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Speaker 1: Bloombo Business News twenty four hours a day. If Bloomberg

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Speaker 1: dot Com, the radio plus Mobile act and on your radio,

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Speaker 1: this is a Bloomberg Business Flash. And I'm Karen Moscow.

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Speaker 1: US stock index Future is higher, so is oil. Let's

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Speaker 1: go to the first Word breaking news desk for today's

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Speaker 1: morning call, and here's Bill Maloney. Good morning Bill, Good

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Speaker 1: morning Karen. Futures are maintaining their games since the last

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Speaker 1: time we spoke. De Futures hired by a hundred and

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Speaker 1: seventy six points, says that he's game twenty one and

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Speaker 1: Nazak Futures rise by forty eight. The US Tenniel at

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Speaker 1: one point seven seven per cent. Main upay markets are higher,

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Speaker 1: led by two percent gains in Italy and Spain, and

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Speaker 1: on the US economic front at a thirty Chicago Fed

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Speaker 1: and at market, US manufacturer P. M. I Smith their

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Speaker 1: fifty two point five. Another new CDC says lumber Liquid

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Speaker 1: it is flooring has increased cancer risk. Shares it down

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Speaker 1: sixteen percent pre market, and in deual news, food distributor

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Speaker 1: Cisco to buy Brake Stroop for Bain for three point

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Speaker 1: one billion. Regarding airings this morning, Alegan EPs B and

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Speaker 1: Finally some of your key wall sheet upgrades and downgrades

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Speaker 1: at Bank of America, Gene and wy Woming raised to neutral,

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Speaker 1: ces X and Union Pacific race to buy Express Scripts,

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Speaker 1: got to sell at Deutsche Bank, Parago cut to sell

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Speaker 1: Coalman Sacks, and finally trip It Bias and Expedia both

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Speaker 1: cut to sell over at Steple Live in the first

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Speaker 1: breaking news desk, go on, Belle Maloney, Karen, all right,

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Speaker 1: thanks sabaillan to hear live breaking news over your Bloomberg

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Speaker 1: type squawk A go on your terminal. That's s qu

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Speaker 1: a w K go and that's a Bloomberg business flash,

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Speaker 1: Tom and Mike, Karen, thanks so much. Curve flattening, we've

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Speaker 1: seen the two stens spread come in nicely this morning.

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Speaker 1: Nine five A flatter yield curve all in all, that's

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Speaker 1: distance between the ten year yield and the two year yield.

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Speaker 1: You move the decimal point over two places. Dout Kiss

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Speaker 1: knows that Bloomberg surveillance brought you by Investco Factor based

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Speaker 1: strategies can help investors focus on high quality, low volatility

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Speaker 1: and more. Learn more at invesco dot com, Slash High Conviction,

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Speaker 1: Douglas cast with us with Sea breeze as we u

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Speaker 1: go through the emotions of being more active in the

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Speaker 1: market away from activity. Uh, the DOUG is a quarterly

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Speaker 1: ballet of financial engineering. It has become cannon that you

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Speaker 1: raise your dividend, you deploy cash, you know, you buy

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Speaker 1: back shares, et cetera. Are you a critic of financial

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Speaker 1: engineering or is it a good idea that they're moving

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Speaker 1: money back to shareholders. Well, I I disagree with Mario

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Speaker 1: because there ain't many Henry Singleton's from Telene around anymore.

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Speaker 1: There are a lot of people like Caterpillar, the bias

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Speaker 1: they stock at a hundred and five dollars a share.

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Speaker 1: I think they bought eleven of the stock a year

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Speaker 1: and a half ago. I've been short for that period,

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Speaker 1: and the chefs have gone from a hundred and six

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Speaker 1: to sixty one. I think there's a broader question. The

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Speaker 1: broader issue is that the risks and the unintended consequences

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Speaker 1: of ever lower interest rates arising. The primary issue is

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Speaker 1: that capital spending. Capital spending has been abandoned in favor

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Speaker 1: of financial engineering. But there are other issues too. You know,

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Speaker 1: the risk of savings ourselves into a recession is expanding.

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Speaker 1: You know, they call that the paradox of thrift. And

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Speaker 1: when you get low rates like this, people are hoarding

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Speaker 1: cash and reducing their personal consumption expense, which is um

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Speaker 1: And finally, as Brad Hinton talked about earlier in an

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Speaker 1: earlier segment, when you have rates so low, with six

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Speaker 1: of the world's sovereign yields in negative territory, bank met

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Speaker 1: interest margins and profitability suffer. They become challenged and lending

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Speaker 1: is curtailed. So you know, we're in a tough stew

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Speaker 1: As James Taylor said in Steamroller, we're in a demolition

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Speaker 1: derby healthy hunk of steaming junk. Mike. What we like

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Speaker 1: to do is you have the hefty hunk of steaming junk.

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Speaker 1: Doug Casson, because he used his history. Henry Singleton, who

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Speaker 1: you just heard Mr cass speak of, is not only

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Speaker 1: one of the heroes of American finance, but a giant

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Speaker 1: of engineering. He was at Annapolis first in his class,

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Speaker 1: had to leave, went to m I t reinvented himself

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Speaker 1: and then did the oddest of things, Mike. He bought

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Speaker 1: shares when the stock was cheap and issued them to

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Speaker 1: the public when the shares were expensive. Is this this

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Speaker 1: is a rare and beautiful thing. And then, and then,

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Speaker 1: when rates interest rates declined, he issued an enormous amount

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Speaker 1: of bonds in order to buy back stock in the future.

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Speaker 1: Just a just a brilliant guy in a billionaire when

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Speaker 1: a billion dollars really meant something? What what you might today? No,

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Speaker 1: but what you see today was invented by Mr Singleton.

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Speaker 1: There was no other way to put it. A televide

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Speaker 1: Omega's Lee Koperman has done a eight job. In fact,

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Speaker 1: he's to courses at Columbia Business School talking about Singleton's

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Speaker 1: allocation of capital strategy. Every one should get a hands

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Speaker 1: on their hands on it. By the way, Tom, I

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Speaker 1: notice you don't talk about the Red Sox anymore. You

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Speaker 1: talking about the Dodgers. You're talking about the giant to come. Well,

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Speaker 1: you remember last year, Doug he said in the beginning

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Speaker 1: of April that the Red Sox were done for the year,

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Speaker 1: and he actually turned out to be right. So he

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Speaker 1: thinks he's a baseball prognosticator. Now, a lot of people,

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Speaker 1: a lot of people would suggest maybe this year the

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Speaker 1: Red Sox are going to play a little better. I

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Speaker 1: didn't really know. Oh no, It's like Mike, save me

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Speaker 1: play Bowden? Did you get we wandered off the reservation?

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Speaker 1: So let's just ask Doug as you keep an eye

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Speaker 1: out on on the National League in particular. Um, your

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Speaker 1: uncle had sort of a soft spot for the New

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Speaker 1: York National League team, your cousin and and the h

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Speaker 1: and the Los Angeles team. Uh, do you have a

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Speaker 1: view on either one of their um performances coming up

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Speaker 1: in two thousands sixteen? I think the DoD just could

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Speaker 1: go undefeated. It's like the Warriors, you know, you know

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Speaker 1: at this concert Saveny night, I know we're running out

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Speaker 1: of time. James Taylor saying Angels of Fenway, and I

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Speaker 1: love the opening line, which is a chiller to you.

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Speaker 1: Tom eight six Summer's gone by, Bambino put a hex

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Speaker 1: on the bean we were living on, a tear and

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Speaker 1: a sigh in the shadow of the Bronx machine. That's hateful, hateful?

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Speaker 1: Can our global technical director cut the line right now?

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Speaker 1: Did you see the The Yankees have the by far

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Speaker 1: the highest season ticket price in all of baseball, and

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Speaker 1: the baseball they're playing does not justify Doug Cash. Thank

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Speaker 1: you so much, greatly appreciated, Sea Breeze partners. As we

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Speaker 1: get down and I don't catch some spring training gear,

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Speaker 1: we can lead Cass. He can guest host with us

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Speaker 1: for like the five or six days it'll need for

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Speaker 1: us to visit every park. Yeah exactly. Um, I think

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Speaker 1: anybody's listening that could affect that trends A yeah, yeah.

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Speaker 1: Our boss is saying, are you out of your mind?

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Speaker 1: At point? Okay, features up twenty duve features up seventy one.

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Speaker 1: It's a very nice correlated screen with one screaming exception,

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Speaker 1: and that is curve flattening. Two stents spread ninety point seven.

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Speaker 1: The difference of deal between the tenure and the two

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Speaker 1: year point points that's a big deal. Curve flattening is

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Speaker 1: something different this morning. Economic data next, Bloomberg surveillance coming

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