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Speaker 1: Global 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: The Bloomberg Futures Report brought to you by Interactive Brokers

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Speaker 1: and CME Group. If you're looking for global futures contracts

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Speaker 1: c m E Group US dot index futures are little

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Speaker 1: change this morning as investors away to remark some Federal

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Speaker 1: Reserve Chair Janet Yellen taking a look at futures this morning,

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Speaker 1: smp E many futures again that will change. So are

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Speaker 1: DOWI mini futures and NAZ DOCU mini futures. Ten Your

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Speaker 1: Treasury down one thirty second, the yield one eight three percent.

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Speaker 1: NIMEX screwed oil down one and a half percent, or

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Speaker 1: seventy five cents to forty eight seventy three a barrel

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Speaker 1: call mex School down four tenths per cent or for

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Speaker 1: a dollar sixty cents to twelve eighteen ten. Announced the

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Speaker 1: Euro at dollar eleven fifty the end one oh nine

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Speaker 1: point seven one. That's a bloomberg business for Tom and Mike. Karen,

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Speaker 1: thank you so much. That was fascinating. Good morning on

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Speaker 1: serious exemption on one nineteen to Minnesota, Wisconsin the Iron Range.

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Speaker 1: I've never been up there, Michael, really. I played with

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Speaker 1: loads of Minnesotians in College of Stans and the Stans.

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Speaker 1: You gotta say it like they do Minnesotans. Um, you

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Speaker 1: know what today is? What is today? Why you win?

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Speaker 1: His birthday is it? I did not know that our producer,

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Speaker 1: why you was birthday? So you know, with his heritage,

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Speaker 1: the Lao Asian tradition, he'll do it will be something

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Speaker 1: that was really so we should we should pause here

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Speaker 1: this morning and say thank you to to lose ol

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Speaker 1: Aripa and Angela Keen and others for their terrific coverage

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Speaker 1: out of Japan this week on the economics of the

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Speaker 1: G seven and the political moment that we observed in

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Speaker 1: Vietnam and in Rosiama. Today've always controversial, but we thought

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Speaker 1: I thought they did a very good job. Montano shares

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Speaker 1: right now are down four tents of a percent, still

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Speaker 1: trading in the one or nine range, even though Bayer

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Speaker 1: has offered a hundred and two dollars to share for them. Uh.

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Speaker 1: Monsto management has said that's not enough, but let's talk

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Speaker 1: where where do they go from here? Chris Muir is

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Speaker 1: uh the man to ask. He's an industry analyst at

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Speaker 1: SMP Capital like you and covers Moncetto and Chris um.

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Speaker 1: Where do they go from here? Is the folks in St.

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Speaker 1: Louis actually interested in becoming a subsidiary of liver Cuisine. Uh,

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Speaker 1: good morning. Uh. I don't think I could answer what's

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Speaker 1: going on in their heads right now, but you know,

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Speaker 1: obviously what's been said in their press releases that they

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Speaker 1: are open to discussions with um Bear and Uh. The

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Speaker 1: only issue that I see going forward is you know

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Speaker 1: what happens to Bear's share price as negotiations between the

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Speaker 1: two cars. What's great about your coverage? It's almost like

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Speaker 1: value line. You've got two single pages with a great

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Speaker 1: density of research. How do low interest rates affect your

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Speaker 1: analysis of a blue chip Bay or blue chip Monsanto?

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Speaker 1: And how to low interest rates effect this transaction? All

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Speaker 1: week we've been asking about Beyer's ability to finance under

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Speaker 1: certain currencies negative interest rates. I mean, it's almost is

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Speaker 1: if they're working with an unlimited pocketbook, can Monsanto play

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Speaker 1: that to a higher stock price? UM? You know, I

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Speaker 1: think that more than likely you're going to see a

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Speaker 1: bit of higher than a D twenty two by the

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Speaker 1: time it's all over. UM. Of course, that's all speculation.

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Speaker 1: I can't say for the sure on that, UM. But

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Speaker 1: with regard to the chief interest rates, it really is

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Speaker 1: an unusual phenomenon that we have right now with UH,

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Speaker 1: you know that being able to be raised at such

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Speaker 1: a cheap rate. UM, even if if they drop a

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Speaker 1: notch on the credit ratings, you know, they still get

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Speaker 1: a pretty good rate. UM. If they have to raise

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Speaker 1: more equity. From what I understand, they have a thirty

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Speaker 1: five limit on there has a thirty five percent limit

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Speaker 1: on an equity issuance before they have to go to

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Speaker 1: their own shareholders. So that gives them, uh, you know,

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Speaker 1: quite a wide latitude in which they could raise their

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Speaker 1: offer and adjust the equity portion UH if they need to. Well, obviously, UH,

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Speaker 1: if a deal goes through, current shareholders of months into

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Speaker 1: will benefit. But does the company benefit in the long run?

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Speaker 1: Do they need a merger? Do they need a bigger

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Speaker 1: corporate parent? Would that be good in the long run

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Speaker 1: for the business that they do. UM. You know, part

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Speaker 1: of their business is the uh the seeds. Uh you

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Speaker 1: know they're genetically modified organized uh genetically modified seats. So

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Speaker 1: that part of the business is relatively you know, safe

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Speaker 1: from competition. UM. You know, it's a very high cost

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Speaker 1: entry as a lot of research and development needs to

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Speaker 1: go on. The other part of their business is craft protection,

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Speaker 1: and you know, I think there is a little bit

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Speaker 1: more uh competition in that area. But again they have

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Speaker 1: a good, strong product UM, so that they're they're going

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Speaker 1: to be able to compete. Now that's uh, that's based

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Speaker 1: on the product itself. When you start to look at

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Speaker 1: the price of the product and you see all the

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Speaker 1: other mergers going on within the agricultural industry, uh there's

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Speaker 1: other mergers, mean that those companies are going to be

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Speaker 1: sucking prices or sucking costs out of their UM production

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Speaker 1: program their operations, and they will eventually be able to

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Speaker 1: offer their their products at a lower price than Mom

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Speaker 1: Santa would by itself. So I think it is to

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Speaker 1: tie up with someone Chris Mair, thank you so much,

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Speaker 1: with SMP Capital like you, I'm on saying no quick

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Speaker 1: look there this morning. I can't get a handle on it, Mike, Like,

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Speaker 1: do they work through the weekend? Is that the kind

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Speaker 1: of thing where it's forty executives in a hotel room

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Speaker 1: this weekend. I don't get that urgency out of this transaction.

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Speaker 1: But maybe I'm wrong. Maybe there's something to look at

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Speaker 1: the impression they will continue to chat and see you

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Speaker 1: they can make something out of it. You go to

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Speaker 1: m O N Equity, you go to the Bloomberg terminal,

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Speaker 1: and you look at Monsanto. I think they're in the

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Speaker 1: seed business. Their price to twenty three times earnings, uh,

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Speaker 1: div it and growth. I'll give them that. They got

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Speaker 1: double digit give it and give it and go five

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Speaker 1: year div it and go thirteen point eight percent with

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Speaker 1: a one nine yield. I got to admit that's not

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Speaker 1: too shabby. Only twenty two thousand employees. I would have

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Speaker 1: thought they had a much bigger workforce. But Beguman and

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Speaker 1: Hugh Grant leave to charge their fre goes after months Santo.

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Speaker 1: But it's sort of what was it? What was the transit? Oh,

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Speaker 1: we're looking at the time Warner Apple Apple Time Warner.

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Speaker 1: I had no idea how small Time Warner was versus Apple.

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Speaker 1: I would have never guessed that in a million years. Well,

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Speaker 1: it's it doesn't seem to be anything that's gonna happen.

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Speaker 1: But um Apple was investigating content and it was like, yeah,

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Speaker 1: the ft did that, and it was like, you know,

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Speaker 1: a splash of rumor and speculation. Then you move on ya,

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Speaker 1: which is what we did yesterday. We hope you liked

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Speaker 1: our informed guests. Special thanks to Gene Munster, a Piper

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Speaker 1: Jeffrey for real wisdom yesterday on Apple, his optimism on Apple.

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Speaker 1: This is Bloomberg's Surveillance. We are kinding down to the

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Speaker 1: opening bell, brought to you by the Jeep Grand Cherokee,

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Speaker 1: the most awarded suv ever. The Grand Cherokee continues to

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Speaker 1: nine to Boston, Bloomberg Dwell runs to San Francisco, Bloomberg

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Speaker 1: to the Country Series Exam Channel one nineteen and around

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Speaker 1: the globe the Bloomberg Radio Plus Appen Bloomberg dot Com.

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Speaker 1: This is Bloomberg Surveillance. Good morning, I'm Karen Moscow along

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Speaker 1: with Tom Keene and Michael McKee. The opening val brought

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Speaker 1: to you by se I Imagine a global operating platform

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Speaker 1: designed to deliver a differentiate, a differentiated and technologically rich

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Speaker 1: investor experience. Pin out how SCI can help you succeed

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Speaker 1: at scis dot com slash imagine the S and P

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Speaker 1: five hundred little change this morning, up a point to

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Speaker 1: Dow Jones Industrial Average up five points to seventeen thousand,

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Speaker 1: eight hundred thirty four, and then astac is up two

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Speaker 1: points to forty nine oh four. Tenure Treasury down one

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Speaker 1: thirty second. The yield one eight three percent yield on

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Speaker 1: the two year point eight seven per set nine mix.

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Speaker 1: Screwed oil is down one point one per cent or

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Speaker 1: fifty five cents, to forty ninety two. A barrel called

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Speaker 1: my school down three tens per cent or three dollars

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Speaker 1: forty cents to twelve announced the euro a dollar eleven

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Speaker 1: fifty two, the N one oh nine point seven zero,

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Speaker 1: Tom and Mike, Karen, thanks so much. I don't have

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Speaker 1: an apology to make, but words wisdom yesterday from a

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Speaker 1: listener when I was making fun as we all are

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Speaker 1: of t s a and the listeners said, but every

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Speaker 1: once in a while, don't they save our skins? I mean,

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Speaker 1: don't they have a real public duty in protecting us

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Speaker 1: in these challenging times. It's not and that they do

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Speaker 1: a bad job. It's that there aren't enough if they're

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Speaker 1: on enough of them, was my response to our good listener. Um,

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Speaker 1: we need to speak to somebody who, more than anyone

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Speaker 1: is on airplanes. Brian Kelly invented an industry which is

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Speaker 1: these crazy point miles things off charge cards. Full disclosure.

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Speaker 1: I read the points guy religiously and I use some

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Speaker 1: of his strategies to my ill will. But we speak

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Speaker 1: with Brian Kelly because he's not in the first class

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Speaker 1: right now flying for you know, four d and twenty

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Speaker 1: two dollars to Tibet. Brian, good morning, Thanks for having me. Brian,

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Speaker 1: I really vailue your opinion on this t s a mess.

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Speaker 1: Whose fault is it? There's a three hour wait at O'Hare. Yeah,

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Speaker 1: it's insane. You know, New York City airports have seen

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Speaker 1: huge wait times and even if you have a pre check.

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Speaker 1: I was in Miami the other day and the pre

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Speaker 1: check line was longer than the regular line to even

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Speaker 1: if you think you're gonna get very quickly, you may not.

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Speaker 1: You know, I think a lot of people are at fault.

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Speaker 1: Clearly the t s A UH could improve its training

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Speaker 1: UH and its practices. You know this that thing is

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Speaker 1: I think eight out of in a in a test

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Speaker 1: got through the t s A. So it's not like

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Speaker 1: it's even really keeping us safe one of those things.

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Speaker 1: But is there a public good to these government officials?

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Speaker 1: There is, you know, you know, if you go to

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Speaker 1: the t's website, actually follow them on Instagram, and it's

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Speaker 1: kind of funny what they do. Catch a lot of

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Speaker 1: crazy stuff, and as we all know, people are generally crazy.

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Speaker 1: So I don't think we need some sort of protection

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Speaker 1: before getting on an airplane. Unfortunately, our systems are airports

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Speaker 1: are just overcrowded. You know, trying to get out of

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Speaker 1: Laguarity on a Friday, you're gonna wait an hour and

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Speaker 1: a half on the plane on the tarmac. So I

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Speaker 1: think our whole air travel system needs major investments, and

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Speaker 1: that's got to come from the top down, not from

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Speaker 1: any t s A manager at any one airport. Well,

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Speaker 1: that leads to the question that I mean that ain't

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Speaker 1: gonna happen, So what do we do about it? Um?

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Speaker 1: One of the things that annoys me is is that

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Speaker 1: everybody's pushing pre check and then you get behind all

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Speaker 1: these people who are in the pre check line and

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Speaker 1: take off their shoes and their belts and everything. Well,

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Speaker 1: I have never I have never gone through pre check

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Speaker 1: Michael McKee where they've told me that every time they

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Speaker 1: tell me to take off my shoes. Yeah, it's because

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Speaker 1: with training and you know, the the agents just screaming

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Speaker 1: up people. And the thing is, when they started pre check,

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Speaker 1: which is a great idea, uh, they the airlines were

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Speaker 1: also randomly adding in you know, granny into the mix,

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Speaker 1: which would completely defeat the point of pre check, right

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Speaker 1: if there were all those people who didn't understand pre check.

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Speaker 1: So I think, you know, the government agencies definitely have

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Speaker 1: a lot of streamlining they can do. But I still

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Speaker 1: maintain we're all complaining about it. We all have to

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Speaker 1: fix it. We all have to invest major, major amounts

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Speaker 1: into our airports. I mean, the airport's United States are

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Speaker 1: like better than most developed or worth the most developing

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Speaker 1: world airports. You know, LaGuardia is horrific. Who does t

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Speaker 1: s A like stuff? Best is that the Japanese, is

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Speaker 1: that the Germans? Is it Turkey? Who who does security

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Speaker 1: at airports best that we can copy? Well, you know,

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Speaker 1: Israel does it arguably the best, but they're also pretty

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Speaker 1: growing as well. You know, you've got to get to

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Speaker 1: the airport and it's just understood in their culture that

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Speaker 1: you get there two hours in advance and you're gonna

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Speaker 1: get padded down like craziness for security. And I guess

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Speaker 1: but in is real you know, they do do a

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Speaker 1: great job of you know, weeding out um, you know,

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Speaker 1: potential threats, which are there a lot. But I'm not

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Speaker 1: necessarily advocating for even stricter uh security like that. But

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Speaker 1: you know in Asia the airports are generally run much

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Speaker 1: much better. Well it is what it is here. So

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Speaker 1: what's your advice to the people who are going to

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Speaker 1: be headed out to m Guardian other airports this Memorial

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Speaker 1: Day weekend anticipating long lines? Yeah? So you know the

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Speaker 1: regular lines can be hours long. You know, first class

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Speaker 1: and priority lines can definitely save your huge amount of time.

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Speaker 1: So if you have Airline ELAFS status book on Book

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Speaker 1: on Airlines, um that you have that status so that

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Speaker 1: you can get through at least a little bit quicker. Absolutely,

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Speaker 1: get t S a pre check. You know, as much

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Speaker 1: as we moan about it, I actually got I travel

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Speaker 1: usually one to three times a week and TS pre

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Speaker 1: check in most times is under five minutes. Uh So,

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Speaker 1: definitely get pre check. It's a part of global entry. Um.

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Speaker 1: And also you know, upgrade to first first class as well.

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Speaker 1: If you don't have ELEAF status, you can use miles. Um.

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Speaker 1: It can not only where you're gonna get a bigger

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Speaker 1: seat in some cocktails, but um, you know that's the

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Speaker 1: security as well. If you're just joining us. Brian Kelly

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Speaker 1: with us for this half hour, the points guy his

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Speaker 1: terrific website, linking in intelligent use of all these miles,

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Speaker 1: everybody builds up. What I hear uniformly Brian Kelly is

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Speaker 1: the airlines are trying to get us to switch to

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Speaker 1: buying bags of grocery groceries with our miles. To a person,

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Speaker 1: people are upset about this. They want to buy airplane tickets.

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Speaker 1: When is that going to change? When do we get

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Speaker 1: back to our weekend buy airplane tickets with their miles? Well,

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Speaker 1: you can you buy air airline tickets with your moms.

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Speaker 1: It's just gonna cost show up more. And it's simple

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Speaker 1: supply and demand. You know, the degree billions and billions

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Speaker 1: of airline miles being printed every year and capacity is

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Speaker 1: not increasing. You know, airlines aren't adding tons and tons

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Speaker 1: and tons of new routes, right, so we've got all

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Speaker 1: these people with you know, this big glut of miles.

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Speaker 1: So that's why we see the airlines and hotels creating

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Speaker 1: these new ways to you know, redeem You know, at

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Speaker 1: Newark Airport you can use your United miles to buy

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Speaker 1: your omelet before you you know, are waiting for your plan.

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Speaker 1: But it's a terrible redemption value. So generally when you

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Speaker 1: see the easiest redemptions like buying things, uh, they're not

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Speaker 1: going to get you the most value. But there's still

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Speaker 1: a huge opportunity if you know how to maximize your

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Speaker 1: miles to you know, fly to Bali in first class

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Speaker 1: like I do a lot. Just oh, we are so jealous. Um,

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Speaker 1: no one knows exactly who's got We have to ask

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Speaker 1: this every time because they change these things so much.

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Speaker 1: Who's got the best UM program right now? You know?

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Speaker 1: Airline wise, I really like Alaska Airlines. They've made some

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Speaker 1: changes recently that aren't great, but you know, Alaska's got

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Speaker 1: a part of any major alliance, and you know, even

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Speaker 1: if you live in New York City, won't I'm not

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Speaker 1: flying to Alaska anytime soon. They partner up with amazing

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Speaker 1: partners like Cathay, Pacific, Emirates, British Airways in even American

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Speaker 1: and Delta, So it really gives you a lot of options.

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Speaker 1: You know, when you're when you're doing the miles game,

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Speaker 1: you can't just put all your miles in one basket

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Speaker 1: with one airline because you're set your stuff up for failure.

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Speaker 1: So it diversified. Star would preferred guests. Even though they've

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Speaker 1: been acquired by Marriott, It's gonna be a couple of

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Speaker 1: years before the program changes, you know, drastically. So I'm

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Speaker 1: still investing heavily in Alaska. And let's come back with

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Speaker 1: Brian question that way, I guess the Points can't remember

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Speaker 1: that on Alaska air Still the bring of Brian Kelly,

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Speaker 1: the Points guy, on a particularly important conversation on t

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Speaker 1: S angel all of you traveling uh this weekend, as

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Speaker 1: you heard Mr Kelly say, the only solution, Mike, We've

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Speaker 1: gotten emails at home. One one was three hours I

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Speaker 1: got an idea for people download podcasts of Bloomberg Surveillance

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Speaker 1: and listen to them while they wait. They could that

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Speaker 1: will make them happen. Surveillance podcasts out on iTunes. Thank

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Speaker 1: you Stephen Wilson and all in iTunes for the wonderful platform.

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Speaker 1: We're really humbled by the response. We look at it

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Speaker 1: under the business news category of iTunes and thanks to

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Speaker 1: our great team who get all of our interviews out.

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Speaker 1: It's amazing how quickly we get them out. These are

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Speaker 1: the audio podcasts on Bloomberg Radio. Really thrilled with that

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Speaker 1: new effort, that renewed effort. I should say green on

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Speaker 1: the screen of Deal Up the Vics. Thirteen point five

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Speaker 1: one this morning. This hour of Surveillance brought you by

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Speaker 1: Palisades Aunty vis A Palisade touty dot com. Here's Michael

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Speaker 1: Barr with news headline, Mike Tom, thank you very much.

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Speaker 1: President Barack Obama wrapped up his Japan trip with a

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Speaker 1: visit to Hiroshima today, becoming the first US sitting president

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Speaker 1: to walk the ground where a hundred forty people died

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Speaker 1: from a US atomic bomb during World War Two. The

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Speaker 1: President participated in a quiet remembrance including a wreath laying ceremony.

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Speaker 1: We come to more in the debt, including over a

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Speaker 1: hundred thousand Japanese men, women and children, thousands of Koreans.

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Speaker 1: A dozen Americans held present the President where he had

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Speaker 1: rated his hope for a world without nuclear weapons. He

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Speaker 1: later met with survivors of the atomic bombing. A friendship

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Speaker 1: has joined the search for egypt Air Flight eight oh four.

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Speaker 1: They went down last week in the Mediterranean. The vessel

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Speaker 1: has equipment that can find the so called black boxes. Meanwhile,

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Speaker 1: search teams have picked up a beacon believed to be

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Speaker 1: from the airbus A three twenty. He would narrow the

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Speaker 1: search in the Mediterranean to a three mile radios. Senator

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Speaker 1: Marco Rubio is under pressure from Republicans to change his

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Speaker 1: mind and run for reelection to stay in the U. S. Senate.

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Speaker 1: One of the Republicans is Donald Trump. After a bitter

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Speaker 1: campaign for you, Trump tweeted important to keep the majority run.

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Speaker 1: Marco Global News twenty four hours a day, powered by

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Speaker 1: our twenty four journalists, Michael Barr, Mike Tom, Michael Bar

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Speaker 1: thanks so much. Bryan Kelly, the points guy with us.

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Speaker 1: Mike Bowden, one of our producers. He flew to Istanbul

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Speaker 1: for like fourteen dollars first class. All these people are

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Speaker 1: smarter than he thinks. Bryan Kelly's like, God, it's Bloomberg surveillance.

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