Speaker 1: This is Bloomberg surveillance. Some we have it. We have
Speaker 1: to ad direct what happened to do it the Brexit
Speaker 1: and that is always the stelling, weakness and downside. And
Speaker 1: it's not until I start raising rates that you're gonna
Speaker 1: see the your dollar curve accepting more of the fifth rate.
Speaker 1: Guidance of the Fed, I think has made clear that
Speaker 1: we should expect a couple of interest rate increases this year,
Speaker 1: and I don't think it's going to affect the real
Speaker 1: economy very much at the stage. Bloomberg Surveillance your link
Speaker 1: to the world of economics, finance, and investment on Bloomberg Radio.
Speaker 1: Good burning everyone, Michael McKee and Tom Keeve Bloomberg Surveillance
Speaker 1: Coast to coast, worldwide, soorldier with US no economics, finance, investment,
Speaker 1: international relations, a touch of politics or excuse me, what
Speaker 1: will be policy as we move forward with our politics soon?
Speaker 1: Right now? The Forex Brief, let's look at for an
Speaker 1: exchange with sterling really moving. The Forex Brief brought you
Speaker 1: by Interactive Broker's winner of f X Weeks two thousand
Speaker 1: fifteen award for the best Retail four X trading platform,
Speaker 1: visit ib at I b k R dot com, Slash
Speaker 1: four x zero six Sterling stronger off Carney comments on Bromain.
Speaker 1: I'm Brexit hider, carbon currencies weaker with oil finally getting
Speaker 1: a bit in the last hour ugly before then, Looney,
Speaker 1: we say good morning to David Rosenberg and thank him
Speaker 1: for his reason comments moments ago. I'm Bloomberg surveillant's look
Speaker 1: for that on our podcasts out on iTunes. We'll do that,
Speaker 1: get those out to you in an hour or two
Speaker 1: hours or so. That's been hugely popular. Thank you for
Speaker 1: listening to our podcasts, including with David Rosenberg and Mariannaicacha Lakota,
Speaker 1: which is a good thing. The end one EU a
Speaker 1: week or maybe the big country headline one eleven fifty
Speaker 1: eight euros sinking. Michael, is there any talk of euro
Speaker 1: to parody? I would say no, no. I only hear
Speaker 1: people talking in a while weaker euros that that week.
Speaker 1: I did not know David Wilson that best Buy has
Speaker 1: a hundred and twenty five thousand employees, and never would
Speaker 1: have guessed that. Well, now you know it's a big company.
Speaker 1: It is, and they lead your they lead yours, they
Speaker 1: do the largest US consumer electronics retailer, and trouble is
Speaker 1: that they expect the fiscal second quarter earnings to be
Speaker 1: lower than analysts average estimate in the Bloomberg servey. Beyond that,
Speaker 1: chief financial officer and chief administrative officers Sharon McCollum's stepped
Speaker 1: down effective next month. That she had come in not
Speaker 1: long after chief executive who bear Jo Lee, who turned
Speaker 1: around best Buy in the prospect of her leaving in
Speaker 1: a short I haven't seen it yet. Stocks down four
Speaker 1: and a half percent early trading, though I've seen that
Speaker 1: another retailer. It's lower. Auto Zone down one percent. The
Speaker 1: auto parts chains profit and revenue for the fiscal third
Speaker 1: quarter trailed estimates, so analyst calls him Note Deers up
Speaker 1: one percent. The Pharmer Evan maker was raised the equivalent
Speaker 1: by from Hold of BMO Capital Markets. The firm increased
Speaker 1: its twelve month pricess but to ninety six hours, the
Speaker 1: highest among eighteen in a listen of Bloomberg Survey. Western
Speaker 1: Digitals up two and a half percent. The disk drive
Speaker 1: maker was raised the equivalent of buy from Hold accountant
Speaker 1: Twitter down half a percent because of a call from
Speaker 1: a couple of analysts that you just talked to recently,
Speaker 1: Craig Moffatt and Michael Nathanson. Nipson actually covers Twitter for
Speaker 1: Nathanson and cut the rating on the stock to sell
Speaker 1: from neutral because he sees a takeover as less likely.
Speaker 1: Back on the erniess Ron Tall Brothers up three and
Speaker 1: a half percent. The biggest US builder of luxury homes
Speaker 1: posted fiscal second quarter revenue and profit that beat projections.
Speaker 1: The number of homes Told Brothers delivered in the quarter
Speaker 1: rose nine percent and the average selling price climbed twenty percent.
Speaker 1: Then you have ds W down ten percent. The discounts
Speaker 1: shoe seller's fiscal first quarter arnies and sales trail estimates.
Speaker 1: D s W cut full your forecast and now expects
Speaker 1: sales to fall its stores open more than a year.
Speaker 1: There is a retailer stock that's higher, though, problem is
Speaker 1: it has nothing to do with their performance. I'm referring
Speaker 1: to chicos f A s SO Women's apparel Change shares
Speaker 1: are up five percent. The activist investor Barrington Capital began
Speaker 1: a proxy fight for two board seats. Barrington disclosed it
Speaker 1: owns a one point four percent steak, more than double
Speaker 1: it's holding at the end of March are a couple
Speaker 1: more for you. Share sales Booze Ammal Alan Hamilton down
Speaker 1: three percent, the consultants selling three hundred and sixty seven
Speaker 1: million dollars of stock on behalf of its largest shareholder,
Speaker 1: private equity firm Carlisle Group. We're talking about thirteen million shares.
Speaker 1: Are an eight point eight percent steak, and c Span
Speaker 1: Downtown a half percent to say a container ship owner.
Speaker 1: They're selling five million shares and that's equivalent to about
Speaker 1: a five percent stick and you use the money to
Speaker 1: redeem couple of birds stock. That's it. That's it. David Wilson,
Speaker 1: thank you so much on bess By. Greatly appreciated. Mike.
Speaker 1: As you know, once a week we need to speak
Speaker 1: to someone who worked for the Worcester Telegram years ago.
Speaker 1: It's always one of our mandates. Nathaniel Wexels with Bloomberg BNA,
Speaker 1: the Bureau of National Affairs. I've read them for years,
Speaker 1: like for decades, Nathaniel, you weren't even born and I
Speaker 1: was reading b N. A material thrilled down. Nathaniel Wexel
Speaker 1: with us on the Affordable Care Act and the idea
Speaker 1: there could be a replacement Nathaniel, I've got a trenchant
Speaker 1: question before Mike piles into this. What's a white paper?
Speaker 1: A white paper is really just a set of ideas
Speaker 1: that's put out, so it doesn't really mean anything. It's
Speaker 1: sort of the thing that sink tanks would like to
Speaker 1: play out. So if I'm at the Palm restaurant in
Speaker 1: Washington and I come up with four ideas to make
Speaker 1: the Washington Capitals winning hockey, I can write a white
Speaker 1: paper on the Washington Washington Capitals and put it out,
Speaker 1: and it appears you would have as much luck getting
Speaker 1: the capital as a Stanley Cup as the Republicans have
Speaker 1: of repealing the Affordable Care Act. Um this the legislation
Speaker 1: you're writing about today. Uh, it appears to be a
Speaker 1: case of trying to have your cake and eat it too.
Speaker 1: To Republican lawmakers. Unveiling bill intended to be an alternative
Speaker 1: to the Affordable Care Act, but in a difference in
Speaker 1: strategy from what the Republicans have been up to for
Speaker 1: the last couple of years, they don't want to repeal
Speaker 1: the whole thing, right, They just want to tweet tweak it,
Speaker 1: tweak it somewhat. Mainly what they have planned at least
Speaker 1: in this legislation is almost sort of a parallel version
Speaker 1: of it. So they're going to repeal the big issue.
Speaker 1: They're going to repeal them mandates, the the issue that
Speaker 1: you have to have insurance and that your employer has
Speaker 1: to provide you with insurance. So those the two things
Speaker 1: that they want to get rid of. But they seem
Speaker 1: to want to keep everything that raises money, so that's
Speaker 1: how they're going to pay for it. But the mandate
Speaker 1: is considered the key to the whole thing. If you
Speaker 1: don't have to buy insurance, then uh, you know, it
Speaker 1: doesn't matter how you raise the money, it won't be there. Right,
Speaker 1: So they call it the free market alternative to the
Speaker 1: Affordable Care Act. So if you want to have insurance,
Speaker 1: you can go onto what they call the world's greatest
Speaker 1: health care plan. Or if you don't want to have insurance,
Speaker 1: you don't have to have insurance, Or if you're previously
Speaker 1: covered under the Affordable Care Act, you can keep that
Speaker 1: insurance with all the associated penalties. What about the people
Speaker 1: that the Act was really intended to cover, the poor,
Speaker 1: people who can't afford or whose companies don't offer health insurance.
Speaker 1: How do they get insurance onto this bill. So the
Speaker 1: main part of this bill is a tax credit, and
Speaker 1: that is coming to you if you decide to be
Speaker 1: a part of this plan. So it's you can do
Speaker 1: with that money whatever you want. So you get this,
Speaker 1: you can put it into a health saving his account,
Speaker 1: you can give it to your employer for to essentially
Speaker 1: buy coverage from your employer. But unlike the Affordable Care Act,
Speaker 1: where the tax credits are adjustable by in come, this
Speaker 1: is not. So it's just flats. And then if you
Speaker 1: have dependence, I think you can get a credit in
Speaker 1: addition to that. But really it's just you get this
Speaker 1: money and you can decide what to do with it.
Speaker 1: What is the feasibility of this? I congratulate in Nathan
Speaker 1: wexilon clarity within your report on the likelihood of this.
Speaker 1: Usually we you know, nobody talks about the ability to
Speaker 1: actually get something done. As they say, the stars have
Speaker 1: to align for the various shades of Republicans, don't they
Speaker 1: They have to align for Republicans, that have to align
Speaker 1: even for some Democrats too, because in the Senate you're
Speaker 1: not gonna be able to get anything done without some
Speaker 1: democratic cooperation. So right now they have to have at
Speaker 1: least sixty Republicans or some Democrats in the Senate who
Speaker 1: wanted they need to keep the House and they need
Speaker 1: a Republican president in order to completely repeal this law. Uh,
Speaker 1: that's clearly not going to happen immediately. So this is
Speaker 1: sort of aimed at stincase there's a Republican president. Pew
Speaker 1: very quickly her Pew has a new survey out of
Speaker 1: a month ago, three or four weeks ago, I should say,
Speaker 1: showing more Americans disapprove than approve of the healthcare law.
Speaker 1: Why did that occur? Why do people disapprove of that?
Speaker 1: I can't speak to other people's polls, but I think
Speaker 1: maybe it's just the political realities right now. What do
Speaker 1: you suggest this will be for the campaign? I mean,
Speaker 1: will this be front and center for the campaign or
Speaker 1: I mean does it resonate now? Right now? Both Hillary
Speaker 1: Clinton and Donald Trump, the presumptive front runners of either party,
Speaker 1: haven't really done a whole lot of de deal on healthcare,
Speaker 1: so it could be there, but you know, right now,
Speaker 1: both have sort of gotten pretty far. Without being very specific.
Speaker 1: We look forward to having you on again. This has
Speaker 1: been very good. Nathan Wexwell, Thank you so much. He
Speaker 1: is a Bloomberg b NA, which is basically um like
Speaker 1: a hugely productive thinker group. They write terrific rep worts.
Speaker 1: I read them word for word on text policy in
Speaker 1: another life a few years ago be at a dot
Speaker 1: com and uh, you can see being a Bloomberg being
Speaker 1: a Nathan. That was very good. I don't, Mike, I
Speaker 1: I don't hear any residents on a c A either way.
Speaker 1: I just don't hear it being discussed. Maybe that will change.
Speaker 1: It will be a big issue in the presidential campaign,
Speaker 1: just because just because there it is, just because futures
Speaker 1: up eleven death, futures up ninety four. Again, you're a weaker,
Speaker 1: really now getting my attention. One eleven fifty nine, a
Speaker 1: few days in a row of weakness, and of course
Speaker 1: that pushes us dollar modestly higher. You're a more weak
Speaker 1: than the dollar is strong. Gold twelve forty one the ounce.
Speaker 1: Let's check out with like a bar and get the
Speaker 1: latest world and national headlines. Mike, Mike, Tom, thank you
Speaker 1: very much. Family members are the victims of Egypt Air
Speaker 1: flight eight oh or have begun arriving at a more
Speaker 1: forensics department in Cairo to give DNA samples that will
Speaker 1: help identify their loved ones. Meanwhile, a senior Egyptian forensics
Speaker 1: official is telling Associated Press human remains that have been
Speaker 1: recovered from the crash site have burns on them and
Speaker 1: are very tiny, suggesting that an explosion may have taken
Speaker 1: place on board. A statement in Middle East News Agency
Speaker 1: says though the report is not true. A senior Afghan
Speaker 1: Taliban figure says the death of the group's leader mala
Speaker 1: Aktar Mansour in the U s drone strike last week
Speaker 1: could make the movement stronger and unify its ranks, and
Speaker 1: Sir was killed Saturday in the strike in southwestern Pakistan.
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