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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C.

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Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg

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Speaker 1: to the Country series at JAM General one ninety and

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

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Speaker 1: This is Bloomberg Surveillance. Good morning in a seven thirty

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Speaker 1: on Wall Street him Michael McKee along with Tom Keane.

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Speaker 1: Some of the stories non political stories that were following today.

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Speaker 1: Best Buy ugly news from their UH second quarter, their

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Speaker 1: fiscal second quarter. They see justined earnings per SHRIFF thirty

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Speaker 1: eight forty two cents UH. The consensus estimate was fifty

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Speaker 1: cents UH. The company's first quarter earnings were much better

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Speaker 1: than expected, forty four cents better than the thirty one

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Speaker 1: cent UH. The thirty five cent rather UH consensus forecast

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Speaker 1: revenue eight point four four billion, better than the eight

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Speaker 1: point two nine billion that had been estimated. But the

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Speaker 1: forecast is really hitting the stock right now. Best Buy

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Speaker 1: is down five and a half percent. Another stock that

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Speaker 1: is in somewhat of a model this morning, Deutsche Bank,

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Speaker 1: the chief executive officer upset because Moody's has cut the

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Speaker 1: company's credit rating. They say the bank has challenges in

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Speaker 1: carrying around carrying out its turnaround. Cut the debt metric

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Speaker 1: one level to B double A two, two grades above junk.

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Speaker 1: That's what they're senior unsecured debt long term deposit rating

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Speaker 1: A three from A to. John Cryan says his banks

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Speaker 1: never had more capital and could easily repay its debt

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Speaker 1: many times over. Now check out with Michael Barr and

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Speaker 1: get the latest world in national headlines. Michael, thank you

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Speaker 1: very much. Mike, A senior Egyptian forensics officials says human

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Speaker 1: remains retrieved from the crash site of EACHYPT air flight

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Speaker 1: eight oh four suggests there was an explosion on board

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Speaker 1: that may have brought down the air are the officials

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Speaker 1: or to the Egyptian investigative team, and has personally examined

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Speaker 1: the remains at a Cairo morgue. He says all lady

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Speaker 1: pieces brought to Cairo so far are small and the

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Speaker 1: logical explanation is that it was an explosion. President Obama

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Speaker 1: says Washington does not want to dictate terms to Vietnam

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Speaker 1: on improving human rights, but the President says that nations

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Speaker 1: are more successful when people can freely express their thoughts

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Speaker 1: and assembled without harassment. President Obama is in Vietnam on

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Speaker 1: a three day visit. The President also talked about the

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Speaker 1: new Peace Core Mission in Vietnam. Generation. After young Americans

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Speaker 1: came here to fight, a new generation of Americans are

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Speaker 1: going to come here to teach and build and deepen

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Speaker 1: the friendships between US. Democratic presidential front runner Hillary Clinton

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Speaker 1: has turned down an invitation from Fox News to participate

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Speaker 1: in a debate with rival Bernie Sanders in California before

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Speaker 1: the state June seventh primary. Global News twenty four Hours

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Speaker 1: a day. I'm Michael bar Thank you, Michael. Time now

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Speaker 1: for the land Rover Parsipani Bloomberg, NBC Sports Update. Thatt's

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Speaker 1: have been a little streaky this season. They had the

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Speaker 1: poor start and one eight in a row. When they

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Speaker 1: lost twice at home to Washington last week by combined

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Speaker 1: sixteen to two, they had dropped six of seven. They

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Speaker 1: had fallen to third place, but since then four wins

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Speaker 1: in a row. Last night in d C seven to one,

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Speaker 1: they hit three home runs, a three run shot by

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Speaker 1: David Wright, nas Cespitus and Neil Walker went back to

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Speaker 1: back bar total Cologne seven strong innings and the Mets,

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Speaker 1: with another win tonight, will be back in first place.

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Speaker 1: Surprise at the NBA playoffs, even though Toronto had only

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Speaker 1: one fewer regular season victory, most felt Cleveland would cruise

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Speaker 1: pass the Raptors, and the Calves won the first two

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Speaker 1: games easily, but Toronto one again last night, one oh

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Speaker 1: five ninety nine. Kyle Lowry thirty five points to mar

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Speaker 1: De Rosen, his backcourt mate with thirty two, and this

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Speaker 1: series is to too. Going back to Cleveland. The West

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Speaker 1: Finals are two one. Oklahoma City Golden State will have

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Speaker 1: Draymond Green tonight, no suspension for his kick to Steven Adams. Hockey.

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Speaker 1: San Jose won six three at St. Louis for a

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Speaker 1: three two series lead. The Sharks one win from a

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Speaker 1: first ever trip of the Stanley Cup. Point. We're at

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Speaker 1: the Bloomberg NBC Sports Update. I'm John Stashwar. Thank you, John. Well.

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Speaker 1: We are looking at a market that's uh much happier

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Speaker 1: than one would expect. Dollars moving up, but so are

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Speaker 1: few equity futures. We'll talk about that. We will talk

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Speaker 1: about that here on surveillance. I'm Michael McKee with Tom Keane.

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Speaker 1: We're looking at SMP features up seven points right now

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Speaker 1: four tenths of eight percent of the stock six hundred

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Speaker 1: up by almost five points one point in Europe. Time

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Speaker 1: now for the Bloomberg n j I T STAM Report,

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Speaker 1: brought to you by New Jersey Institute of Technology, investing

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Speaker 1: more than a hundred and ten million dollars a year

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Speaker 1: and applied research to solve problems and to improve life.

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Speaker 1: Learn more at Stories of Innovation dot m j I

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Speaker 1: T dot E d U. Here's good morning, Good morning, Michael.

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Speaker 1: Here's what's making news in science, technology, engineering and math.

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Speaker 1: Hapten Creek, best known for its eggless version of mayonnaise,

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Speaker 1: is looking to raise fresh capital to fuel its research,

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Speaker 1: aimed at expanding into a v CAN conglomerate, selling everything

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Speaker 1: from plant based oysters that aren't oysters and blue cheese

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Speaker 1: It's not blue Cheese, two children's snacks shaped like bat Batman,

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Speaker 1: and Darth Vader. The company is backed by at least

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Speaker 1: a dozen billionaires, including Bill Gates, and sells a range

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Speaker 1: of products a target Walmart, Costco, and other big chains.

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Speaker 1: Its fundraising documents describe big expansion plans, including nine square

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Speaker 1: foot research and development facility or scientists human and robotic

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Speaker 1: using artificial intelligence could analyze over nine hundred sixty plant

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Speaker 1: samples a week to develop new plant based protein products.

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Speaker 1: A little known startup in China is gunning to be

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Speaker 1: the first to sell bendable smartphones this year, seeking to

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Speaker 1: upstage Samsung, which has started to dabble in flexible screen technology.

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Speaker 1: Moxi Group says it will shift a hundred thousand of

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Speaker 1: the devices in they are at the very least unique.

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Speaker 1: The phones will sell for the equivalent of around seven

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Speaker 1: hundred sixty five dollars. They're designed to be rolled into

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Speaker 1: a wide bracelet worn on the d The touch screens

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Speaker 1: work when curled up or can be fluttened into rectangles

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Speaker 1: to use just like any other smartphone. For now, the

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Speaker 1: gadgets will only feature black and white displays, with a

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Speaker 1: color version to follow later. And that is this morning's

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Speaker 1: Bloomberg and j I t Stem report. Some of us

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Speaker 1: aren't bothered by that. We remember black and white TV.

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Speaker 1: That's right. The order days, Bob, thank you very much.

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Speaker 1: As we mentioned, the dollar is rising today, the Dollar

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Speaker 1: Index thirty four, up two tenths of eight percent after

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Speaker 1: a couple of days where the dollar had given back

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Speaker 1: games and moved in the opposite direction, surprising people who

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Speaker 1: expected it to strengthen given all the Fed speak about

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Speaker 1: a June move. Valentin Maronov is head of G ten

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Speaker 1: four x research for the folks at Credit Agricole. He joins, us, Now, Uh,

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Speaker 1: what's what is the feeling about the dollar? I mean,

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Speaker 1: we've two steps backwards one step forward. Does it continue

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Speaker 1: to strengthen or not? Good morning? Yes. Indeed, we believe

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Speaker 1: that the trends sort of dollar from here on the

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Speaker 1: upside as investors continue to reprise the risk of h

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Speaker 1: that tightening potentially as soon as July or indeed June.

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Speaker 1: So we do see the risks for say, currencies like

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Speaker 1: the Australian dollar or indeed the Canadian doll on the

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Speaker 1: downside against the US dollar, the dollar could appreciate some

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Speaker 1: more from here. The question I guess for the fat

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Speaker 1: is how much could it appreciate? Because in two thousand fourteen,

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Speaker 1: basically the dollar went up twenty two percent. Since then

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Speaker 1: it's down two tents of eight percent, So you know

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Speaker 1: it does it Does it make a big move up

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Speaker 1: that threatens the US amy or not? That's the inherent uncertainly,

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Speaker 1: as many clients are highlighting, you cannot have both higher

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Speaker 1: US rates and higher US dollar that kind of mutually exclusive,

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Speaker 1: especially given that the FAT is focusing on a dollar

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Speaker 1: part of them. Measures of financial conditions or dollar appreciation

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Speaker 1: represents at times unwarranted tightening in those financial conditions, which

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Speaker 1: ultimately means that the fact has to delay any hikes.

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Speaker 1: All that taken into account, however, I do think that

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Speaker 1: there is for the dollar are on the on the upside,

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Speaker 1: especially because there is still that persistent divergence between where

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Speaker 1: the dollar is at the moment and where saying measures

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Speaker 1: of the fundamental value of the dollar is telling us

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Speaker 1: it should be. That is, things like great differentials between

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Speaker 1: SADE the two year dollar rates and the average gtail

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Speaker 1: spread is still suggesting that the dollar belongs at the

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Speaker 1: top of the range, that is, the highs from earlier

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Speaker 1: in the year. So with that in mind, despite the

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Speaker 1: I'll say, the persistent uncertainty about the FAT outlook, I'll

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Speaker 1: still think that the risks for the dollar incoming months

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Speaker 1: still firmly on the upside. Well, but I want to

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Speaker 1: go around the world to the end. Because of the

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Speaker 1: common from Mr Usso today suggesting a five yen move

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Speaker 1: over two days would be excessive, raising the question of

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Speaker 1: whether they would intervene the four I think four of

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Speaker 1: the five times that that's happened in the last ten

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Speaker 1: years or so has been when the Bank of Japan

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Speaker 1: took well extraordinary monetary policy efforts. So is it really

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Speaker 1: up to them? Uh? Well, I do think that they're

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Speaker 1: still very much in control in the Minister of Finance.

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Speaker 1: Minister Tarasso was quite vocal in recent days. What's quite

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Speaker 1: interesting that those comments persist despite the fairly vocal opposition

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Speaker 1: by Jack Louise, the US Treasury Secretary. Actually they both

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Speaker 1: really tarras when Jack Lui disagree on what constitutes disruptive

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Speaker 1: move And the fact that the Japanese are still despite

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Speaker 1: that vocal opposition last week and the G seven meeting,

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Speaker 1: despite that, the Japanese continue that suggest that I think

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Speaker 1: that they may indeed have to put them on over

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Speaker 1: the mouth and at some point indeed intervene. In terms

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Speaker 1: of trigger level, I think that the end need not

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Speaker 1: appreciate that far from current levels to see the b

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Speaker 1: o J acting on Ministry of Finance. We hold in

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Speaker 1: particularly think hundreds five Maybe indeed the line in the

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Speaker 1: sun for both the moth and indeed the b O

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Speaker 1: j SO policy action may indeed come. I mean, if

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Speaker 1: indeed the latest appreciation in the end UH is indeed

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Speaker 1: extended from here. Ivan Marina from the head of G

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Speaker 1: ten Fox Research from Credit Agricole. The yen at the

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Speaker 1: moment trading at one oh nine sixties six. It's a

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Speaker 1: little bit stronger on the day, But the question is

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Speaker 1: how much further will it go on? When will the

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Speaker 1: Japanese get upset about that? Right now, futures are higher.

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Speaker 1: This is Bloomberg Surveillance on Bloomberg Radio worldwide. We are

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Speaker 1: counting down to the opening bell. Brought to you by

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