1 00:00:00,480 --> 00:00:07,720 Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C, 2 00:00:07,920 --> 00:00:13,160 Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg 3 00:00:13,280 --> 00:00:16,800 Speaker 1: nine six to the country j Exam Channel one ninety 4 00:00:17,000 --> 00:00:21,080 Speaker 1: and around the globe the Bloomberg Radio and Bloomberg dot Com. 5 00:00:21,280 --> 00:00:25,440 Speaker 1: This is Bloomberg Surveillance. Good morning. It is seven thirty 6 00:00:25,440 --> 00:00:28,280 Speaker 1: on Wall Street and Michael McKay along with Tom Keene. 7 00:00:28,320 --> 00:00:31,400 Speaker 1: It's Tuesday, but we have a merger to announced merger 8 00:00:31,440 --> 00:00:35,279 Speaker 1: Tuesday because we took yesterday off total twelve point two 9 00:00:35,280 --> 00:00:37,320 Speaker 1: billion dollar deal. But eight point six billion is the 10 00:00:37,320 --> 00:00:40,960 Speaker 1: purchase price. Great Planes Energy buying West Star Energy sixty 11 00:00:40,960 --> 00:00:44,680 Speaker 1: dollars to share cash in stock. Great Planes provides electricity 12 00:00:44,800 --> 00:00:47,639 Speaker 1: across the Midwest. Headquartered in Kansas City, West Star from 13 00:00:47,640 --> 00:00:53,240 Speaker 1: Topeka is a Kansas utility profitent. Volkswagen's namesake brand down 14 00:00:53,360 --> 00:00:57,200 Speaker 1: eighty six percent in the first quarter after the emissions 15 00:00:57,280 --> 00:01:01,320 Speaker 1: cheating scandal. May Auto sails out tomorrow. Livery's projected to 16 00:01:01,360 --> 00:01:05,520 Speaker 1: decline for all of the largest names for General Motors 17 00:01:05,560 --> 00:01:09,720 Speaker 1: and Chrysler, attributable having one fewer weekend compared with last May. 18 00:01:09,760 --> 00:01:13,200 Speaker 1: On average, analysts see UH the annualized selling rate slipping 19 00:01:13,200 --> 00:01:15,600 Speaker 1: to seventeen point four million one O. Their deal small 20 00:01:15,600 --> 00:01:20,200 Speaker 1: one Jazz Pharmaceuticals buying Sellator Pharmaceuticals one and a half billion. UH. 21 00:01:20,640 --> 00:01:23,479 Speaker 1: Jazz is based in Dublin. They're offering thirty dollars cents 22 00:01:23,480 --> 00:01:26,919 Speaker 1: to share for the New Jersey based Sellator. Let's second 23 00:01:26,920 --> 00:01:28,760 Speaker 1: Now with Michael Barr and get the latest world and 24 00:01:28,880 --> 00:01:32,040 Speaker 1: national headlines. Blank, thank you very much. North Korea attempted 25 00:01:32,080 --> 00:01:34,560 Speaker 1: to launch what may have been a ballistic missile. South 26 00:01:34,640 --> 00:01:38,160 Speaker 1: Korea's defense ministry says the launch early this morning failed. 27 00:01:38,720 --> 00:01:43,039 Speaker 1: Physicist Stephen Hawking says he is baffled by Donald Trump's rise. 28 00:01:43,560 --> 00:01:46,120 Speaker 1: Hawking on i t v s Good Morning Britain says 29 00:01:46,160 --> 00:01:49,440 Speaker 1: he has no explanation for the success of the presumptive 30 00:01:49,440 --> 00:01:54,000 Speaker 1: Republican presidential nominee. Hawkins says that Trump is a demagogue 31 00:01:54,040 --> 00:01:57,400 Speaker 1: who seems to appeal to the lowest common denominator. The 32 00:01:57,480 --> 00:02:00,920 Speaker 1: Cincinnati Zoo's director is defending the decision the killer gorilla 33 00:02:00,960 --> 00:02:03,080 Speaker 1: to protect a four year old boy who had entered 34 00:02:03,120 --> 00:02:06,040 Speaker 1: its exhibit. The gorilla was killed over the weekend by 35 00:02:06,040 --> 00:02:09,480 Speaker 1: a special zoo response team. After the four twenty pound 36 00:02:09,520 --> 00:02:13,040 Speaker 1: animal had dragged the child through the shallow moat. The 37 00:02:13,120 --> 00:02:17,200 Speaker 1: zoo's director says the gorilla was agitated and disoriented by 38 00:02:17,200 --> 00:02:20,800 Speaker 1: the commotion and was powerful enough to crush a coconut 39 00:02:21,120 --> 00:02:24,280 Speaker 1: in one hand. Global News twenty four hours a day, 40 00:02:24,639 --> 00:02:28,040 Speaker 1: powered by our twenty four hundred journalists more than a 41 00:02:28,080 --> 00:02:31,480 Speaker 1: hundred fifty news bureaus around the world. I'm Michael Barr, Mike, 42 00:02:32,080 --> 00:02:34,399 Speaker 1: Thank you, Michael. Time now for the Lander Over Participani 43 00:02:34,400 --> 00:02:38,200 Speaker 1: Bloomberg NBC Sports Update with John Stasha. All right, thanks, 44 00:02:38,240 --> 00:02:40,519 Speaker 1: my second time in three years now. The NBA Finals 45 00:02:40,560 --> 00:02:42,920 Speaker 1: will be a rematch of the year before. Cleveland and 46 00:02:43,040 --> 00:02:45,760 Speaker 1: Golden State will start Thursday in Oakland. Unlike last year, 47 00:02:45,760 --> 00:02:48,600 Speaker 1: the calves are healthy, They're well rested. But if Anny 48 00:02:48,680 --> 00:02:50,919 Speaker 1: Champs just proved how tough they are to take out 49 00:02:51,000 --> 00:02:54,160 Speaker 1: a one game seven last night nine eight eight, Oklahoma 50 00:02:54,200 --> 00:02:56,760 Speaker 1: City led the series three to one. They led last 51 00:02:56,840 --> 00:02:59,320 Speaker 1: night by thirteen points of Golden State came back. They 52 00:02:59,320 --> 00:03:01,760 Speaker 1: won the third quarter to twelve, and Steph Curry led 53 00:03:01,800 --> 00:03:05,560 Speaker 1: the way thirty six points. Both he and Clay Thompson 54 00:03:05,600 --> 00:03:08,120 Speaker 1: broke the record for most three pointerers in the series. 55 00:03:08,200 --> 00:03:10,040 Speaker 1: It's the tenth time ever a team has come back 56 00:03:10,280 --> 00:03:12,400 Speaker 1: from a three one deficit. It's the third time it's 57 00:03:12,400 --> 00:03:14,800 Speaker 1: happened in a conference final. Game one of the Stanley 58 00:03:14,800 --> 00:03:16,760 Speaker 1: Cup Final, the Pittsburgh three two over San Jose. A 59 00:03:16,840 --> 00:03:19,280 Speaker 1: Penguin scored twice a minute a part in the first careage. 60 00:03:19,280 --> 00:03:21,679 Speaker 1: Sharks got there too in the second. Nick Benito waned 61 00:03:21,720 --> 00:03:24,000 Speaker 1: for the Penguins, scoring the two and half minutes for meat. 62 00:03:24,320 --> 00:03:26,400 Speaker 1: The Yankees had that six game win straight with that'll 63 00:03:26,400 --> 00:03:27,880 Speaker 1: go one of the other way fourth loss in the 64 00:03:27,919 --> 00:03:30,680 Speaker 1: last six four two at Toronto, they were shut out 65 00:03:30,680 --> 00:03:33,359 Speaker 1: by Marco Estrada until le Brian McCann home run of 66 00:03:33,360 --> 00:03:35,760 Speaker 1: the ninth inning. Matt Harvey and the Mets bullpen a 67 00:03:35,840 --> 00:03:38,320 Speaker 1: two hit or one upping over the White Soxes. Harvey 68 00:03:38,360 --> 00:03:40,320 Speaker 1: got his z R a well under six. Neil Walker 69 00:03:40,440 --> 00:03:42,880 Speaker 1: seventh inning omber the only Ron White Sox of Meil 70 00:03:42,920 --> 00:03:44,720 Speaker 1: lost seventh straight. David Wright could be headed to the 71 00:03:44,720 --> 00:03:48,000 Speaker 1: disabled This permated disc in this neck with Lumberg. NBC 72 00:03:48,080 --> 00:03:51,840 Speaker 1: Sports Update. I'm John Stack, Thank you, John Well. We've 73 00:03:51,880 --> 00:03:54,400 Speaker 1: got some key numbers coming out eight thirty Wall Street 74 00:03:54,400 --> 00:03:58,240 Speaker 1: Time this morning. Income spending and the pc inflation numbers. 75 00:03:58,240 --> 00:04:01,200 Speaker 1: That's the one the Fed follows ahead of that. Not 76 00:04:01,320 --> 00:04:03,200 Speaker 1: a whole lot of movements in the bond market, but 77 00:04:03,400 --> 00:04:06,200 Speaker 1: we're seeing the two year no yield at ninety one 78 00:04:06,320 --> 00:04:10,120 Speaker 1: basis points up less than a base point on the day, 79 00:04:10,160 --> 00:04:12,680 Speaker 1: the five year, though, gaining two basis points to one 80 00:04:12,720 --> 00:04:15,640 Speaker 1: point four, and the ten year no eiel comes in 81 00:04:15,720 --> 00:04:22,360 Speaker 1: at one point eight seven. This is Bloomberg surveillance sign 82 00:04:22,400 --> 00:04:27,320 Speaker 1: Michael McKee. We're looking at futures right now, gaining altitude 83 00:04:27,360 --> 00:04:29,239 Speaker 1: after being down a little bit. S and P futures 84 00:04:29,279 --> 00:04:32,160 Speaker 1: up by two points, DAL futures twenty eight points higher, 85 00:04:32,200 --> 00:04:35,919 Speaker 1: and as damn one hundreds are up by six points. 86 00:04:36,360 --> 00:04:38,520 Speaker 1: The Bloomberg n j I T STEM Report brought to 87 00:04:38,520 --> 00:04:40,960 Speaker 1: you by New Jersey Institute of Technology, investing more than 88 00:04:41,000 --> 00:04:42,960 Speaker 1: a hundred and ten million dollars a year and applied 89 00:04:42,960 --> 00:04:45,680 Speaker 1: research to solve problems and improved life. Learn more at 90 00:04:45,680 --> 00:04:48,920 Speaker 1: Stories of Innovation dot n j I T dot EU. 91 00:04:49,040 --> 00:04:52,560 Speaker 1: Here's problem Michael, good morning. Here's what's making news and science, technology, 92 00:04:52,600 --> 00:04:56,799 Speaker 1: engineering and math. What do you do when technology fuels hate? 93 00:04:57,120 --> 00:05:00,800 Speaker 1: Internet giants Google, Facebook, Twitter, and Microsoft after pledging to 94 00:05:00,880 --> 00:05:04,320 Speaker 1: tackle online hate speech in less than twenty four hours. 95 00:05:04,360 --> 00:05:06,599 Speaker 1: As part of a joint commitment with the European Union 96 00:05:06,839 --> 00:05:09,599 Speaker 1: to combat the use of social media by terrorists, the 97 00:05:09,640 --> 00:05:13,120 Speaker 1: companies and the European Commission issued their joint statement today 98 00:05:13,160 --> 00:05:15,920 Speaker 1: declaring that there is a need to ensure such activity 99 00:05:16,000 --> 00:05:20,440 Speaker 1: by Internet users is expeditiously reviewed by online intermediaries and 100 00:05:20,520 --> 00:05:24,320 Speaker 1: social media platforms upon receipt of valid notification in an 101 00:05:24,360 --> 00:05:27,640 Speaker 1: appropriate time frame. The company said it remains challenged to 102 00:05:27,680 --> 00:05:30,760 Speaker 1: strike the right balance between free expression and hate speech. 103 00:05:31,000 --> 00:05:33,440 Speaker 1: For its part, Twitter set it remains committed to letting 104 00:05:33,440 --> 00:05:36,560 Speaker 1: the tweets flow, but added there is a clear distinction 105 00:05:36,600 --> 00:05:40,960 Speaker 1: between freedom of expression and conduct that incites violence and hate. 106 00:05:41,480 --> 00:05:45,880 Speaker 1: After a massive toxic algae bloom closed lucrative shellfish fisheries 107 00:05:46,200 --> 00:05:48,680 Speaker 1: off the West Coast last year, scientists are turning to 108 00:05:48,720 --> 00:05:51,440 Speaker 1: a new tool that could provide an early warning of 109 00:05:51,520 --> 00:05:55,240 Speaker 1: future problems. Experts at the Experts at the National Oceanic 110 00:05:55,240 --> 00:05:58,920 Speaker 1: and Atmospheric Administration and the University of Washington have deployed 111 00:05:58,920 --> 00:06:02,360 Speaker 1: a so called ocean robot off shore in the Pacific. 112 00:06:02,480 --> 00:06:06,239 Speaker 1: You're a known hotspot for toxic algae blooms. Researchers typically 113 00:06:06,279 --> 00:06:08,720 Speaker 1: would have to go out and boat collect samples and 114 00:06:08,720 --> 00:06:11,320 Speaker 1: bring them back to a lab to be analyzed. That's 115 00:06:11,360 --> 00:06:14,320 Speaker 1: this morning's Bloomberg and j I. T Stem Report, Michael 116 00:06:14,360 --> 00:06:19,200 Speaker 1: clam Lover's Ken Rejoice, We will celebrate. You don't have 117 00:06:19,240 --> 00:06:21,400 Speaker 1: to do it in a month within are either. That's right, 118 00:06:21,560 --> 00:06:25,400 Speaker 1: al right, Bob, Thank you very much. Dr Robert Johnson 119 00:06:25,680 --> 00:06:28,960 Speaker 1: is the President and chief executive officer of the American 120 00:06:29,000 --> 00:06:32,120 Speaker 1: College of Financial Services. Prior to joining the College, you 121 00:06:32,160 --> 00:06:35,000 Speaker 1: also worked at a number of other universities and held 122 00:06:35,040 --> 00:06:39,840 Speaker 1: senior executive positions at the cf A Institute. We're gonna 123 00:06:39,839 --> 00:06:41,520 Speaker 1: put in a good word for our Taylor Riggs, who 124 00:06:41,640 --> 00:06:46,159 Speaker 1: is studying for the cf A Level two. But uh, Robert, 125 00:06:46,200 --> 00:06:51,119 Speaker 1: I want to go to your expertise in analyzing financials 126 00:06:51,279 --> 00:06:54,600 Speaker 1: because at this point it seems to be getting harder 127 00:06:54,600 --> 00:06:58,680 Speaker 1: and harder to analyze the US economy. The inflation numbers 128 00:06:58,680 --> 00:07:01,920 Speaker 1: we get at a thirty this running um, there's a 129 00:07:02,000 --> 00:07:04,279 Speaker 1: there's a question out there about whether we've seen some 130 00:07:04,360 --> 00:07:07,800 Speaker 1: sort of secular change in inflation. The FED has been 131 00:07:07,839 --> 00:07:12,680 Speaker 1: pouring money and stimulus into the economy for years and 132 00:07:12,720 --> 00:07:15,080 Speaker 1: we can't get any inflation, or is it just a 133 00:07:15,120 --> 00:07:17,880 Speaker 1: matter of timing. We're going to see it happen on 134 00:07:17,880 --> 00:07:21,880 Speaker 1: a cyclical basis, but the cycle is very long. Well, 135 00:07:21,920 --> 00:07:24,840 Speaker 1: first of all, condolences to Taylor. Um, it's going to 136 00:07:24,920 --> 00:07:31,160 Speaker 1: be probably a rough weekend, but I appreciate being on today. Um. Yeah, 137 00:07:31,320 --> 00:07:34,760 Speaker 1: it's really interesting the FED. Everybody's watching the FED and 138 00:07:34,800 --> 00:07:37,080 Speaker 1: everybody's trying to figure out what the Fed is going 139 00:07:37,120 --> 00:07:40,800 Speaker 1: to do. And the numbers, the economic numbers are really 140 00:07:41,360 --> 00:07:44,520 Speaker 1: a mixed bag. As we all know, this FED, the 141 00:07:44,600 --> 00:07:50,480 Speaker 1: yelling FED is particularly data driven. Um, So when people 142 00:07:50,520 --> 00:07:52,400 Speaker 1: are trying to figure out if they're going to move 143 00:07:52,400 --> 00:07:55,480 Speaker 1: on rates or not, it's all dictated by the economic data. 144 00:07:55,680 --> 00:07:58,680 Speaker 1: And it's really clear that they want to raise rates, 145 00:07:59,520 --> 00:08:03,360 Speaker 1: but they've been very cautious not to do so prematurely. 146 00:08:03,440 --> 00:08:05,640 Speaker 1: And if you look at the really the three things 147 00:08:05,680 --> 00:08:08,480 Speaker 1: the Feds looking at their looking for signs of rebounding 148 00:08:08,520 --> 00:08:12,120 Speaker 1: the economy. They're looking for further strength in the job market, 149 00:08:12,280 --> 00:08:15,960 Speaker 1: and they're looking for inflation near two percent. And if 150 00:08:16,000 --> 00:08:19,280 Speaker 1: you had a scorecard on that, the economy, it's kind 151 00:08:19,280 --> 00:08:23,040 Speaker 1: of a mixed bag. Um, the job market appears to 152 00:08:23,080 --> 00:08:26,000 Speaker 1: be stronger, the numbers Friday will be interesting because of 153 00:08:26,000 --> 00:08:31,240 Speaker 1: the Verizon strike and by Yelling's own admission, we probably 154 00:08:31,280 --> 00:08:34,920 Speaker 1: aren't going to see inflation near two percent UH for 155 00:08:35,080 --> 00:08:38,360 Speaker 1: quite some time. So um. You know, if you look 156 00:08:38,400 --> 00:08:41,840 Speaker 1: at what the odds are on the FED raising rates 157 00:08:42,040 --> 00:08:46,920 Speaker 1: UH in its June fourteen and fifteen meeting, UM, the 158 00:08:46,960 --> 00:08:50,800 Speaker 1: futures point to a six chance of raising rates in 159 00:08:50,800 --> 00:08:55,640 Speaker 1: either June or July, and only chance in June, which 160 00:08:55,679 --> 00:08:59,000 Speaker 1: is the chance that the Oklahoma City Thunder we're given 161 00:08:59,480 --> 00:09:02,920 Speaker 1: last night to beat the Golden State Warriors, and we 162 00:09:02,960 --> 00:09:05,680 Speaker 1: can see what happened there. Yeah, exactly. We like how 163 00:09:05,679 --> 00:09:08,600 Speaker 1: you bring in this magical season we're in with basketball 164 00:09:08,600 --> 00:09:11,679 Speaker 1: and ice hockey as well. Robert Johnson. When I when 165 00:09:11,679 --> 00:09:14,920 Speaker 1: I look at sort of stumbling into the summer and such, 166 00:09:15,440 --> 00:09:17,400 Speaker 1: what does it mean for the markets? I mean, is 167 00:09:17,440 --> 00:09:22,000 Speaker 1: it just one big range bound mystery waiting for something 168 00:09:22,040 --> 00:09:25,439 Speaker 1: to happen, or can we actually uh see, particularly equity's 169 00:09:25,440 --> 00:09:28,880 Speaker 1: got to jump start and do better than good? Well, Tom, 170 00:09:28,920 --> 00:09:30,480 Speaker 1: I think it's I think it's a little bit of 171 00:09:30,480 --> 00:09:34,840 Speaker 1: the opposite. UM. I think investors should behave as if 172 00:09:34,920 --> 00:09:38,680 Speaker 1: the FED is already increased rates, and what that means 173 00:09:38,760 --> 00:09:43,679 Speaker 1: historically is that they should actually lower expectations for equity returns. UM. 174 00:09:43,720 --> 00:09:46,600 Speaker 1: I recently co authored a book Invest with the Fed, 175 00:09:47,320 --> 00:09:51,880 Speaker 1: and we looked at how different market sectors performed during 176 00:09:52,200 --> 00:09:56,920 Speaker 1: rising uh FED interest rates and falling FED rates, and 177 00:09:57,040 --> 00:10:00,200 Speaker 1: from nineteen sixty six to two thousand thirteen, the S 178 00:10:00,240 --> 00:10:03,560 Speaker 1: and P returned fifteen point two percent when rates were 179 00:10:03,559 --> 00:10:07,480 Speaker 1: falling and only five point nine percent when rates are rising. 180 00:10:08,200 --> 00:10:11,120 Speaker 1: So I think I think that the investors should act 181 00:10:11,200 --> 00:10:15,160 Speaker 1: as if rates rates were rising and rates will rise. 182 00:10:16,320 --> 00:10:18,640 Speaker 1: Robert Johnson, thank you so much, greatly appreciated. With the 183 00:10:18,640 --> 00:10:21,800 Speaker 1: American College for Financial Services, I will put out on 184 00:10:21,960 --> 00:10:27,520 Speaker 1: social investor the FED maximizing portfolio performance by following Feller 185 00:10:27,559 --> 00:10:32,720 Speaker 1: reserve policy. Robert Johnson, Gerald Jensen, and Louis Garcia Faju 186 00:10:32,880 --> 00:10:37,080 Speaker 1: on that always um and she might investing with the Fed. UM, 187 00:10:37,160 --> 00:10:41,760 Speaker 1: you know, I maybe it's it's the wonderful Marty's wife. 188 00:10:42,200 --> 00:10:45,920 Speaker 1: Don't fight the Fed, never find the Fed. Well, we're 189 00:10:46,000 --> 00:10:48,160 Speaker 1: we're about to see the markets say again a lesson 190 00:10:48,200 --> 00:10:51,880 Speaker 1: to that. It appears uh asurn futures up to down, 191 00:10:51,920 --> 00:10:55,840 Speaker 1: futures up thirty higher yields fractually this morning, stay with 192 00:10:55,920 --> 00:11:03,199 Speaker 1: us Bloomberg surveillance, Bloomberg suralance, brought you by SS and C. 193 00:11:03,400 --> 00:11:07,040 Speaker 1: More experience, superior technology, independence and expertise. That's how SS 194 00:11:07,080 --> 00:11:09,520 Speaker 1: and C drives the future of fund administration. SS and 195 00:11:09,600 --> 00:11:11,640 Speaker 1: C to the future fund administration.