1 00:00:03,160 --> 00:00:07,440 Speaker 1: Broadcasting live to New York Gloomberg eleventh r oh to Washington, 2 00:00:07,560 --> 00:00:11,920 Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve hundreds to San 3 00:00:11,960 --> 00:00:16,240 Speaker 1: Francisco Bloomberg nine six to the country suites Exam Channel 4 00:00:16,280 --> 00:00:19,720 Speaker 1: one nineteen and around the globe the Bloomberg Radio Plus 5 00:00:19,760 --> 00:00:24,200 Speaker 1: Appen Bloomberg dot com. This is Rooomberg Surveillance. Good morning, 6 00:00:24,200 --> 00:00:26,639 Speaker 1: I'm Karen Moscow and the opening gal brought to you 7 00:00:26,720 --> 00:00:30,159 Speaker 1: by se I Imagine, a global operating platform designed to 8 00:00:30,160 --> 00:00:34,639 Speaker 1: deliver a differentiated and technologically rich investor experience. Find out 9 00:00:34,640 --> 00:00:36,760 Speaker 1: how see I can help you succeed at se i 10 00:00:36,840 --> 00:00:40,519 Speaker 1: c dot com. Slash Imagine and songs are higher. At 11 00:00:40,520 --> 00:00:42,559 Speaker 1: the open. The sn P five hundred is up six 12 00:00:42,640 --> 00:00:45,680 Speaker 1: tenths per cent to eleven points to ninety three Dow 13 00:00:45,800 --> 00:00:48,639 Speaker 1: Jones Industrial average of four tenths percent or seventy one 14 00:00:48,680 --> 00:00:51,639 Speaker 1: points to sixteen thousand, five hundred eighty seven, and then 15 00:00:51,640 --> 00:00:53,920 Speaker 1: a stack up nine tenths per cent or forty points 16 00:00:53,920 --> 00:00:57,600 Speaker 1: to ten year Treasury up one thirty second the yield 17 00:00:57,600 --> 00:00:59,920 Speaker 1: one point seven two percent yield on the two year 18 00:01:00,080 --> 00:01:03,680 Speaker 1: point seven seven nimex scrude oil. It'll change at thirty 19 00:01:03,720 --> 00:01:06,560 Speaker 1: three dollars seventy five cents of barrel. Comics called up 20 00:01:06,560 --> 00:01:09,360 Speaker 1: half percent or six dollars seventy cents to twelve forty one. 21 00:01:09,360 --> 00:01:12,640 Speaker 1: Announced the euro a dollar eight fifty five, then one 22 00:01:12,720 --> 00:01:16,840 Speaker 1: thirteen point one eight. Tom and Mike NA, thank you 23 00:01:16,959 --> 00:01:20,680 Speaker 1: so much, Bloomberg Savannah from the nation's capital on the 24 00:01:20,760 --> 00:01:25,760 Speaker 1: Super Tuesday from a news bureau in Washington. Good Morning, FM, Washington, 25 00:01:25,760 --> 00:01:29,800 Speaker 1: Bloomberg eleven three oh New York, in Boston, in San Francisco, 26 00:01:30,520 --> 00:01:32,880 Speaker 1: and good morning across these South. What is it like 27 00:01:32,920 --> 00:01:37,840 Speaker 1: the SEC, the Southern, Southeast, Southeastern, the Southeastern Conference of 28 00:01:38,120 --> 00:01:40,640 Speaker 1: the state of the Nation. I'm not a football fan, 29 00:01:40,720 --> 00:01:44,480 Speaker 1: but anyways, it is the SEC. Like Super Tuesday. It 30 00:01:44,520 --> 00:01:46,960 Speaker 1: would be nice, Mike, to know what the economy is 31 00:01:47,000 --> 00:01:51,040 Speaker 1: actually doing well, so much attention this Super Tuesday focused 32 00:01:51,080 --> 00:01:54,200 Speaker 1: on the South and centered around the state of Georgia. 33 00:01:54,640 --> 00:01:57,680 Speaker 1: Professor Raggie Down at Georgia State University is the director 34 00:01:57,680 --> 00:02:01,360 Speaker 1: of the Economic Forecasting Center there at the Robinson School 35 00:02:01,400 --> 00:02:04,400 Speaker 1: of Business in Atlanta, so he's sort of at the 36 00:02:04,400 --> 00:02:08,120 Speaker 1: center of the SEC primary universe, and we wanted to 37 00:02:08,120 --> 00:02:10,919 Speaker 1: talk with him about what the economy is like they're 38 00:02:11,160 --> 00:02:16,160 Speaker 1: right now, and why we are seeing people so enthusiastic 39 00:02:16,200 --> 00:02:20,040 Speaker 1: about someone like Donald Trump. Good morning to you. Professor 40 00:02:20,080 --> 00:02:27,200 Speaker 1: down H described they of the Southeast and how it's 41 00:02:27,280 --> 00:02:30,680 Speaker 1: playing out for people maybe on the lower socio end 42 00:02:30,720 --> 00:02:34,480 Speaker 1: of the socioeconomic scale. You know, the economy in the 43 00:02:34,520 --> 00:02:37,800 Speaker 1: Southeast has a very big, you know, spectrum, like a 44 00:02:37,800 --> 00:02:40,799 Speaker 1: broad spectrum. If you look at Texas, it's not doing 45 00:02:40,880 --> 00:02:42,640 Speaker 1: very well now, and we all know it's because of 46 00:02:42,680 --> 00:02:45,800 Speaker 1: the shale oil gas prices being down. And on the 47 00:02:45,800 --> 00:02:47,960 Speaker 1: other hand, we have Florida and Georgia have we are 48 00:02:48,000 --> 00:02:51,640 Speaker 1: doing very well because we didn't have the shale gas revolution, 49 00:02:52,200 --> 00:02:55,359 Speaker 1: so we were insulated from it. So we are suffering 50 00:02:55,400 --> 00:02:58,480 Speaker 1: from the global headwinds a little bit because we have 51 00:02:58,560 --> 00:03:03,200 Speaker 1: the board activity we have manufacturing over here, cars and autos, 52 00:03:03,240 --> 00:03:06,600 Speaker 1: and we also have a lot of tourism. Well, we 53 00:03:06,680 --> 00:03:10,480 Speaker 1: think in terms of the South often, as you know, 54 00:03:10,639 --> 00:03:14,359 Speaker 1: the leftovers of the textile industry, that sort of thing. 55 00:03:14,800 --> 00:03:18,920 Speaker 1: We don't focus as much on manufacturing. How inaccurate is 56 00:03:19,080 --> 00:03:22,320 Speaker 1: the general view of the Southern economy. You know, this 57 00:03:22,480 --> 00:03:25,359 Speaker 1: was the view of the early nineties when the textile 58 00:03:25,480 --> 00:03:27,920 Speaker 1: mills were being closed down and they were very big 59 00:03:28,400 --> 00:03:31,960 Speaker 1: proportion of the manufacturing over here, but the manufacturing had 60 00:03:32,040 --> 00:03:34,840 Speaker 1: changed quite a bit. Now we have a lot more 61 00:03:35,000 --> 00:03:37,600 Speaker 1: paper and pulp products, as we called the forestry. We 62 00:03:37,640 --> 00:03:40,120 Speaker 1: also have a lot of food processing and we also 63 00:03:40,160 --> 00:03:44,640 Speaker 1: have a lot of auto manufacturing plants both here in Georgia, Alabama, 64 00:03:44,720 --> 00:03:47,440 Speaker 1: South Carolina, I mean, you name it, they are here. 65 00:03:48,000 --> 00:03:50,520 Speaker 1: So the foreign auto manufacturers have come and put up 66 00:03:50,520 --> 00:03:54,680 Speaker 1: their base in the southeast of the US because it's 67 00:03:54,680 --> 00:03:56,960 Speaker 1: the right to work states and they don't have too 68 00:03:57,040 --> 00:04:00,440 Speaker 1: much unionization and when you start from scrap you can 69 00:04:00,480 --> 00:04:04,640 Speaker 1: have the more basic productivity results. You know, what does 70 00:04:04,680 --> 00:04:08,160 Speaker 1: your take on the politics that we've observed, oh, in 71 00:04:08,200 --> 00:04:12,200 Speaker 1: the last two weeks, even four weeks, across the Super 72 00:04:12,240 --> 00:04:15,680 Speaker 1: Tuesday States. You've witnessed it personally in Georgia, I understand 73 00:04:15,760 --> 00:04:20,120 Speaker 1: major candidates populating Texas and moving on to some of 74 00:04:20,120 --> 00:04:23,400 Speaker 1: the northern states as well. Your take on the politics, 75 00:04:23,440 --> 00:04:27,159 Speaker 1: the polarity of the argument as you look at a 76 00:04:27,240 --> 00:04:30,960 Speaker 1: better economics in the South. Well, the thing is that 77 00:04:31,360 --> 00:04:34,599 Speaker 1: we we tend to think that it's the blue collar 78 00:04:34,680 --> 00:04:39,080 Speaker 1: worker affected by the global demand and supply, the global 79 00:04:39,240 --> 00:04:42,520 Speaker 1: hygens in the manufacturing that's going to be the so 80 00:04:42,600 --> 00:04:46,039 Speaker 1: called Trump supporter or the other ones. But I think 81 00:04:46,080 --> 00:04:48,640 Speaker 1: what I've felt it in the last few years, and 82 00:04:48,680 --> 00:04:52,120 Speaker 1: I go around the country also making speeches, is that 83 00:04:52,680 --> 00:04:57,240 Speaker 1: there is an angst amongst university educated people too, because 84 00:04:57,279 --> 00:05:00,279 Speaker 1: these days, when you get a university degree, there is 85 00:05:00,320 --> 00:05:03,159 Speaker 1: no guarantee you're going to get a job, and you 86 00:05:03,360 --> 00:05:07,880 Speaker 1: feel like you're getting outsourced to the other countries. And 87 00:05:07,880 --> 00:05:13,080 Speaker 1: when that feeling comes in, any populist candidate who is 88 00:05:13,200 --> 00:05:15,000 Speaker 1: coming up and telling you he's gonna do he or 89 00:05:15,040 --> 00:05:17,360 Speaker 1: she's going to do something is going to be a 90 00:05:17,440 --> 00:05:21,760 Speaker 1: viable candidate. And that's what I'm feeling, you know, it's 91 00:05:21,880 --> 00:05:25,640 Speaker 1: the solid middle class that's feeling that my kids may 92 00:05:25,640 --> 00:05:28,359 Speaker 1: not have the same opportunities as I had because of 93 00:05:28,400 --> 00:05:35,280 Speaker 1: the so called globalization. What is pay like? What does 94 00:05:35,440 --> 00:05:38,880 Speaker 1: income inequality like? In that I realize it's a very 95 00:05:38,920 --> 00:05:42,120 Speaker 1: diverse region from Virginia to Texas in the in the 96 00:05:42,120 --> 00:05:45,599 Speaker 1: primaries today, but in general, is it allow the same 97 00:05:45,640 --> 00:05:48,240 Speaker 1: trend as the rest of the country where pay seems 98 00:05:48,240 --> 00:05:52,800 Speaker 1: to have stagnated and income inequality has widened significantly. I 99 00:05:52,800 --> 00:05:54,800 Speaker 1: don't have the exact data, but I would say it's 100 00:05:54,920 --> 00:05:57,680 Speaker 1: most probably most likely that maybe a little bit different 101 00:05:57,720 --> 00:05:59,919 Speaker 1: here and there, like every state is a little bit different. 102 00:06:00,320 --> 00:06:03,080 Speaker 1: But I'm saying to you is that that may have 103 00:06:03,320 --> 00:06:06,800 Speaker 1: been the story ten years ago, the income inequality between 104 00:06:06,880 --> 00:06:09,960 Speaker 1: the blue collar workers and the top one. But now 105 00:06:10,120 --> 00:06:14,320 Speaker 1: it's the solid middle class that is very anxious. Their 106 00:06:14,400 --> 00:06:17,839 Speaker 1: income gains are not enough to keep up with the 107 00:06:17,880 --> 00:06:20,479 Speaker 1: way they want to live or the way they want 108 00:06:20,520 --> 00:06:24,600 Speaker 1: to do their spending on their kids, education or other things. 109 00:06:24,640 --> 00:06:28,479 Speaker 1: And they're feeling that they don't have those resources. What's 110 00:06:28,520 --> 00:06:31,760 Speaker 1: going on? What's wrong? You turn around and you always 111 00:06:31,760 --> 00:06:34,640 Speaker 1: suddenly say the first scape good that comes to your 112 00:06:34,680 --> 00:06:38,359 Speaker 1: mind is globalization. And I don't blame them, I'm not 113 00:06:38,480 --> 00:06:42,120 Speaker 1: looking at this. How much money did the US corporations 114 00:06:42,160 --> 00:06:44,920 Speaker 1: spend on their stock bibags last year, in the last 115 00:06:44,920 --> 00:06:47,200 Speaker 1: couple of years, more than it's really in each year. 116 00:06:47,520 --> 00:06:50,640 Speaker 1: How much money have they spent our macro economists on 117 00:06:50,680 --> 00:06:54,480 Speaker 1: doing investment on information processing equipment, and are in the 118 00:06:54,600 --> 00:06:57,760 Speaker 1: an intellectual property less than that? And if you don't 119 00:06:57,800 --> 00:07:01,880 Speaker 1: do investment, there's no jobs tomorrow. So that's chilling, said 120 00:07:01,880 --> 00:07:05,359 Speaker 1: the middle class building. We have a stereotype of the 121 00:07:05,360 --> 00:07:07,719 Speaker 1: expansion of the South and it doesn't go back to 122 00:07:07,760 --> 00:07:11,280 Speaker 1: Clark Cable and gone with the wind. But even in 123 00:07:11,320 --> 00:07:14,480 Speaker 1: the last twenty years, we carry our stereotypes. What is 124 00:07:14,480 --> 00:07:19,200 Speaker 1: your singular message about what Atlanta has to do to compete? 125 00:07:20,080 --> 00:07:23,280 Speaker 1: I mean, Atlanta is actually competing very well. The growth 126 00:07:23,280 --> 00:07:25,720 Speaker 1: said over here has been pretty good. It had a 127 00:07:25,840 --> 00:07:29,960 Speaker 1: very big downturn after the Great Recession because we had 128 00:07:30,200 --> 00:07:32,440 Speaker 1: a lot of overbuilding. We had a lot of but 129 00:07:32,920 --> 00:07:35,680 Speaker 1: you know, we were building seventy thousand homes and our 130 00:07:35,760 --> 00:07:39,320 Speaker 1: job growth was not even fifty. When I started in 131 00:07:39,360 --> 00:07:42,000 Speaker 1: this business, the rule of thumb was that you built 132 00:07:42,000 --> 00:07:45,600 Speaker 1: two homes you built, you build one home for two jobs. 133 00:07:45,720 --> 00:07:48,400 Speaker 1: We're building photo one at that point. So we had 134 00:07:48,400 --> 00:07:50,920 Speaker 1: an overbuilding. We didn't have a price crash. We had 135 00:07:50,920 --> 00:07:53,600 Speaker 1: an overbuilding crash. So we took a while for us 136 00:07:53,600 --> 00:07:57,160 Speaker 1: to recover hospitalities of a big driver over here. And 137 00:07:57,200 --> 00:07:59,880 Speaker 1: of course we have the biggest airport and the Delta airline, 138 00:08:00,280 --> 00:08:02,640 Speaker 1: so we have to suffer from the gerations of the 139 00:08:02,640 --> 00:08:05,680 Speaker 1: global economy a lot more now than they did it 140 00:08:05,800 --> 00:08:09,680 Speaker 1: fifteen twenty years ago. Rogerie, thank you so much. Rogie 141 00:08:09,760 --> 00:08:13,760 Speaker 1: thro One uh the Economic Forecasting Center for the mac 142 00:08:13,880 --> 00:08:17,400 Speaker 1: Robinson College of Business, Georgia State University. Mike, I know 143 00:08:17,480 --> 00:08:21,960 Speaker 1: you brought Dr Dolan to That was really great. Yeah, 144 00:08:22,000 --> 00:08:25,200 Speaker 1: And today the the SEC primary. The states from the 145 00:08:25,240 --> 00:08:29,880 Speaker 1: south voting in the Super Tuesday primary Alabama, Arkansas, Georgia. 146 00:08:30,040 --> 00:08:33,079 Speaker 1: You're putting Vermont, Tennessee, Texas, and Virginia. We're gonna leave 147 00:08:33,120 --> 00:08:37,200 Speaker 1: Vermont to the northeast and the the Maple Primary. G I'm 148 00:08:37,240 --> 00:08:39,720 Speaker 1: going opposite of some of the everybody else has come 149 00:08:39,760 --> 00:08:43,040 Speaker 1: in strong. General motors. February US auto sales are down 150 00:08:43,080 --> 00:08:45,080 Speaker 1: one and a half percent. The forecast was they would 151 00:08:45,080 --> 00:08:48,199 Speaker 1: be ups like a weather thing going on in a 152 00:08:48,280 --> 00:08:52,200 Speaker 1: presidential Everybody else has has been strong. Perhaps there was 153 00:08:52,280 --> 00:08:55,160 Speaker 1: just a shift in market share during the month. Hard 154 00:08:55,200 --> 00:08:57,760 Speaker 1: to tell, but we have seen an awful lot of 155 00:08:57,800 --> 00:09:01,920 Speaker 1: cars sold so far. Michael can time Keene in Washington 156 00:09:02,200 --> 00:09:05,719 Speaker 1: and we will be here tomorrow as well to pick 157 00:09:05,800 --> 00:09:09,840 Speaker 1: up the debris. Many people looking for landslides for Clinton 158 00:09:10,320 --> 00:09:19,000 Speaker 1: and Trump. Uh. Futures Uh the Dow rather up all right. 159 00:09:19,080 --> 00:09:20,959 Speaker 1: Time to check in out with Michael Barr and get 160 00:09:20,960 --> 00:09:23,720 Speaker 1: the latest world in national headlines. Michael, Mike time, thank 161 00:09:23,720 --> 00:09:26,160 Speaker 1: you very much. Voters are heading to the polls today 162 00:09:26,320 --> 00:09:30,240 Speaker 1: for the big Super Tuesday primaries and caucuses. Republican Donald 163 00:09:30,280 --> 00:09:34,319 Speaker 1: Trump and Democrat Hillary Clinton entered today as front runners 164 00:09:34,360 --> 00:09:38,080 Speaker 1: for their respective presidential nominations, with the chance to build 165 00:09:38,320 --> 00:09:42,760 Speaker 1: nearly an insurmountable lead. Democrat Bernie Sanders has already voted 166 00:09:42,760 --> 00:09:45,679 Speaker 1: in his home state of Vermont after a lot of deliberation. 167 00:09:45,760 --> 00:09:49,559 Speaker 1: I know that Bernie Sanders vote on rugs. Working on 168 00:09:49,720 --> 00:09:55,720 Speaker 1: my wife. Bloomberg will have NonStop Super Tuesday coverage throughout 169 00:09:55,800 --> 00:09:58,480 Speaker 1: the night, starting with a special edition of With All 170 00:09:58,520 --> 00:10:01,760 Speaker 1: Due Respects starting at five Him All Street Time. President 171 00:10:01,800 --> 00:10:04,920 Speaker 1: Obama plans to sit down today with Senate Republican leaders 172 00:10:05,200 --> 00:10:08,000 Speaker 1: who are vowing to block his Supreme Court nominee. The 173 00:10:08,040 --> 00:10:10,920 Speaker 1: President says he will nominate a success here to late 174 00:10:11,000 --> 00:10:15,240 Speaker 1: Justice antonin Scalia within weeks. Attorney General Loretta Lynch is 175 00:10:15,320 --> 00:10:19,840 Speaker 1: calling on tech companies and the government to find common ground. Lynch, 176 00:10:19,920 --> 00:10:23,160 Speaker 1: and prepared remarks later today for the rs A Cybersecurity 177 00:10:23,160 --> 00:10:26,640 Speaker 1: conference in San Francisco, says we do have to be 178 00:10:26,720 --> 00:10:29,640 Speaker 1: engaged in open dialogue so we can draw upon each 179 00:10:29,640 --> 00:10:33,400 Speaker 1: other's resources. Speech comes after a California judge ruled that 180 00:10:33,480 --> 00:10:36,160 Speaker 1: Apple should come up with software to hack into the 181 00:10:36,200 --> 00:10:39,960 Speaker 1: iPhone of the San Bernardinow shooter. The December incident left 182 00:10:40,000 --> 00:10:42,960 Speaker 1: fourteen people dead. Global News twenty four hours a day, 183 00:10:42,960 --> 00:10:46,200 Speaker 1: powered by our two journalists and more than a hundred 184 00:10:46,200 --> 00:10:48,920 Speaker 1: fifty news bureaus from around the world. I'm Michael Barn, 185 00:10:49,080 --> 00:10:53,240 Speaker 1: Mike Tom, Michael bar thank you so much. Good morning 186 00:10:53,280 --> 00:10:58,280 Speaker 1: Bloomberg FM in Washington and nationwide this Super Tuesday, it's 187 00:10:58,280 --> 00:11:04,240 Speaker 1: Bloomberg surveillance. One of the big questions of this election year. 188 00:11:04,360 --> 00:11:07,680 Speaker 1: How will Hispanics react to some of the things said 189 00:11:07,720 --> 00:11:10,560 Speaker 1: on the campaign trail. Jose Para is in the business 190 00:11:10,600 --> 00:11:13,679 Speaker 1: of selling politicians to Hispanics. We'll ask it