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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 Roston Bloomberg rail Line to San Francisco Bloomberg

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Speaker 1: nine six, to the Country series at m gannal one

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Speaker 1: ninety and around the grove the Bloomberg Radio across aven

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Speaker 1: Boomberg dot com. This is Bloomberg Surveillance and the opening

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Speaker 1: Dell is brought to you by s e I in

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Speaker 1: the future of the asset management business will be profoundly different.

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Speaker 1: Find out how Sciogical Global Operating Platform can help you

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Speaker 1: navigate the new operational frontier at se i C dot

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Speaker 1: com slash imagine good morning. I'm caroed Moscow along with

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Speaker 1: Tom Keene and Michael McKee, and stocks are lower at

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Speaker 1: the open. The SMP five hundred is down half per

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Speaker 1: cent or nine points too downtowns Industrial Average down four

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Speaker 1: tenth per cent or sixty one points to seventeen thousand,

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Speaker 1: twelve nastacts down seven tenths per cent or thirty three

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Speaker 1: points to forty six seventy five ten. Your treasury up

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Speaker 1: twelve thirty seconds. The yield one two percent yield on

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Speaker 1: the two year point eight six percent. Now I'm ex

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Speaker 1: screwed oil doneine tents percent or thirty six cents to

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Speaker 1: thirty seven fifties six of Arrol comics gold is up

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Speaker 1: eight tens per cent or ten dollars forty cents to

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Speaker 1: twelve seventy four fifty and ounce the euro a dollar

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Speaker 1: ten forty seven, the en one twelve point eight zero.

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Speaker 1: Tom and Mike Bloomberg surveillance, Karen, thank you as so much. Mike,

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Speaker 1: we need to speak to a gentleman his His mother

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Speaker 1: was such an embarrassment. She would open up bank accounts

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Speaker 1: just to get toasters. Mike Reagan grew up with like

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Speaker 1: fort toasters off in the pantry. Uh, Tom, you know

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Speaker 1: it's funny. My mom and her later years, actually got

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Speaker 1: a job at a bank in her in her sixtees

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Speaker 1: and seventies, but her eyesight was so bad she kept

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Speaker 1: getting twenties and the fifties mixed up, and she lasted

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Speaker 1: about a week. But that tells you something about the

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Speaker 1: financial acumen and virul Mike bringing Mike. But this, this

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Speaker 1: article from Michael Reagan is an act of God. It

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Speaker 1: is the first clear short read on what's going away

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Speaker 1: on all five corners of New York City. Well it's

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Speaker 1: not just New York City. I mean, if if there's money,

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Speaker 1: banks will be there. But it's the places like you're

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Speaker 1: writing about that when there may not be as much money,

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Speaker 1: but they still need banks right there. Right they're refer

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Speaker 1: to them as banking deserts. Uh. And it was I

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Speaker 1: I basically writing about some research that the Federal Reserves.

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Speaker 1: Liberty Street blog was was blogging about Yester if you

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Speaker 1: want to, you know, if anyone wants to google out

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Speaker 1: and find it. And it's a fascinating concept. You think, okay,

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Speaker 1: banks are aggressively closing branches. Why while everyone's banking online,

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Speaker 1: they're banking on their phones. You know, they just don't

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Speaker 1: need this physical footprint as much as as they used to.

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Speaker 1: And you would think on first clients, well, well who cares, right,

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Speaker 1: does it really matter? But there is some concern that

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Speaker 1: they're especially closing them in sort of low income, minority

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Speaker 1: heavy areas, um where there's not as much affluence. Uh.

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Speaker 1: City Group Tom for example, is closing all its banks

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Speaker 1: in Boston. I don't know what that means. It'sn't under

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Speaker 1: you know, Wellesley Hills isn't under yeah, disadvantage area. So

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Speaker 1: but the idea that they're they're looking into when they

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Speaker 1: they started some research from uh UH some professors at

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Speaker 1: Berkeley UH in California saying that what happens is when

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Speaker 1: you when all of a sudden neighborhood doesn't have any

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Speaker 1: bank branches, the small business owners a lot of times

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Speaker 1: can be sort of cut out from some you know,

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Speaker 1: bank funding that they normally would have gotten. And they

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Speaker 1: talk about what they call soft information. You know, a

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Speaker 1: community banker gets to know the local business trends, They

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Speaker 1: get to know their customers, and it's not just all

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Speaker 1: their credit scores and hard data like that that they

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Speaker 1: look at. They they're able to extend loans that maybe

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Speaker 1: an algorithm and or a purely mathematical look at a

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Speaker 1: business wouldn't extend in a small business. And then that

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Speaker 1: leaves these small businesses sort of having a scrape around

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Speaker 1: to try to find something else, sort of these predatory

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Speaker 1: type of lenders that a lot of people are talking about.

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Speaker 1: So it's an interesting concept and and and to me,

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Speaker 1: I think the banks really the banks have greatly obviously

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Speaker 1: recovered from the financial crisis. The one area they never

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Speaker 1: recovered from is the pr and and you know, you

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Speaker 1: look at Bernie Sanders and everyone trying to break up

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Speaker 1: the big banks. I think this is a big pr

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Speaker 1: story for them that they might want to get ahead of.

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Speaker 1: And as far as your bar charts, Michael, are just

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Speaker 1: stunning the credit card growth that comes from digital versus

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Speaker 1: bricks and mortars, the pruning of branches, the rate of change,

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Speaker 1: and what we observe in New York. They're all empty. Yeah,

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Speaker 1: and I assume they're all empty to everyone listening to

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Speaker 1: this nationwide right right. And you know a lot of

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Speaker 1: banks talk about their bank of the future, you know,

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Speaker 1: and they're trying to sort of make the knees glitzy

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Speaker 1: small much very much smaller footprint, smaller employees, but sort

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Speaker 1: of you know, flashy digital screens and that sort of thing.

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Speaker 1: Really cares that no one really cares. Yeah, what about

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Speaker 1: small banks coming in? I mean, Mike, the void is

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Speaker 1: always particularly in poor areas. I'm sorry, whether there's credit

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Speaker 1: unions or small banks. That's been what we've done since

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Speaker 1: you know, pre Revolutionary war time, right, And that's that's

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Speaker 1: what this research looked at. It. You know, a lot

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Speaker 1: obviously banks are rethinking their branch strategy across the board,

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Speaker 1: so they are closing branches, not necessarily reopening them in

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Speaker 1: the poor areas as much as they would in other areas.

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Speaker 1: So it is, you know, it's something that FEDS looking at,

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Speaker 1: and it's a it's a pretty fascinating topic. We should

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Speaker 1: note that you're writing is from Bloomberg gad Fly and

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Speaker 1: the terminal g a df CO. That's right, people can

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Speaker 1: see it there Bloomberg surveillance folks. This morning brought to

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Speaker 1: by Interactive Brokers and same group. If you're looking for

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Speaker 1: global futures contracts with low trading costs, look no further.

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Speaker 1: Interactive Brokers is the industry leader. Learned more at Interactive

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Speaker 1: brokers dot com slash see I mean group, Michael Reagan.

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Speaker 1: Where this with Bloomberg gad Fly here is it's two

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Speaker 1: deaths away from Lisa Bramo. It's they're not on speaking terms.

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Speaker 1: It's going great, I mean gad fly. Every day there's

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Speaker 1: things avail you. How how much are you getting out

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Speaker 1: of the equity market? Is that? What is the theme

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Speaker 1: that you're seeing from strategists, the change that you're seeing

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Speaker 1: from strategists. Well, I'm curious, I'm curious what you think

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Speaker 1: about this time, But I'm semi fascinated with the idea

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Speaker 1: of round numbers. And we look at two thousand in

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Speaker 1: the SMP five D and literally on Friday, I think

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Speaker 1: it closed at nineteen point nine nine. Yeah, so it's

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Speaker 1: struggling at that level. Right above that two thousand level

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Speaker 1: is also about SPI is the two day moving average,

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Speaker 1: which is the next big level that everyone's looking at.

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Speaker 1: That's a trend line that's been going down, downward sloping

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Speaker 1: since the turmoil in August, since all the foltility in August,

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Speaker 1: so pretty soon in order to even just to keep

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Speaker 1: track with the two day moving average means it's it's

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Speaker 1: gonna be pushing the market down if you believe in that.

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Speaker 1: And you know, a lot of people look at the

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Speaker 1: two U day it's probably the most followed, one of

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Speaker 1: the most followed trend lines. Uh, there's a belief. Had

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Speaker 1: a lot of high frequency trading, uh you know, looks

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Speaker 1: at it and uses that as one of its inputs

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Speaker 1: in it's uh, in their algorithms. So it's a it's

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Speaker 1: kind of an interesting level. We had this huge almost

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Speaker 1: ten percent rebound in in little less than a month,

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Speaker 1: but it really is stalling out right at that round

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Speaker 1: number of two thousand and you know, a little bit

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Speaker 1: below the two webbing average. To review this the modest

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Speaker 1: death cross August two thousand and fifteen called a year ago.

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Speaker 1: We had a lovely kiss for the most part beginning

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Speaker 1: of the year, and now we've rolled over once again

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Speaker 1: and we begin to come up by that descending two

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Speaker 1: a day moving average. To me, they're just damp and trends.

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Speaker 1: I've never put a lot into two series giving averages.

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Speaker 1: I used three moving averages to give me some sort

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Speaker 1: of belief in frankly, right now they're a little soggy

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Speaker 1: as well. Yeah, And you know, I think in any case,

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Speaker 1: when you're in this sort of period of time right

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Speaker 1: now where there's not a lot of earnings, not a

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Speaker 1: lot of fundamental issues coming into the market. Um, you know,

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Speaker 1: a lot of the Fed next week, but before that,

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Speaker 1: they're all in a blackout period where we're not gonna

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Speaker 1: hear much from them. So I think people are looking

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Speaker 1: at the charts these days a lot more than they

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Speaker 1: would have otherwise. I agree, charts when you get into

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Speaker 1: some form of bear market, charts come up right now.

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Speaker 1: The fancy stuff I look at, folks, is indeterminate off

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Speaker 1: of some mumbo jumbo called a d X I, A

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Speaker 1: d X d M I, I should say, the more

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Speaker 1: short term moving averages I use have a modest uptilt

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Speaker 1: to them. But modest would be the operatf. We're congratulations

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Speaker 1: on your bank stuff. Oh, thank you great? Are enjoying

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Speaker 1: running for Bloomberg? Get? I love it? Yeah. I think

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Speaker 1: it's a great concept, you know, really trying to beat

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Speaker 1: critical and sort of procative and short and they forced

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Speaker 1: you to do this like twelve words. Right, hey, alrite short.

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Speaker 1: I'll be done in a hundred words. If you need me,

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Speaker 1: I'll go gotta launch. Yeah, alright. Michael Reagan from We're

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Speaker 1: Gonna do Radio Bloomberg get Flying, um l from does

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Speaker 1: he wanted to call it? Put a cork in your mouth.

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Speaker 1: That's still under considering. Michael Reagan, thank you so much.

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Speaker 1: The Doubt negative any when the vix eighteen point three

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Speaker 1: six time now to check in with Michael Barr and

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Speaker 1: got the latest world at national headlines. Michael, my time,

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Speaker 1: Thank you very much. It's primary day today in several states,

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Speaker 1: with the biggest one in Michigan for Republican front runner

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Speaker 1: Donald Trump. Michigan offers a test of his growing popularity

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Speaker 1: among blue collar white voters. Trump tells ABC News today

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Speaker 1: the establishment attacks against him are not working. There spending

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Speaker 1: tens of millions of dollars on fighting media establishment, and

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Speaker 1: you know they would rather not see me in there obviously.

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Speaker 1: You know you had failed. People like Mitt Romney talking,

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Speaker 1: He's have failed. One of the worst campaigns I've ever

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Speaker 1: witnessed in my life. Mississippi, Idaho, and Hawaii also hold

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Speaker 1: Republican contest. Democrats vote in Michigan and Mississippi today. A

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Speaker 1: down to tree on the try s reportedly caused a

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Speaker 1: commuter train to derail in northern California, sending its lead

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Speaker 1: car plunging into a swollen creek. The Alameda County Sheriff's

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Speaker 1: Department says nine people were injured, including four seriously. The

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Speaker 1: US air strike has killed at least a hundred fifty

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Speaker 1: allen Shabab militants at a training camp in Somalia to

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Speaker 1: believe the militants were about to launch an attack. Intelligence

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Speaker 1: officials say the air strikes targeted a camp run by

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Speaker 1: Islamic extremists in a forested area more than a hundred

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Speaker 1: twenty miles north of Mogad. Issue global news twenty four

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Speaker 1: hours a day, powered by our twenty four hundred journalists

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Speaker 1: and more than a hundred fifty news bureaus from around

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Speaker 1: the world. Not Michael Barr. Michael Barr, thanks so much.

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Speaker 1: You get a negative one on five on the deal

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Speaker 1: first quiet day, we get below seventeen thousand, sixteen one

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Speaker 1: on the DAL six, down a full fifteen points. Michael

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Speaker 1: McKee and Tom Keane on economics, finance, investment, on international relations,

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