1
00:00:03,279 --> 00:00:07,840
Speaker 1: Broadcasting Live to New York, Bloomberg to Washington, d C,

2
00:00:08,080 --> 00:00:13,320
Speaker 1: Bloomberg to Boston, Bloomberg twelve Honors, to San Francisco, Bloomberg

3
00:00:14,200 --> 00:00:17,960
Speaker 1: to the Country Series Exam Channel one, and around the

4
00:00:18,000 --> 00:00:21,680
Speaker 1: globe the Bloomberg Radio plus Apen, Bloomberg dot Com. This

5
00:00:21,880 --> 00:00:25,600
Speaker 1: is Bloomberg Surveillance. Good Morning at seven thirty on Wall

6
00:00:25,640 --> 00:00:28,520
Speaker 1: Street and Michael McKee along with Tom Keene two hours

7
00:00:28,560 --> 00:00:32,199
Speaker 1: until we start trading today and looks at the moment

8
00:00:32,479 --> 00:00:35,360
Speaker 1: like we're going to be up again. Stocks higher around

9
00:00:35,360 --> 00:00:38,559
Speaker 1: the world. Some of the corporate news that are pushing

10
00:00:38,720 --> 00:00:42,159
Speaker 1: stocks higher. Ali Baba in discussions with banks for a

11
00:00:42,200 --> 00:00:44,840
Speaker 1: loan of as much as four billion dollars. The Wall

12
00:00:44,840 --> 00:00:47,200
Speaker 1: Street Journal says they would use the money to fund

13
00:00:47,520 --> 00:00:52,239
Speaker 1: expansion plans. Helton Worldwide Holdings is going to continue to

14
00:00:52,280 --> 00:00:55,240
Speaker 1: pursue spinoffs of its hotel properties. Now it wants to

15
00:00:55,280 --> 00:00:58,920
Speaker 1: spin off its time share business into a reat to

16
00:00:59,040 --> 00:01:03,800
Speaker 1: boost share hole the value uh. The lawyers for Apple

17
00:01:04,319 --> 00:01:08,080
Speaker 1: have filed their response to the Justice Department. They say

18
00:01:08,120 --> 00:01:13,480
Speaker 1: that the FBI is seeking a quote dangerous power that

19
00:01:13,520 --> 00:01:16,720
Speaker 1: would undermine the basic security and privacy interests of hundreds

20
00:01:16,760 --> 00:01:19,839
Speaker 1: of millions of individuals around the globe. The FBI wants

21
00:01:19,840 --> 00:01:22,240
Speaker 1: Apple to unlock the iPhone used by one of the

22
00:01:22,280 --> 00:01:26,319
Speaker 1: attackers who killed fourteen people in California in December, and

23
00:01:26,520 --> 00:01:30,560
Speaker 1: RBS stock plunging today as the company reported losses and

24
00:01:30,600 --> 00:01:36,200
Speaker 1: said it would take longer to reinstate its dividend. RBS

25
00:01:36,240 --> 00:01:39,560
Speaker 1: shares down eight point four percent. Right now, Let's check

26
00:01:39,600 --> 00:01:42,800
Speaker 1: in with John Tucker to get the latest world in

27
00:01:42,920 --> 00:01:46,560
Speaker 1: national headlines. John, Good morning, Michael Marco Rubio suddenly and

28
00:01:46,680 --> 00:01:49,680
Speaker 1: urgently emerging from the shadows to hammer the front Ronold

29
00:01:49,720 --> 00:01:53,240
Speaker 1: Donald Trump. Last night during the tenth Republican presidential debate,

30
00:01:53,480 --> 00:01:57,800
Speaker 1: Florida's junior senator compared Trump to a sketchy sidewalk salesman.

31
00:01:58,440 --> 00:02:01,760
Speaker 1: Iranians today in Parla Mentory elections are voting the country's

32
00:02:01,800 --> 00:02:04,920
Speaker 1: first voals since its landmark nuclear deal with world powers

33
00:02:05,000 --> 00:02:08,079
Speaker 1: last summer. The vote is seen as a referendum of

34
00:02:08,160 --> 00:02:12,560
Speaker 1: the policies the moderate president Hassan Huwani. FIFA delegates approved

35
00:02:12,600 --> 00:02:15,440
Speaker 1: changes designed to open up global soccer's governing bodies that

36
00:02:15,480 --> 00:02:18,880
Speaker 1: tries to overcome the corruption allegations and arrests that brought

37
00:02:18,880 --> 00:02:21,680
Speaker 1: on the biggest crisis and it's one hundred twelve year history.

38
00:02:21,960 --> 00:02:24,480
Speaker 1: The reforms include a new top for twelve year term

39
00:02:24,520 --> 00:02:27,560
Speaker 1: limits for the president and senior officials, as well as

40
00:02:27,560 --> 00:02:31,040
Speaker 1: disclosure under pay US officials, and a Pentagon has launched

41
00:02:31,040 --> 00:02:34,600
Speaker 1: a newly aggressive campaign of cyber attacks against these lonage

42
00:02:34,639 --> 00:02:37,760
Speaker 1: state militants. It's a targeted effort too rode the group's

43
00:02:37,800 --> 00:02:40,880
Speaker 1: abilities to use shows, media and the Internet to recruit

44
00:02:40,960 --> 00:02:44,919
Speaker 1: fighters and aspire followers. Global News twenty four hours a day,

45
00:02:44,960 --> 00:02:47,320
Speaker 1: powered by our twenty four hundred journalists more than one

46
00:02:47,360 --> 00:02:50,720
Speaker 1: hundred fifty news heureaus around the world. I'm John Tucker, Michael,

47
00:02:51,360 --> 00:02:53,639
Speaker 1: Thank you John. Time now for the Ray Katina Auto Group,

48
00:02:53,639 --> 00:02:57,240
Speaker 1: Bloomberg NBC Sports Update. Here's John Stash. All right, my

49
00:02:57,360 --> 00:03:00,080
Speaker 1: little history made by Rangers goal a Henry Lundquist. As

50
00:03:00,240 --> 00:03:02,480
Speaker 1: late in St. Louis, he shined in goal again with

51
00:03:02,560 --> 00:03:05,080
Speaker 1: thirty five saves. Rangers won two to one. It's the

52
00:03:05,160 --> 00:03:07,919
Speaker 1: thirty win for lunk Quist and he joins Marty brow

53
00:03:08,000 --> 00:03:10,080
Speaker 1: During Patrick wa is the only goalies to have ten

54
00:03:10,120 --> 00:03:12,799
Speaker 1: seasons with thirty or more. Chris Crowder at the game

55
00:03:12,800 --> 00:03:15,399
Speaker 1: winning goal in the third period. Josh Bailey of the game,

56
00:03:15,400 --> 00:03:17,720
Speaker 1: winning for the Islanders with just eighteen seconds left in

57
00:03:17,800 --> 00:03:21,480
Speaker 1: overtime to one win at Calgary Devil's never in it.

58
00:03:21,520 --> 00:03:24,160
Speaker 1: In Columbus Blue Jackets scored three in the first off

59
00:03:24,160 --> 00:03:27,160
Speaker 1: Corey Schneider before he got benched. They won six to one.

60
00:03:27,200 --> 00:03:29,280
Speaker 1: The hat trick for Nick Felino. The Nets for paying

61
00:03:29,360 --> 00:03:32,760
Speaker 1: Joe Johnson twenty five million dollars this season considering where

62
00:03:32,800 --> 00:03:35,320
Speaker 1: Brooklyn is in the standings, not a surprise. The two

63
00:03:35,400 --> 00:03:37,960
Speaker 1: sides agreed to a buyout. Johnson gave three million back.

64
00:03:38,160 --> 00:03:40,840
Speaker 1: He can now sign with a contending team. Nets found

65
00:03:40,840 --> 00:03:43,360
Speaker 1: a team worse than they are. Phoenix has lost thirteen

66
00:03:43,400 --> 00:03:46,320
Speaker 1: in a row. Brooklyn won one sixteen, one oh six,

67
00:03:46,360 --> 00:03:49,720
Speaker 1: twentie win for Seaton Hall seventy to fifty two over Providence.

68
00:03:50,200 --> 00:03:52,760
Speaker 1: Also the Big East St. John's fell the one in fifteen,

69
00:03:52,920 --> 00:03:55,600
Speaker 1: losing to the only team they've beaten, De Paul three

70
00:03:55,760 --> 00:03:58,720
Speaker 1: seventy five. With the Bloomberg NBC Sports update, I'm John

71
00:03:58,760 --> 00:04:01,920
Speaker 1: stap Shanwer. Thank you, John Well. The G twenty are

72
00:04:02,080 --> 00:04:05,480
Speaker 1: meeting now in Shahan. The meeting is officially under way.

73
00:04:05,640 --> 00:04:08,000
Speaker 1: Gold prices down by a tenth of a percent, not

74
00:04:08,040 --> 00:04:09,880
Speaker 1: a lot of concern out there in the world is

75
00:04:09,920 --> 00:04:15,760
Speaker 1: to what may happen in China. This is Bloomberg worldwide

76
00:04:18,800 --> 00:04:21,400
Speaker 1: and welcome back to surveillance I Michael McKee along with

77
00:04:21,480 --> 00:04:23,720
Speaker 1: Tom Keen Green on the screen today. S and P

78
00:04:23,920 --> 00:04:26,800
Speaker 1: futures up by nine points right now, a little more

79
00:04:26,800 --> 00:04:29,039
Speaker 1: than four tenths of a percent to five tenths gain

80
00:04:29,120 --> 00:04:32,839
Speaker 1: for Dow futures. They are up seventy seven Europe higher,

81
00:04:33,040 --> 00:04:36,280
Speaker 1: the stock six hundred by four points one point one

82
00:04:36,440 --> 00:04:39,920
Speaker 1: percent right now. Time now for the Bloomberg n j

83
00:04:40,120 --> 00:04:42,279
Speaker 1: I T STEM Report, brought to you by New Jersey

84
00:04:42,320 --> 00:04:45,799
Speaker 1: Institute of Technology, partnering with government and industry to apply

85
00:04:45,839 --> 00:04:48,479
Speaker 1: the university's world class research assets to innovate and spur

86
00:04:48,600 --> 00:04:51,480
Speaker 1: economic growth. Learn more at n j I T dot

87
00:04:51,680 --> 00:04:55,200
Speaker 1: e d U. Here is Bob Moon, Michael Good morning,

88
00:04:55,400 --> 00:04:58,039
Speaker 1: and it's coming up on seven five on Wall Street.

89
00:04:58,080 --> 00:05:01,520
Speaker 1: Here's what's making news in science, technolo, legy, engineering, and math.

90
00:05:02,160 --> 00:05:04,600
Speaker 1: So what would it take for Apple to crack into

91
00:05:04,640 --> 00:05:08,599
Speaker 1: its own iPhone software? Ten engineers and a month of

92
00:05:08,680 --> 00:05:11,120
Speaker 1: work is what the company says it could take for

93
00:05:11,160 --> 00:05:13,679
Speaker 1: Apple to write the program. The FBI says it needs

94
00:05:13,680 --> 00:05:17,080
Speaker 1: to get data out of the Samburdo terrorists iPhone in

95
00:05:17,120 --> 00:05:19,720
Speaker 1: a court filing in response to the government requests that

96
00:05:19,800 --> 00:05:22,440
Speaker 1: it helped break into the device, Apple said the order

97
00:05:22,520 --> 00:05:25,720
Speaker 1: that it provide reasonable technical assistance doesn't take into full

98
00:05:25,720 --> 00:05:28,760
Speaker 1: account what the assistance would entail, and that it won't

99
00:05:28,760 --> 00:05:32,680
Speaker 1: be fast or easy. The current software requires manual password

100
00:05:32,800 --> 00:05:35,839
Speaker 1: entry and limits the number of incorrect guesses. In addition

101
00:05:35,920 --> 00:05:38,120
Speaker 1: to the six to ten engineers and as long as

102
00:05:38,200 --> 00:05:40,880
Speaker 1: four weeks of work to create new code in a

103
00:05:40,960 --> 00:05:44,400
Speaker 1: hyper secure isolation room, the company said it would require

104
00:05:44,480 --> 00:05:49,760
Speaker 1: multiple stages of testing, quality assurance, potentially recoding documentation, then

105
00:05:49,839 --> 00:05:52,200
Speaker 1: deploying the new operating system on the device at an

106
00:05:52,200 --> 00:05:56,159
Speaker 1: Apple facility, and supervising the Federal Bureau of Investigations use

107
00:05:56,720 --> 00:05:59,800
Speaker 1: of the whole system. That's this morning's Bloomberg and j

108
00:06:00,000 --> 00:06:02,560
Speaker 1: I T Stem Report. Michael, thank you very much. Bob Moon.

109
00:06:03,279 --> 00:06:06,760
Speaker 1: S Son Garamani is the founder and CEO of s

110
00:06:06,880 --> 00:06:10,000
Speaker 1: g H. Macro Advisor has been on this show many times.

111
00:06:09,839 --> 00:06:15,240
Speaker 1: The policy research firm for hedge funds and international financial policymakers.

112
00:06:15,520 --> 00:06:20,039
Speaker 1: Many international financial policy makers today obviously in Shanghai for

113
00:06:20,160 --> 00:06:24,160
Speaker 1: the G twenty meeting. Sasin, you've written it. You're not

114
00:06:24,240 --> 00:06:27,680
Speaker 1: expecting a whole lot out of this. Still, we know

115
00:06:27,839 --> 00:06:30,920
Speaker 1: currency markets little change today. People seem to be holding

116
00:06:30,960 --> 00:06:34,760
Speaker 1: their breath on trading desks. Good morning, Mike. First of all,

117
00:06:34,760 --> 00:06:36,560
Speaker 1: thank you very much, and Tom, thank you for having

118
00:06:36,560 --> 00:06:39,920
Speaker 1: me on again. Um. You're right, we're not expecting much.

119
00:06:39,920 --> 00:06:42,080
Speaker 1: But I'd like to talk actually a little bit here

120
00:06:42,120 --> 00:06:45,839
Speaker 1: about expectations because I've read a bunch of articles in

121
00:06:45,880 --> 00:06:48,120
Speaker 1: the run up to the G twenty meeting sort of

122
00:06:48,120 --> 00:06:53,039
Speaker 1: pushing back and saying don't expect the style, accord and

123
00:06:53,080 --> 00:06:56,000
Speaker 1: you know, all this kind of stuff, and and you know,

124
00:06:56,040 --> 00:06:57,560
Speaker 1: if I read one more of those, I'm going to

125
00:06:57,760 --> 00:07:00,480
Speaker 1: pull out the little bit of hair I have left

126
00:07:00,520 --> 00:07:03,280
Speaker 1: on my head. Nobody's really expecting that. Nobody's expecting to

127
00:07:03,720 --> 00:07:07,440
Speaker 1: you know, accord on you know, global currency intervention or

128
00:07:07,440 --> 00:07:10,840
Speaker 1: anything like that. The important thing at this G twenty

129
00:07:10,880 --> 00:07:15,960
Speaker 1: meeting is, quite frankly, uh to UM to really deliver

130
00:07:16,080 --> 00:07:20,960
Speaker 1: a message UM that the policy makers are are are

131
00:07:21,040 --> 00:07:23,640
Speaker 1: not out of ammunition. And this is sort of a

132
00:07:23,720 --> 00:07:26,880
Speaker 1: narrative that has been, um, you know, very prevalent I

133
00:07:26,920 --> 00:07:29,080
Speaker 1: think in the markets now, and there's concerned there was

134
00:07:29,120 --> 00:07:31,440
Speaker 1: concerned after the back of Japan cut rates and you

135
00:07:31,480 --> 00:07:34,520
Speaker 1: know that ye haven't went the other way. Uh and

136
00:07:34,360 --> 00:07:37,200
Speaker 1: and and so I think that the main point um

137
00:07:37,240 --> 00:07:39,520
Speaker 1: at the G twenty meeting is going to be two fold.

138
00:07:39,680 --> 00:07:43,200
Speaker 1: Is One is the communicate itself already address this currency issues,

139
00:07:43,280 --> 00:07:48,040
Speaker 1: that addresses volatility that nobody likes volatility. Currencies need to

140
00:07:48,040 --> 00:07:51,400
Speaker 1: follow fundamentals, So I think it's important for them to

141
00:07:52,000 --> 00:07:55,440
Speaker 1: reiterate that. Secondly, I think it's important it's not so

142
00:07:55,560 --> 00:07:58,440
Speaker 1: much the message as who is delivering the message that's

143
00:07:58,560 --> 00:08:01,720
Speaker 1: that's important. And that was one of the key um

144
00:08:02,040 --> 00:08:04,720
Speaker 1: points that we're making a piece that that that we wrote.

145
00:08:04,720 --> 00:08:06,960
Speaker 1: I think that that that you may have been alluding

146
00:08:07,000 --> 00:08:10,480
Speaker 1: to earlier um saying that, look, this isn't China and

147
00:08:10,640 --> 00:08:14,120
Speaker 1: the China fat and oil are sort of the big

148
00:08:14,160 --> 00:08:16,720
Speaker 1: global risks out there that the markets are looking at

149
00:08:16,720 --> 00:08:19,760
Speaker 1: and out Brexit as well, and so you know, they

150
00:08:19,880 --> 00:08:24,119
Speaker 1: really need to I think reassure markets on two fronts.

151
00:08:24,160 --> 00:08:26,440
Speaker 1: One is on the fundamentals of the economy, and they

152
00:08:26,480 --> 00:08:29,160
Speaker 1: need to explain to their counterparts, you know, here's here's

153
00:08:29,160 --> 00:08:31,600
Speaker 1: what's going on in our economy, and here's what we're

154
00:08:31,600 --> 00:08:34,320
Speaker 1: doing and secondly, on the currency, what are we doing

155
00:08:34,320 --> 00:08:37,520
Speaker 1: with the currency? What is you know, our our our,

156
00:08:38,080 --> 00:08:41,319
Speaker 1: our our policy here and what they have really been

157
00:08:41,559 --> 00:08:45,160
Speaker 1: Kan is explaining why why they you know, don't want

158
00:08:45,160 --> 00:08:48,240
Speaker 1: to step the evaluation and so far, Um, we've already

159
00:08:48,280 --> 00:08:51,760
Speaker 1: seen the first part of that. And and it's no coincidence,

160
00:08:51,800 --> 00:08:54,240
Speaker 1: you know, there's there's been sort of silence and then

161
00:08:54,600 --> 00:08:56,280
Speaker 1: you know, right, you know, in the run up to

162
00:08:56,320 --> 00:09:01,240
Speaker 1: the G twenty meeting, uh Central Bank Governor Uh Guan

163
00:09:01,600 --> 00:09:06,080
Speaker 1: came out and talked about the possibility of uh of

164
00:09:06,080 --> 00:09:09,959
Speaker 1: of more monetary easing. There's also another piece that is

165
00:09:10,640 --> 00:09:13,760
Speaker 1: not official, but it's sort of floated out there on

166
00:09:13,800 --> 00:09:18,680
Speaker 1: the fiscal side, where an article written that says, hey, hey, China,

167
00:09:19,000 --> 00:09:22,160
Speaker 1: you know is talking about the three um deficit to

168
00:09:22,240 --> 00:09:24,719
Speaker 1: GDP ratio that could actually go up to as much

169
00:09:24,720 --> 00:09:27,400
Speaker 1: as four percent. So these are the sorts of things

170
00:09:27,400 --> 00:09:30,960
Speaker 1: that you know, not you know, coincidentally are now being

171
00:09:31,000 --> 00:09:35,920
Speaker 1: floated around them at the meeting. UH So, when we leave,

172
00:09:36,240 --> 00:09:38,520
Speaker 1: do markets and they only have about thirty seconds left

173
00:09:38,520 --> 00:09:39,840
Speaker 1: before we have to take a break, we'll come back,

174
00:09:39,960 --> 00:09:42,840
Speaker 1: But do markets move at all? Yeah? I think markets

175
00:09:42,840 --> 00:09:44,920
Speaker 1: are moving already. You know what I mean. Look, I

176
00:09:45,320 --> 00:09:50,120
Speaker 1: don't think that um, there's there's you know, the profects

177
00:09:50,160 --> 00:09:54,480
Speaker 1: of enormous reactions specifically to the G twenty. Remember the

178
00:09:54,520 --> 00:09:57,440
Speaker 1: G twenty is you know, look there their last summit

179
00:09:57,480 --> 00:10:00,840
Speaker 1: communicated was seven paragraphs, seven ages. You know, there's a

180
00:10:00,840 --> 00:10:03,240
Speaker 1: lot lots of things they talk about. UM. So it's

181
00:10:03,280 --> 00:10:06,319
Speaker 1: not all about you know, currencies and and fx um.

182
00:10:06,360 --> 00:10:09,200
Speaker 1: But but broadly speaking, I think it's it's the sense

183
00:10:09,320 --> 00:10:12,880
Speaker 1: that the you know, global policymakers at least get it

184
00:10:12,960 --> 00:10:15,960
Speaker 1: that they are doing no harm and at least they

185
00:10:16,000 --> 00:10:18,560
Speaker 1: can be helping the situation now. And I think this

186
00:10:18,640 --> 00:10:22,880
Speaker 1: is the the key takeaway um, that that they're trying

187
00:10:22,920 --> 00:10:25,360
Speaker 1: to deliver in and I think markets are are sort

188
00:10:25,360 --> 00:10:27,280
Speaker 1: of listening to that now, and so I think, yes,

189
00:10:27,360 --> 00:10:30,840
Speaker 1: let's respond events. All right, we'll come back with sign

190
00:10:30,840 --> 00:10:36,520
Speaker 1: Garbanti from SGH Macro Advisors. They exist to read the communication,

191
00:10:36,520 --> 00:10:40,600
Speaker 1: so you don't have to are firms like that. Everybody

192
00:10:40,640 --> 00:10:43,360
Speaker 1: wants to will go immediately to the currency paragraph. They

193
00:10:43,360 --> 00:10:45,640
Speaker 1: won't read the rest of the thing that all these

194
00:10:45,800 --> 00:10:49,120
Speaker 1: highly paid government officials spend weeks putting together. I might

195
00:10:49,200 --> 00:10:53,000
Speaker 1: come a key along with Tom Keene Cynical. This is

196
00:10:53,040 --> 00:11:02,800
Speaker 1: Bloomberg Surveilance on Bloomberg Radio worldwide. We are cutting down

197
00:11:02,800 --> 00:11:04,199
Speaker 1: at the opening bill, brought to you by the refined

198
00:11:04,280 --> 00:11:06,439
Speaker 1: Jeep Grand Cherokee Overland. It continues to raise the bar

199
00:11:06,480 --> 00:11:09,439
Speaker 1: with its luxurious interior and legendary four by four capability.

200
00:11:09,520 --> 00:11:11,760
Speaker 1: Drive on at your local Jeep dealer today. Gee Official

201
00:11:11,840 --> 00:11:13,000
Speaker 1: vehicle of Killington Resort