WEBVTT - Ukonaho: Google needs to change its practices

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<v Speaker 1>This is Bloomberg surveillance. When the dollar strengthens, global financial

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<v Speaker 1>conditions tightened, commodity prices tend to go down, and credit

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<v Speaker 1>spreads and barn costs tend to go up. When you

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<v Speaker 1>look at the front end of the UN's real rate CU,

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<v Speaker 1>we had a rapid reprising fall LT equal. Lower interest

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<v Speaker 1>rates are more stimulant than higher interest rates, so I'm

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<v Speaker 1>not sure that raising rates would actually help the economy.

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<v Speaker 1>Bloomberg Surveillance your link to the world of economics, finance,

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<v Speaker 1>and investment on Bloomberg Radio. Good morning everyone, Michael McKee

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<v Speaker 1>and Tom Keena. Quiet day across the markets. We'll give

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<v Speaker 1>you data checks in the hour, but not all that much.

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<v Speaker 1>Moving on as a time for a bigger, broader theme

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

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<v Speaker 1>on that Bloomberg Surveillance this morning. It has always brought

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<v Speaker 1>Cone dot com. Michael McKee and Tom Key Green on

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

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<v Speaker 1>to go down. Even when it goes down, it doesn't

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<v Speaker 1>want to go just bizarre. This morning you wake up

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<v Speaker 1>at China had fallen by the most in two months.

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<v Speaker 1>Back to the kind of February January panic that we

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<v Speaker 1>were seeing in China and oil prices were falling and

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<v Speaker 1>correlation was the rule of the day. We were back

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<v Speaker 1>to seeing what we saw at the beginning of the year,

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<v Speaker 1>and now we're not. Um S and P futures are

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<v Speaker 1>higher by two points. Down futures are highed by four points,

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<v Speaker 1>which is quite a turnaround for what we were seeing

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<v Speaker 1>when uh, when we went on the air at five

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<v Speaker 1>am this morning, it was a much different world. Okay, okay,

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<v Speaker 1>we're gonna dive into this right now, folks and wander

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<v Speaker 1>through the future for Google. Villipe True Kano is with

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<v Speaker 1>strategy Analytics, and we welcome now Philopatrick. Good morning, good morning,

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

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<v Speaker 1>it's good to speak to you in Finland and to

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<v Speaker 1>speak to you about the cultural divide on innovation between

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<v Speaker 1>the United States obviously most visible Silicon Valley and what

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<v Speaker 1>we're seeing within Europe. We see headlines this morning of

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<v Speaker 1>once again Brussels and EU regulators trying to tame innovation.

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<v Speaker 1>What is different this time for Google, for Alphabet or

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<v Speaker 1>for American innovation in Europe? Okay, so first of all,

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<v Speaker 1>thank you for inviting me to this this uh cool

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<v Speaker 1>um the innovation in Europe, the under competitive regulation is

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<v Speaker 1>really a tough here. So we are making sure that

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<v Speaker 1>innovation is allowed amongst well any device here. And what

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<v Speaker 1>just happened today is that Google lost the first round

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<v Speaker 1>with the anti competitive parties in the European Union and

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<v Speaker 1>it will now of course give Google's chance to to

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<v Speaker 1>address these claims and discuss and and try to um

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<v Speaker 1>win the the European Union to the side. But in

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<v Speaker 1>the longer term it will will mean that that Google

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<v Speaker 1>needs to change its practices, its policies amongst these these

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<v Speaker 1>android android players. So basically and for basically they're considered

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<v Speaker 1>guilty before trial. Is the way the system works. You

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<v Speaker 1>could say that at least there are concerns for within

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<v Speaker 1>the Commission that Google uses it's um vast share of

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<v Speaker 1>of UH Android UM devices as means to kind of

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<v Speaker 1>be UNTI competitive for the the within the European UM Union.

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<v Speaker 1>So it's it's kind of partly guilty. But UM Canada

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<v Speaker 1>just dropped their investigation. THETT reinstated a few months ago.

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<v Speaker 1>So there are other parties also that often learned about

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<v Speaker 1>Google's UNTI competitive Where where do you see the Silicon

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<v Speaker 1>valley in your Europe? Is it in a Helsinki or

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<v Speaker 1>or is there another city where you is is in

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<v Speaker 1>the heart of this say this is the city where

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<v Speaker 1>it's gonna happen. Well in Europe, it's Finland used to

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<v Speaker 1>be really UH INNO innovation centric country and Nokia was

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<v Speaker 1>of course leading this this innovation UH within the Finland

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<v Speaker 1>region UM and nowadays, after not an obvious departure from

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<v Speaker 1>the mobile business, there has been a lot of new

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<v Speaker 1>new startups coming to Finland, and in Finland at least

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<v Speaker 1>all is one of those big cities whereas a lot

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<v Speaker 1>of big startup community of course in the healthing area,

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<v Speaker 1>but then of course there there is a big innovavative

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<v Speaker 1>UH kind of startup communities also coming to the the Germany,

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<v Speaker 1>France and there so so this is uh Europe is

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<v Speaker 1>it's kind of it's not kind of condensed like like

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

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<v Speaker 1>Very good, Vello pet kind of thank you so much.

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<v Speaker 1>Greatly appreciated with Strategy Analytics Helsinki, Finland. Wonderful to hear

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

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<v Speaker 1>as we saw from Professor Galloway earlier, it's an issue

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<v Speaker 1>where I would respectfully suggest all Americans just shake their

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<v Speaker 1>head and say, you know, as you have that brilliant

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<v Speaker 1>quote earlier, repeat that quote earlier. I feel bad because

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<v Speaker 1>I can't give you the providence of it. It certainly

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

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<v Speaker 1>United States innovates China steels and Europe. Yes, when within

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<v Speaker 1>the simplicity of that statement, folks, I understand that it's

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<v Speaker 1>open to criticism. Is the reality of once again we

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<v Speaker 1>see these headlines across the Bloomberg and you just wonder

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<v Speaker 1>whether cultural template is to change, whether we change to

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<v Speaker 1>be like them, And frankly Professor Galloway suggesting at some

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<v Speaker 1>point that could happen where Americans just revolt against the

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<v Speaker 1>creative destruction, or it goes the other way. They become

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<v Speaker 1>maybe more a little bit like what we have. Well

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<v Speaker 1>in the US has always been a very innovative economy,

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<v Speaker 1>and the question is where does innovation become too much

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<v Speaker 1>for the changes it brings, the creative destruction it brings. Interestingly,

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<v Speaker 1>we've seen, um, no real reaction to this in Google

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<v Speaker 1>shares in the pre market trade. Perhaps it's been it

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<v Speaker 1>was priced in since everybody knew it was coming. It's

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<v Speaker 1>a it's a two tense rise for the Google A

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<v Speaker 1>shares and a one tenth rise for the C shares,

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<v Speaker 1>So you know, to me, it's tangential. But but you know,

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<v Speaker 1>I think and within the discussion, we had a video

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

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<v Speaker 1>Mike and I talk about this every day. It feels

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<v Speaker 1>comfortable to do audio. Comfortable to do audio. It's not

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<v Speaker 1>we're not wearing black Scott video back today. But people

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

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

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

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<v Speaker 1>the death of radio. I mean know how many times

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<v Speaker 1>have you heard that? Twelve hundred times since World War

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<v Speaker 1>two or you know, the Korean War, and yet radio.

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

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<v Speaker 1>and I are jaws continue to drop over the global presence.

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<v Speaker 1>With that, we say, good morning, Bloomberg eleventh three, Oh,

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<v Speaker 1>Bloomberg twelve, Boston in Washington and Baltimore, and of course

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<v Speaker 1>in the very early morning the Bay Area. And this, Mike,

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<v Speaker 1>this modern miracle of serious the Next Time channel nation

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<v Speaker 1>wide across Canada. And that's a distribution and an innovation

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<v Speaker 1>of an old technology. And and we're in Europe. We

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

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

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<v Speaker 1>we did a spoof on cricket and the cricket and

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<v Speaker 1>the Cricket Crew of Australia send us emails to correct

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

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

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<v Speaker 1>Cantrill said she was just back from Denver. She said,

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<v Speaker 1>people stop me everywhere and and ask about my comments

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<v Speaker 1>on the Broncos on Bloomberg surveilance. So people are using

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<v Speaker 1>sex out in Colorado. Yeah, well we say good morning,

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<v Speaker 1>going you let me do a davy chuck. Here's a

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<v Speaker 1>churn to the markets. We've really enjoyed today doing a

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<v Speaker 1>little more nuance and just the heat of the moment

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<v Speaker 1>in the market slightly green read earlier, a little bit

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<v Speaker 1>of improven up to on the sp future. Is not

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<v Speaker 1>much going on in equities yields again, a churn two

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<v Speaker 1>year yield of four digits points seven five nine three

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<v Speaker 1>and the tenure yield in a basis point one point

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<v Speaker 1>seven seven. I would note German yields earlier lower, they've

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<v Speaker 1>now stabilized in a negative point five one in of course,

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<v Speaker 1>John Farrow across all of our platforms today talking up

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<v Speaker 1>the further lower yield in the forty year four zero,

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<v Speaker 1>the forty year Japanese note part of the low rate strategy,

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<v Speaker 1>and of course to be addressed Mike drag East tomorrow, right,

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<v Speaker 1>I'm sure on that easy bees tomorrow, Thank you, why you,

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<v Speaker 1>thank you so much. ECB meeting and nothing expected, but

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<v Speaker 1>we're gonna be listening for Mario one nine about one

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<v Speaker 1>seventeen and the end of the euro advances one seventy

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<v Speaker 1>two and surly seventy six. I believe there's a birthday

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<v Speaker 1>tomorrow in London as well. Again, futures this morning up

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<v Speaker 1>to all right, we want to check in with Michael BYRN.

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<v Speaker 1>Now get the latest world and national headlines. Mike Tom,

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<v Speaker 1>thank you very much. President Obama is in Saundi, Arabia,

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

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<v Speaker 1>The visit comes against the backdrop of increasingly strained relations

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<v Speaker 1>with the Southeast. The sound he's deeply opposed the President's

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<v Speaker 1>outreach to Iran and his approach to Syria. Democrat Hillary

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

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<v Speaker 1>Clinton has scheduled campaign today in Pennsylvania, while Trump has

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<v Speaker 1>rallies planned in Maryland and Indiana. Tennessee lawmakers are scheduled

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<v Speaker 1>to vote today on an effort to override Governor Bill

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<v Speaker 1>Haslam's veto of a bill seeking to make the Bible

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

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<v Speaker 1>powered by our twenty four hundred journalists and more than

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<v Speaker 1>a hundred fifty news bureaus from around the world. I

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<v Speaker 1>am Michael Barnime. Michael, thanks so much. Didn't mention oil

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<v Speaker 1>forty dollars nine cents the thirty nine handle when I

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<v Speaker 1>walked in the door. Oil down seventy nine cents but

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<v Speaker 1>still elevated. Is a president of the United States Lands

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

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<v Speaker 1>The news update brought to you by S S and

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