1 00:00:03,480 --> 00:00:07,160 Speaker 1: This is Bloomberg Surveillance. It's not the job of finance 2 00:00:07,240 --> 00:00:10,040 Speaker 1: ministers and central bank governors to accelerate a crisis. It's 3 00:00:10,039 --> 00:00:12,520 Speaker 1: our job to try and avoid a crisis. The danger 4 00:00:12,680 --> 00:00:15,960 Speaker 1: of what's going on in market at the moment is 5 00:00:16,000 --> 00:00:19,759 Speaker 1: that it does feed back to the real economy right now, 6 00:00:19,960 --> 00:00:23,440 Speaker 1: I don't think we need to do any new fiscal policy, 7 00:00:23,640 --> 00:00:26,640 Speaker 1: so it's really a question about what's going to happen 8 00:00:26,680 --> 00:00:30,200 Speaker 1: in the future. Bloomberg Surveillance your link to the world 9 00:00:30,240 --> 00:00:35,120 Speaker 1: of economics, finance, and investment on Bloomberg Radio. Good morning everyone, 10 00:00:35,120 --> 00:00:38,240 Speaker 1: without question, the Conversation of the morning coming up next 11 00:00:38,320 --> 00:00:43,360 Speaker 1: and not Embody of Stanford her comments on the controversial 12 00:00:43,400 --> 00:00:47,600 Speaker 1: decision of Neil Cashkary of Minnesota and of Minneapolis to 13 00:00:47,760 --> 00:00:51,080 Speaker 1: drive forward the too big to Fail debate. Michael McKeon, 14 00:00:51,159 --> 00:00:53,519 Speaker 1: now have that for you in a morment right now. 15 00:00:53,560 --> 00:00:56,600 Speaker 1: Foreign Exchange in a quiet day, The FOREX Brief brought 16 00:00:56,640 --> 00:00:59,840 Speaker 1: you by Interactive Brokers in our of f X Weeks 17 00:00:59,840 --> 00:01:02,600 Speaker 1: two thousand fifteen award for the best Retail for X 18 00:01:02,640 --> 00:01:06,360 Speaker 1: training platform visit ib at I b k R dot 19 00:01:06,440 --> 00:01:11,200 Speaker 1: Com slash for X I mentioned weeken Euro churning one 20 00:01:11,240 --> 00:01:13,800 Speaker 1: ten o nine sterling with a nice bid off that 21 00:01:13,840 --> 00:01:17,560 Speaker 1: one thirty eight Shock Yesterday one nine fifty four up 22 00:01:18,000 --> 00:01:22,320 Speaker 1: seven UH, pips Dollar Canada well through one thirty seven 23 00:01:22,400 --> 00:01:27,320 Speaker 1: Stronger Canada one one thirty six nineteen. I'm Luni, Mike, 24 00:01:27,400 --> 00:01:29,280 Speaker 1: I think we'll leave it. If that, Mike, I want 25 00:01:29,319 --> 00:01:33,399 Speaker 1: you to set up this important interview by saying, who 26 00:01:33,480 --> 00:01:38,280 Speaker 1: is Neil Kashkari? Who is not cash Car is, of 27 00:01:38,280 --> 00:01:42,160 Speaker 1: course the new president of the Federal Reserve Bank of Minneapolis. 28 00:01:42,240 --> 00:01:47,480 Speaker 1: Former Treasury Department official, A noted body, is professor of 29 00:01:47,560 --> 00:01:51,520 Speaker 1: Finance and Economics at Stanford University. She wrote the book 30 00:01:51,640 --> 00:01:54,960 Speaker 1: The Banker's New Clothes and Uh. In a way she 31 00:01:55,080 --> 00:01:59,000 Speaker 1: has been done Quixote for years, warning about the dangers 32 00:01:59,080 --> 00:02:02,000 Speaker 1: of under capital has poorly regulated banks and what they 33 00:02:02,040 --> 00:02:05,080 Speaker 1: could do to the economy. And she has now in 34 00:02:05,200 --> 00:02:07,920 Speaker 1: Mr cash Carry and also John Vickers talking about this 35 00:02:07,960 --> 00:02:11,000 Speaker 1: over in England. Perhaps she has found her Sancho Panzo's 36 00:02:11,800 --> 00:02:15,600 Speaker 1: not welcome back to the show. All of a sudden 37 00:02:15,840 --> 00:02:18,640 Speaker 1: you have some traction with some people who matter. I know, 38 00:02:18,800 --> 00:02:22,239 Speaker 1: it's amazing. Suddenly somebody would make a noise. It was 39 00:02:22,320 --> 00:02:26,160 Speaker 1: more important than I am and um, you know, suddenly 40 00:02:26,160 --> 00:02:29,840 Speaker 1: people are curious about what's going on and so we 41 00:02:29,880 --> 00:02:34,280 Speaker 1: can talk. You have for years said that banks needed 42 00:02:34,520 --> 00:02:39,880 Speaker 1: more capital. Would you agree with Mr cash Carry that 43 00:02:40,120 --> 00:02:44,880 Speaker 1: they should be somehow broken up? Well, the question is 44 00:02:45,639 --> 00:02:47,560 Speaker 1: if you start with a breakup or you or the 45 00:02:47,880 --> 00:02:52,760 Speaker 1: breakup happens because they can't live in markets with equity, 46 00:02:52,880 --> 00:02:55,959 Speaker 1: so it's not inconsistent. I think that they are too 47 00:02:55,960 --> 00:03:00,440 Speaker 1: big to manage to regulate their monstrous since the tuitions 48 00:03:00,480 --> 00:03:02,560 Speaker 1: by any measure that you can look at, so something 49 00:03:02,680 --> 00:03:06,720 Speaker 1: is very wrong with them. How you get there is 50 00:03:06,720 --> 00:03:10,680 Speaker 1: sort of the question what part of the business model 51 00:03:11,400 --> 00:03:14,239 Speaker 1: is too big in the sense of if they were 52 00:03:14,280 --> 00:03:18,919 Speaker 1: to hive something off, what what makes them dangerous? Well, 53 00:03:18,960 --> 00:03:21,840 Speaker 1: I think they're just a lot of things that we see. 54 00:03:21,880 --> 00:03:24,840 Speaker 1: What we see is big enough, and what's sort of 55 00:03:24,919 --> 00:03:29,160 Speaker 1: lurking around them is almost as scary. The fact that 56 00:03:29,280 --> 00:03:31,720 Speaker 1: I don't think we understand all the risks and derivatives 57 00:03:31,880 --> 00:03:35,280 Speaker 1: and in the various subsidiaries that they have, and I 58 00:03:35,320 --> 00:03:38,160 Speaker 1: think that the lines of businesses just have become kind 59 00:03:38,160 --> 00:03:40,800 Speaker 1: of out of control for one corporation. I mean, we 60 00:03:40,800 --> 00:03:44,400 Speaker 1: don't see any corporation being being as big, being as 61 00:03:45,200 --> 00:03:52,160 Speaker 1: as complicated m hm, A professor body to frame the 62 00:03:52,200 --> 00:03:55,440 Speaker 1: debate and in president and crush Carry has been very 63 00:03:55,480 --> 00:03:58,040 Speaker 1: good about saying there will be a symposium and I 64 00:03:58,080 --> 00:04:01,440 Speaker 1: think everyone in the debate would be honored if you attended, 65 00:04:01,880 --> 00:04:04,960 Speaker 1: whether they agree or disagree with you. I'm going I'm 66 00:04:06,400 --> 00:04:09,800 Speaker 1: good fourth uh and and I'm one of the bigger 67 00:04:09,800 --> 00:04:12,160 Speaker 1: than the announcements. I think I sent you Okay, well 68 00:04:12,480 --> 00:04:14,600 Speaker 1: you know, I'm sorry. I mean my people, didn't you know. 69 00:04:14,920 --> 00:04:19,960 Speaker 1: I I failed. I was not a superbuss today at Maddy. 70 00:04:20,040 --> 00:04:23,880 Speaker 1: But but importantly, Professor, the dialogue is between and not 71 00:04:24,120 --> 00:04:27,880 Speaker 1: at Maddy and Stephen Ratner, who appeared with us yesterday, 72 00:04:28,000 --> 00:04:31,200 Speaker 1: and he said to his good and esteem colleague with 73 00:04:31,320 --> 00:04:34,320 Speaker 1: public service in this nation, that Neil cash Kari is 74 00:04:34,400 --> 00:04:37,760 Speaker 1: just flat out I can't remember, Mike the exact language. 75 00:04:37,960 --> 00:04:41,640 Speaker 1: Where is Steve Rattner off the mark? Oh, I didn't 76 00:04:41,680 --> 00:04:46,040 Speaker 1: listen to this, So I failed. Two. I have a 77 00:04:46,120 --> 00:04:48,640 Speaker 1: day job. So but but within your day job is 78 00:04:48,680 --> 00:04:53,000 Speaker 1: the idea that he said? He said that the banks 79 00:04:53,160 --> 00:04:58,000 Speaker 1: are doing fine and that regulation is the solution. No, 80 00:04:58,320 --> 00:05:00,479 Speaker 1: that I agree with for sure, that doing fine. I 81 00:05:00,480 --> 00:05:03,120 Speaker 1: don't agree. I mean fine by what measure. You know, 82 00:05:03,760 --> 00:05:07,320 Speaker 1: you could be driving down the highway the fifty and 83 00:05:07,400 --> 00:05:10,200 Speaker 1: you know you're doing fine while you're making a turn. 84 00:05:10,320 --> 00:05:13,719 Speaker 1: But I don't think. I don't think we should feel 85 00:05:13,720 --> 00:05:16,320 Speaker 1: that they're fine. I don't feel they're fine. I don't. 86 00:05:17,360 --> 00:05:20,320 Speaker 1: I think that we're very endangered by them, and that 87 00:05:20,400 --> 00:05:22,440 Speaker 1: there's no reason they should be so dangerous. So I 88 00:05:22,480 --> 00:05:25,279 Speaker 1: think that these are falster insurances. I don't know what 89 00:05:25,440 --> 00:05:28,000 Speaker 1: Steve Rasner has to go by to us to make 90 00:05:28,040 --> 00:05:31,760 Speaker 1: those assertions. I think he suggested, as I have a 91 00:05:31,839 --> 00:05:35,839 Speaker 1: number of people that with the additional capital that banks 92 00:05:35,839 --> 00:05:38,440 Speaker 1: are being required to hold, and with the additional regulation 93 00:05:38,520 --> 00:05:41,520 Speaker 1: that's been imposed by that Frank, especially the costs of 94 00:05:41,560 --> 00:05:45,840 Speaker 1: complying with that regulation, banks are significantly safer than they 95 00:05:45,839 --> 00:05:49,599 Speaker 1: were going into the financial crist. That's not a measure 96 00:05:49,640 --> 00:05:53,320 Speaker 1: for me. Obviously they were not safe going into the 97 00:05:53,360 --> 00:05:57,160 Speaker 1: financial market, and like abysmally not safe, and everybody stuffers 98 00:05:57,160 --> 00:05:59,880 Speaker 1: the consequences, So being safe for it's not much of 99 00:06:00,080 --> 00:06:02,320 Speaker 1: or resurance for me. The question is that they as 100 00:06:02,320 --> 00:06:05,479 Speaker 1: safe as they should be now. Those that say, oh, 101 00:06:05,560 --> 00:06:08,000 Speaker 1: regulations have done this, and dot Frank has done that, 102 00:06:08,720 --> 00:06:11,960 Speaker 1: I actually look at that, and I actually am involved 103 00:06:12,000 --> 00:06:13,680 Speaker 1: in a few of the pieces of the dog Frank, 104 00:06:13,720 --> 00:06:16,400 Speaker 1: and I can tell you that I am not happy 105 00:06:16,440 --> 00:06:19,000 Speaker 1: with the way the dog Frank is being implemented. And 106 00:06:19,040 --> 00:06:21,599 Speaker 1: the cost of compliance are high because the regulations are 107 00:06:21,600 --> 00:06:24,680 Speaker 1: way too complex. For example, they're telling you the two 108 00:06:24,680 --> 00:06:26,640 Speaker 1: big to fail is over because they have some death 109 00:06:26,680 --> 00:06:31,840 Speaker 1: that will absorb losses to Honey gave a speech saying 110 00:06:32,080 --> 00:06:34,640 Speaker 1: it's very strange to take a very fragile system and 111 00:06:34,760 --> 00:06:37,520 Speaker 1: think that death is the thing that will make it stable. 112 00:06:38,279 --> 00:06:41,480 Speaker 1: In order for these te lacks of theirs to work, 113 00:06:41,880 --> 00:06:44,680 Speaker 1: you're gonna have to have the courage to declare JP 114 00:06:44,800 --> 00:06:48,480 Speaker 1: Morgan Chase insolvent when it has it and how the 115 00:06:48,560 --> 00:06:50,120 Speaker 1: other banks And I'm not I don't mean to point 116 00:06:50,160 --> 00:06:52,240 Speaker 1: to JP Morgan Chase. It's among the stronger one maybe, 117 00:06:52,600 --> 00:06:55,560 Speaker 1: but that either of them. So why are we counting 118 00:06:55,600 --> 00:06:57,800 Speaker 1: on death that would magically convert to equity when we 119 00:06:57,800 --> 00:07:01,120 Speaker 1: can put equity in its place, so with is much simpler. 120 00:07:01,279 --> 00:07:03,480 Speaker 1: The lawyers might have less work to do, and that 121 00:07:03,560 --> 00:07:06,320 Speaker 1: would be less compliance if you just have them retain 122 00:07:06,360 --> 00:07:09,280 Speaker 1: their earnings. If we understand that there was bank failure, 123 00:07:09,880 --> 00:07:13,640 Speaker 1: there were clearly makes mistakes made. Even the most nongious 124 00:07:13,640 --> 00:07:17,760 Speaker 1: bank defender agrees with that. And if we have new regulation, 125 00:07:18,320 --> 00:07:23,480 Speaker 1: how do you expect US banks to compete internationally if 126 00:07:23,520 --> 00:07:28,120 Speaker 1: we give up size and scale. Well, you know, international 127 00:07:28,680 --> 00:07:32,280 Speaker 1: competition is all good and well, except when it comes 128 00:07:32,280 --> 00:07:34,880 Speaker 1: on the back of taxpayers. So what I say is, 129 00:07:35,160 --> 00:07:38,600 Speaker 1: you know, we can control only what we can control. 130 00:07:38,880 --> 00:07:43,720 Speaker 1: It's not a national objective that our banks be competitive globally. 131 00:07:44,600 --> 00:07:48,080 Speaker 1: You know, the Irish banks were competitive, and the Icelandic 132 00:07:48,080 --> 00:07:50,360 Speaker 1: banks were competitive for one look where it took them. 133 00:07:50,960 --> 00:07:54,680 Speaker 1: So it definitely an objective. Yeah, I mean, Mike, I 134 00:07:54,720 --> 00:07:57,000 Speaker 1: think we have to harken back to the Irish lesson 135 00:07:57,640 --> 00:08:00,200 Speaker 1: as part of this debate. Again, whatever the polar any 136 00:08:00,240 --> 00:08:03,800 Speaker 1: of the debate is completely you know, everybody can succeed 137 00:08:03,880 --> 00:08:06,160 Speaker 1: if you give them enough subsidies, if you know, so 138 00:08:06,400 --> 00:08:08,320 Speaker 1: the competing to harm it's not it's not the kind 139 00:08:08,360 --> 00:08:10,480 Speaker 1: of competition I want. They're competing with the rest of 140 00:08:10,520 --> 00:08:13,080 Speaker 1: the economy. They're taking you know that we may have 141 00:08:13,080 --> 00:08:16,080 Speaker 1: two biggest financial sector. I want the markets to work. 142 00:08:16,120 --> 00:08:19,840 Speaker 1: I think it's all distorted by subsidies and by you know, 143 00:08:20,000 --> 00:08:23,240 Speaker 1: recklessness and bloated, and so I want to see the 144 00:08:23,320 --> 00:08:27,280 Speaker 1: market work. When you go up to Minneapolis on April fourth, 145 00:08:27,480 --> 00:08:31,120 Speaker 1: what are you going to tell the president cash carry 146 00:08:31,160 --> 00:08:34,120 Speaker 1: other than turn off the heat case. I have a 147 00:08:34,120 --> 00:08:37,280 Speaker 1: lot to say. In fact, I haven't much the time 148 00:08:37,280 --> 00:08:39,440 Speaker 1: they give me. I will and I and I'm actually 149 00:08:39,600 --> 00:08:42,640 Speaker 1: telling them what I think they should emphasize. Which are 150 00:08:42,640 --> 00:08:45,000 Speaker 1: the kinds of things I want to get into for 151 00:08:45,120 --> 00:08:48,240 Speaker 1: the last six years before we once we remove all 152 00:08:48,280 --> 00:08:51,199 Speaker 1: the fog and all the and all the flawed claims, 153 00:08:51,200 --> 00:08:54,760 Speaker 1: which is, how do we measure anything there? I am 154 00:08:54,800 --> 00:08:58,800 Speaker 1: not happy with the way we even understand the risks 155 00:08:58,840 --> 00:09:01,319 Speaker 1: from these markets. So I trust the measures. I don't 156 00:09:01,360 --> 00:09:03,720 Speaker 1: trust to risk a weight. All of those things are 157 00:09:03,840 --> 00:09:07,560 Speaker 1: enormous problems. So you know, I don't see capital as 158 00:09:07,640 --> 00:09:12,960 Speaker 1: measured as the necessarily the silver bullet. And if you 159 00:09:13,040 --> 00:09:15,439 Speaker 1: tell me that they measure it as as you know, 160 00:09:15,559 --> 00:09:18,360 Speaker 1: fifteen of five, that that I'm going back to sleep. 161 00:09:18,760 --> 00:09:22,040 Speaker 1: So there's plenty to talk about regarding you know, the 162 00:09:22,080 --> 00:09:25,760 Speaker 1: scope of banking, the type of reporting. You know, they 163 00:09:25,880 --> 00:09:28,880 Speaker 1: still rely on credit rating agencies, all kinds of things. 164 00:09:30,840 --> 00:09:34,280 Speaker 1: I'm not fabulous. Let's come back with another body I'm 165 00:09:34,320 --> 00:09:36,520 Speaker 1: sorry one block today and not thank you so much. 166 00:09:36,800 --> 00:09:39,600 Speaker 1: We really need we would kill I'm going to book 167 00:09:39,600 --> 00:09:42,480 Speaker 1: you right now. We would kill to have you on 168 00:09:43,040 --> 00:09:48,160 Speaker 1: somewhere around that important April meeting in Minneapolis. We need 169 00:09:48,200 --> 00:09:50,920 Speaker 1: to make every effort to do that. Professor and not 170 00:09:51,040 --> 00:09:55,000 Speaker 1: of body at Stanford, truly that the nation's leader on 171 00:09:55,720 --> 00:10:00,960 Speaker 1: um careful, measured and respectful criticism of our bank and 172 00:10:00,960 --> 00:10:05,480 Speaker 1: financial institutions. Well, Chris Whalen, Uh. Michael McKie was active 173 00:10:05,520 --> 00:10:09,280 Speaker 1: today out talking about ker flatness as being a challenge 174 00:10:09,320 --> 00:10:14,160 Speaker 1: to bank profitability. Well, sure, um and uh it's a 175 00:10:14,160 --> 00:10:16,719 Speaker 1: difficult time period because that is sort of out of 176 00:10:16,760 --> 00:10:20,160 Speaker 1: the hands of the regulators and our kindest thanks to 177 00:10:20,200 --> 00:10:23,680 Speaker 1: Stephen Ratner UM yesterday on the show with Willow Advisors. 178 00:10:23,679 --> 00:10:26,720 Speaker 1: We should point out as disclaimer one of the managers 179 00:10:26,760 --> 00:10:30,360 Speaker 1: of our owner, Michael Bloomberg's money. Michael Bloomberg is a 180 00:10:30,360 --> 00:10:33,920 Speaker 1: founder and leader of the company and Bloomberg Radio. But 181 00:10:34,080 --> 00:10:37,040 Speaker 1: the polarity between Ratner and Mahdia is what it's what 182 00:10:37,200 --> 00:10:41,440 Speaker 1: this show is all about. Different different views, different people 183 00:10:41,480 --> 00:10:45,000 Speaker 1: with different views. Futures green up four and down, futures 184 00:10:45,080 --> 00:10:52,920 Speaker 1: up forty one. They yield one point seven four. Le'll 185 00:10:52,960 --> 00:10:54,640 Speaker 1: check in with John Tucker I get the latest world 186 00:10:54,640 --> 00:10:57,720 Speaker 1: in national headlines. John all right, thanks, Michael and Tom 187 00:10:57,800 --> 00:11:01,560 Speaker 1: with five days Availa before Super Tuesday. Republican rivals of 188 00:11:01,600 --> 00:11:04,959 Speaker 1: Donald Trump looking to challenge the GOP front runner during 189 00:11:04,960 --> 00:11:08,120 Speaker 1: tonight's debate. He in Houston, Marco Rubio, Ted Cruz have 190 00:11:08,280 --> 00:11:10,640 Speaker 1: so far shown a little willingness to take on Trump 191 00:11:10,920 --> 00:11:14,200 Speaker 1: in a high profile setting that could, of course change tonight. 192 00:11:14,640 --> 00:11:17,240 Speaker 1: A storm systems have brought tornadoes to the East Coast, 193 00:11:17,280 --> 00:11:20,880 Speaker 1: killing four people in Virginia, including a two year old. 194 00:11:21,080 --> 00:11:24,760 Speaker 1: Virginia govern A Terna McCall of declaring a state of emergency. Elsewhere, 195 00:11:24,800 --> 00:11:27,040 Speaker 1: officials in South Carolina say a man was killed when 196 00:11:27,040 --> 00:11:30,600 Speaker 1: a tree filmed on him. The World Health Organization says 197 00:11:30,640 --> 00:11:33,199 Speaker 1: women breastfeeding their babies in countries hit by the Zekea 198 00:11:33,280 --> 00:11:36,520 Speaker 1: virus should continue to do so. Who says there's no 199 00:11:36,600 --> 00:11:40,120 Speaker 1: proof the disease can spread to infants that way. Global 200 00:11:40,200 --> 00:11:42,240 Speaker 1: News twenty four hours a day, powered by a twenty 201 00:11:42,240 --> 00:11:44,960 Speaker 1: four hundred journalists more than one hundred fifty news bureaus 202 00:11:45,000 --> 00:11:48,400 Speaker 1: around the world. I'm John Tucker, Michael, and to John, 203 00:11:48,440 --> 00:11:50,199 Speaker 1: Thanks so much we may get a one thirteen per 204 00:11:50,320 --> 00:11:53,480 Speaker 1: onion weeker two days in a row, one ninety one 205 00:11:53,559 --> 00:11:59,079 Speaker 1: sterling front and center, one stronger Sterling off the horror 206 00:11:59,120 --> 00:12:07,120 Speaker 1: of yesterday worldwide Bloomberg Surveillance Market Driver is brought to 207 00:12:07,160 --> 00:12:09,040 Speaker 1: you by your Mercedes Benz Tri State Dealer. When it 208 00:12:09,080 --> 00:12:11,160 Speaker 1: comes to winter elements, but your best four wheels forward 209 00:12:11,200 --> 00:12:13,640 Speaker 1: with Mercedes Benz for weddic on wheel drive. This is 210 00:12:13,720 --> 00:12:17,679 Speaker 1: your Mercedes Benz Tri State Dealer for a test drive today. 211 00:12:22,360 --> 00:12:25,760 Speaker 1: Global Business News twenty four hours a day at Bloomberg 212 00:12:25,800 --> 00:12:28,840 Speaker 1: dot com, the Radio, plus mobil and on your radio. 213 00:12:29,160 --> 00:12:33,000 Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow. 214 00:12:33,080 --> 00:12:35,640 Speaker 1: This update is brought to you by Interactive Brokers and 215 00:12:35,760 --> 00:12:38,640 Speaker 1: CME Group. If you're looking for global futures contracts with 216 00:12:38,800 --> 00:12:42,120 Speaker 1: low trading costs, look no further. Interactive Brokers as the 217 00:12:42,200 --> 00:12:45,880 Speaker 1: industry leader. Learn more at Interactive Brokers dot com, Slash, 218 00:12:45,880 --> 00:12:49,400 Speaker 1: c m E Group and US sock Index Futures. They 219 00:12:49,480 --> 00:12:52,319 Speaker 1: are higher. This is after equities staged a late day 220 00:12:52,360 --> 00:12:55,240 Speaker 1: rebounding yesterday and as an investors assess US sell off 221 00:12:55,240 --> 00:12:58,360 Speaker 1: in China overnight and a rally in European markets. We 222 00:12:58,440 --> 00:13:01,040 Speaker 1: checked the markets every fifteen minute throughout the trading day 223 00:13:01,040 --> 00:13:04,000 Speaker 1: on Bloomberg SNP even the Future is up five points 224 00:13:04,080 --> 00:13:06,160 Speaker 1: now even the Future is up forty five and NASA 225 00:13:06,160 --> 00:13:08,680 Speaker 1: doc eveny Future is up seven and a half decks. 226 00:13:08,720 --> 00:13:11,800 Speaker 1: In Germany's up two point four percent. Ten year treasury 227 00:13:11,840 --> 00:13:14,640 Speaker 1: up two thirty seconds and yield one point seven three percent. 228 00:13:14,760 --> 00:13:17,440 Speaker 1: Yield done the two year point seven three percent. Now 229 00:13:17,480 --> 00:13:19,440 Speaker 1: I'm ex scret oil down four tenths per cent or 230 00:13:19,480 --> 00:13:21,840 Speaker 1: ten cents to thirty two oh six of barrel and 231 00:13:21,920 --> 00:13:24,319 Speaker 1: comes gold is down nine tenths per cent or eleven 232 00:13:24,360 --> 00:13:27,760 Speaker 1: dollars seventy cents to twelve twenty seven twenty announced the 233 00:13:27,760 --> 00:13:30,160 Speaker 1: euro a dollar ten o four, the n one twelve 234 00:13:30,200 --> 00:13:33,280 Speaker 1: point nine two, and that's a Bloomberg business flash. Tom 235 00:13:33,280 --> 00:13:36,920 Speaker 1: and Mike Karen Morosco, thank you very much. Dave Wilson 236 00:13:37,000 --> 00:13:40,040 Speaker 1: is here with your look at market drivers, and Dave 237 00:13:40,360 --> 00:13:43,200 Speaker 1: is not one to turn down a request from Tom 238 00:13:43,280 --> 00:13:46,560 Speaker 1: King's request. It was in a law of your wisdom 239 00:13:46,679 --> 00:13:51,280 Speaker 1: way out front. David Wilson se energy energy now is 240 00:13:51,320 --> 00:13:53,880 Speaker 1: it starts up one and a half percent in early trading. 241 00:13:54,200 --> 00:13:57,840 Speaker 1: The natural gas Exporters sent out its first shipment yesterday 242 00:13:57,880 --> 00:14:01,199 Speaker 1: from the Sabine Past Terminal and Louisa Anna. The cargo 243 00:14:01,280 --> 00:14:04,840 Speaker 1: consists of three billion cubic feet of liquefied shell gas 244 00:14:05,040 --> 00:14:07,080 Speaker 1: and it's bound for Brazil. But I gotta tell you, Tom, 245 00:14:07,280 --> 00:14:10,880 Speaker 1: it's not the only story coming out of Louisiana. And 246 00:14:11,000 --> 00:14:14,240 Speaker 1: there's another one that isn't so favorable. It's about Cliko. 247 00:14:14,480 --> 00:14:18,520 Speaker 1: There are an electric uti utility. An investor group led 248 00:14:18,520 --> 00:14:21,720 Speaker 1: by McQuary Infrastructure wanted to buy them for three point 249 00:14:21,760 --> 00:14:27,440 Speaker 1: four billion dollars no deal. Louisiana regulators rejected the transaction, 250 00:14:27,520 --> 00:14:29,720 Speaker 1: and Clico shares a down two and a half percent. 251 00:14:30,080 --> 00:14:33,960 Speaker 1: Moving on, Salesforce dot Com up ten percent. The seller 252 00:14:33,960 --> 00:14:36,520 Speaker 1: of internet based business software expects first quarter earnings and 253 00:14:36,560 --> 00:14:39,400 Speaker 1: revenue to exceed analyst average estimates in the Blueberg survey. 254 00:14:39,520 --> 00:14:42,880 Speaker 1: Salesforce dot Com also forecast this year's results would meet 255 00:14:43,000 --> 00:14:46,000 Speaker 1: or beat projections, and one of its competitors, work Day, 256 00:14:46,280 --> 00:14:50,240 Speaker 1: up three percent in early trading, Campbell Soup up one percent. 257 00:14:50,360 --> 00:14:53,960 Speaker 1: The company raises eighteen target for a cost cutting program 258 00:14:54,000 --> 00:14:57,280 Speaker 1: to three hundred million dollars. Fourth quarter earnings and sales 259 00:14:57,280 --> 00:15:00,360 Speaker 1: were in line with preliminary figures given. Next this week, 260 00:15:00,680 --> 00:15:04,600 Speaker 1: you've got McKesson shares up three percent, the drug distributor 261 00:15:04,720 --> 00:15:09,400 Speaker 1: making a deal to buy Vantage Oncology and Biologics as 262 00:15:09,440 --> 00:15:12,880 Speaker 1: well as another company for one point two billion dollars total, 263 00:15:13,160 --> 00:15:16,440 Speaker 1: and they stayed the deal, adding eleven percent to their 264 00:15:16,440 --> 00:15:23,560 Speaker 1: adjusted earnings for the fiscal seventeen period. One. Restoration hard Yeah, 265 00:15:23,640 --> 00:15:27,080 Speaker 1: down twenty three and a half percent. The home furnishings 266 00:15:27,120 --> 00:15:30,200 Speaker 1: retailer's fiscal fourth quarter earnings trailed estimates by the widest 267 00:15:30,200 --> 00:15:33,720 Speaker 1: margin in three years. Sales were also well below projections. 268 00:15:33,800 --> 00:15:37,120 Speaker 1: And you've got shares of Williams Sonoma down seven percent 269 00:15:37,240 --> 00:15:40,320 Speaker 1: in the wake of the disappointing numbers from Restorational Hardware. 270 00:15:40,560 --> 00:15:42,800 Speaker 1: Very good, David Wilson, Thank you so much. Michael McKie. 271 00:15:42,840 --> 00:15:47,280 Speaker 1: What did you bring in our next steamed guest sins 272 00:15:47,440 --> 00:15:51,560 Speaker 1: too well to describe. Arthur Lovitt, who is former chairman 273 00:15:51,600 --> 00:15:54,120 Speaker 1: of the Securities Inks Change Commissioner, member of the Bloomberg 274 00:15:54,520 --> 00:15:58,080 Speaker 1: Board of Directors, host of a Closer Look here on 275 00:15:58,240 --> 00:16:02,720 Speaker 1: this radio station. A couple of interesting things catching your 276 00:16:02,720 --> 00:16:05,280 Speaker 1: eye in mine. A story today, um that the New 277 00:16:05,320 --> 00:16:09,480 Speaker 1: York Attorney General Arthur is giving his support to the 278 00:16:09,560 --> 00:16:14,280 Speaker 1: SEC's plans to regulate dark pools. I think that's a 279 00:16:14,360 --> 00:16:18,680 Speaker 1: good thing. Actually, there is a role for attorney generals 280 00:16:18,960 --> 00:16:23,560 Speaker 1: and regulation at a state level. But it's when regulators 281 00:16:23,680 --> 00:16:27,440 Speaker 1: disagree with one another to who see who's first to 282 00:16:27,520 --> 00:16:31,320 Speaker 1: the bar that we get into problems. Now, New York 283 00:16:31,360 --> 00:16:34,880 Speaker 1: State is probably the most over regular regulated state in 284 00:16:34,920 --> 00:16:38,200 Speaker 1: the history of America. You've got the New York State 285 00:16:38,440 --> 00:16:42,480 Speaker 1: Attorney General, You've got the U S Attorney Finra, the 286 00:16:42,560 --> 00:16:46,040 Speaker 1: New York City District Attorney UH, and on and on 287 00:16:46,080 --> 00:16:51,000 Speaker 1: and on. But I think the fact that New York State, 288 00:16:51,080 --> 00:16:55,320 Speaker 1: which a few weeks ago announced that Barkley's and Credit 289 00:16:55,360 --> 00:16:58,320 Speaker 1: Sweez would pay over a hundred fifty million dollars to 290 00:16:58,360 --> 00:17:04,320 Speaker 1: settle allegations that they misled investors on private trading platforms. 291 00:17:04,760 --> 00:17:09,760 Speaker 1: After doing that, they turned the case basically over to 292 00:17:10,200 --> 00:17:12,719 Speaker 1: the SEC, and I think that's the way it should go. 293 00:17:13,960 --> 00:17:18,240 Speaker 1: The The New York Attorney General has also got legislation 294 00:17:18,920 --> 00:17:21,639 Speaker 1: backing him out that for the day's valiot, Spitzer has 295 00:17:21,680 --> 00:17:25,679 Speaker 1: been wielded against the banks. So having him on the 296 00:17:25,760 --> 00:17:29,920 Speaker 1: side of the regulators probably makes banks a little a 297 00:17:29,960 --> 00:17:34,680 Speaker 1: little more nervous, right, Well, uh, no, not really because 298 00:17:35,600 --> 00:17:41,360 Speaker 1: uh with New York States very specific laws with regard 299 00:17:41,480 --> 00:17:47,560 Speaker 1: to financial companies, the state regulator, going back to the 300 00:17:47,640 --> 00:17:52,320 Speaker 1: days of Louis Lefkowitz, has been a powerful club, and 301 00:17:52,400 --> 00:17:57,399 Speaker 1: sometimes not a well reasoned experienced club used against the 302 00:17:57,440 --> 00:18:03,159 Speaker 1: financial industry. So I think that the system is better 303 00:18:03,280 --> 00:18:07,919 Speaker 1: served by the state doing its job. But ultimately the 304 00:18:08,119 --> 00:18:13,680 Speaker 1: SEC has the final say in terms of major cases, 305 00:18:13,760 --> 00:18:17,600 Speaker 1: and that appears to be what's happening in the instance 306 00:18:17,720 --> 00:18:22,480 Speaker 1: of Barclay's and Credit Suite, where the Attorney General Board 307 00:18:22,520 --> 00:18:26,560 Speaker 1: brought a case and now the Commission is taking it on. Arthur. 308 00:18:26,600 --> 00:18:28,000 Speaker 1: When you're in the studio again, I want to do 309 00:18:28,040 --> 00:18:30,679 Speaker 1: a long discussion on this, but very quickly. Here we 310 00:18:30,760 --> 00:18:33,959 Speaker 1: have a polarity on surveillance and added body of Stanford 311 00:18:34,240 --> 00:18:38,680 Speaker 1: and Steve Rattner Willis Advisers. They differ remarkedly in support 312 00:18:39,040 --> 00:18:42,959 Speaker 1: of Neil cush Cary's effort to consider what to do 313 00:18:43,040 --> 00:18:46,399 Speaker 1: with our big banks. You're in an interesting place in 314 00:18:46,480 --> 00:18:50,000 Speaker 1: this debate. Where do you fit in. I think that 315 00:18:50,320 --> 00:18:54,840 Speaker 1: Neil has a good point. He states it very starkly 316 00:18:55,080 --> 00:18:58,160 Speaker 1: to make the point, and I don't think we're going 317 00:18:58,240 --> 00:19:01,560 Speaker 1: to get to the point of break up just yet. 318 00:19:02,040 --> 00:19:05,920 Speaker 1: But I certainly don't think the issues with the banks 319 00:19:06,440 --> 00:19:11,400 Speaker 1: are over. I certainly don't think the regulatory fixes can 320 00:19:11,480 --> 00:19:17,159 Speaker 1: make the public rest easy. I certainly believe that modifications 321 00:19:18,160 --> 00:19:22,800 Speaker 1: of Dodd Frank will be made, and I think the 322 00:19:22,840 --> 00:19:27,199 Speaker 1: whole question of living wills is very much still up 323 00:19:27,240 --> 00:19:31,000 Speaker 1: in the air. So I guess I h leaned toward 324 00:19:31,040 --> 00:19:36,600 Speaker 1: the cash carry Amadi, feeling not totally but more than 325 00:19:36,640 --> 00:19:39,440 Speaker 1: I do. Steve just brilliant. This is what we love. 326 00:19:39,520 --> 00:19:42,120 Speaker 1: Love love, folks. When we invented Bloomberg on the economy, 327 00:19:42,160 --> 00:19:46,439 Speaker 1: we invented Bloomberg surveillance, Michael. I just love the different 328 00:19:46,520 --> 00:19:49,440 Speaker 1: nuances we get on whatever the debate isn't of course 329 00:19:49,480 --> 00:19:52,159 Speaker 1: here on a very large part of the future of 330 00:19:52,200 --> 00:19:55,520 Speaker 1: global Wall Street. Arthur Levity is a former chairman of 331 00:19:55,560 --> 00:19:59,000 Speaker 1: the Securities in Exchange Commission. We have more, we need 332 00:19:59,040 --> 00:20:02,280 Speaker 1: to get the markets open and stay with us Bloomberg surveillance, 333 00:20:06,280 --> 00:20:07,760 Speaker 1: but kind of down to the opening bell, brought to 334 00:20:07,760 --> 00:20:10,360 Speaker 1: you by the refined jeep Grand Cherokee Overland. It continues 335 00:20:10,400 --> 00:20:13,200 Speaker 1: to raise the bar with its luxurious interior and legendary 336 00:20:13,200 --> 00:20:15,360 Speaker 1: four by four capability. So I've wanted to your local 337 00:20:15,400 --> 00:20:24,080 Speaker 1: Jeep dealer today Jeep the official vehicle Killington Resort broadcasting 338 00:20:24,160 --> 00:20:27,920 Speaker 1: live to New York, Gloomberg eleventh LEO to Washington, d C, 339 00:20:28,080 --> 00:20:33,399 Speaker 1: Bloomberg to Boston, Bloomberg twelve unders to San Francisco, Bloomberg 340 00:20:33,480 --> 00:20:37,000 Speaker 1: nine six to the Country Series Exam Channel one ninety 341 00:20:37,200 --> 00:20:40,720 Speaker 1: and around the globe the Bloomberg Radio Plus Appen Bloomberg 342 00:20:40,760 --> 00:20:44,720 Speaker 1: dot com. This is Bloomberg Surveillance. Hey, good morning. I'm 343 00:20:44,760 --> 00:20:47,600 Speaker 1: Karen Moscow along with Tom Keene and Michael McKee and 344 00:20:47,640 --> 00:20:49,680 Speaker 1: the opening Bell brought to you by s C. I 345 00:20:49,760 --> 00:20:54,119 Speaker 1: have evolving investor and regulatory demands affected your investment firms 346 00:20:54,160 --> 00:20:58,760 Speaker 1: operational readiness. Imagine transforming your business with sei's global platform 347 00:20:58,800 --> 00:21:02,119 Speaker 1: at se i C dot com um slash imagine, and 348 00:21:02,280 --> 00:21:04,960 Speaker 1: stocks are higher at the open. The SNP five hundred 349 00:21:05,040 --> 00:21:07,280 Speaker 1: up to tenths per cent or three points to nineteen 350 00:21:07,280 --> 00:21:10,320 Speaker 1: thirty three. Dow Jones Industrial average up two tens per 351 00:21:10,320 --> 00:21:13,800 Speaker 1: center thirty points to sixteen thousand, five hundred fifteen. Then 352 00:21:13,800 --> 00:21:15,960 Speaker 1: as acts up three tenths per cent or twelve points 353 00:21:15,960 --> 00:21:18,840 Speaker 1: to forty five fifty five ten year treasury up seven 354 00:21:18,880 --> 00:21:21,520 Speaker 1: thirty seconds, the yield one point seven two percent yield 355 00:21:21,560 --> 00:21:24,400 Speaker 1: on the two year point seven two percent nine. Max 356 00:21:24,400 --> 00:21:26,560 Speaker 1: screwed oil down eight tens per cent or twenty seven 357 00:21:26,640 --> 00:21:29,720 Speaker 1: cents to thirty one eight a barrel. Comax gold is 358 00:21:29,760 --> 00:21:32,320 Speaker 1: down six tenths percent or seven dollars twenty cents to 359 00:21:32,400 --> 00:21:34,960 Speaker 1: twelve thirty one eighty an ounce, and the euro a 360 00:21:35,040 --> 00:21:37,840 Speaker 1: dollar oh nine nine four the end one twelve point 361 00:21:37,880 --> 00:21:42,480 Speaker 1: eight six. Tom and Mike Karen thanks so much. He 362 00:21:42,680 --> 00:21:46,920 Speaker 1: is upon us. Joseph Wisenthal, I noticed the success of 363 00:21:46,960 --> 00:21:50,440 Speaker 1: Bloomberg Markets the other day, like Facebook follows in Twitter, 364 00:21:50,680 --> 00:21:53,680 Speaker 1: it's really getting some tractions. Great. You know, I think 365 00:21:54,080 --> 00:21:58,080 Speaker 1: the the content that we produced at Bloomberg, the stories 366 00:21:58,119 --> 00:22:01,399 Speaker 1: that we do the TV, there's a there's a great 367 00:22:01,480 --> 00:22:05,680 Speaker 1: appetite for it on the internet. Sophisticated markets and economics commentary, 368 00:22:05,720 --> 00:22:09,520 Speaker 1: people like have you seen his entourage, Michael, It stretches 369 00:22:09,560 --> 00:22:13,200 Speaker 1: halfway to Park Avenue. Uh, it's amazing. Yeah, it's gotta 370 00:22:13,200 --> 00:22:18,800 Speaker 1: going followers and the entourage on negative interest rates is extraordinary. Um, 371 00:22:19,200 --> 00:22:21,399 Speaker 1: you say there's some comm out there, I don't see it, 372 00:22:21,440 --> 00:22:24,000 Speaker 1: because are we gonna see from where you sit, is 373 00:22:24,000 --> 00:22:28,120 Speaker 1: there a prediction of ever more negative interest rates? Well, 374 00:22:28,240 --> 00:22:31,960 Speaker 1: I just think it's striking how fast the conversation changes. 375 00:22:32,320 --> 00:22:35,359 Speaker 1: I mean, I think that there are still anxieties about 376 00:22:35,359 --> 00:22:38,000 Speaker 1: where this leads to what it does to banks in 377 00:22:38,040 --> 00:22:41,400 Speaker 1: the long term. But look, two weeks ago, you couldn't 378 00:22:41,960 --> 00:22:44,000 Speaker 1: h you know, swing a cat without seeing a story 379 00:22:44,040 --> 00:22:48,320 Speaker 1: about markets revolting against negative interest rates, concerns that they 380 00:22:48,320 --> 00:22:51,000 Speaker 1: were really bad for the economy. Now I haven't seen 381 00:22:51,080 --> 00:22:53,320 Speaker 1: one in weeks. What's changed or nothing. The only thing 382 00:22:53,359 --> 00:22:56,040 Speaker 1: that's changes that markets have gone up, and so people 383 00:22:56,040 --> 00:22:59,120 Speaker 1: have changed their story, but they're still with us um. 384 00:22:59,160 --> 00:23:02,080 Speaker 1: I think one of the things that's really striking the 385 00:23:02,160 --> 00:23:05,920 Speaker 1: japan forty year government bond. I didn't even know it 386 00:23:06,440 --> 00:23:09,520 Speaker 1: last night that Japan had a forty year. Everyone knows 387 00:23:09,560 --> 00:23:12,320 Speaker 1: there's a thirty year. The yield on the forty year 388 00:23:12,400 --> 00:23:15,399 Speaker 1: now has fallen below one percent. I mean, it seems 389 00:23:15,440 --> 00:23:17,679 Speaker 1: conceivable that in a month we'll be back here talk 390 00:23:17,720 --> 00:23:20,760 Speaker 1: about how Japan has negative rates out to forty years. 391 00:23:20,840 --> 00:23:24,560 Speaker 1: Absolutely extraordinary. A lot of this decline and yields coming 392 00:23:24,640 --> 00:23:27,159 Speaker 1: since Japan, the Bank of Japan went to negative rates. 393 00:23:27,600 --> 00:23:31,359 Speaker 1: They've got a bond. It's gonna mature in March of 394 00:23:31,440 --> 00:23:35,160 Speaker 1: two thousand fifty five. Tom will be there and there 395 00:23:36,600 --> 00:23:39,280 Speaker 1: will you. Will you take one percent on your money 396 00:23:39,600 --> 00:23:45,159 Speaker 1: until I remember my grand my grandfather showing me his 397 00:23:45,280 --> 00:23:48,920 Speaker 1: bond blodder the first time he got a three percent coupon, 398 00:23:49,600 --> 00:23:52,600 Speaker 1: and he said that was unimaginable. Together it was, So 399 00:23:53,160 --> 00:23:55,280 Speaker 1: you really wonder do we go back to that length 400 00:23:55,320 --> 00:23:58,119 Speaker 1: of time. What are you observing about G twenty this weekend. 401 00:23:58,160 --> 00:24:02,320 Speaker 1: We've done very little on it and it's Thursday. But 402 00:24:02,800 --> 00:24:05,199 Speaker 1: is there any buzz other than it's a junk in 403 00:24:05,280 --> 00:24:08,680 Speaker 1: the photo up? No? I mean, I think a few 404 00:24:08,680 --> 00:24:12,520 Speaker 1: weeks ago some people had talked about this idea of 405 00:24:12,600 --> 00:24:17,440 Speaker 1: some coordinated global currency intervention that just seems so far fetched. 406 00:24:17,480 --> 00:24:20,560 Speaker 1: It doesn't feel like anything on that front is going 407 00:24:20,600 --> 00:24:23,480 Speaker 1: to happen. But you know, again, these ideas were put 408 00:24:23,520 --> 00:24:27,120 Speaker 1: forth during what felt like a period of much more panic. 409 00:24:27,880 --> 00:24:30,560 Speaker 1: It just doesn't feel like there's the political will, particularly 410 00:24:30,600 --> 00:24:33,760 Speaker 1: in the United States, to have the FED or any 411 00:24:33,840 --> 00:24:36,600 Speaker 1: or the Treasury or anyone else extend political capital to 412 00:24:36,720 --> 00:24:39,480 Speaker 1: try to manipulate markets this way. So there might be 413 00:24:39,520 --> 00:24:42,880 Speaker 1: some commentary about currencies, but right now it doesn't feel 414 00:24:42,920 --> 00:24:47,159 Speaker 1: like we're gonna get anything. It's internally inconsistent in the 415 00:24:47,240 --> 00:24:49,679 Speaker 1: sense that different countries don't want the dollar to go 416 00:24:49,800 --> 00:24:52,159 Speaker 1: different ways for their own reasons, so it wouldn't wouldn't 417 00:24:52,160 --> 00:24:53,919 Speaker 1: do anybody any good. But it does get to the 418 00:24:53,920 --> 00:24:56,840 Speaker 1: point you were making with negative interest rates that a 419 00:24:56,840 --> 00:24:59,360 Speaker 1: lot of this seems to be people who got so 420 00:24:59,480 --> 00:25:04,160 Speaker 1: used to regulators or or supervisors the FED uh saving 421 00:25:04,200 --> 00:25:08,720 Speaker 1: them somehow, that they can't imagine a world where they 422 00:25:08,840 --> 00:25:11,480 Speaker 1: may be on their own, and so the minute the 423 00:25:11,840 --> 00:25:15,680 Speaker 1: markets go down, well, you got to do something for us. Yeah. 424 00:25:15,720 --> 00:25:17,919 Speaker 1: I think that's also one of the really short of 425 00:25:17,960 --> 00:25:21,560 Speaker 1: remarkable stories in the last several weeks, how calm the 426 00:25:21,600 --> 00:25:24,600 Speaker 1: FED has been during the panic. It never gave any 427 00:25:24,600 --> 00:25:27,040 Speaker 1: strong hints of a backtrack. It's just been steady. What 428 00:25:27,119 --> 00:25:29,800 Speaker 1: they keep saying the same thing, data dependent, data dependent, 429 00:25:30,320 --> 00:25:33,400 Speaker 1: And the FED has never really given any inclination that 430 00:25:33,600 --> 00:25:36,440 Speaker 1: they're gonna suddenly freeze up and reverse course or anything like. 431 00:25:36,560 --> 00:25:39,560 Speaker 1: You're just joining us, Joe wisen Fall of Bloomberg markets 432 00:25:39,760 --> 00:25:42,520 Speaker 1: with US across many platforms. Joe, this is an important 433 00:25:42,600 --> 00:25:45,399 Speaker 1: question and timely for you. I'm on the war path 434 00:25:46,119 --> 00:25:48,840 Speaker 1: about media types particularly, but a lot of other people 435 00:25:48,840 --> 00:25:53,560 Speaker 1: as well, but media types who personalize the behavior. Idea 436 00:25:54,000 --> 00:25:58,359 Speaker 1: that the markets are tell quote unquote telling institutions like 437 00:25:58,440 --> 00:26:02,159 Speaker 1: the FED what to do. I all of my theory 438 00:26:02,240 --> 00:26:06,920 Speaker 1: and finance and investment says, that is total malarkey. Yeah, 439 00:26:07,040 --> 00:26:10,400 Speaker 1: you have lived this first business insider, And here there's 440 00:26:10,480 --> 00:26:15,800 Speaker 1: personal The anthropomorphiz of the markets is very strange. It's 441 00:26:15,920 --> 00:26:20,520 Speaker 1: usually people projecting their own biases onto what they would 442 00:26:20,560 --> 00:26:24,800 Speaker 1: like and then they read that into the markets. Look, obviously, 443 00:26:24,840 --> 00:26:28,200 Speaker 1: investors have ideas. Investors have ideas about whether long or 444 00:26:28,240 --> 00:26:31,520 Speaker 1: short investors want to see this policy or that policy. 445 00:26:31,560 --> 00:26:34,760 Speaker 1: But then when it's all synthesized into a market, into 446 00:26:34,800 --> 00:26:38,440 Speaker 1: a price, it's really ludicrous to say, oh, there's some 447 00:26:38,560 --> 00:26:42,000 Speaker 1: clear signal, there's some clear message that markets are telling us. 448 00:26:42,040 --> 00:26:45,840 Speaker 1: I think often that's just the idea is very strange 449 00:26:45,880 --> 00:26:48,160 Speaker 1: to me. Mike and I fight this every day, but 450 00:26:48,160 --> 00:26:51,000 Speaker 1: but it's really come up recently, and Mike, I think 451 00:26:51,000 --> 00:26:53,879 Speaker 1: in a lot of conversations, this idea that the market 452 00:26:53,920 --> 00:26:57,720 Speaker 1: has a mind. Markets have to get Stanley Fisher. Everybody 453 00:26:57,800 --> 00:27:00,440 Speaker 1: keeps going back to the old formulation of how many 454 00:27:00,440 --> 00:27:02,760 Speaker 1: recessions of the market has called and if that FED 455 00:27:02,840 --> 00:27:07,000 Speaker 1: has always opposed negative interest rates, and how it ever 456 00:27:07,080 --> 00:27:09,959 Speaker 1: became a meme that they would be considering it. I 457 00:27:09,960 --> 00:27:13,000 Speaker 1: have no idea. Yeah, well, I mean I think the 458 00:27:13,040 --> 00:27:16,679 Speaker 1: FED takes an academic approach. And they were asked, is 459 00:27:16,720 --> 00:27:20,400 Speaker 1: this something that you've studied? And well they I mean 460 00:27:20,400 --> 00:27:23,640 Speaker 1: they said yeah, they said sure, among all the different ideas, 461 00:27:23,680 --> 00:27:26,720 Speaker 1: of course, we've studied everything. And then people took that 462 00:27:26,880 --> 00:27:29,919 Speaker 1: as a message perhaps that it might be imminent. But 463 00:27:30,000 --> 00:27:33,879 Speaker 1: it doesn't feel like it, especially given how inconsistent that 464 00:27:33,880 --> 00:27:36,320 Speaker 1: would be with the data, with the solid CPI data 465 00:27:36,359 --> 00:27:39,440 Speaker 1: that we got last week, the ongoing jobs data. The 466 00:27:39,480 --> 00:27:43,720 Speaker 1: idea that we're at some risk of the FED dramatically 467 00:27:43,720 --> 00:27:47,280 Speaker 1: reversing course and going negative doesn't jibe on multiple levels. 468 00:27:47,320 --> 00:27:51,919 Speaker 1: One gold new bowl market, what's the research? What are 469 00:27:51,960 --> 00:27:55,840 Speaker 1: your eighteen stories on the say? You know, the research 470 00:27:55,920 --> 00:27:58,679 Speaker 1: on gold says that it's basically all the function of 471 00:27:58,720 --> 00:28:01,360 Speaker 1: real interest rates. And so if you think that we're 472 00:28:01,359 --> 00:28:06,240 Speaker 1: going to go into another serious easing cycle then and 473 00:28:06,320 --> 00:28:09,359 Speaker 1: we're going to get higher volatility than sure, go long gold. 474 00:28:09,600 --> 00:28:11,120 Speaker 1: And if you don't think we're going to go into 475 00:28:11,119 --> 00:28:13,920 Speaker 1: a real easing cycle or some sort of crater. Then 476 00:28:14,000 --> 00:28:16,119 Speaker 1: it's hard to make an argument for gold. But it 477 00:28:16,160 --> 00:28:19,120 Speaker 1: does seem like it's that simple. It's an expressed view 478 00:28:19,240 --> 00:28:23,520 Speaker 1: on one scenario or the other. Thank you, mart stop 479 00:28:23,560 --> 00:28:27,600 Speaker 1: him by, they look for him on what four four pm, 480 00:28:28,400 --> 00:28:31,919 Speaker 1: three thirty walls three time, he will dark to the 481 00:28:31,920 --> 00:28:35,639 Speaker 1: door of Bloomberg televis thank you as well green on 482 00:28:35,680 --> 00:28:38,520 Speaker 1: the screen. And it's sort of massively in determinate market. 483 00:28:38,560 --> 00:28:42,560 Speaker 1: Why isn't Ault working six hours today? Um? Up fifty five? 484 00:28:42,960 --> 00:28:46,480 Speaker 1: The Vicks twenty point seven one, and it's just sort 485 00:28:46,480 --> 00:28:50,640 Speaker 1: of like Mike, it's just it's just sort of there. 486 00:28:51,280 --> 00:28:53,360 Speaker 1: But yeah, but it just sort of their day. I 487 00:28:53,400 --> 00:28:57,200 Speaker 1: think people might be ready for that. Yeah, I agree. 488 00:28:57,280 --> 00:28:59,800 Speaker 1: I mean there's a nice tone to it. We did 489 00:28:59,840 --> 00:29:03,960 Speaker 1: no restoration hardware. David Wilson was an important uh comment 490 00:29:04,040 --> 00:29:09,560 Speaker 1: on restoration hardware. Um uh, really having a tough time 491 00:29:09,600 --> 00:29:13,280 Speaker 1: of it. Let me our h is the symbol? I 492 00:29:13,320 --> 00:29:16,320 Speaker 1: got a five day chart up. Yeah, we're fifty tuition 493 00:29:16,440 --> 00:29:19,680 Speaker 1: right now, we're enjoying thirty nine is can we use 494 00:29:19,720 --> 00:29:26,240 Speaker 1: plunge for that? No? Get it? Do it? Yeah? They 495 00:29:26,320 --> 00:29:28,800 Speaker 1: think it's sort of a well if the look that's 496 00:29:28,800 --> 00:29:30,560 Speaker 1: a that's a big drop. We'll have to look at 497 00:29:30,600 --> 00:29:38,960 Speaker 1: that restoration harder. We'll look at that soon. It is 498 00:29:40,200 --> 00:29:42,880 Speaker 1: Bullevark Surveilance, brought to you by Volvo Cars, White Planes. 499 00:29:42,960 --> 00:29:45,840 Speaker 1: Visit Volvo Cars, White Planes dot Com. Here is John 500 00:29:45,840 --> 00:29:48,360 Speaker 1: Tucker with the latest news headlines and Michael and Tom 501 00:29:48,400 --> 00:29:51,360 Speaker 1: Houston will be the sign of tonight's Republican presidential debate, 502 00:29:51,680 --> 00:29:54,400 Speaker 1: with Donald Trump rivals getting one more chance to try 503 00:29:54,440 --> 00:29:57,440 Speaker 1: to derail the GOP front runner before we're Super Tuesday. 504 00:29:57,800 --> 00:30:00,240 Speaker 1: There is a state of emergency in Virginia. That's where 505 00:30:00,240 --> 00:30:03,719 Speaker 1: four people were killed after tornadoes damaged homes left thousands 506 00:30:03,760 --> 00:30:07,320 Speaker 1: without power across the state. World Health Organization says women 507 00:30:07,360 --> 00:30:09,880 Speaker 1: breastfeeding their babies in countries hit by the Zega buyers 508 00:30:09,920 --> 00:30:14,120 Speaker 1: should continue to do so, and uh look out Hollywood. February, 509 00:30:14,400 --> 00:30:17,480 Speaker 1: China broke the global box office record for a single 510 00:30:17,520 --> 00:30:21,880 Speaker 1: week five hundred and fifty seven million dollars in ticket sales. 511 00:30:22,080 --> 00:30:25,240 Speaker 1: These are all local films. The big draw there. Mermaid, 512 00:30:25,800 --> 00:30:28,840 Speaker 1: a quirky comedy from director Stephen Chaw about a mermaid 513 00:30:28,880 --> 00:30:30,840 Speaker 1: who falls in love with the real estate tycoon she 514 00:30:30,920 --> 00:30:34,040 Speaker 1: sent to assassinate the highest grossing film of all time 515 00:30:34,520 --> 00:30:37,600 Speaker 1: in China. Another one. I'm not going to see. Global 516 00:30:37,600 --> 00:30:39,680 Speaker 1: News twenty four hours a day, powered by our twenty 517 00:30:39,760 --> 00:30:42,360 Speaker 1: four hundred journalists in more than one hundred fifty news 518 00:30:42,360 --> 00:30:46,040 Speaker 1: bureaus around the world. On John Tucker, Tom, was that 519 00:30:46,120 --> 00:30:50,320 Speaker 1: for your Oscar considerations, this is not among the films 520 00:30:50,360 --> 00:30:55,800 Speaker 1: being considered for the Oscars Sunday, the Oscars your Pick reverence. 521 00:30:55,840 --> 00:30:59,520 Speaker 1: I would say, I just a full disclosure from on 522 00:30:59,560 --> 00:31:02,720 Speaker 1: top of this story. Yeah, you know, I I gotta 523 00:31:02,760 --> 00:31:05,480 Speaker 1: catch up fast. We're all big short fans and they 524 00:31:05,520 --> 00:31:07,880 Speaker 1: may not win. We've got a dog in the fight. 525 00:31:08,000 --> 00:31:09,920 Speaker 1: We do have a dog in the fight. Green and 526 00:31:09,960 --> 00:31:12,160 Speaker 1: Red in the screen. Nessek wanted you're done for Actually 527 00:31:12,640 --> 00:31:16,160 Speaker 1: the Dow up forty three points. Continue with this place, 528 00:31:16,200 --> 00:31:22,760 Speaker 1: Michael McKee and Tom Keane Bloomberg Surveillance Bloomberg Saveillance brought 529 00:31:22,760 --> 00:31:23,920 Speaker 1: to you by the New York Community Bank in New 530 00:31:23,960 --> 00:31:26,800 Speaker 1: York Commercial Bank, the NYCB family of banks, Bank with confidence. 531 00:31:26,800 --> 00:31:29,160 Speaker 1: Anywhere you see the NYCB logo throughout the New York 532 00:31:29,160 --> 00:31:39,040 Speaker 1: Metro is an NYCB family dot Com. Global Business News 533 00:31:39,080 --> 00:31:42,440 Speaker 1: twenty four hours a Day's Bloomberg dot Com the radio 534 00:31:42,480 --> 00:31:46,000 Speaker 1: plus mobil and on your radio, this is a Bloomberg 535 00:31:46,040 --> 00:31:49,720 Speaker 1: business flash. And I'm Karen Moscow Banks pacing in early 536 00:31:49,760 --> 00:31:53,120 Speaker 1: advance in US stocks which are extending well, but you're 537 00:31:53,120 --> 00:31:56,600 Speaker 1: now little changed and they're trailing which are now little changed. 538 00:31:56,640 --> 00:31:58,000 Speaker 1: We'll leave it at that. The s n P five 539 00:31:58,600 --> 00:32:02,520 Speaker 1: little changed at nine Jones industrial average up about five points, 540 00:32:02,520 --> 00:32:04,880 Speaker 1: the sixteen thousand, four hundred eighty nine, and the NASTAC 541 00:32:05,240 --> 00:32:07,880 Speaker 1: it's down two tenths percent now or about eight points 542 00:32:07,880 --> 00:32:10,760 Speaker 1: to forty five thirty four at ten. Your treasury of 543 00:32:10,840 --> 00:32:13,720 Speaker 1: eleven thirty seconds, the yeld one point seven zero percent, 544 00:32:13,760 --> 00:32:16,520 Speaker 1: the yield on the two year point seven one percent. No, 545 00:32:16,560 --> 00:32:18,640 Speaker 1: I'm x screwed oil down one point three percent, or 546 00:32:18,640 --> 00:32:21,040 Speaker 1: forty three cents to thirty one dollar seventy two cents 547 00:32:21,040 --> 00:32:23,440 Speaker 1: a barrel, and comex school is down to tenths per 548 00:32:23,440 --> 00:32:25,800 Speaker 1: cent or two dollars forty cents at twelve thirty six 549 00:32:25,840 --> 00:32:28,600 Speaker 1: sixty and ounce. The euros at a dollar ten twelve, 550 00:32:28,680 --> 00:32:32,160 Speaker 1: the yen one twelve point seven zero. Consumer sentiment in 551 00:32:32,200 --> 00:32:34,640 Speaker 1: the US remaining stable last week and close to a 552 00:32:34,680 --> 00:32:37,320 Speaker 1: three month high, helped in Park by upfeed views of 553 00:32:37,520 --> 00:32:40,880 Speaker 1: buying conditions. The Bloomberg Consumer Comfort Index little changed at 554 00:32:40,880 --> 00:32:43,720 Speaker 1: forty four point two in the period that ended February 555 00:32:43,760 --> 00:32:46,560 Speaker 1: twenty one. That compares to forty four point three the 556 00:32:46,680 --> 00:32:49,800 Speaker 1: prior week, and orders for US capital goods rebounding in 557 00:32:49,880 --> 00:32:54,240 Speaker 1: January by the most since June. Bookings for non military 558 00:32:54,280 --> 00:32:57,800 Speaker 1: equipment excluding commercial aircraft jumping three point nine percent. That 559 00:32:57,920 --> 00:33:01,880 Speaker 1: was more than forecast after a three decrease in December. 560 00:33:02,160 --> 00:33:05,959 Speaker 1: That was smaller than previously reported. That's a Bloomberg business flash. 561 00:33:06,040 --> 00:33:08,960 Speaker 1: Tom and Mike carlsco. Thank you very much. This is 562 00:33:08,960 --> 00:33:11,080 Speaker 1: an exciting day. The only thing you didn't do is 563 00:33:11,120 --> 00:33:15,280 Speaker 1: bring the champagne. Peter Elliott, who is in charge of 564 00:33:15,360 --> 00:33:21,960 Speaker 1: our restaurant restaurants and um drinking establishments, coverage Bloomberg briefs, 565 00:33:22,440 --> 00:33:24,520 Speaker 1: which of course everybody wants to get a hold of. 566 00:33:24,520 --> 00:33:28,200 Speaker 1: Bloomberg's briefs. Reserve is the product. And if you have 567 00:33:28,320 --> 00:33:31,440 Speaker 1: a Bloomberg, and of course who doesn't, everybody would want 568 00:33:31,440 --> 00:33:35,920 Speaker 1: one Dying Go. And there is a new Dying Go 569 00:33:36,880 --> 00:33:39,920 Speaker 1: coming to a Bloomberg near you, and you're all excited 570 00:33:39,960 --> 00:33:42,480 Speaker 1: by this. I am good morning. Sounds from what you 571 00:33:42,520 --> 00:33:44,200 Speaker 1: were telling me like it. It's going to be pretty cool. 572 00:33:44,400 --> 00:33:47,640 Speaker 1: I'm I'm I gotta say it's you can teach an 573 00:33:47,680 --> 00:33:49,880 Speaker 1: old dog new tricks. And if and if we are 574 00:33:49,920 --> 00:33:52,680 Speaker 1: able to pull this off the way that now Apple 575 00:33:52,720 --> 00:33:54,960 Speaker 1: pulls these things off, I will indeed bring you both 576 00:33:55,000 --> 00:33:58,000 Speaker 1: a bottle of very good champagne, not just the just 577 00:33:58,040 --> 00:34:02,280 Speaker 1: the junkie stuff. UM. Yes, we are, we have been 578 00:34:02,480 --> 00:34:05,240 Speaker 1: Uh that's true, we'll do it outside. Um. We we 579 00:34:05,440 --> 00:34:07,880 Speaker 1: have been working on developing a new dine. Dine is 580 00:34:08,120 --> 00:34:11,600 Speaker 1: our dining guide and think of it like yelped for 581 00:34:11,680 --> 00:34:15,040 Speaker 1: the financial world, and it works unlike Yelp. I'm happy 582 00:34:15,040 --> 00:34:17,560 Speaker 1: to say all around the world everywhere there's a Bloomberg terminal, 583 00:34:17,600 --> 00:34:20,680 Speaker 1: so from Apollo to Tokyo to Hong Kong where we 584 00:34:20,719 --> 00:34:25,280 Speaker 1: actually have some of our most affectionate UH users London. 585 00:34:25,719 --> 00:34:28,400 Speaker 1: So we're starting to roll out the new product and 586 00:34:28,400 --> 00:34:31,040 Speaker 1: it's fascinating because it's takes advantage of so many of 587 00:34:31,040 --> 00:34:34,120 Speaker 1: the things that we talk about in this room, namely 588 00:34:34,160 --> 00:34:36,640 Speaker 1: the ability to find restaurants that you want to go 589 00:34:36,760 --> 00:34:40,919 Speaker 1: to find them, particularly for the financial community. And UM, 590 00:34:40,960 --> 00:34:42,920 Speaker 1: I've been very excited to be working with a number 591 00:34:42,960 --> 00:34:47,440 Speaker 1: of these fledgling reservation companies, um, who are all competing 592 00:34:47,440 --> 00:34:49,600 Speaker 1: with each other. So I really want Dying to be 593 00:34:49,640 --> 00:34:53,080 Speaker 1: the place where we can make a reservation on dne goal. Yes, 594 00:34:53,120 --> 00:34:55,120 Speaker 1: what we've really found is that Open Table, which is 595 00:34:55,160 --> 00:34:59,239 Speaker 1: the largest reservation platform, certainly in this country. Um. They 596 00:34:59,280 --> 00:35:01,680 Speaker 1: bought up a company in London called Top Table, and 597 00:35:01,719 --> 00:35:04,640 Speaker 1: that you know, for the for the Bloomberg audience. Just 598 00:35:04,760 --> 00:35:06,920 Speaker 1: the act of spending two minutes finding a restaurant that 599 00:35:06,960 --> 00:35:08,840 Speaker 1: you ultimately get told you can't get into is a 600 00:35:08,880 --> 00:35:12,720 Speaker 1: waste of time. So so so we've been really looking 601 00:35:12,719 --> 00:35:16,040 Speaker 1: for products that are guaranteeing our clients the ability to 602 00:35:16,080 --> 00:35:17,960 Speaker 1: get what they want. The seventh thirty table, the eight 603 00:35:18,040 --> 00:35:21,160 Speaker 1: thirty table, just because the time, Um, part of it 604 00:35:21,200 --> 00:35:23,200 Speaker 1: is if you make reservations nice, if you show up 605 00:35:23,200 --> 00:35:26,919 Speaker 1: in the restaurants still in business. It's that time of year. 606 00:35:27,040 --> 00:35:28,600 Speaker 1: I mean we all know that. You know, you get 607 00:35:28,600 --> 00:35:30,680 Speaker 1: to the holidays and it's like the theater, it's like 608 00:35:30,680 --> 00:35:34,120 Speaker 1: Broadway that time of year. What when when restaurants go 609 00:35:34,160 --> 00:35:37,359 Speaker 1: out of business, is it just presumes somebody takes their 610 00:35:37,400 --> 00:35:41,919 Speaker 1: spot right away? What's that back story? Well, it's it's 611 00:35:41,920 --> 00:35:43,439 Speaker 1: the real estate story. And as you know, we could 612 00:35:43,440 --> 00:35:46,000 Speaker 1: have our own program just on just on the real estate. 613 00:35:46,160 --> 00:35:49,600 Speaker 1: Sometimes yes and sometimes no. Sometimes it just came up 614 00:35:50,160 --> 00:35:54,880 Speaker 1: yesterday in conversation with with with a client. Barbudoh uh, wonderful, 615 00:35:55,080 --> 00:35:57,799 Speaker 1: terrific restaurant down in the West Villas. Barbudo has sort 616 00:35:57,840 --> 00:36:01,279 Speaker 1: of been on a death watch for almost two years now, 617 00:36:01,520 --> 00:36:03,520 Speaker 1: and everybody has well, you keep saying Barbudo is going 618 00:36:03,520 --> 00:36:05,640 Speaker 1: to close, but in fact it's still open. And the 619 00:36:05,680 --> 00:36:08,400 Speaker 1: reason it's still open is because, luckily, Jonathan Waxman is 620 00:36:08,440 --> 00:36:10,720 Speaker 1: a smart guy and his other restaurants are making money elsewhere, 621 00:36:10,760 --> 00:36:13,360 Speaker 1: so he's clearly talking to his landlords to find a 622 00:36:13,360 --> 00:36:15,600 Speaker 1: way to come up with a decent rent deal which 623 00:36:15,600 --> 00:36:18,440 Speaker 1: works for him. So Barbudah lives on in that space. 624 00:36:18,719 --> 00:36:22,359 Speaker 1: That's his particular story. Other restaurants are literally head people 625 00:36:22,440 --> 00:36:25,080 Speaker 1: knocking on the door um waiting for them to take 626 00:36:25,120 --> 00:36:29,280 Speaker 1: over spaces. Others will sit empty for years and years 627 00:36:29,360 --> 00:36:34,200 Speaker 1: and years for a variety of reasons, but mostly landlords 628 00:36:34,360 --> 00:36:36,640 Speaker 1: certainly at the moment feel the need that they can 629 00:36:36,719 --> 00:36:40,040 Speaker 1: hold on and hold out for places that will come 630 00:36:40,040 --> 00:36:42,319 Speaker 1: in and pay or groups that will come in and 631 00:36:42,360 --> 00:36:46,399 Speaker 1: pay higher rents, and they tend I'm sorry to say, 632 00:36:46,480 --> 00:36:50,520 Speaker 1: to win what what what leads to a closing more 633 00:36:50,600 --> 00:36:53,279 Speaker 1: often the fact that they run up against something like 634 00:36:53,320 --> 00:36:57,880 Speaker 1: the landlord, or does somebody just get tired of you? 635 00:36:57,920 --> 00:36:59,960 Speaker 1: And I used to go to cocktails every Tuesday night 636 00:37:00,160 --> 00:37:04,000 Speaker 1: cereals at the Pier Hotel just because we're massive hitters, Mike, 637 00:37:04,040 --> 00:37:08,080 Speaker 1: we don't anymore. There's that um that is a more 638 00:37:08,160 --> 00:37:11,200 Speaker 1: complex story. One, it is in a hotel. To it 639 00:37:11,280 --> 00:37:13,960 Speaker 1: is in a very difficult space. Three, it is controlled 640 00:37:13,960 --> 00:37:18,160 Speaker 1: by the one word that that restaurateurs just like most 641 00:37:18,280 --> 00:37:21,520 Speaker 1: in this city called the Union. Uh. Four it's owned 642 00:37:21,560 --> 00:37:24,440 Speaker 1: by Taj Hotels, which is a very powerful brand right 643 00:37:24,480 --> 00:37:26,839 Speaker 1: now elsewhere in the world. So what's really happening at 644 00:37:26,840 --> 00:37:29,000 Speaker 1: Syria is the story of what's happening elsewhere at the world. 645 00:37:29,200 --> 00:37:32,080 Speaker 1: You know, what Taj is is a chain that is 646 00:37:32,160 --> 00:37:34,640 Speaker 1: running hotels in India and running hotels in Hong Kong. 647 00:37:34,640 --> 00:37:37,880 Speaker 1: They don't really give too much about what's going on 648 00:37:37,920 --> 00:37:39,839 Speaker 1: at the Pierre, so they want what they want in 649 00:37:39,880 --> 00:37:44,040 Speaker 1: that space. So that was a headwind for that particular restaurant. 650 00:37:44,280 --> 00:37:47,200 Speaker 1: That was even worse for them than the Union, even 651 00:37:47,239 --> 00:37:49,480 Speaker 1: worse than the two of you showing up on a 652 00:37:49,480 --> 00:37:53,520 Speaker 1: Tuesday night. So every restaurant has its own particular, particular 653 00:37:53,600 --> 00:37:57,160 Speaker 1: and complex set of problems. Um David Waltok one of 654 00:37:57,200 --> 00:37:59,800 Speaker 1: the most talented and beloved chefs in New York City. 655 00:38:00,160 --> 00:38:03,279 Speaker 1: Of Um, you know, it's it's closing a lawn in 656 00:38:03,320 --> 00:38:06,560 Speaker 1: a few days in the twenties, So the closing of 657 00:38:06,600 --> 00:38:10,120 Speaker 1: restaurants in the city is currently happening everywhere. Uh No, 658 00:38:10,280 --> 00:38:12,759 Speaker 1: it's it's it's really a tough time in the time left. 659 00:38:13,040 --> 00:38:14,360 Speaker 1: It was mentioned to me the other day, and I 660 00:38:14,400 --> 00:38:16,279 Speaker 1: actually got brave and went out and tried to do 661 00:38:16,360 --> 00:38:19,680 Speaker 1: my Peter Elliot imitation. I went down in flames, tell 662 00:38:19,760 --> 00:38:23,560 Speaker 1: us how to buy kognak or how to order it 663 00:38:23,640 --> 00:38:27,319 Speaker 1: in a restaurant. Um, well that for the those of 664 00:38:27,440 --> 00:38:31,160 Speaker 1: us not as attuned as you. Um well, I'm I don't, 665 00:38:31,200 --> 00:38:33,080 Speaker 1: don't don't. I mean, I would like to claim that 666 00:38:33,120 --> 00:38:34,960 Speaker 1: I'm in tuned to everything in the food world, but 667 00:38:35,520 --> 00:38:37,719 Speaker 1: you know, one kogak or a grappa. You know, if 668 00:38:37,719 --> 00:38:39,840 Speaker 1: you want to see see me on the floor scratching 669 00:38:39,880 --> 00:38:42,640 Speaker 1: my belly. I mean, it's a it's a hard thing 670 00:38:42,680 --> 00:38:44,839 Speaker 1: to do. Of a of a Wednesday night. I'm at 671 00:38:44,840 --> 00:38:47,440 Speaker 1: a table in Boston or Washing I'm done in Washington 672 00:38:47,920 --> 00:38:49,960 Speaker 1: and some guy goes, let's have a cognac. I'm like, 673 00:38:50,000 --> 00:38:52,879 Speaker 1: oh God, am I gonna embarrass myself? Go yes, well, 674 00:38:52,920 --> 00:38:54,640 Speaker 1: I I wonder then how you wake up at three 675 00:38:54,680 --> 00:38:56,640 Speaker 1: o'clock in the morning and appear on the air. But 676 00:38:56,760 --> 00:38:59,160 Speaker 1: once you're once you're beyond the process of doing it. 677 00:38:59,200 --> 00:39:01,560 Speaker 1: The simplest way if you really don't know what you 678 00:39:01,600 --> 00:39:04,560 Speaker 1: are doing is to throw yourself on the mercy of 679 00:39:04,960 --> 00:39:09,360 Speaker 1: a Similia who should help you guide through the process. 680 00:39:09,560 --> 00:39:11,600 Speaker 1: And the thing with Kognac's in particular is is that 681 00:39:11,640 --> 00:39:13,279 Speaker 1: you're spending a great deal of money. It's not like 682 00:39:13,360 --> 00:39:16,360 Speaker 1: you're spending eleven dollars for a you know, you're not 683 00:39:16,400 --> 00:39:19,360 Speaker 1: spending eleven dollars for a glass of wine. You're spending 684 00:39:21,239 --> 00:39:22,840 Speaker 1: on something. So you really sort of want to know 685 00:39:22,880 --> 00:39:25,200 Speaker 1: that you're as like all things. When you're in what 686 00:39:25,239 --> 00:39:29,319 Speaker 1: I call the browns Kognac whiskeys, bourbons, you really want 687 00:39:29,320 --> 00:39:32,440 Speaker 1: to put yourself in the sameliar's head and say what 688 00:39:32,520 --> 00:39:34,480 Speaker 1: it is that you like? Do you want p D? 689 00:39:34,640 --> 00:39:36,839 Speaker 1: Do you want light? Do you really want to roll 690 00:39:36,880 --> 00:39:39,799 Speaker 1: out of the restaurant or just keep going so in 691 00:39:39,800 --> 00:39:42,080 Speaker 1: the in the kognak thing, you know, you're probably looking 692 00:39:42,080 --> 00:39:44,880 Speaker 1: for the closest way to describe what you're feeling smooth, 693 00:39:44,920 --> 00:39:46,800 Speaker 1: I want to go to bed in an hour. Something 694 00:39:46,840 --> 00:39:50,400 Speaker 1: like that will help them help you get a terrific glass. 695 00:39:50,480 --> 00:39:54,520 Speaker 1: This is why you know Reserve and Peter so valuable 696 00:39:54,520 --> 00:39:57,839 Speaker 1: because you learn stuff like that. Hey, I was looking 697 00:39:57,840 --> 00:40:00,840 Speaker 1: at speaking the new Reserve. You an interview with Bobby 698 00:40:00,880 --> 00:40:03,440 Speaker 1: Flake coming up. Bobby Flay was in this week speaking 699 00:40:03,440 --> 00:40:05,839 Speaker 1: of somebody you know. Here is one of another New 700 00:40:05,920 --> 00:40:08,000 Speaker 1: York icon, a kid who dropped out of high school, 701 00:40:08,440 --> 00:40:12,399 Speaker 1: you know, became UH an icon for his restaurant Masic 702 00:40:12,440 --> 00:40:15,080 Speaker 1: Grill in the early nineties, set the tone for the 703 00:40:15,120 --> 00:40:17,840 Speaker 1: Food Network. Um we had him in here on Monday 704 00:40:17,880 --> 00:40:19,640 Speaker 1: for a really hard look. And here he is at 705 00:40:19,680 --> 00:40:22,360 Speaker 1: age fifty one, asking some of these questions. Is the 706 00:40:22,360 --> 00:40:23,799 Speaker 1: guy wants to move to Italy just so we can 707 00:40:23,840 --> 00:40:26,319 Speaker 1: love Italian But he runs two restaurants here in New York, 708 00:40:26,320 --> 00:40:28,880 Speaker 1: Otto and Bar American. And he says the pressure on 709 00:40:28,960 --> 00:40:31,759 Speaker 1: restaurants not just from the tipping thing, not just from 710 00:40:31,840 --> 00:40:35,080 Speaker 1: higher costs, not just from landlords, but just the day 711 00:40:35,120 --> 00:40:38,520 Speaker 1: to day grind of it. Is so hard um that 712 00:40:38,680 --> 00:40:41,719 Speaker 1: even he considers, you know, when when is the right 713 00:40:41,760 --> 00:40:44,080 Speaker 1: time to get out and how restaurants are going to 714 00:40:44,120 --> 00:40:45,880 Speaker 1: start changing over the next few years. You can I 715 00:40:45,920 --> 00:40:49,759 Speaker 1: ask a dumb question and only dumb answers, well, does 716 00:40:49,880 --> 00:40:52,360 Speaker 1: does he have equity or something in Food Network? I 717 00:40:52,400 --> 00:40:56,800 Speaker 1: mean he was foundational, he was and success And tune 718 00:40:56,800 --> 00:40:59,080 Speaker 1: in tomorrow for Bloomberg Best and you'll and you'll hear 719 00:40:59,080 --> 00:41:01,239 Speaker 1: his answer to that question, which I will gently hint 720 00:41:01,480 --> 00:41:05,480 Speaker 1: goes something like, you know, Mario Batali for who's terrific 721 00:41:05,480 --> 00:41:07,719 Speaker 1: in the kitchen just reopened? It just opened a first 722 00:41:07,760 --> 00:41:11,000 Speaker 1: restaurant in ten years. Lest Serbena down and Chelsea Let's 723 00:41:11,040 --> 00:41:13,640 Speaker 1: in the end. Doesn't have that kind of charisma. He's 724 00:41:13,680 --> 00:41:16,880 Speaker 1: not a TV guy. He was a foundational member with Bobby. 725 00:41:16,960 --> 00:41:21,440 Speaker 1: Bobby still has this boyish energy that just radiates. So No, 726 00:41:21,560 --> 00:41:24,040 Speaker 1: he has absolutely no relationship with the Food Network other 727 00:41:24,080 --> 00:41:26,799 Speaker 1: than what he does on them. I knows nothing about 728 00:41:26,920 --> 00:41:30,000 Speaker 1: Mr Flay. I love how he always looks. He just 729 00:41:30,080 --> 00:41:33,839 Speaker 1: always looks like the store just opened turn into Bloomberg Best. 730 00:41:33,840 --> 00:41:35,480 Speaker 1: You'll hear him saying he's still a kick from New 731 00:41:35,560 --> 00:41:37,680 Speaker 1: York who wants it bad, Peter Elliott, look for that 732 00:41:37,719 --> 00:41:44,319 Speaker 1: Bloomberg breast with Mr Robert, Bobby, Bobby Gato and Bar 733 00:41:44,360 --> 00:41:47,640 Speaker 1: American coming. This has been a most interesting. Nay, sometimes, folks, 734 00:41:47,680 --> 00:41:51,160 Speaker 1: the days are most interesting. Where the markets are just 735 00:41:51,360 --> 00:41:56,080 Speaker 1: churning Yen one nine sterling rebounding a bit one nine 736 00:41:56,239 --> 00:41:59,600 Speaker 1: at twenty night curve flattening. It's still there under a 737 00:41:59,680 --> 00:42:03,239 Speaker 1: hundred beeps, but some stability. Are we on the G 738 00:42:03,440 --> 00:42:06,480 Speaker 1: twenty watch tomorrow, Mike, when's the photo op? It'll be 739 00:42:06,560 --> 00:42:10,880 Speaker 1: after we're done, but we will be on the watch 740 00:42:10,920 --> 00:42:13,560 Speaker 1: over the weekend. Monday morning. You'll come in and that 741 00:42:13,680 --> 00:42:15,319 Speaker 1: they design it that way. They don't want it. Why 742 00:42:15,320 --> 00:42:17,640 Speaker 1: aren't you there? I mean you were born to go 743 00:42:17,680 --> 00:42:22,040 Speaker 1: to darn good question. Yeah, it'd be great to Michael 744 00:42:22,080 --> 00:42:25,799 Speaker 1: mckeeth in exchange. Yeah, and we'll look at Apple two 745 00:42:25,840 --> 00:42:30,239 Speaker 1: little going on tomorrow. Our future is up fourteen again, 746 00:42:30,280 --> 00:42:33,960 Speaker 1: the down sixteen thousand four at ninety seven. We've been 747 00:42:34,040 --> 00:42:37,279 Speaker 1: quoting the tenure yield? Are they one point seven now? 748 00:42:37,320 --> 00:42:41,279 Speaker 1: In a good three basis points. We are produced by 749 00:42:41,320 --> 00:42:44,360 Speaker 1: Bodin again Fella or our global technical director. It's Bloomberg 750 00:42:44,440 --> 00:42:45,000 Speaker 1: Surveillance