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Speaker 1: Bloombal Business News twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile last 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 stocks are slipping with treasuries while the dollar is strengthening.

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Speaker 1: After a Job's report boosted speculation that the Federal Reserve

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Speaker 1: O rays interest rates this year. Crude oil is falling

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Speaker 1: for the first time in three days. We checked the

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Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg.

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Speaker 1: SNP fived down a tenth of upper center two points

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Speaker 1: in nineteen seventy five. Dow Jones Industrial average down two

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Speaker 1: tenths per center thirty eight points to sixteen thousand, eight

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Speaker 1: hundred twenty six. Then as to acts, down a tenth

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Speaker 1: of upper center five points to forty six eighty four ten.

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Speaker 1: Your treasury down eight thirty seconds, the yield one point

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Speaker 1: eight five percent yield on the two year point eight

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Speaker 1: five percent nimex Scrude oil down one percent or thirty

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Speaker 1: five cents to thirty four oh five of barrel comes

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Speaker 1: gold up seven tenths per cent or eight dollar sixty

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Speaker 1: cents to twelve thirty nine ten announced the euro at

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Speaker 1: dollar oh eight three seven the N one third teen

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Speaker 1: point nine six companies added more workers than projected in February.

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Speaker 1: The two d thousand increase in employment followed a revised

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Speaker 1: one thousand rise in the prior month, according to figures

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Speaker 1: from the ADP Research Institute, McKesson, a US distributor of

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Speaker 1: medical products, will acquire rex All Health from its private

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Speaker 1: owner for two point two billion dollars to expand its

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Speaker 1: presence in Canada. And Monsanto cutting its full year profit forecast.

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Speaker 1: And that's a Bloomberg business flash. Tom and Mike Karen,

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Speaker 1: thanks so much greatly, appreciate all of you being with

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Speaker 1: us today in Washington as we wrap up Super Tuesday

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Speaker 1: and onto this Super Wednesday Bloomberg Surveillance. This morning, we're

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Speaker 1: brought to by Interactive Brokers Trading University. Even experienced traders

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Speaker 1: need to keep learning. Traders University will get you up

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Speaker 1: to speed quickly with short videos, webinars, courses and more.

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Speaker 1: Visit I V K R B dot com slash stay ahead.

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Speaker 1: That's I B A RB dot com slash Stay Ahead.

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Speaker 1: David Wilson now with our equity report, Quiet Market, David,

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Speaker 1: but you've always got something going. What is it? Well? Sure,

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Speaker 1: and you look at the standforcewive hundred. The worst performer

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Speaker 1: in early trading is Monsanto, that stock down five point

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Speaker 1: three percent. The world's largest seed producer cut earnings forecast

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Speaker 1: for the fiscal year ending in August. Companies setting lower

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Speaker 1: commodity prices and following prices for a herbicide along with

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Speaker 1: weakness in the Argentine paso and other currencies. You've also

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Speaker 1: got Brown Foreman shares lower in early training. Best known

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Speaker 1: as the maker of Jack Daniels whiskey, they cut their

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Speaker 1: fiscal year earnings forecast third quarter profit mass dannalysts average

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Speaker 1: estimate in the Bloomberg survey, while revenue came up short

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Speaker 1: and Brown Foreman shares down three point two percent at

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Speaker 1: the moment. McKesson, as Karen Moscow mentioned a three point

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Speaker 1: one percent. The drug distributor agreed to buy the Canadian

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Speaker 1: pharmacy owner Rexol Health for about two point two billion

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Speaker 1: dollars in cash. McKesson sees the deal adding to earnie

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Speaker 1: for the fiscal year ending next March, and you've got

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Speaker 1: CSX up one point seven percent. The railroad rebuff the

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Speaker 1: takeover offered by Canadian Pacific Railway in January. That's according

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Speaker 1: to the Wall Street Journal, signing Canadian Pacific TV second

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Speaker 1: Hunter Harrison. The CSX declined to comment. Canadian Pacific has

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Speaker 1: been trying since last year to buy another U S Railroad,

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Speaker 1: Norfolk Southern uh ROSS stores up two point four percent.

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Speaker 1: You have price retailers. Earnings and sales for the fiscal

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Speaker 1: fourth quarterbeat estimates. The Ross raised this quarterly dividend fifteen

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Speaker 1: percent to thirteen and a half cents. To share the

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Speaker 1: one more for your American water Works almost four percent.

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Speaker 1: Utility will join the stairing in ports five indecs after

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Speaker 1: the close of training tomorrow. American Water where replaced coal

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Speaker 1: and natural gas producer Console Energy, one of the smallest

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Speaker 1: SMP five hundred companies by market value. David Wilson, thank

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Speaker 1: you so much, greatly appreciate it. This morning here from

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Speaker 1: Washington and support of FM Washington, we greet all of

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Speaker 1: you around the world. We thought we would link back economics,

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Speaker 1: financial estments from the political storm that we've seen the

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Speaker 1: last forty eight hours. Of course, moving on to our

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Speaker 1: coverage of Michigan and Florida and the other caucuses. Robert

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Speaker 1: sinch is where the Amer's pere pot bob let me

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Speaker 1: wax philosophical. Here is I can only do with a

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Speaker 1: gentleman from Hamilton's and Brown. We are right next door

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Speaker 1: to the New York Avenue Presbyterian Church, the Church of

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Speaker 1: Abraham Lincoln. He paid fifty dollars for a few a

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Speaker 1: few years ago. Here is Abraham Lincoln. Republicans are for

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Speaker 1: both the man and the dollar, but in case of conflict,

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Speaker 1: the man will come before the dollar. Abraham Lincoln, they're

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Speaker 1: getting his priorities straight. What does a strong dollar mean

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Speaker 1: for the interesting mercantile ism, isolation, the oceans that our borders.

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Speaker 1: What does a strong dollar means? The Republicans try to

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Speaker 1: regroup with or without Mr Trump to their Cleveland convention. Well,

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Speaker 1: I think the you Historically, strong currencies are actually a

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Speaker 1: sign of the strong economy, and uh, strong currencies were

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Speaker 1: something to be uh to be relished, and weak currencies

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Speaker 1: were something to fear. And I think in a certain

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Speaker 1: and certain context, obviously the stronger dollar here is reflecting

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Speaker 1: the fact that US economic performance has has has improved substantially.

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Speaker 1: I think the problem um that people face politically is

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Speaker 1: that with the potential growth rate for the US a

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Speaker 1: lot lower than it used to be. Productivity growth not

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Speaker 1: that strong. Labor force is stable at best. UM, it

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Speaker 1: doesn't feel like it's a strong economy. So globally, the

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Speaker 1: US looks pretty good. Internally, there's still this feeling that

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Speaker 1: the economy really hasn't recovered from the Great Recession. What

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Speaker 1: are people really thinking about the dollar though? I I

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Speaker 1: look at the d X Y index and it's up

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Speaker 1: and then it's down a tenth of a percent, you know,

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Speaker 1: every other day. It really hasn't moved a whole lot

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Speaker 1: from a band between ninety seven and ninety nine. It

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Speaker 1: hasn't gotten the ninety nine in a while. Uh. It

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Speaker 1: seems to me that people have made up their minds

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Speaker 1: about where we are, and they're not really moving money around.

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Speaker 1: I think that's absolutely the case. I think with with

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Speaker 1: the volatility and markets earlier this year, UM, that certainly

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Speaker 1: put a freeze on cross border capital flows. We've talked

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Speaker 1: about that a few times in the past, UM and

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Speaker 1: as a result, we haven't seen big movements and currencies UM,

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Speaker 1: which again suggests me that we're not seeing these big

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Speaker 1: capital flows across borders. UM. As a result, so I think,

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Speaker 1: but you know what we're what we're seeing here as

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Speaker 1: a consolidation phase for the dollar. I think it's consolidated

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Speaker 1: the economic out performance. It's consolidated the fact that the

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Speaker 1: Fed is going to tike rates this year, but perhaps

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Speaker 1: not as much as previously expected. So I think with

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Speaker 1: respect to the dollar rat look, it really moves with

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Speaker 1: the Fed outlook. It's in review, folks. We've got d

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Speaker 1: X y we quote, we've got the obvious currency pairs

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Speaker 1: with yen weakness through the morning, in a little bit

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Speaker 1: of yen strength in the last hour. But the reality, Bob,

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Speaker 1: is there's a lot of ways to vailue the relative

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Speaker 1: value of the dollar. Is the dollar rich now or

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Speaker 1: is it cheap? Well, I think part of it is level,

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Speaker 1: and part of it is rate of change. The rate

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Speaker 1: of improvement of the dollar since two thousand and eleven, uh,

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Speaker 1: it's just two thousand eleven lows is pretty extreme, and

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Speaker 1: that creates some dislocations for companies UM and trade relationships UM.

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Speaker 1: The level of the dollar by historic standards is kind

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Speaker 1: of around the middle midpoint if it's long term range,

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Speaker 1: not very far from from long term averages. So so

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Speaker 1: I think the economy, as we've seen, can adjust to this.

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Speaker 1: We're seeing the manufacturing sector look like it the stabilized

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Speaker 1: in the latest I s M data UM and so

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Speaker 1: I think the big abrupt adjustment of the dollar is

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Speaker 1: behind us. I don't think the level is particularly problematic

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Speaker 1: UM and if we see some greater stability in the dollar,

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Speaker 1: I think this will likely fate. Is an issue as

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Speaker 1: we go through the year. Why are people still using

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Speaker 1: the Japanese yen as a haven given the rhetoric and

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Speaker 1: the last few weeks about obonomics failing. You know, I

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Speaker 1: think it has a lot to do with with the

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Speaker 1: lack of capital outflow from Japan. Remember, Japan lost its

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Speaker 1: current account surplus um a couple of years ago when

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Speaker 1: they suffered through the tsunami and earthquake and they had

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Speaker 1: to import a lot of a lot of oil UM.

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Speaker 1: Japan has really returned to a very strong current account

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Speaker 1: surplus um a lot of that based on the lowering

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Speaker 1: of energy prices and their their import bill. As a result,

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Speaker 1: they're running a surplus with with foreign countries every month

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Speaker 1: on a current account basis. If they don't recycle that

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Speaker 1: current account, if they don't have capital outflow from Japan.

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Speaker 1: The natural tendency is for that currency to go up,

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Speaker 1: and so I think during the early part of the

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Speaker 1: year it was less I think capital money moving into Japan,

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Speaker 1: but more about capital not leaving Japan, and the natural

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Speaker 1: dependency for a currency with the current account surplus is

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Speaker 1: forward to rise. Let me ask you the question. It

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Speaker 1: drives me nuts, Bob. I'm almost rude to ask you

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Speaker 1: the question, but I will. Is there a linkage between

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Speaker 1: our economic performance and the politics of the moment? I

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Speaker 1: don't detect that linkage, but a lot of people are

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Speaker 1: trying to find some mystical linkage. Is it there? You know,

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Speaker 1: the economy is certainly performing better the unemployment. I mean,

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Speaker 1: if you told h told you know, politicians a couple

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Speaker 1: of years ago, the unemployment rate would be down under

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Speaker 1: five inflating people two percent, You'd say, man, that is it.

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Speaker 1: That's just an outstanding economic environment. Nobody wants to run

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Speaker 1: on an outstanding economic environment right now. Everybody wants to

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Speaker 1: find what's wrong in the economy. And again, I think

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Speaker 1: that has to do with with potential growth rates. It

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Speaker 1: has to do with the long term impact of globalization.

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Speaker 1: So it's a it's a very strange political economic environment,

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Speaker 1: because although the numbers look good, it doesn't feel good.

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Speaker 1: Bob says, thank you so much with Amazon pier upon

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Speaker 1: a short notice today to really wrap up in a

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Speaker 1: smart way our coverage, Mike, this has been fun. Economics, finance, investment, politics,

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Speaker 1: Donnie Brooke, establishment war. What else did we cover something

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Speaker 1: else in there as well? Markets? Uh and uh oh?

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Speaker 1: National Hockey League, Yeah, the National hockey that's always a

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Speaker 1: little bit of that. With the best hockey team on

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Speaker 1: the planet, the Washington Capitals. We need to thank Marty

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Speaker 1: Schenker and the entire team here at our Washington News Bureau,

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Speaker 1: Megan Murphy because she was up in New York for this,

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Speaker 1: but we thank her as well for a great, great

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Speaker 1: two days effort with FM Washington. We'll be back in

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Speaker 1: New York tomorrow to begin to focus days on the

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Speaker 1: American labor economy, with Job to Day on Friday, Bill

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Speaker 1: Gross among others joining us at that time. This is

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Speaker 1: Bloomberg Surveillance with a Dow negative ste