaker 1: we're relocated. Uh. And they're they're good, solid, hard working 477 00:26:15,480 --> 00:26:18,119 Speaker 1: citizens of my state of Minnesota. But they have to 478 00:26:18,160 --> 00:26:19,840 Speaker 1: be concerned with what they're hearing. If we have a 479 00:26:19,920 --> 00:26:23,320 Speaker 1: leading candidate for president who's talking about deporting people that 480 00:26:23,359 --> 00:26:25,440 Speaker 1: don't look like him and building up walls to keep 481 00:26:25,480 --> 00:26:27,679 Speaker 1: him out, who knows what he would do next. The 482 00:26:27,720 --> 00:26:30,920 Speaker 1: party simply has to make a strong stand. Many Republicans 483 00:26:30,960 --> 00:26:34,159 Speaker 1: have none better than than Nicki Haley, the governor of 484 00:26:34,160 --> 00:26:37,000 Speaker 1: South Carolina. Who would have thought that this voice for 485 00:26:37,119 --> 00:26:39,119 Speaker 1: diversity and tolerance would come out of the state of 486 00:26:39,119 --> 00:26:41,800 Speaker 1: South Carolina, which probably led the fight for the Confederacy 487 00:26:41,880 --> 00:26:44,920 Speaker 1: during the Civil War. But she's been superb. Senator Ben 488 00:26:45,000 --> 00:26:49,480 Speaker 1: sas Uh from Nebraska issued a very well thought out 489 00:26:49,800 --> 00:26:53,439 Speaker 1: explanation of why he could not vote for Donald Trump. Uh. 490 00:26:53,480 --> 00:26:55,840 Speaker 1: But we have to keep these voices alive in the 491 00:26:55,880 --> 00:26:59,679 Speaker 1: midst of all the panic and noise that's going can 492 00:26:59,800 --> 00:27:01,480 Speaker 1: go for two hours and we haven't even gotten to 493 00:27:01,520 --> 00:27:04,560 Speaker 1: Barber accountable twenty seconds. Do you need people to drop 494 00:27:04,560 --> 00:27:07,919 Speaker 1: out of the race this evening or tomorrow morning to 495 00:27:08,000 --> 00:27:10,880 Speaker 1: support your candidate from Ala. No, I'm not sure that 496 00:27:10,880 --> 00:27:13,760 Speaker 1: that's right. I think the keeping people in the race 497 00:27:13,880 --> 00:27:17,680 Speaker 1: might be the might be the best solution to keeping 498 00:27:17,720 --> 00:27:20,000 Speaker 1: the convention open at this point. It's an it's an 499 00:27:20,000 --> 00:27:22,600 Speaker 1: open question. Vin Webber, thank you so much. He has 500 00:27:22,680 --> 00:27:27,240 Speaker 1: Vin Webber from Minnesota. Wonderful to speak with him. Michael 501 00:27:27,280 --> 00:27:32,000 Speaker 1: McKee and Tom Keene in Washington, SMB futures up thirteen, 502 00:27:32,040 --> 00:27:38,520 Speaker 1: doc futures up one oh two. I'm not a bringing 503 00:27:38,520 --> 00:27:41,840 Speaker 1: in Michael bar with the latest world in national headlights. Michael, Mike, Tom, 504 00:27:41,840 --> 00:27:45,000 Speaker 1: thank you very much. Voters from Bramant to Colorado, Alaska 505 00:27:45,080 --> 00:27:48,720 Speaker 1: to American Samoa and states in between are heading to 506 00:27:48,760 --> 00:27:53,159 Speaker 1: the polls today and caucus sites for Super Tuesday, the 507 00:27:53,240 --> 00:27:56,920 Speaker 1: busiest day of the sixteen primaries. Democrats will vote in 508 00:27:56,960 --> 00:28:01,320 Speaker 1: eleven states and American Samoa. Republicans vote in eleven states. 509 00:28:01,680 --> 00:28:05,320 Speaker 1: Democrat Hillary Clinton, a Republican, Donald Trump hoped to stretch 510 00:28:05,359 --> 00:28:09,080 Speaker 1: their leaves and Trump on ABC S Good Morning America, 511 00:28:09,160 --> 00:28:12,240 Speaker 1: says it is the media that is keeping the controversy 512 00:28:12,280 --> 00:28:16,760 Speaker 1: involving former KKK leader David Duke's support going about him. 513 00:28:16,760 --> 00:28:19,520 Speaker 1: Every time I speak to somebody virtually, and you know, 514 00:28:19,560 --> 00:28:23,119 Speaker 1: they just keep it going. They keep it going. Bloomberg 515 00:28:23,200 --> 00:28:26,359 Speaker 1: will have NonStop Super Tuesday coverage throughout the night, starting 516 00:28:26,359 --> 00:28:29,239 Speaker 1: with a special edition with all due respects starting at 517 00:28:29,240 --> 00:28:32,520 Speaker 1: five pm all Street time. President Obama will meet today 518 00:28:32,520 --> 00:28:36,480 Speaker 1: with Republican senators who have vowed to block the President's 519 00:28:36,520 --> 00:28:39,600 Speaker 1: nomination for the U. S. Supreme Court, the first time 520 00:28:39,640 --> 00:28:42,400 Speaker 1: the leaders have met since the sudden death of Justice 521 00:28:42,440 --> 00:28:46,600 Speaker 1: antonin Scalia. A funeral of scheduled today for a Northern 522 00:28:46,680 --> 00:28:50,360 Speaker 1: Virginia police officer shot and killed on her first day 523 00:28:50,360 --> 00:28:53,440 Speaker 1: on the job with the Prince William County Police Department. 524 00:28:53,920 --> 00:28:56,959 Speaker 1: Ashley Gwindon was shot Saturday while responding to a domestic 525 00:28:57,040 --> 00:29:00,400 Speaker 1: violence call. Global News twenty four hours a day, powered 526 00:29:00,400 --> 00:29:03,720 Speaker 1: by our hundred journalists more than a hundred fifty news 527 00:29:03,720 --> 00:29:08,280 Speaker 1: bureaus from around the world. I'm Michael Barr, Mike, Tom, Michael, 528 00:29:08,320 --> 00:29:12,280 Speaker 1: thank you so much again greening the screen futures and 529 00:29:12,400 --> 00:29:16,280 Speaker 1: now let's take it with John Berg. NBC Sports Update 530 00:29:16,480 --> 00:29:19,560 Speaker 1: John all Right Mike Rangers and Blue Jackets at the Garden, 531 00:29:19,640 --> 00:29:21,800 Speaker 1: both were looking for their third winter row. It literally 532 00:29:21,920 --> 00:29:40,720 Speaker 1: went to the wire one one late in the third 533 00:29:41,600 --> 00:29:43,320 Speaker 1: n s G had the call and it ended two 534 00:29:43,320 --> 00:29:45,920 Speaker 1: to one, but only after Auntie Ronta made a save 535 00:29:45,960 --> 00:29:48,840 Speaker 1: in the last second. Columbus actually scored on the rebound, 536 00:29:48,840 --> 00:29:51,120 Speaker 1: but it was after time had expired. Seven of the 537 00:29:51,160 --> 00:29:53,200 Speaker 1: next nine for the Rangers on the road, starting with 538 00:29:53,280 --> 00:29:57,560 Speaker 1: Thursday at Pittsburgh. Tonight, Devil's host Carolina Islanders in Vancouver. 539 00:29:57,960 --> 00:30:00,480 Speaker 1: Nicks will be home for Portland's next last We're in 540 00:30:00,560 --> 00:30:02,360 Speaker 1: it down only to going to the fourth quarter, but 541 00:30:02,480 --> 00:30:04,840 Speaker 1: beaten by the Clippers in l A one oh five 542 00:30:05,000 --> 00:30:07,720 Speaker 1: ninety five, and the Nets right back Seam Arena tonight 543 00:30:07,960 --> 00:30:11,040 Speaker 1: to play the Lakers, last time they'll ever face Kobe Bryant. 544 00:30:11,080 --> 00:30:13,640 Speaker 1: College basketball Kansas now ranked number one and on the 545 00:30:13,680 --> 00:30:16,800 Speaker 1: road eighty six fifty six. We're out of Texas. North 546 00:30:16,800 --> 00:30:20,640 Speaker 1: Carolina beat Syracuse sent seventy mo Welkerston leads the strength 547 00:30:20,680 --> 00:30:23,000 Speaker 1: of the Jets their defensive line. He had a career 548 00:30:23,080 --> 00:30:25,720 Speaker 1: high twelve sacks last season. Jets want to keep them 549 00:30:25,960 --> 00:30:28,720 Speaker 1: so they have placed the franchise tag on Wilkerston with 550 00:30:28,760 --> 00:30:34,320 Speaker 1: the Bloomberg NBC Sports Update. I'm John Stapshaw, John, thanks 551 00:30:34,360 --> 00:30:37,760 Speaker 1: so much. Uh. The futures up thirteen down, futures up 552 00:30:37,800 --> 00:30:41,520 Speaker 1: one oh five. Churn in the currency market, Yen weeker 553 00:30:41,560 --> 00:30:44,800 Speaker 1: this morning one thirteen oh one looking at euro one 554 00:30:44,840 --> 00:30:46,920 Speaker 1: oh eighty two really is pulled back over the last 555 00:30:46,960 --> 00:30:50,040 Speaker 1: few days. Was still a resilient dollar, not out to 556 00:30:50,160 --> 00:30:53,680 Speaker 1: record recent highs on d x Y, but ninety eight 557 00:30:53,680 --> 00:30:56,640 Speaker 1: point one eight on d x Y is elevated over 558 00:30:56,680 --> 00:31:00,560 Speaker 1: the last few days. Oil up thirty four points three 559 00:31:00,600 --> 00:31:03,400 Speaker 1: for a legitimate lift, and oil we're now getting out 560 00:31:03,480 --> 00:31:07,400 Speaker 1: higher over the recent moves that we've seen up Michael McKeon, 561 00:31:07,520 --> 00:31:10,880 Speaker 1: Tom Keane from our news bureau in Washington. Stay with 562 00:31:11,040 --> 00:31:22,920 Speaker 1: us this Super Tuesday. This is Bloomberg Surveillance. Bloomberg Surveillance 563 00:31:23,040 --> 00:31:24,640 Speaker 1: is brought to you by s c n B, the 564 00:31:24,760 --> 00:31:27,200 Speaker 1: bank for businesses on the Move. Are you looking for 565 00:31:27,240 --> 00:31:29,680 Speaker 1: the right banking partner? Go to s c NB dot 566 00:31:29,720 --> 00:31:32,120 Speaker 1: com to learn more. Now open in Long Island City, 567 00:31:32,160 --> 00:31:39,200 Speaker 1: Get your business moving with SCNB Global Business News twenty 568 00:31:39,200 --> 00:31:42,200 Speaker 1: four hours a day at Bloomberg dot com. The Radio 569 00:31:42,240 --> 00:31:45,080 Speaker 1: plus Mobile act had on your radio. This is a 570 00:31:45,120 --> 00:31:49,120 Speaker 1: Bloomberg business flash and I'm kerin Moscow. This updates brought 571 00:31:49,160 --> 00:31:51,400 Speaker 1: to you by Mark's Paneth l LP, ranked among the 572 00:31:51,440 --> 00:31:53,960 Speaker 1: top three forensic accounting firms in New York by the 573 00:31:53,960 --> 00:31:56,240 Speaker 1: New York Law Journal for the six year in a row. 574 00:31:56,640 --> 00:32:00,840 Speaker 1: Visit marks Penneth dot com. The Chrysler on Mobiles managed 575 00:32:00,840 --> 00:32:04,080 Speaker 1: another US sales gain in February, extending its streaked to 576 00:32:04,240 --> 00:32:07,520 Speaker 1: seventy one months, driven by promotions tied to the President's 577 00:32:07,600 --> 00:32:10,760 Speaker 1: Day holiday and continued strong demand for Jeep sport utility 578 00:32:10,840 --> 00:32:14,560 Speaker 1: vehicles and Ram pickups. In vance sales climbed twelve percent. 579 00:32:14,920 --> 00:32:18,360 Speaker 1: Redefined properties at Grain device seventy of real estate company 580 00:32:18,440 --> 00:32:20,960 Speaker 1: Echo Prime properties for a value of one point three 581 00:32:21,000 --> 00:32:25,520 Speaker 1: billion dollars to boost international expansion. US DOT Index futures 582 00:32:25,520 --> 00:32:29,400 Speaker 1: meanwhile are higher, with smp EMUNY futures of thirteen points. 583 00:32:29,760 --> 00:32:33,560 Speaker 1: Dow EMUNI futures are up one D seven, NAZ documity 584 00:32:33,560 --> 00:32:37,040 Speaker 1: futures of twenty eight, the tenure treasury down to thirty seconds. 585 00:32:37,040 --> 00:32:40,000 Speaker 1: The one point seven four percent NIMEX screwed oil up 586 00:32:40,000 --> 00:32:42,200 Speaker 1: one point eight percent or sixty cents at thirty four 587 00:32:42,320 --> 00:32:45,160 Speaker 1: thirty five a barrel comics gold up eight tenths percent 588 00:32:45,240 --> 00:32:47,600 Speaker 1: or nine dollars forty cents at twelve forty three eight. 589 00:32:47,680 --> 00:32:50,400 Speaker 1: Announced the euro at dollar oh eight seven seven, the 590 00:32:50,560 --> 00:32:53,840 Speaker 1: N one thirteen point oh four and Canada's economy and 591 00:32:53,960 --> 00:32:56,400 Speaker 1: expectedly grew in the fourth quarter as a week dollar 592 00:32:56,520 --> 00:32:59,640 Speaker 1: reduced imports by the most and six years taking pressure 593 00:32:59,680 --> 00:33:02,640 Speaker 1: off this central bank TOCOT interest rates to a record low. 594 00:33:03,120 --> 00:33:06,800 Speaker 1: And that's a blue Berg business flash. Tom and Mike Karen, 595 00:33:07,160 --> 00:33:09,680 Speaker 1: thanks so much from Washington this morning. We tell you 596 00:33:09,760 --> 00:33:21,720 Speaker 1: it is eight forty on Wall Street. Well, we've got 597 00:33:21,760 --> 00:33:25,040 Speaker 1: a technical difficulty this morning in New York that sometimes happens, 598 00:33:25,080 --> 00:33:28,239 Speaker 1: can failure. Our technical director will be upon it, Mike, 599 00:33:28,280 --> 00:33:30,840 Speaker 1: Why don't you bring in our good guest. He is 600 00:33:31,240 --> 00:33:36,600 Speaker 1: William Cohen going on here today. Uh, it's very appropriate 601 00:33:36,680 --> 00:33:40,560 Speaker 1: to talk to um. Well, I guess you called him secretary, Senator, 602 00:33:40,600 --> 00:33:43,040 Speaker 1: Congressman Cohen because he served in all of those roles 603 00:33:43,520 --> 00:33:46,080 Speaker 1: Congressman and senator from the state of Maine before becoming 604 00:33:46,080 --> 00:33:50,920 Speaker 1: the Secretary of Defense. UH, and he served under both parties. 605 00:33:50,920 --> 00:33:55,200 Speaker 1: He served as Secretary of Defense under Democratic administrations and 606 00:33:55,600 --> 00:33:59,160 Speaker 1: senators as the political parties fight it out on this 607 00:33:59,280 --> 00:34:03,920 Speaker 1: Super Tuesday. I uh am of mind of cenader Arthur 608 00:34:03,960 --> 00:34:07,440 Speaker 1: Vandenberg and his famous victim that politics stops at the 609 00:34:07,480 --> 00:34:11,040 Speaker 1: water's edge. A lot of people talk about that, but 610 00:34:11,080 --> 00:34:13,080 Speaker 1: they don't talk about the fact that he was a 611 00:34:13,120 --> 00:34:17,600 Speaker 1: tremendous isolationist, uh when the country was heading into World 612 00:34:17,600 --> 00:34:19,480 Speaker 1: War Two. It was after the war that he became 613 00:34:19,520 --> 00:34:22,800 Speaker 1: an internationalist and led the Republican Party in that direction. 614 00:34:23,280 --> 00:34:26,040 Speaker 1: I'm wondering if we can, if that can happen, if 615 00:34:26,080 --> 00:34:29,160 Speaker 1: we can get back to that in the future, because 616 00:34:29,160 --> 00:34:36,120 Speaker 1: there's sure is a move towards isolationism right now. Uh, well, disengagement. 617 00:34:36,160 --> 00:34:38,680 Speaker 1: I think that's the way it's phrased now and a 618 00:34:38,880 --> 00:34:43,560 Speaker 1: very mistaken policy. The world has become much more integrated economically, 619 00:34:44,360 --> 00:34:46,799 Speaker 1: to be sure, and the notion that somehow we can 620 00:34:46,920 --> 00:34:50,840 Speaker 1: simply retreat to the continental cocoon of the United States 621 00:34:50,840 --> 00:34:56,080 Speaker 1: and watch events on fold on Bloomberg or CNN, etcetera. 622 00:34:56,280 --> 00:34:59,560 Speaker 1: It's his full hearty. What is most disturbing to me 623 00:34:59,640 --> 00:35:02,520 Speaker 1: is to this political process of ours. U and did 624 00:35:02,560 --> 00:35:05,960 Speaker 1: not feel a deep sense of embarrassment and shame. The 625 00:35:06,080 --> 00:35:10,440 Speaker 1: level of rhetoric taking place during these primaries has been embarrassing. 626 00:35:10,880 --> 00:35:13,719 Speaker 1: I I was in Europe in Munich two weeks ago 627 00:35:13,960 --> 00:35:18,160 Speaker 1: a major security conference. I think all of our allies 628 00:35:18,160 --> 00:35:24,319 Speaker 1: who were there are puzzled, embarrassed for us that the 629 00:35:24,320 --> 00:35:27,280 Speaker 1: people who are running for high office have been reduced 630 00:35:27,320 --> 00:35:30,640 Speaker 1: to caricatures, and I think it does not bode well 631 00:35:30,680 --> 00:35:33,319 Speaker 1: for the United States. So at the political level, I 632 00:35:33,360 --> 00:35:37,000 Speaker 1: think we've got we've seen it a a a defining 633 00:35:37,000 --> 00:35:42,360 Speaker 1: of decency down to paraphrase former Senator Moyne Hans phrase, 634 00:35:42,600 --> 00:35:46,000 Speaker 1: and we have lost our sense of what our role 635 00:35:46,000 --> 00:35:48,759 Speaker 1: in the world is, and so other countries look to 636 00:35:48,800 --> 00:35:51,920 Speaker 1: the United States for leadership. Well, there is a sentiment 637 00:35:52,040 --> 00:35:55,760 Speaker 1: of being expressed by candidates who are running today, especially 638 00:35:55,760 --> 00:35:58,719 Speaker 1: in the Republican Party, that we need to disengage from 639 00:35:58,920 --> 00:36:02,000 Speaker 1: world affairs is solely on the United States. Big mistake 640 00:36:03,040 --> 00:36:05,880 Speaker 1: what what should our role be? If you were a 641 00:36:05,920 --> 00:36:08,480 Speaker 1: candidate for president, what would you be telling the American 642 00:36:08,520 --> 00:36:12,600 Speaker 1: people about in a in a world, a multipolar world now, 643 00:36:12,640 --> 00:36:15,920 Speaker 1: about the United States role and its abilities to carry 644 00:36:15,920 --> 00:36:19,360 Speaker 1: out that role, or in a nonpolar world which is 645 00:36:19,440 --> 00:36:22,640 Speaker 1: just as bad, if not worse. Namely, where you have 646 00:36:22,719 --> 00:36:26,680 Speaker 1: no country that is able to exercise a major influence 647 00:36:26,680 --> 00:36:32,360 Speaker 1: on shaping events that produce a more peaceful environment. My 648 00:36:32,800 --> 00:36:36,759 Speaker 1: advice to any president is to be engaged in the 649 00:36:36,840 --> 00:36:39,359 Speaker 1: world affairs and to go to the American people and 650 00:36:39,400 --> 00:36:42,960 Speaker 1: explain what it means. Right now, there was a sense 651 00:36:43,000 --> 00:36:47,360 Speaker 1: of nationalism building in the United States, only the United States, 652 00:36:47,360 --> 00:36:49,360 Speaker 1: it's all over the world. You can see it in 653 00:36:49,400 --> 00:36:51,640 Speaker 1: the Baltic countries. You can see it now in Germany, 654 00:36:51,880 --> 00:36:54,440 Speaker 1: you can see it in Greece because of what has 655 00:36:54,480 --> 00:36:57,680 Speaker 1: taken place. So what has to happen. The United States 656 00:36:57,800 --> 00:37:00,160 Speaker 1: is the only country that can take a leaders your 657 00:37:00,280 --> 00:37:03,680 Speaker 1: role at this point to try uh and and build 658 00:37:03,800 --> 00:37:07,960 Speaker 1: a system or create a new system whereby we can 659 00:37:08,040 --> 00:37:12,440 Speaker 1: promote commerce, peace stability. And right now there's a notion 660 00:37:12,440 --> 00:37:16,120 Speaker 1: that we've been overcommitted in time to recommit ourselves build 661 00:37:16,280 --> 00:37:19,000 Speaker 1: nation building at home. So the mistake as the president, 662 00:37:19,320 --> 00:37:21,680 Speaker 1: you need to have the best possible people giving you 663 00:37:21,760 --> 00:37:25,680 Speaker 1: advice and rebuild your military capability because it has been 664 00:37:26,160 --> 00:37:31,480 Speaker 1: heard very badly by the sequester across the Pacas Mr Secretary, 665 00:37:31,560 --> 00:37:34,720 Speaker 1: I have to rip up the script at this time 666 00:37:34,760 --> 00:37:39,000 Speaker 1: for this nation. Whenever anyone's views. You are more qualified, 667 00:37:39,160 --> 00:37:41,960 Speaker 1: literally than anyone I know to speak of this. I 668 00:37:42,000 --> 00:37:47,000 Speaker 1: believe you grew up in the strangest of households, Russian, Irish, 669 00:37:47,120 --> 00:37:50,600 Speaker 1: Jewish Protestant. You then went on and one time I 670 00:37:50,600 --> 00:37:53,799 Speaker 1: saw you you said, look, this future is a brown America. 671 00:37:54,400 --> 00:37:58,839 Speaker 1: You are married to the absolutely lovely Miss Langhart. Uh 672 00:37:59,000 --> 00:38:01,399 Speaker 1: for as she's forting. I I believe in holding last 673 00:38:01,480 --> 00:38:06,000 Speaker 1: night a new Secretary Cohen, with what you have heard 674 00:38:06,360 --> 00:38:09,880 Speaker 1: the thirty nine excuse me, surveillance mistake. What you have 675 00:38:10,000 --> 00:38:12,719 Speaker 1: heard in the last couple of weeks strikes home to you, 676 00:38:13,160 --> 00:38:17,120 Speaker 1: with the diversity of the Cohen experience. If Mr Trump 677 00:38:17,160 --> 00:38:21,200 Speaker 1: becomes your nominee, can you support him? Uh? That would 678 00:38:21,239 --> 00:38:24,920 Speaker 1: be very difficult for me, given what he has been saying, 679 00:38:24,920 --> 00:38:30,160 Speaker 1: appealing to very racist sentiments that still are quite prevalent 680 00:38:30,239 --> 00:38:34,120 Speaker 1: in many parts of the country. Uh. To label all 681 00:38:34,239 --> 00:38:39,640 Speaker 1: Mexicans to be potential rapists, all potential immigrants coming from 682 00:38:39,680 --> 00:38:43,080 Speaker 1: the Middle East to be incipient terrorists. I think this 683 00:38:43,160 --> 00:38:45,200 Speaker 1: is this is not good for the country and it 684 00:38:45,360 --> 00:38:48,160 Speaker 1: certainly it's not a brand of leadership that I would 685 00:38:48,200 --> 00:38:53,000 Speaker 1: be supporting. How did we get here? I think a 686 00:38:53,000 --> 00:38:56,360 Speaker 1: combination of things. I think what has happened it started 687 00:38:56,400 --> 00:38:59,080 Speaker 1: many years ago. But I think the whole notion of 688 00:38:59,200 --> 00:39:04,520 Speaker 1: degrading the government uh, and it started with perhaps Senator 689 00:39:04,600 --> 00:39:10,400 Speaker 1: Goldwater UH and President Reagan really fed into that, saying 690 00:39:10,440 --> 00:39:12,600 Speaker 1: that your problem is the government is a problem of 691 00:39:12,680 --> 00:39:15,600 Speaker 1: the solution. And I think I've always believed that the 692 00:39:15,640 --> 00:39:18,680 Speaker 1: government is uh is your enemy until you need a friend. 693 00:39:19,160 --> 00:39:21,840 Speaker 1: And we've got to have a balance here that you 694 00:39:21,920 --> 00:39:25,080 Speaker 1: need government for a number of important functions, but that 695 00:39:25,160 --> 00:39:27,840 Speaker 1: government's hand has to be light and not too heavy. 696 00:39:28,280 --> 00:39:31,440 Speaker 1: But the notion of degrading government, I'm running against Washington. 697 00:39:31,480 --> 00:39:35,480 Speaker 1: I'm i'm i'm I believe the entire system is corrupt. 698 00:39:35,719 --> 00:39:37,879 Speaker 1: I think they're the system is corrupt in the sense 699 00:39:37,920 --> 00:39:41,799 Speaker 1: that a few people can raise a billion dollars uh, 700 00:39:41,840 --> 00:39:44,799 Speaker 1: and there if I have undue influence on the entire 701 00:39:44,840 --> 00:39:48,080 Speaker 1: political process. So there's that element to it. I think 702 00:39:48,120 --> 00:39:50,920 Speaker 1: we really have to get back to saying, are we 703 00:39:51,080 --> 00:39:55,279 Speaker 1: a United States of America's at e purbose union or 704 00:39:55,360 --> 00:39:59,400 Speaker 1: is it e purbose purvose from many many uh? And 705 00:39:59,480 --> 00:40:02,200 Speaker 1: we we become fractioned in that sense that I don't 706 00:40:02,280 --> 00:40:06,120 Speaker 1: know that we have the ability or the willingness to say, hey, 707 00:40:06,160 --> 00:40:09,719 Speaker 1: it's one America. We have our but my goodness, there 708 00:40:09,719 --> 00:40:12,640 Speaker 1: are big issues out there, and we're talking about whether 709 00:40:12,760 --> 00:40:15,239 Speaker 1: the size of somebody's hands, or whether the color of 710 00:40:15,239 --> 00:40:19,880 Speaker 1: their face or here, I mean, it's absurd. Now, this 711 00:40:19,920 --> 00:40:23,960 Speaker 1: goes back again the Secretary Cohen's book with his wife, 712 00:40:24,120 --> 00:40:26,480 Speaker 1: Love in Black and White, which was out a few 713 00:40:26,520 --> 00:40:29,280 Speaker 1: years ago. Secretary Cohen, thank you so much for joining 714 00:40:29,360 --> 00:40:33,000 Speaker 1: us today, William Cohen, of course of Maine, as was 715 00:40:33,040 --> 00:40:36,560 Speaker 1: Angus King, who we spoke of. Or that's a wonderful Michael, 716 00:40:36,600 --> 00:40:39,839 Speaker 1: just a great conversation to have after what we've seen 717 00:40:39,920 --> 00:40:42,000 Speaker 1: the last couple of weeks. But somebody from the foreign 718 00:40:42,000 --> 00:40:45,280 Speaker 1: policy side, and again he gets back to Arthur Vandenberg 719 00:40:45,360 --> 00:40:47,920 Speaker 1: in his view in the ninety fifties of politics stops 720 00:40:47,920 --> 00:40:50,080 Speaker 1: at the water's edge. We can't even get outside of 721 00:40:50,080 --> 00:40:54,359 Speaker 1: the capital. Yeah, that would be the debate as well. 722 00:40:54,440 --> 00:40:57,279 Speaker 1: Right now from Washington, it is eight fifty six on 723 00:40:57,360 --> 00:41:01,759 Speaker 1: Wall Street. The following is from Bloomberg View. Opinions and 724 00:41:01,840 --> 00:41:05,799 Speaker 1: commentary from Bloomberg columnists. I'm Justin Fox, a columnist for 725 00:41:05,800 --> 00:41:09,480 Speaker 1: Bloomberg View. The Cities with the Healthiest Job markets are 726 00:41:09,520 --> 00:41:12,840 Speaker 1: often those with the least affordable real estate. Meanwhile, cities 727 00:41:12,840 --> 00:41:15,640 Speaker 1: were housing is inexpensive usually don't have a lot of 728 00:41:15,680 --> 00:41:18,640 Speaker 1: great jobs on offer. Still, I figured there had to 729 00:41:18,640 --> 00:41:21,719 Speaker 1: be some places where jobs are plentiful and housing a 730 00:41:21,719 --> 00:41:24,600 Speaker 1: lot cheaper than in Boston or New York or San Francisco. 731 00:41:25,080 --> 00:41:27,479 Speaker 1: So I went looking for them in the data, using 732 00:41:27,480 --> 00:41:31,319 Speaker 1: a Brookings Institution report to identify metropolitan areas with better 733 00:41:31,360 --> 00:41:34,480 Speaker 1: than average economic growth since two thousand nine and a 734 00:41:34,600 --> 00:41:37,799 Speaker 1: National Association of Realtors report to identify those with more 735 00:41:37,840 --> 00:41:41,040 Speaker 1: affordable than average housing, and then sifted out the areas 736 00:41:41,040 --> 00:41:44,760 Speaker 1: with a below average share of college graduates because education 737 00:41:44,880 --> 00:41:48,520 Speaker 1: levels are a good indicator of job quality. Five metropolitan 738 00:41:48,560 --> 00:41:54,120 Speaker 1: areas met my test Cincinnati and Columbus, Ohio, Minneapolis, Omaha, 739 00:41:54,239 --> 00:41:57,560 Speaker 1: and Pittsburgh. None of these is what you'd call a boomtown. 740 00:41:57,960 --> 00:42:00,359 Speaker 1: Columbus is the fastest growing of the bun and it's 741 00:42:00,400 --> 00:42:04,239 Speaker 1: only the twentye fastest growing large metro area nationwide. But 742 00:42:04,360 --> 00:42:08,080 Speaker 1: these places all have unemployment rates well below the national average, 743 00:42:08,320 --> 00:42:11,959 Speaker 1: with Omaha's the lowest at just three. They could grow 744 00:42:12,040 --> 00:42:14,880 Speaker 1: faster if only more people moved there. So what are 745 00:42:14,880 --> 00:42:19,000 Speaker 1: you waiting for I'm justin Fox, a columnist for Bloomberg View. 746 00:42:19,400 --> 00:42:22,680 Speaker 1: For more Bloomberg opinion and commentary, please go to bloomberg 747 00:42:22,719 --> 00:42:25,640 Speaker 1: View dot com or view go on the Bloomberg terminal. 748 00:42:25,920 --> 00:42:30,480 Speaker 1: This has been Bloomberg View and Bloombergview commentaries camp here 749 00:42:30,480 --> 00:42:34,880 Speaker 1: at hourly weekdays on Bloomberg Radio. It is Super Tuesday. 750 00:42:35,280 --> 00:42:37,880 Speaker 1: I'm here with the super Michael McKee in Washington and 751 00:42:37,920 --> 00:42:42,160 Speaker 1: support of FM in Washington. Welcome all of your coast 752 00:42:42,160 --> 00:42:46,360 Speaker 1: to coast across this nation on an important political and 753 00:42:46,480 --> 00:42:48,160 Speaker 1: economic day