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Speaker 1: This is Bloomberg surveillance. When the dollar strengthens, global financial

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Speaker 1: conditions tightened, commodity prices tend to go down, and credit

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Speaker 1: spreads and barn costs tend to go up. When you

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Speaker 1: look at the front end of the UN's real rate CU,

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Speaker 1: we had a rapid reprising fall LT equal. Lower interest

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Speaker 1: rates are more stimulant than higher interest rates, so I'm

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Speaker 1: not sure that raising rates would actually help the economy.

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Speaker 1: Bloomberg Surveillance your link to the world of economics, finance,

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Speaker 1: and investment on Bloomberg Radio. Good morning everyone, Michael McKee

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Speaker 1: and Tom Keena. Quiet day across the markets. We'll give

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Speaker 1: you data checks in the hour, but not all that much.

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Speaker 1: Moving on as a time for a bigger, broader theme

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Speaker 1: across our economics, finance, investment, across our political economics and

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Speaker 1: international relations. Will do that with a touch on alphabet,

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Speaker 1: we'll go from A to Z on the regulation that

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Speaker 1: Google faces. Boring, but we'll make it interesting. Trust us

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Speaker 1: on that Bloomberg Surveillance this morning. It has always brought

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Speaker 1: to by Cone Residuc Accounting, tax advisory. Regulatory changes can

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Speaker 1: impact your business. See how the experts at Cone Residuc

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Speaker 1: can help you navigate these complexities. Find out more at

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Speaker 1: Cone dot com. Michael McKee and Tom Key Green on

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Speaker 1: the screen, Mike, Um, it's a market that doesn't want

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Speaker 1: to go down. Even when it goes down, it doesn't

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Speaker 1: want to go just bizarre. This morning you wake up

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Speaker 1: at China had fallen by the most in two months.

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Speaker 1: Back to the kind of February January panic that we

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Speaker 1: were seeing in China and oil prices were falling and

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Speaker 1: correlation was the rule of the day. We were back

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Speaker 1: to seeing what we saw at the beginning of the year,

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Speaker 1: and now we're not. Um S and P futures are

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Speaker 1: higher by two points. Down futures are highed by four points,

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Speaker 1: which is quite a turnaround for what we were seeing

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Speaker 1: when uh, when we went on the air at five

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Speaker 1: am this morning, it was a much different world. Okay, okay,

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Speaker 1: we're gonna dive into this right now, folks and wander

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Speaker 1: through the future for Google. Villipe True Kano is with

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Speaker 1: strategy Analytics, and we welcome now Philopatrick. Good morning, good morning,

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Speaker 1: good morning. It's already actually day here in Finland, but well,

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Speaker 1: it's good to speak to you in Finland and to

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Speaker 1: speak to you about the cultural divide on innovation between

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Speaker 1: the United States obviously most visible Silicon Valley and what

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Speaker 1: we're seeing within Europe. We see headlines this morning of

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Speaker 1: once again Brussels and EU regulators trying to tame innovation.

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Speaker 1: What is different this time for Google, for Alphabet or

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Speaker 1: for American innovation in Europe? Okay, so first of all,

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Speaker 1: thank you for inviting me to this this uh cool

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Speaker 1: um the innovation in Europe, the under competitive regulation is

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Speaker 1: really a tough here. So we are making sure that

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Speaker 1: innovation is allowed amongst well any device here. And what

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Speaker 1: just happened today is that Google lost the first round

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Speaker 1: with the anti competitive parties in the European Union and

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Speaker 1: it will now of course give Google's chance to to

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Speaker 1: address these claims and discuss and and try to um

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Speaker 1: win the the European Union to the side. But in

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Speaker 1: the longer term it will will mean that that Google

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Speaker 1: needs to change its practices, its policies amongst these these

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Speaker 1: android android players. So basically and for basically they're considered

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Speaker 1: guilty before trial. Is the way the system works. You

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Speaker 1: could say that at least there are concerns for within

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Speaker 1: the Commission that Google uses it's um vast share of

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Speaker 1: of UH Android UM devices as means to kind of

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Speaker 1: be UNTI competitive for the the within the European UM Union.

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Speaker 1: So it's it's kind of partly guilty. But UM Canada

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Speaker 1: just dropped their investigation. THETT reinstated a few months ago.

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Speaker 1: So there are other parties also that often learned about

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Speaker 1: Google's UNTI competitive Where where do you see the Silicon

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Speaker 1: valley in your Europe? Is it in a Helsinki or

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Speaker 1: or is there another city where you is is in

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Speaker 1: the heart of this say this is the city where

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Speaker 1: it's gonna happen. Well in Europe, it's Finland used to

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Speaker 1: be really UH INNO innovation centric country and Nokia was

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Speaker 1: of course leading this this innovation UH within the Finland

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Speaker 1: region UM and nowadays, after not an obvious departure from

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Speaker 1: the mobile business, there has been a lot of new

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Speaker 1: new startups coming to Finland, and in Finland at least

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Speaker 1: all is one of those big cities whereas a lot

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Speaker 1: of big startup community of course in the healthing area,

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Speaker 1: but then of course there there is a big innovavative

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Speaker 1: UH kind of startup communities also coming to the the Germany,

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Speaker 1: France and there so so this is uh Europe is

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Speaker 1: it's kind of it's not kind of condensed like like

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Speaker 1: to one place like Silicon Valley. It's it's all over Europe. Right,

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Speaker 1: Very good, Vello pet kind of thank you so much.

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Speaker 1: Greatly appreciated with Strategy Analytics Helsinki, Finland. Wonderful to hear

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Speaker 1: from Mike. This is a big issue, but it's something

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Speaker 1: as we saw from Professor Galloway earlier, it's an issue

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Speaker 1: where I would respectfully suggest all Americans just shake their

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Speaker 1: head and say, you know, as you have that brilliant

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Speaker 1: quote earlier, repeat that quote earlier. I feel bad because

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Speaker 1: I can't give you the providence of it. It certainly

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Speaker 1: didn't originate with me. But it's been said that the

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Speaker 1: United States innovates China steels and Europe. Yes, when within

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Speaker 1: the simplicity of that statement, folks, I understand that it's

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Speaker 1: open to criticism. Is the reality of once again we

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Speaker 1: see these headlines across the Bloomberg and you just wonder

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Speaker 1: whether cultural template is to change, whether we change to

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Speaker 1: be like them, And frankly Professor Galloway suggesting at some

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Speaker 1: point that could happen where Americans just revolt against the

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Speaker 1: creative destruction, or it goes the other way. They become

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Speaker 1: maybe more a little bit like what we have. Well

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Speaker 1: in the US has always been a very innovative economy,

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Speaker 1: and the question is where does innovation become too much

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Speaker 1: for the changes it brings, the creative destruction it brings. Interestingly,

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Speaker 1: we've seen, um, no real reaction to this in Google

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Speaker 1: shares in the pre market trade. Perhaps it's been it

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Speaker 1: was priced in since everybody knew it was coming. It's

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Speaker 1: a it's a two tense rise for the Google A

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Speaker 1: shares and a one tenth rise for the C shares,

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Speaker 1: So you know, to me, it's tangential. But but you know,

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Speaker 1: I think and within the discussion, we had a video

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Speaker 1: and sort of where we're going. I'll be honest, folks,

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Speaker 1: Mike and I talk about this every day. It feels

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Speaker 1: comfortable to do audio. Comfortable to do audio. It's not

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Speaker 1: we're not wearing black Scott video back today. But people

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Speaker 1: can't see me. I'm looking at Fannie Quinn, she's on

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Speaker 1: television right now wearing black. So um, yeah, but it's

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Speaker 1: not because of this obviously. It's it's interesting, you know, folks,

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Speaker 1: the death of radio. I mean know how many times

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Speaker 1: have you heard that? Twelve hundred times since World War

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Speaker 1: two or you know, the Korean War, and yet radio.

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Speaker 1: We're just honored, folks. With all of you listening, Mike

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Speaker 1: and I are jaws continue to drop over the global presence.

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Speaker 1: With that, we say, good morning, Bloomberg eleventh three, Oh,

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Speaker 1: Bloomberg twelve, Boston in Washington and Baltimore, and of course

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Speaker 1: in the very early morning the Bay Area. And this, Mike,

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Speaker 1: this modern miracle of serious the Next Time channel nation

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Speaker 1: wide across Canada. And that's a distribution and an innovation

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Speaker 1: of an old technology. And and we're in Europe. We

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Speaker 1: know we're in Europe. Thank you for your many notes. Um,

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Speaker 1: do you know what I first knew we were in Australia. Yeah,

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Speaker 1: we did a spoof on cricket and the cricket and

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Speaker 1: the Cricket Crew of Australia send us emails to correct

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Speaker 1: my lousy crew. Is it really they listened in Sydney, goody, good,

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Speaker 1: good evening. Well, you know it's fascinating, is is? Libby

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Speaker 1: Cantrill said she was just back from Denver. She said,

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Speaker 1: people stop me everywhere and and ask about my comments

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Speaker 1: on the Broncos on Bloomberg surveilance. So people are using

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Speaker 1: sex out in Colorado. Yeah, well we say good morning,

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Speaker 1: going you let me do a davy chuck. Here's a

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Speaker 1: churn to the markets. We've really enjoyed today doing a

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Speaker 1: little more nuance and just the heat of the moment

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Speaker 1: in the market slightly green read earlier, a little bit

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Speaker 1: of improven up to on the sp future. Is not

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Speaker 1: much going on in equities yields again, a churn two

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Speaker 1: year yield of four digits points seven five nine three

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Speaker 1: and the tenure yield in a basis point one point

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Speaker 1: seven seven. I would note German yields earlier lower, they've

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Speaker 1: now stabilized in a negative point five one in of course,

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Speaker 1: John Farrow across all of our platforms today talking up

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Speaker 1: the further lower yield in the forty year four zero,

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Speaker 1: the forty year Japanese note part of the low rate strategy,

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Speaker 1: and of course to be addressed Mike drag East tomorrow, right,

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Speaker 1: I'm sure on that easy bees tomorrow, Thank you, why you,

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Speaker 1: thank you so much. ECB meeting and nothing expected, but

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Speaker 1: we're gonna be listening for Mario one nine about one

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Speaker 1: seventeen and the end of the euro advances one seventy

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Speaker 1: two and surly seventy six. I believe there's a birthday

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Speaker 1: tomorrow in London as well. Again, futures this morning up

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Speaker 1: to all right, we want to check in with Michael BYRN.

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Speaker 1: Now get the latest world and national headlines. Mike Tom,

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Speaker 1: thank you very much. President Obama is in Saundi, Arabia,

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Speaker 1: where he's meeting with King Salmon and other Persian Gulf allies.

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Speaker 1: The visit comes against the backdrop of increasingly strained relations

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Speaker 1: with the Southeast. The sound he's deeply opposed the President's

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Speaker 1: outreach to Iran and his approach to Syria. Democrat Hillary

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Speaker 1: Clinton and Republican Donald Trump when yesterday's primary in New York.

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Speaker 1: Clinton has scheduled campaign today in Pennsylvania, while Trump has

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Speaker 1: rallies planned in Maryland and Indiana. Tennessee lawmakers are scheduled

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Speaker 1: to vote today on an effort to override Governor Bill

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Speaker 1: Haslam's veto of a bill seeking to make the Bible

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Speaker 1: the state's official book. Global News twenty four hours a day,

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Speaker 1: powered by our twenty four hundred journalists and more than

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Speaker 1: a hundred fifty news bureaus from around the world. I

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Speaker 1: am Michael Barnime. Michael, thanks so much. Didn't mention oil

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Speaker 1: forty dollars nine cents the thirty nine handle when I

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Speaker 1: walked in the door. Oil down seventy nine cents but

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Speaker 1: still elevated. Is a president of the United States Lands

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Speaker 1: Air Force one in RIOD for Saudi meetings. It's Bloomberg's surveillance.

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Speaker 1: The news update brought to you by S S and

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Speaker 1: C more experienced, superior technology, independence and expertise. That's how

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Speaker 1: S, S S and C drives the Future of fund administration.

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Speaker 1: A SS and C to the future of fund administration