1 00:00:01,639 --> 00:00:06,199 Speaker 1: Is this Bloomberg the first word for this Friday, May sixteen, 2 00:00:06,360 --> 00:00:09,200 Speaker 1: Coming up this hour. Oil is down today, with Grant 3 00:00:09,240 --> 00:00:12,000 Speaker 1: crude falling back below fifty dollars of barrel as world 4 00:00:12,039 --> 00:00:15,000 Speaker 1: equity markets are mixed. A meeting of G seven leaders 5 00:00:15,000 --> 00:00:18,240 Speaker 1: wrapped up in Japan. Among the issues discussed the loving 6 00:00:18,280 --> 00:00:21,760 Speaker 1: threat of a Brexit and the need for global fiscal policy. 7 00:00:21,920 --> 00:00:24,639 Speaker 1: And we look ahead to US GDP numbers out today 8 00:00:24,640 --> 00:00:27,480 Speaker 1: at eight thirty Wall Street Time. President Obama is wrapping 9 00:00:27,560 --> 00:00:30,240 Speaker 1: up his visit to Japan. Plus could a debate between 10 00:00:30,240 --> 00:00:33,479 Speaker 1: Donald Trump and Bernie Sanders become a reality? At Michael 11 00:00:33,479 --> 00:00:36,520 Speaker 1: bar Those stories and more straight ahead, I'm John Stash 12 00:00:36,520 --> 00:00:38,800 Speaker 1: Aaron Sports. Yankee Bats were quiet and the loss to 13 00:00:38,800 --> 00:00:42,320 Speaker 1: Toronto Golden States days alive trimming Oklahoma City Series lead 14 00:00:42,320 --> 00:00:44,960 Speaker 1: to three to the Pittsburgh Penguins advanced to the Stanley 15 00:00:44,960 --> 00:00:48,280 Speaker 1: Cup Final. That's all straight ahead on Bloomberg the first 16 00:00:48,320 --> 00:00:52,800 Speaker 1: word on Bloomberg eleven three oh New York Bloomberg, Washington, 17 00:00:52,880 --> 00:00:57,080 Speaker 1: d C Bloomberg twelve hundred, Boston Bloomberg nine sixty San Francisco, 18 00:00:57,320 --> 00:01:00,800 Speaker 1: Silius XM one nineteen and around the world along Bloomberg 19 00:01:00,800 --> 00:01:07,480 Speaker 1: dot com and via the Radio Plus mobile app. Good morning, 20 00:01:07,520 --> 00:01:11,039 Speaker 1: I'm Karen Moscow. I'm Bob Mullen Bloomberg. The first word 21 00:01:11,160 --> 00:01:14,080 Speaker 1: is brought to you by Bentley University. What the rebooting 22 00:01:14,080 --> 00:01:17,080 Speaker 1: America's oldest ski shop and crunching numbers at mist to 23 00:01:17,120 --> 00:01:20,280 Speaker 1: print have in common? An m b A from Bentley University. 24 00:01:20,319 --> 00:01:24,840 Speaker 1: The Preparis graduates to innovate and lead because business is everywhere. 25 00:01:24,840 --> 00:01:28,320 Speaker 1: Prepare here, and it's five oh one on Wall Street. 26 00:01:28,319 --> 00:01:31,080 Speaker 1: We checked the markets every fifteen minutes throughout the trading 27 00:01:31,160 --> 00:01:33,880 Speaker 1: day on Bloomberg and US Dock Index Future as they 28 00:01:33,880 --> 00:01:37,320 Speaker 1: are little changed this morning. Nasdack futures are higher of 29 00:01:37,440 --> 00:01:40,520 Speaker 1: five points. The decks in Germany's down two tenths percent, 30 00:01:40,600 --> 00:01:42,880 Speaker 1: CAC in Paris down three tenths percent, and the FT 31 00:01:42,959 --> 00:01:45,440 Speaker 1: one hundred down a tenth of upper. Sent Nik two 32 00:01:45,480 --> 00:01:48,000 Speaker 1: twenty five in Japan gained four tenths per cent to 33 00:01:48,080 --> 00:01:50,240 Speaker 1: Hang Sang in Hong Kong up nine tenths per cent. 34 00:01:50,640 --> 00:01:53,320 Speaker 1: Ten Your treasury is up to thirty seconds, the yield 35 00:01:53,360 --> 00:01:56,680 Speaker 1: one two percent yielding a two year point eight seven 36 00:01:56,720 --> 00:02:00,320 Speaker 1: percent Nimax screwed oil down one percent or forties seven 37 00:02:00,360 --> 00:02:04,400 Speaker 1: cents to forty one a barrel comes gold is little changed, 38 00:02:04,480 --> 00:02:06,360 Speaker 1: up less than a tenth of upper cent or ninety 39 00:02:06,360 --> 00:02:09,600 Speaker 1: cents to twelve twenty three sixty announced the Euro at 40 00:02:09,639 --> 00:02:12,440 Speaker 1: allar eleven seventy seven the end one oh nine point 41 00:02:12,520 --> 00:02:16,120 Speaker 1: seven three. A meeting of G seven leaders ended today 42 00:02:16,120 --> 00:02:19,680 Speaker 1: in central Japan. Despite Japanese Prime Minister Snzo Abe's warning 43 00:02:19,680 --> 00:02:22,720 Speaker 1: of looming global crisis on par with the two thousand 44 00:02:22,800 --> 00:02:25,480 Speaker 1: eight Lehman collapsed, he was not able to get his 45 00:02:25,560 --> 00:02:28,400 Speaker 1: fellow world leaders to buy in. For more. Now we 46 00:02:28,440 --> 00:02:32,520 Speaker 1: go to Bloomberg's Yvon Man Insushima Japan, Yvan the G 47 00:02:32,639 --> 00:02:36,760 Speaker 1: seven nations didn't really buy this warning about a Lehman crisis. 48 00:02:36,800 --> 00:02:40,359 Speaker 1: They failed to get that language into the policy community. 49 00:02:40,400 --> 00:02:43,320 Speaker 1: K and as Nera was mentioning it was about the 50 00:02:43,360 --> 00:02:47,000 Speaker 1: resilience of these economies that they could avoid falling into 51 00:02:47,040 --> 00:02:51,080 Speaker 1: a crisis. But even after the fact, G seven leaders, 52 00:02:51,120 --> 00:02:54,160 Speaker 1: you know, continued to hear from Shenzo Abe about this 53 00:02:54,400 --> 00:02:57,600 Speaker 1: crisis concerns. He said, Global markets are wavering, there's a 54 00:02:57,600 --> 00:03:01,200 Speaker 1: prolonged flow down in demand, and the emerging economy is 55 00:03:01,240 --> 00:03:04,080 Speaker 1: posed the biggest concern. He says the clouds are casted 56 00:03:04,200 --> 00:03:08,280 Speaker 1: over these developing nations now. In terms of a coordinated response, 57 00:03:08,320 --> 00:03:10,760 Speaker 1: they did agree that's gonna be a policy mix of 58 00:03:10,800 --> 00:03:14,600 Speaker 1: all of the above monetary, fiscal, and structural reforms. When 59 00:03:14,639 --> 00:03:17,640 Speaker 1: it came to each individual nation, however, they said it 60 00:03:17,680 --> 00:03:21,600 Speaker 1: had to be according to each country's conditions, so still 61 00:03:21,680 --> 00:03:26,200 Speaker 1: not that one prescription on growth, but FX policy also 62 00:03:26,240 --> 00:03:28,680 Speaker 1: got a brief mention readering what we heard from Sendai 63 00:03:28,840 --> 00:03:32,800 Speaker 1: last week that excessive disorderly moves or have a bad 64 00:03:32,880 --> 00:03:36,280 Speaker 1: impact on the economy and that we shouldn't see nations 65 00:03:36,880 --> 00:03:41,040 Speaker 1: going through this currency devaluation Bloomberg, Van Men and Issi 66 00:03:41,120 --> 00:03:45,680 Speaker 1: Hima Japan. Thanks Van. Prime Minister Abbe also says he 67 00:03:45,840 --> 00:03:48,720 Speaker 1: is getting closer to making a decision on a proposed 68 00:03:48,880 --> 00:03:52,440 Speaker 1: sales tax increase. U will make the decision before an 69 00:03:52,480 --> 00:03:55,040 Speaker 1: Upper House election this summer whether to go ahead with 70 00:03:55,040 --> 00:03:57,480 Speaker 1: the Planet hYP next April. This comes a day after 71 00:03:57,520 --> 00:04:00,000 Speaker 1: the Prime Minister warned his fellow Group of Seven leaders 72 00:04:00,120 --> 00:04:03,160 Speaker 1: is that the global economy could be facing another Lehman 73 00:04:03,240 --> 00:04:06,520 Speaker 1: style crisis. Another issue addressed by G seven leaders was 74 00:04:06,560 --> 00:04:10,000 Speaker 1: the prospect of a Brexit. A final policy declaration set 75 00:04:10,000 --> 00:04:12,640 Speaker 1: a decision to leave the EU would pose a quote 76 00:04:12,800 --> 00:04:15,880 Speaker 1: serious threat to global growth. Prime Minister David Cameron, in 77 00:04:15,920 --> 00:04:18,560 Speaker 1: a speech following the meeting, doubled down on support for 78 00:04:18,720 --> 00:04:23,000 Speaker 1: a remain vote. I've never been a close its Brexit heer. 79 00:04:23,760 --> 00:04:27,719 Speaker 1: I'm absolutely passionate about getting the right result, getting this 80 00:04:28,080 --> 00:04:30,279 Speaker 1: reform in Europe and remaining part of it. It's in 81 00:04:30,320 --> 00:04:34,080 Speaker 1: Britain's national interest, That's what it is all about. Prime 82 00:04:34,120 --> 00:04:37,200 Speaker 1: Minister David Cameron, speaking in Jopan. Meantime, in Britain, the 83 00:04:37,279 --> 00:04:41,400 Speaker 1: Treasury warns an incision could leave could cause pensioners to 84 00:04:41,480 --> 00:04:44,280 Speaker 1: lose as much as four hundred forty billion dollars in 85 00:04:44,320 --> 00:04:48,559 Speaker 1: assets if they vote to leave. Phillips Lighting shares jumped 86 00:04:48,560 --> 00:04:51,240 Speaker 1: in their trading debut after Dutch Bear and Company Royal 87 00:04:51,279 --> 00:04:54,200 Speaker 1: Phillips raised eight D thirty nine million dollars in an 88 00:04:54,240 --> 00:04:57,880 Speaker 1: initial public offering of the world's biggest lighting business. Phillips 89 00:04:58,000 --> 00:05:02,120 Speaker 1: Lighting CEO Eric Rondelatz, speak on Bloomberg Television, said that 90 00:05:02,240 --> 00:05:05,800 Speaker 1: investors should think of his company as a quality investment. 91 00:05:06,480 --> 00:05:08,719 Speaker 1: Excite thing is a company that has a very strong 92 00:05:09,320 --> 00:05:11,880 Speaker 1: leadership in the lighting industry. You know, we are more 93 00:05:11,920 --> 00:05:15,840 Speaker 1: than twice bigger our next competitor, and we have distinctive 94 00:05:16,240 --> 00:05:21,160 Speaker 1: competitive advantages that make the investment case solid. That's Phillips 95 00:05:21,200 --> 00:05:24,920 Speaker 1: Lighting CEO Eric Rondolas speaking on Bloomberg Television, and shares 96 00:05:24,960 --> 00:05:28,040 Speaker 1: of the company are at more than eight percent in Amsterdam. 97 00:05:28,120 --> 00:05:31,440 Speaker 1: This morning, the Commerce Department issues data on first quarter 98 00:05:31,520 --> 00:05:35,479 Speaker 1: economic growth. Economists now forecast GDP rose at a point 99 00:05:35,600 --> 00:05:38,760 Speaker 1: nine percent rate in the first quarter. That would be 100 00:05:38,800 --> 00:05:41,480 Speaker 1: a bit more than the government's initial report Bloomberg's of 101 00:05:41,480 --> 00:05:44,360 Speaker 1: any Dale Judas. That's preview from the First Work Desk 102 00:05:44,520 --> 00:05:49,120 Speaker 1: Bloomberg Intelligence as consumer spending could contribute to an upward revision. 103 00:05:49,360 --> 00:05:53,680 Speaker 1: Consumer spending accouncer about two thirds of economic activity. Construction 104 00:05:53,800 --> 00:05:57,080 Speaker 1: spending could also provide a boost, and its initial estimate 105 00:05:57,120 --> 00:06:00,279 Speaker 1: the Commerce Departments at first quarter GDP rose just point 106 00:06:00,320 --> 00:06:03,440 Speaker 1: five percent at an annual rate, the weekest showing since 107 00:06:03,480 --> 00:06:07,760 Speaker 1: early at the Bloomberg First Word Desk company dryl judaicce 108 00:06:07,800 --> 00:06:11,720 Speaker 1: Bloomberg Radio not a reserve. Governor Jerome Powell, speaking at 109 00:06:11,720 --> 00:06:15,600 Speaker 1: the Peterson Institute for International Economics in Washington, said that 110 00:06:15,640 --> 00:06:19,400 Speaker 1: the US economy has made substantial progress and suggested he 111 00:06:19,440 --> 00:06:22,240 Speaker 1: would support a right hike in the near future. The 112 00:06:22,279 --> 00:06:25,640 Speaker 1: incoming data continue to support those expectations. I would see 113 00:06:25,640 --> 00:06:28,159 Speaker 1: it as appropriate to continue to gradually raise the federal 114 00:06:28,200 --> 00:06:32,120 Speaker 1: funds rate depending on the incoming data and the evolving risks. 115 00:06:32,279 --> 00:06:37,080 Speaker 1: Another rate increase maybe appropriate fairly soon. As feder Reserve 116 00:06:37,120 --> 00:06:40,400 Speaker 1: Governor Jerome Powell and Fed share Janet Yellen will be 117 00:06:40,440 --> 00:06:43,240 Speaker 1: speaking at Harvard later today. Many view it as her 118 00:06:43,360 --> 00:06:46,920 Speaker 1: last chance to prepare the markets for a June rate increase. 119 00:06:47,160 --> 00:06:49,599 Speaker 1: We'll bring it up speech live at one fift pm 120 00:06:49,720 --> 00:06:52,720 Speaker 1: Wall Street time here on Bloomberg Radio and on the 121 00:06:52,760 --> 00:06:57,000 Speaker 1: Bloomberg terminal using the function live Go. Struggling Valley and 122 00:06:57,040 --> 00:07:00,640 Speaker 1: Pharmaceuticals rejected a takeover bid this spring. According to The 123 00:07:00,680 --> 00:07:04,760 Speaker 1: Wall Street Journal, Japan's Tokata Pharmaceutical and investment from TPG 124 00:07:05,320 --> 00:07:08,520 Speaker 1: made an approach but did not specify a firm price. 125 00:07:09,120 --> 00:07:12,320 Speaker 1: Valiant has been trying to revive itself after its business 126 00:07:12,320 --> 00:07:16,560 Speaker 1: model and drug pricing practices came under scrutiny SMPE. Many 127 00:07:16,560 --> 00:07:23,040 Speaker 1: futures this morning are unchanged. This is Bloomberg and that 128 00:07:23,080 --> 00:07:25,120 Speaker 1: brings us to five oh seven on Wall Street. This 129 00:07:25,160 --> 00:07:26,560 Speaker 1: hour of the first word is brought to you by 130 00:07:26,560 --> 00:07:31,640 Speaker 1: BMW Mount Kisco. Visit BMW Mount Kisco dot com more. Now, 131 00:07:31,760 --> 00:07:34,800 Speaker 1: on President Obama's day in Japan, let's bring in Michael 132 00:07:34,800 --> 00:07:37,800 Speaker 1: bark At Morning to Michael, Good morning. President Barack Obama 133 00:07:37,880 --> 00:07:40,400 Speaker 1: is ramping up his Jampan trip with a visit to 134 00:07:40,480 --> 00:07:44,640 Speaker 1: Hiroshima today, becoming the first US president to walk the 135 00:07:44,680 --> 00:07:48,000 Speaker 1: ground where about a hundred forty people died from a 136 00:07:48,080 --> 00:07:51,920 Speaker 1: US atomic bomb during World War Two. The President participated 137 00:07:51,960 --> 00:07:56,040 Speaker 1: in a quiet remembrance, including a wreath laying ceremony. The 138 00:07:56,080 --> 00:08:00,280 Speaker 1: President reiterated his hope for world without nuclear weapons. Could 139 00:08:00,320 --> 00:08:04,240 Speaker 1: a debate between Donald Trump and Bernie Sanders become a reality? 140 00:08:04,640 --> 00:08:08,520 Speaker 1: Bloomberg's Add Baxter reports the two presidential candidates have been 141 00:08:08,560 --> 00:08:12,000 Speaker 1: talking about it with the backdrop of Associated Press Tracker 142 00:08:12,080 --> 00:08:14,760 Speaker 1: poll saying that Trump has enough delegates for the nomination 143 00:08:15,160 --> 00:08:17,840 Speaker 1: and the California is basically a dead heat on the 144 00:08:17,920 --> 00:08:22,400 Speaker 1: Democratic side. Trump and Sanders sounds serious. I'd love to 145 00:08:22,400 --> 00:08:23,840 Speaker 1: defend him, but I want a lot of money to 146 00:08:23,880 --> 00:08:25,560 Speaker 1: be put up for charity. So what we'll do is 147 00:08:25,600 --> 00:08:29,000 Speaker 1: if we can raise for maybe women's health issues or something. 148 00:08:29,200 --> 00:08:32,520 Speaker 1: I'm very excited about it, and I think We're gonna 149 00:08:32,559 --> 00:08:35,360 Speaker 1: have to rent out the largest stadium you have here 150 00:08:35,400 --> 00:08:40,080 Speaker 1: in California. Bloomberg's had Baxter reporting Trump has hit the 151 00:08:40,120 --> 00:08:43,040 Speaker 1: number of delegates needed to clinch the Republican nomination and 152 00:08:43,080 --> 00:08:47,760 Speaker 1: avoid a contested convention in Cleveland. Democratic presidential front runner 153 00:08:47,800 --> 00:08:52,240 Speaker 1: Hillary Clinton campaigned in San Francisco last night. Clinton continued 154 00:08:52,280 --> 00:08:56,479 Speaker 1: to hammer Donald Trump over refusing to disclose his tax returns. 155 00:08:56,760 --> 00:09:00,560 Speaker 1: Clinton says we've seen just two years of Trump's talk returns. 156 00:09:00,760 --> 00:09:04,440 Speaker 1: Those two years showed something really interesting. It's showed he 157 00:09:04,520 --> 00:09:09,720 Speaker 1: had not paid a penny in federal income tax. Clinton 158 00:09:09,800 --> 00:09:13,040 Speaker 1: says she and her husband have disclosed thirty three years 159 00:09:13,080 --> 00:09:16,319 Speaker 1: of their returns. Hillary Clinton was so attached to her 160 00:09:16,360 --> 00:09:20,040 Speaker 1: BlackBerry when she was Secretary of State she was sometimes 161 00:09:20,120 --> 00:09:23,360 Speaker 1: spotted in the hallway outsider office using the device. That's 162 00:09:23,360 --> 00:09:27,600 Speaker 1: according to a State Department official, Blackberries and iPhones are 163 00:09:27,640 --> 00:09:31,800 Speaker 1: not allowed in the Secretary's office suite. The statement was 164 00:09:31,880 --> 00:09:35,360 Speaker 1: made by State Department official Louis Lucns. In a deposition 165 00:09:35,400 --> 00:09:39,080 Speaker 1: released by Judicial Watch, French President France Bhile Alan says 166 00:09:39,080 --> 00:09:41,360 Speaker 1: he will not back down from changes in his country's 167 00:09:41,440 --> 00:09:44,240 Speaker 1: labor law opposition to the labor law in France has 168 00:09:44,280 --> 00:09:47,080 Speaker 1: led strikes. Global News twenty four hours a day, powered 169 00:09:47,080 --> 00:09:49,640 Speaker 1: by our twenty four hundred journalists more than a hundred 170 00:09:49,640 --> 00:09:52,520 Speaker 1: fifty news bureaus around the world. I'm Michael Barr. Bomb 171 00:09:52,760 --> 00:09:55,200 Speaker 1: appreciated Michael at bring just a five O nine on 172 00:09:55,320 --> 00:09:58,400 Speaker 1: Wall Street ton Now for your land Rover Partsippany Bloomberg 173 00:09:58,480 --> 00:10:01,400 Speaker 1: NBC Sports Update and a Happy Friday to you, John 174 00:10:02,280 --> 00:10:05,560 Speaker 1: all right, Thanks Bob. Steph Curry struggled in Golden States 175 00:10:05,600 --> 00:10:08,199 Speaker 1: to lopsided losses at Oklahoma City. People wondered if he 176 00:10:08,280 --> 00:10:10,280 Speaker 1: was still injured. The two time m v P look 177 00:10:10,320 --> 00:10:13,120 Speaker 1: fine last night, thirty one point seven rebounds, six sists, 178 00:10:13,120 --> 00:10:16,560 Speaker 1: five steals. Warriors stayed alive one one eleven to cut 179 00:10:16,559 --> 00:10:19,120 Speaker 1: the Thunders lead to three two. As Curry goes back 180 00:10:19,160 --> 00:10:22,480 Speaker 1: to okay See for Game six tomorrow. We didn't give 181 00:10:22,520 --> 00:10:25,440 Speaker 1: ourselves any chance to be competitive in okay See, and 182 00:10:25,520 --> 00:10:29,560 Speaker 1: tonight we finally showed what we're capable of and we 183 00:10:29,640 --> 00:10:32,280 Speaker 1: have to, you know, take that game and travel for 184 00:10:32,360 --> 00:10:34,960 Speaker 1: game six. So you know, we're excited about that opportunity 185 00:10:34,960 --> 00:10:37,200 Speaker 1: that we have and you know, another game to play. 186 00:10:37,440 --> 00:10:39,920 Speaker 1: Clay Thompson at a twenty seven points. Kevin Durant had 187 00:10:39,920 --> 00:10:42,600 Speaker 1: forty and Russell Westbrook thirty one for the thunder who 188 00:10:42,600 --> 00:10:45,200 Speaker 1: won those games three and four by twenty eight and 189 00:10:45,200 --> 00:10:48,080 Speaker 1: twenty three points. Mike D'Antoni, one of many former Knicks 190 00:10:48,080 --> 00:10:52,800 Speaker 1: coaches hired in Houston Miami assistant David Fizdale hired in Memphis. 191 00:10:52,800 --> 00:10:54,360 Speaker 1: The Rangers got a good look at how well the 192 00:10:54,360 --> 00:10:57,199 Speaker 1: Pittsburgh Penguins were playing back in Round one. Penguins finished 193 00:10:57,200 --> 00:10:59,319 Speaker 1: the regular season when the fourteen of sixteen that has 194 00:10:59,360 --> 00:11:02,360 Speaker 1: carried over. They won Game seven from Tampa Bay two 195 00:11:02,360 --> 00:11:05,000 Speaker 1: to one. Is Brian Rust scored twice in the second 196 00:11:05,000 --> 00:11:08,040 Speaker 1: period of the Stanley Cup Final Pittsburgh versus San Jose 197 00:11:08,679 --> 00:11:10,880 Speaker 1: Game one Monday. The Yankees be gonna tend game road 198 00:11:10,880 --> 00:11:13,280 Speaker 1: trip tonight at Tampa Bay. Coving off two losses that 199 00:11:13,400 --> 00:11:16,280 Speaker 1: followed six trade wins, they managed just three singles off 200 00:11:16,400 --> 00:11:18,959 Speaker 1: j half After a Starlin Castro home run on the 201 00:11:19,000 --> 00:11:22,240 Speaker 1: first dating, Blue Jays beat Joe Girardi's team three to one. 202 00:11:22,440 --> 00:11:24,840 Speaker 1: This is baseball, I mean, this is what happens. You know, 203 00:11:24,880 --> 00:11:26,560 Speaker 1: you just can't let it carry over. We have an 204 00:11:26,559 --> 00:11:28,720 Speaker 1: important road trip. We're going down to Tampa. You know, 205 00:11:29,080 --> 00:11:32,079 Speaker 1: and I continually talk about winning series, just win series. 206 00:11:32,120 --> 00:11:34,520 Speaker 1: On this road trip. SOS the Dodgers tonight they're a 207 00:11:34,559 --> 00:11:37,000 Speaker 1: game behind Washington. The Top st Louis two won. Bryce 208 00:11:37,040 --> 00:11:39,040 Speaker 1: Harper had and upper deck home run. The Red Sox 209 00:11:39,120 --> 00:11:42,120 Speaker 1: lost Colorado. Jackie Bradley Jr. Is Hitting Street. Ended at 210 00:11:42,120 --> 00:11:45,600 Speaker 1: twenty nine with Bloomberg NBC Sports Update. I'm John Stasha. 211 00:11:46,120 --> 00:11:48,760 Speaker 1: Thanks John. As mentioned, we await GDP did hit eight 212 00:11:48,800 --> 00:11:50,880 Speaker 1: thirty this morning, Wall Street Time, and we'll be talking 213 00:11:50,880 --> 00:11:53,640 Speaker 1: about it in a moment. With Neil Dona, Renaissance Macro, 214 00:11:53,840 --> 00:11:57,160 Speaker 1: head of US Economics, S and p E Mini futures 215 00:11:57,240 --> 00:12:01,439 Speaker 1: unchanged at this hour. Dally men, he's up a single point. 216 00:12:01,920 --> 00:12:08,040 Speaker 1: This is Bloomberg and the sports support was brought to 217 00:12:08,040 --> 00:12:10,240 Speaker 1: you by land Roller Parsippany. If it's in your nature 218 00:12:10,280 --> 00:12:12,440 Speaker 1: to cast off the every day and seek adventure, the 219 00:12:12,440 --> 00:12:15,240 Speaker 1: Discovery Sport was built to help your search. Visit land 220 00:12:15,280 --> 00:12:22,800 Speaker 1: Rover Parsippany dot com or Fine four w D Gloobal 221 00:12:22,840 --> 00:12:26,200 Speaker 1: Business News twenty four hours a day at Bloomberg dot com, 222 00:12:26,440 --> 00:12:29,280 Speaker 1: the Radio plus mobile app and on your radio. This 223 00:12:29,679 --> 00:12:33,360 Speaker 1: is a Bloomberg Business Flash and I'm camerin Moscow. This 224 00:12:33,480 --> 00:12:35,920 Speaker 1: updates brought to you by Sector Spider E t F. 225 00:12:36,000 --> 00:12:37,920 Speaker 1: So I buy a single stock and you can invest 226 00:12:37,960 --> 00:12:41,400 Speaker 1: in the entire sector. Visits Sector spd r S dot 227 00:12:41,440 --> 00:12:45,160 Speaker 1: com or call six Sector e t F. Today we're 228 00:12:45,160 --> 00:12:48,600 Speaker 1: watching for a report on first quarter gross domestic product 229 00:12:48,640 --> 00:12:51,160 Speaker 1: at a d thirty Wall Street time, then attend its 230 00:12:51,200 --> 00:12:54,839 Speaker 1: consumer sentiment from the University of Michigan. Global equities are 231 00:12:54,840 --> 00:12:57,320 Speaker 1: holding near a three week high. The dollar is rising 232 00:12:57,480 --> 00:12:59,599 Speaker 1: versus most peers before a speech by the head of 233 00:12:59,640 --> 00:13:03,720 Speaker 1: the Federal Reserve. Oil falling below forty nine dollars of 234 00:13:03,760 --> 00:13:06,120 Speaker 1: barrel now, and we checked the markets every fifteen minutes 235 00:13:06,160 --> 00:13:09,600 Speaker 1: throughout the trading day. On Bloomberg U s Dock index futures, 236 00:13:09,600 --> 00:13:12,520 Speaker 1: they are little changed and NASTACU mini futures are higher. 237 00:13:12,559 --> 00:13:15,640 Speaker 1: They're up a point or five points rather or a 238 00:13:15,679 --> 00:13:18,480 Speaker 1: tenth of upper set. The decks in Germany is down 239 00:13:18,520 --> 00:13:20,600 Speaker 1: two tenths per cent, so is the CAC in Paris. 240 00:13:20,880 --> 00:13:24,000 Speaker 1: Tenure treasury up one thirty second, the yeld one point 241 00:13:24,040 --> 00:13:26,160 Speaker 1: eight two percent, the yield in a two year point 242 00:13:26,160 --> 00:13:28,840 Speaker 1: eight seven percent n i'm ex screwed oil down one 243 00:13:29,120 --> 00:13:31,720 Speaker 1: two percent or sixty one cents to forty eight dollars 244 00:13:31,760 --> 00:13:35,040 Speaker 1: eighty seven cents of barrel comex skull little change down 245 00:13:35,080 --> 00:13:38,680 Speaker 1: fifty cents to twelve thirty announced the Euro at dollar 246 00:13:38,760 --> 00:13:41,640 Speaker 1: eleven seventy five, the N one oh nine point six 247 00:13:41,679 --> 00:13:44,800 Speaker 1: eight and as a Bloomberg Business flash. Now here's Michael 248 00:13:44,800 --> 00:13:47,240 Speaker 1: Barr with more on what's going on around the world. 249 00:13:47,360 --> 00:13:50,680 Speaker 1: Good morning, Michael, Good morning Karen. President Barack Obama visited 250 00:13:50,760 --> 00:13:55,080 Speaker 1: Hiroshimus Peace Park, making him the first US sitting president 251 00:13:55,160 --> 00:13:58,200 Speaker 1: to visit the city where America dropped in atomic bomb 252 00:13:58,200 --> 00:14:02,720 Speaker 1: in President Obama said that the visit is an opportunity 253 00:14:02,800 --> 00:14:07,400 Speaker 1: to honor the memory of the people lost. The chief 254 00:14:07,440 --> 00:14:10,560 Speaker 1: investigator in the egypt airplane crash that killed all sixty 255 00:14:10,600 --> 00:14:13,599 Speaker 1: six people on board last week says search teams in 256 00:14:13,640 --> 00:14:16,360 Speaker 1: the Mediterranean had picked up a beacon believed to be 257 00:14:16,559 --> 00:14:20,120 Speaker 1: from the aircraft. The lead investigators says this narrows down 258 00:14:20,200 --> 00:14:23,280 Speaker 1: the searche to a three mile radius. In sports and 259 00:14:23,320 --> 00:14:25,800 Speaker 1: Major League Baseball, the Yankees lost to the Blue Jays, 260 00:14:25,840 --> 00:14:28,680 Speaker 1: The Nationals beat the Cardinals. The Orioles lost to the 261 00:14:28,680 --> 00:14:32,280 Speaker 1: Astros in the NBA Western Conference Finals. The Warriors lived 262 00:14:32,320 --> 00:14:35,480 Speaker 1: to see another day. Golden State beat the funder Oklahoma 263 00:14:35,520 --> 00:14:38,040 Speaker 1: City still lead that series three games to two. In 264 00:14:38,080 --> 00:14:40,560 Speaker 1: the NHL Playoffs, the Penguins in advance to face the 265 00:14:40,600 --> 00:14:42,920 Speaker 1: Sharks in the finals. More on these and other stories 266 00:14:42,960 --> 00:14:45,480 Speaker 1: at the bottom of the hour in Bob Lacholbar, Thanks 267 00:14:45,600 --> 00:14:48,000 Speaker 1: very much. The U. S economy probably expanded in the 268 00:14:48,040 --> 00:14:51,560 Speaker 1: first quarter slightly more than previously estimated, according to the 269 00:14:51,560 --> 00:14:54,840 Speaker 1: economists we've surveyed here at Bloomberg the Commis Departments report 270 00:14:54,880 --> 00:14:57,280 Speaker 1: on Gross domestic Product. You out at eight thirty this morning, 271 00:14:57,320 --> 00:14:59,480 Speaker 1: well street time, and we will of course have full 272 00:14:59,480 --> 00:15:02,640 Speaker 1: coverage analysis for you pretty now as we're joined by 273 00:15:02,760 --> 00:15:06,880 Speaker 1: Neil Dutta, head of US economics for Renaissance Macro. Good 274 00:15:06,880 --> 00:15:08,960 Speaker 1: morning and thanks for being with us. Neil, Are you 275 00:15:09,000 --> 00:15:16,320 Speaker 1: comfortable with economic growth? UM? Yeah, I mean I think uh. 276 00:15:16,480 --> 00:15:18,480 Speaker 1: I mean, growth in the first quarter is probably gonna 277 00:15:18,520 --> 00:15:22,800 Speaker 1: be revised up modestly. Growth in the second quarter appears 278 00:15:22,840 --> 00:15:25,560 Speaker 1: to be running about two and a half to three percent. UM. 279 00:15:25,600 --> 00:15:28,560 Speaker 1: I mean, I think what's really important, it's important to 280 00:15:28,560 --> 00:15:33,400 Speaker 1: remember that the GDP numbers are very volatile, and what's 281 00:15:33,440 --> 00:15:36,960 Speaker 1: been very stable has been the growth and employment UM 282 00:15:37,320 --> 00:15:40,080 Speaker 1: and you know, I think that's a much more reliable 283 00:15:40,120 --> 00:15:44,320 Speaker 1: signal of activity. Uh. And the single from the labor 284 00:15:44,400 --> 00:15:50,640 Speaker 1: market is unambiguous. It's continued shreds. We're generating about the 285 00:15:50,760 --> 00:15:53,440 Speaker 1: hundred and seventy five thousand, two hundred thousand jabs a month. 286 00:15:54,280 --> 00:15:58,640 Speaker 1: That's putting downward pressure on labor market under utilization, and 287 00:15:58,680 --> 00:16:00,840 Speaker 1: that's putting upward pressure on wages. And I think we'll 288 00:16:00,840 --> 00:16:02,320 Speaker 1: see more of that as we go into the second 289 00:16:02,360 --> 00:16:04,440 Speaker 1: half of the year. And what effect does all this 290 00:16:04,560 --> 00:16:09,440 Speaker 1: have on that big question about the FED next month? Well, 291 00:16:09,440 --> 00:16:10,840 Speaker 1: I don't think any of this is going to really 292 00:16:10,880 --> 00:16:14,960 Speaker 1: save the FED for June. Um. You know. I think look, 293 00:16:15,000 --> 00:16:17,200 Speaker 1: even if the first quarter number was a fluke, the 294 00:16:17,240 --> 00:16:19,760 Speaker 1: FED really can know that until it sees more data. 295 00:16:20,320 --> 00:16:23,280 Speaker 1: I think it was a fluke. Um. You know, we 296 00:16:23,320 --> 00:16:26,120 Speaker 1: do have, as I said, stable measures of employment, even 297 00:16:26,160 --> 00:16:29,280 Speaker 1: serving measures of activity have been reasonably good. Um So, 298 00:16:30,120 --> 00:16:31,880 Speaker 1: and on top of that, you have the Brexit vote 299 00:16:31,920 --> 00:16:34,880 Speaker 1: coming eight days later. That's definitely has to sort of 300 00:16:35,000 --> 00:16:37,600 Speaker 1: enter into the seeds calculus. So um, I think July 301 00:16:37,720 --> 00:16:40,640 Speaker 1: is probably the earliest they go. My own sense is 302 00:16:40,680 --> 00:16:44,080 Speaker 1: that Jenny Ellen's speech on the sixth of June is 303 00:16:44,120 --> 00:16:47,000 Speaker 1: going to be important. I do think she's probably going 304 00:16:47,040 --> 00:16:49,840 Speaker 1: to be somewhat more devilish relative to some of the 305 00:16:49,880 --> 00:16:53,800 Speaker 1: speakers that have come out of late as of Wade. Um. 306 00:16:53,960 --> 00:16:56,440 Speaker 1: You know, remember, I mean from her view point of view, 307 00:16:56,480 --> 00:16:58,760 Speaker 1: I don't think much has really changed since her speech 308 00:16:58,760 --> 00:17:01,200 Speaker 1: in March. I mean, the markets the come up, but 309 00:17:01,520 --> 00:17:03,200 Speaker 1: you know, part of that has been driven by the 310 00:17:03,280 --> 00:17:06,399 Speaker 1: expectations of said having been pushed out a little bit 311 00:17:06,440 --> 00:17:09,000 Speaker 1: at least up until recently. So um, you have to 312 00:17:09,080 --> 00:17:12,040 Speaker 1: kind of weigh that in your in your forecasting. So 313 00:17:12,720 --> 00:17:14,920 Speaker 1: you know, I think that July is probably the earliest 314 00:17:14,920 --> 00:17:17,120 Speaker 1: thing go. I do think the Feds getting ready to hike. 315 00:17:17,160 --> 00:17:19,080 Speaker 1: I think hikes are likely this year. I just don't 316 00:17:19,080 --> 00:17:22,600 Speaker 1: think they happen in June. So as for her remarks today, 317 00:17:23,080 --> 00:17:25,440 Speaker 1: is she sort of straddling the data, sort of trying 318 00:17:25,480 --> 00:17:29,000 Speaker 1: to have you know, the best of both worlds at 319 00:17:29,040 --> 00:17:34,720 Speaker 1: the moment. I think her speech today is is more 320 00:17:34,760 --> 00:17:39,320 Speaker 1: of us sort of you know, um, celebrating her achievements 321 00:17:39,880 --> 00:17:42,760 Speaker 1: in life bread at Harvard. I don't think it's actually 322 00:17:42,760 --> 00:17:46,159 Speaker 1: about policy. Um, you know, I mean, look, if can 323 00:17:46,200 --> 00:17:48,359 Speaker 1: she avoid the topic, can can she avoid the topic, 324 00:17:48,440 --> 00:17:52,240 Speaker 1: thoughn't you. Well, if he's asked a question about it, 325 00:17:52,280 --> 00:17:54,840 Speaker 1: I think she'll say that things are getting better and 326 00:17:54,880 --> 00:17:58,359 Speaker 1: that we're getting closer to her expectations for rate hikes 327 00:17:58,400 --> 00:18:03,159 Speaker 1: this year. Um. But you know, remember what you said before, 328 00:18:03,320 --> 00:18:07,439 Speaker 1: caution was especially warranted. Um. So I mean you have 329 00:18:07,480 --> 00:18:10,640 Speaker 1: to ask yourself if someone says caution is especially warranted. 330 00:18:11,080 --> 00:18:13,639 Speaker 1: But they also probably think that we're gonna raise rates 331 00:18:13,680 --> 00:18:17,040 Speaker 1: twice this year? Do they go? And of course, as 332 00:18:17,080 --> 00:18:20,680 Speaker 1: all this is all forecast dependence, all data dependent. Um, 333 00:18:20,720 --> 00:18:23,000 Speaker 1: but are they going to go at their first opportunity? 334 00:18:23,400 --> 00:18:26,679 Speaker 1: I don't think that they would so. Um. You know, 335 00:18:26,880 --> 00:18:29,479 Speaker 1: I think that by going in September, by waiting a 336 00:18:29,480 --> 00:18:31,639 Speaker 1: little bit longer, it will actually allow the bet to 337 00:18:31,640 --> 00:18:33,880 Speaker 1: go in more normal intervals, at least in the beginning 338 00:18:33,880 --> 00:18:36,400 Speaker 1: of the of the tightening problem. It sounds like you're 339 00:18:36,440 --> 00:18:39,920 Speaker 1: just dismissing all the hawkish talk that we've heard from 340 00:18:40,200 --> 00:18:44,520 Speaker 1: all the other FETE officials. Yeah, I mean, I think 341 00:18:44,520 --> 00:18:46,840 Speaker 1: it's so it seems kind of convoluted. I mean, you know, 342 00:18:47,600 --> 00:18:49,639 Speaker 1: it almost to me feels like they're trying to manage 343 00:18:49,680 --> 00:18:52,160 Speaker 1: the implied rate probabilities in the market. I mean, so 344 00:18:52,800 --> 00:18:55,240 Speaker 1: in some respects, if the markets pricing in less than 345 00:18:55,280 --> 00:18:57,120 Speaker 1: a ten percent chance of a June hike, I means 346 00:18:57,160 --> 00:18:59,480 Speaker 1: policy is too loose. But if the markets pricing in 347 00:18:59,480 --> 00:19:02,800 Speaker 1: a thirty year uh, you know, that means policy is 348 00:19:03,080 --> 00:19:05,800 Speaker 1: better aligned. Um. You know, look that at the end 349 00:19:05,840 --> 00:19:08,879 Speaker 1: of the day, it still means they don't go in June. Right, Um, 350 00:19:08,920 --> 00:19:11,919 Speaker 1: So yeah, I mean I think that Yellen is probably 351 00:19:11,920 --> 00:19:14,200 Speaker 1: gonna be somewhat more cautious. Um. You know, I thought 352 00:19:14,240 --> 00:19:17,200 Speaker 1: the comments from Governor Powell yesterday were kind of interesting 353 00:19:17,480 --> 00:19:20,160 Speaker 1: where he basically said that we need to see very 354 00:19:20,160 --> 00:19:23,960 Speaker 1: strong growth in the second quarter and going forward to 355 00:19:24,119 --> 00:19:27,440 Speaker 1: justify rate hype, given how we grewth has been uh 356 00:19:27,600 --> 00:19:31,160 Speaker 1: ddpres at least in the fourth quarter of last year 357 00:19:31,160 --> 00:19:33,280 Speaker 1: in the first quarter of this year. So as they say, 358 00:19:33,320 --> 00:19:35,680 Speaker 1: I mean, I think just from a data dependence framework, 359 00:19:36,320 --> 00:19:39,480 Speaker 1: you can make the arguments I said, should uh should 360 00:19:39,520 --> 00:19:41,440 Speaker 1: wait in June. They want to see a rebound in 361 00:19:41,520 --> 00:19:43,240 Speaker 1: Q two. They want to see some of that extended 362 00:19:43,280 --> 00:19:45,840 Speaker 1: to the third quarter. Neil, appreciate your take on this. 363 00:19:45,960 --> 00:19:49,520 Speaker 1: Neil got ahead of you as economics for renaissance, macro 364 00:19:50,400 --> 00:19:54,199 Speaker 1: and US stock index futures are little changed. At this 365 00:19:54,280 --> 00:19:57,560 Speaker 1: our treasury prices higher they yield on the tenure. At one. 366 00:19:59,080 --> 00:20:02,359 Speaker 1: You're listening to bloom Bird the first Word on Bloomberg 367 00:20:02,400 --> 00:20:08,280 Speaker 1: Radio and the first Word brought to you by New 368 00:20:08,359 --> 00:20:11,080 Speaker 1: York Community Bank cask about their my community interest checking 369 00:20:11,080 --> 00:20:13,879 Speaker 1: with free New York Community Bank Online and Mobile banking. 370 00:20:14,119 --> 00:20:23,359 Speaker 1: Earn more, get more. Visit nyc B dot com for details. 371 00:20:23,400 --> 00:20:27,680 Speaker 1: Broadcasting live to New York Bloomberg eleventh, Rio to Washington, 372 00:20:27,800 --> 00:20:32,800 Speaker 1: d C, Bloomberg to Froston, Bloomberg twelve to San Francisco, 373 00:20:32,920 --> 00:20:37,359 Speaker 1: Bloomberg to the country. Suis Exam Channel one nine and 374 00:20:37,480 --> 00:20:41,600 Speaker 1: around the globe the Bloomberg Radio Plus Appen Bloomberg dot com. 375 00:20:41,600 --> 00:20:45,119 Speaker 1: This is Bloomberg the First Word, and it's five thirty 376 00:20:45,200 --> 00:20:48,320 Speaker 1: on Wall Street. Good morning. I'm Karen Moscow, I'm Bob 377 00:20:48,359 --> 00:20:50,880 Speaker 1: moon Bloomberg. The first Word is brought to you by 378 00:20:51,000 --> 00:20:53,520 Speaker 1: van k Vectors. E t f s. Expect more from 379 00:20:53,560 --> 00:20:57,520 Speaker 1: your muties, target tax exempt income by maturity and credit quality, 380 00:20:57,800 --> 00:20:59,840 Speaker 1: all with low cost e t f s. Visit van 381 00:21:00,160 --> 00:21:04,760 Speaker 1: dot com slash Muni Vanek access the opportunities. And we're 382 00:21:04,800 --> 00:21:07,480 Speaker 1: just about four hours away from the opening of US trading. 383 00:21:07,560 --> 00:21:09,000 Speaker 1: Let's get you up to date in the news you 384 00:21:09,040 --> 00:21:10,760 Speaker 1: need to know at this hour. A meeting of G 385 00:21:10,880 --> 00:21:14,520 Speaker 1: seven leaders has concluded in Japan. World leaders tangled over 386 00:21:14,560 --> 00:21:17,159 Speaker 1: how to push the global economy toward growth amid an 387 00:21:17,280 --> 00:21:21,320 Speaker 1: array of risks, including geo political tensions, a slowdown in China, 388 00:21:21,400 --> 00:21:24,840 Speaker 1: and Britten's potential exit from the European Union. The UK 389 00:21:24,920 --> 00:21:28,200 Speaker 1: Treasury warns at an exit from the EU could cause 390 00:21:28,240 --> 00:21:31,000 Speaker 1: British pensioners to lose as much as four hundred forty 391 00:21:31,080 --> 00:21:34,800 Speaker 1: billion dollars in assets. The Treasury's latest analysis as a 392 00:21:34,880 --> 00:21:38,520 Speaker 1: vote for Brexit risks fueling arise and inflation, turmoil and 393 00:21:38,560 --> 00:21:42,520 Speaker 1: financial markets, and a drop in asset prices. Japanese Prime 394 00:21:42,520 --> 00:21:45,480 Speaker 1: Minister Shinzo Abe is getting closer to making a decision 395 00:21:45,480 --> 00:21:48,760 Speaker 1: on a proposed sales tax increase. Abe says he'll make 396 00:21:48,800 --> 00:21:51,760 Speaker 1: the decision before an Upper House election this summer whether 397 00:21:51,840 --> 00:21:55,000 Speaker 1: to go ahead with a planned hike next April. Google 398 00:21:55,080 --> 00:21:58,040 Speaker 1: has won a jury verdict that kills Oracle's claim to 399 00:21:58,240 --> 00:22:02,520 Speaker 1: nine billion dollars slice of the search giants android phone business. 400 00:22:02,920 --> 00:22:06,959 Speaker 1: The story from Bloomberg's Charlie Pellett. Oracle contended that Google 401 00:22:07,040 --> 00:22:10,520 Speaker 1: needed a license to use its Java programming language to 402 00:22:10,640 --> 00:22:14,000 Speaker 1: develop Android, the operating system in eight of the world's 403 00:22:14,040 --> 00:22:18,280 Speaker 1: mobile devices. Jurors in San Francisco Federal Court rejected that 404 00:22:18,400 --> 00:22:21,679 Speaker 1: argument and concluded Google made fair use of the code 405 00:22:21,880 --> 00:22:26,119 Speaker 1: under copyright law. A decision against Google had the potential 406 00:22:26,160 --> 00:22:29,760 Speaker 1: to give significantly more weight to software copyrights and to 407 00:22:29,880 --> 00:22:34,800 Speaker 1: spur litigation to protect those added rights. Charlie Pellet Bloomberg Radio. 408 00:22:35,359 --> 00:22:37,600 Speaker 1: Hedge funds and banks are hoping to cash in on 409 00:22:37,640 --> 00:22:40,600 Speaker 1: the uncertainty of the Brexit vote hours before the results 410 00:22:40,600 --> 00:22:43,840 Speaker 1: are known to opinion. Polling companies say they've been approached 411 00:22:43,840 --> 00:22:46,679 Speaker 1: by bankers looking for insights. The need for information is 412 00:22:46,760 --> 00:22:49,680 Speaker 1: huge because there won't be any official exit poll. Its 413 00:22:49,720 --> 00:22:52,560 Speaker 1: voting ends at ten pm, and it's unclear how soon 414 00:22:52,640 --> 00:22:56,119 Speaker 1: early results will show a trend. And Janet Yellen speaks 415 00:22:56,119 --> 00:22:58,600 Speaker 1: at Harvard today. Some view it as an opportunity to 416 00:22:58,680 --> 00:23:01,040 Speaker 1: prime the markets for a jew An interest rate increase. 417 00:23:01,359 --> 00:23:04,000 Speaker 1: You can hear that speech live on Bloomberg Radio today 418 00:23:04,040 --> 00:23:08,040 Speaker 1: at one fifteen Wall Street time. And futures this morning 419 00:23:08,040 --> 00:23:11,119 Speaker 1: little change to higher SNP E Mini futures up a point, 420 00:23:11,160 --> 00:23:14,359 Speaker 1: Dowie Mini futures up ten and Nasdaqi Mini futures they're 421 00:23:14,520 --> 00:23:17,239 Speaker 1: up eight. It acts in Germany is little changed as 422 00:23:17,240 --> 00:23:19,720 Speaker 1: well ten. Your treasury up to thirty seconds. The yelled 423 00:23:19,800 --> 00:23:23,120 Speaker 1: one two ni Max screwed oil down one point one 424 00:23:23,119 --> 00:23:25,480 Speaker 1: per cent or fifty four cents to forty eight dollars 425 00:23:25,560 --> 00:23:28,600 Speaker 1: ninety four cents of barrel comics call that will changed 426 00:23:28,640 --> 00:23:33,720 Speaker 1: at twelve forty announced. This is Bloomberg the first word, 427 00:23:37,200 --> 00:23:39,320 Speaker 1: and hear when we come to five thirty three on 428 00:23:39,520 --> 00:23:41,399 Speaker 1: Wall Street this hour. The first word is brought to 429 00:23:41,440 --> 00:23:45,080 Speaker 1: you by Volvo Cars, White Planes. Visit Volvo Cars, White 430 00:23:45,119 --> 00:23:49,080 Speaker 1: Planes dot Com A day for history in Japan. Michael 431 00:23:49,080 --> 00:23:51,200 Speaker 1: Barr with that story and more. Good morning to you, Michael, 432 00:23:51,359 --> 00:23:54,920 Speaker 1: Good morning bomb Japanese for Minister Shinzo Abbies as President 433 00:23:54,920 --> 00:23:58,280 Speaker 1: Barack Obama's visit to Hiroshima will give a big boost 434 00:23:58,280 --> 00:24:01,800 Speaker 1: to efforts to achieve a nuclear your free world. President 435 00:24:01,800 --> 00:24:05,400 Speaker 1: Obama is the first US president to stand on Hiroshima's 436 00:24:05,440 --> 00:24:08,800 Speaker 1: hello ground. We're about a hundred forty people were killed 437 00:24:08,840 --> 00:24:11,480 Speaker 1: when the US dropped an atomic bomb on the western 438 00:24:11,560 --> 00:24:16,000 Speaker 1: Japanese city during World War two seventy one years ago. 439 00:24:17,640 --> 00:24:23,679 Speaker 1: Bright cloudless morning, death fell from the sky and the 440 00:24:23,680 --> 00:24:27,159 Speaker 1: world was changed. President Obama placed a wreath at the 441 00:24:27,200 --> 00:24:32,040 Speaker 1: site a debate between Donald Trump and Bernie Sanders. Trump, though, 442 00:24:32,119 --> 00:24:34,479 Speaker 1: is calling for a donation of at least ten million 443 00:24:34,560 --> 00:24:38,359 Speaker 1: dollars to women's health causes. Several TV networks are not 444 00:24:38,560 --> 00:24:42,679 Speaker 1: commenting on whether they'd agree to Trump's terms. Sanders, speaking 445 00:24:42,720 --> 00:24:46,480 Speaker 1: to supporters in Ventura, California, says he'd want the biggest 446 00:24:46,480 --> 00:24:50,840 Speaker 1: stadium possible for the debate. Environmentalists are concerned Donald Trump 447 00:24:50,840 --> 00:24:54,520 Speaker 1: would give polluters a free pass. In his first energy 448 00:24:54,560 --> 00:24:58,480 Speaker 1: policy speech, Trump told supporters in Bismarck, North Dakota, he 449 00:24:58,520 --> 00:25:02,520 Speaker 1: would save industries and by Hillary Clinton's agenda, We're going 450 00:25:02,600 --> 00:25:06,080 Speaker 1: to save the coal industry. We're gonna save that coal industry. 451 00:25:06,119 --> 00:25:08,919 Speaker 1: Believe me, We're gonna save it. I love those people. 452 00:25:09,480 --> 00:25:14,119 Speaker 1: Trump says the US will be totally energy independent under 453 00:25:14,200 --> 00:25:18,280 Speaker 1: his presidency. Hillary Clinton campaigned in San Francisco last night, 454 00:25:18,600 --> 00:25:21,840 Speaker 1: calling for a sustainable energy sources. I want us to 455 00:25:21,880 --> 00:25:24,560 Speaker 1: deploy a half a billion more solar panels by the 456 00:25:24,640 --> 00:25:27,840 Speaker 1: end of my first term, and enough clean energy to 457 00:25:28,080 --> 00:25:31,520 Speaker 1: power every home in America by the end of the 458 00:25:31,640 --> 00:25:36,320 Speaker 1: second term. Global News twenty four hours a day, powered 459 00:25:36,320 --> 00:25:39,280 Speaker 1: by our twenty four hundred journalists and more than a 460 00:25:39,359 --> 00:25:43,280 Speaker 1: hundred fifty news bureaus around the world. I'm Michael bar Bob, Michael, 461 00:25:43,280 --> 00:25:46,439 Speaker 1: thanks very much. Five on Wall Streets. Time now for 462 00:25:46,600 --> 00:25:50,240 Speaker 1: your land Rover for Sippony Bloomberg, NBC Sports Update. Good 463 00:25:50,240 --> 00:25:52,760 Speaker 1: morning to you, John stash Our, Good morning, Bob. Until 464 00:25:52,760 --> 00:25:55,600 Speaker 1: the other night, the Warriors had played nine games that 465 00:25:55,600 --> 00:25:57,320 Speaker 1: had never lost two in a row. They weren't going 466 00:25:57,359 --> 00:25:59,480 Speaker 1: to lose three straight. Of Oklahoma City did take a 467 00:25:59,560 --> 00:26:01,879 Speaker 1: one point leading the third quarter. That lead was brief, 468 00:26:01,920 --> 00:26:04,600 Speaker 1: the only one in the night. Golden State won Game five, one, 469 00:26:05,280 --> 00:26:08,840 Speaker 1: one eleven. Steph Curry thirty one point, seven rebounds, six assists, 470 00:26:08,920 --> 00:26:12,160 Speaker 1: five steals. Clay Thompson scored twenty seven, Andrew Bogan gave 471 00:26:12,240 --> 00:26:15,400 Speaker 1: him a lift of fifteen points fourteen rebounds, and Draymond Greene, 472 00:26:15,400 --> 00:26:18,040 Speaker 1: who really struggled and the two losses at Oklahoma City, 473 00:26:18,040 --> 00:26:21,159 Speaker 1: played much better as he expected the team to. The 474 00:26:21,200 --> 00:26:24,679 Speaker 1: way everybody reacted to losing, the way everybody talked and felt, 475 00:26:24,760 --> 00:26:27,320 Speaker 1: and going in the film this morning, you could just 476 00:26:27,359 --> 00:26:30,600 Speaker 1: see everybody was up. And I knew then that everybody 477 00:26:30,640 --> 00:26:32,400 Speaker 1: was ready to go and was gonna bring that dog 478 00:26:32,440 --> 00:26:35,080 Speaker 1: to the game. So three to thunder. With Game six 479 00:26:35,080 --> 00:26:38,199 Speaker 1: tomorrow at okay See, where the Warriors lost twice by 480 00:26:38,200 --> 00:26:41,399 Speaker 1: a combined fifty two points, Stanley Cup Final will be 481 00:26:41,400 --> 00:26:44,200 Speaker 1: San Jose and Pittsburgh Penguins, who in their history have 482 00:26:44,320 --> 00:26:47,240 Speaker 1: lost five games seven home games, won this one to 483 00:26:47,400 --> 00:26:49,840 Speaker 1: one over Tampa Bay, competing to come back from a 484 00:26:49,920 --> 00:26:52,800 Speaker 1: three two series deficit. All the scoring second period a 485 00:26:52,880 --> 00:26:56,080 Speaker 1: game with two rookie goalies, both Penguin goals by rookie 486 00:26:56,080 --> 00:26:59,600 Speaker 1: Bryan Rust the second thirty seconds after Jonathan drew and 487 00:26:59,640 --> 00:27:02,080 Speaker 1: had tied it for the lightning. Game one is Monday 488 00:27:02,200 --> 00:27:05,520 Speaker 1: in Pittsburgh Pitchers duel at the Stadium. Toronto's j App 489 00:27:05,720 --> 00:27:08,040 Speaker 1: allowed only a Starlin Castro home run in the first, 490 00:27:08,040 --> 00:27:11,520 Speaker 1: getting CC Sabathia gave up only two honor and runs 491 00:27:11,760 --> 00:27:13,840 Speaker 1: with the Blue Jays won three or three to one 492 00:27:13,920 --> 00:27:18,280 Speaker 1: over Joe Girardi's Yanks. Great um. He pitched extremely well 493 00:27:18,320 --> 00:27:20,400 Speaker 1: and we weren't able to get him any runs and 494 00:27:20,960 --> 00:27:23,120 Speaker 1: kept his pitch count down. He did everything he needed 495 00:27:23,119 --> 00:27:24,720 Speaker 1: to do to win the game. We just didn't score. 496 00:27:24,760 --> 00:27:27,000 Speaker 1: Alex Rodriguez, oh for four and his return from the 497 00:27:27,040 --> 00:27:29,440 Speaker 1: disabled as Carlos belt roun oh for four with four 498 00:27:29,480 --> 00:27:33,000 Speaker 1: strikeout Yanks at Tampa eight Tonight started ten game road trip. 499 00:27:33,080 --> 00:27:36,520 Speaker 1: The Mets hosts the Dodgers with Bloomberg NBC Sports Update. 500 00:27:36,720 --> 00:27:40,959 Speaker 1: I'm John Stampshaw, John, thanks very much. Now seven on 501 00:27:41,000 --> 00:27:43,680 Speaker 1: Wall Street. Time for your t to computing Try State 502 00:27:43,720 --> 00:27:47,359 Speaker 1: Business Report. Let's check in with Bloomberg's Ed Corey. Happy Friday. 503 00:27:48,000 --> 00:27:51,400 Speaker 1: Happy Friday. Bob Shows of New York Real Estate Investment 504 00:27:51,400 --> 00:27:54,960 Speaker 1: Trust fell eight presented nine bucks, the biggest job since 505 00:27:55,040 --> 00:27:57,879 Speaker 1: the shares began trading more than two years ago, after 506 00:27:57,920 --> 00:28:00,680 Speaker 1: analysts question whether it's playing the c O to JBG 507 00:28:00,920 --> 00:28:04,000 Speaker 1: companies is in the best interest of investors. The announced 508 00:28:04,000 --> 00:28:06,480 Speaker 1: Perverse merger would create an a point four billion dollar 509 00:28:06,560 --> 00:28:11,080 Speaker 1: company with New York and Washington area properties. New Jersey's 510 00:28:11,240 --> 00:28:14,480 Speaker 1: legislature has approved a couple of bills that give Atlantic 511 00:28:14,520 --> 00:28:17,040 Speaker 1: City about five months to straighten out its finances to 512 00:28:17,080 --> 00:28:20,639 Speaker 1: avoid bankruptcy. If signed by Governor Chris Christie, the resort 513 00:28:20,640 --> 00:28:22,720 Speaker 1: would get enough cash to operate for the rest of 514 00:28:22,720 --> 00:28:25,199 Speaker 1: the year. If city officials don't come up with a 515 00:28:25,200 --> 00:28:27,720 Speaker 1: five year planned by then, there could be a state takeover. 516 00:28:28,600 --> 00:28:31,639 Speaker 1: The Connecticut Bond Commission is expected to approve a twenty 517 00:28:31,680 --> 00:28:35,720 Speaker 1: two million dollar loan and grand package to help Bridgewater Associates, 518 00:28:35,880 --> 00:28:38,720 Speaker 1: one of the world's largest hedge funds, upgraded its facilities 519 00:28:38,760 --> 00:28:42,200 Speaker 1: in the state. Republican legislative leaders have questioned why the 520 00:28:42,240 --> 00:28:44,640 Speaker 1: fund should get money when cuts are being made to 521 00:28:44,680 --> 00:28:47,800 Speaker 1: the new state budget. That's the T two computing Try 522 00:28:47,840 --> 00:28:51,600 Speaker 1: State Business Report. I'm ed Corey, Bob, thanks very much 523 00:28:52,720 --> 00:28:58,240 Speaker 1: the Breves coverage on Bloomberg Radio and voters in the 524 00:28:58,320 --> 00:29:00,520 Speaker 1: UK head of the polls on Junet. What I heard 525 00:29:00,640 --> 00:29:03,000 Speaker 1: to decide whether or not Britain will remain in the 526 00:29:03,040 --> 00:29:05,640 Speaker 1: European Union joining us now with the latest on that 527 00:29:05,760 --> 00:29:09,440 Speaker 1: pivotal issue is Bloomberg Go and first Word Europe anchored 528 00:29:09,480 --> 00:29:13,680 Speaker 1: Jonathan Parall, Jonathan, good morning and more dire predictions today. 529 00:29:13,840 --> 00:29:15,640 Speaker 1: Yeah very much, so good day to you, Bob. So 530 00:29:15,720 --> 00:29:18,600 Speaker 1: the G seven traditionally worn about everything under the sun, 531 00:29:18,600 --> 00:29:22,640 Speaker 1: they bracketed Brexit with terrorism and the refugee crisis as 532 00:29:22,680 --> 00:29:27,120 Speaker 1: a threat of quote non economic origin. What's critical here, though, Bob, 533 00:29:27,200 --> 00:29:30,360 Speaker 1: is that actually Brexit wasn't really a subject for discussion 534 00:29:30,360 --> 00:29:32,600 Speaker 1: at the summit. The leaders wanted to show their support 535 00:29:32,880 --> 00:29:35,120 Speaker 1: for the position of British Prime Minister David Cameron. And 536 00:29:35,160 --> 00:29:37,640 Speaker 1: this is something that the Remain campaign has been able 537 00:29:37,680 --> 00:29:41,280 Speaker 1: to really leverage the views of large groups organizations such 538 00:29:41,280 --> 00:29:43,120 Speaker 1: as the O E, C D and the I m 539 00:29:43,200 --> 00:29:46,080 Speaker 1: F and now the G seven to get behind their 540 00:29:46,120 --> 00:29:49,680 Speaker 1: campaign and to warn the British electorate to stay in 541 00:29:50,120 --> 00:29:54,320 Speaker 1: the European Union. And also we had some question about 542 00:29:54,440 --> 00:29:57,320 Speaker 1: what this is going to mean for pensions. Yes, another 543 00:29:57,360 --> 00:30:00,800 Speaker 1: warning from the Treasury, this time for pension as turmoil 544 00:30:00,840 --> 00:30:04,080 Speaker 1: in financial markets could cause apparently a dropping asset prices 545 00:30:04,240 --> 00:30:06,840 Speaker 1: that could strip between a hundred and seventy billion pounds 546 00:30:06,880 --> 00:30:09,800 Speaker 1: and three hundred billion pounds from the total assets out 547 00:30:09,840 --> 00:30:13,560 Speaker 1: by those over sixty five. This was published late on Thursday, Bob, 548 00:30:13,720 --> 00:30:16,560 Speaker 1: and this is critical because those of a certain age 549 00:30:16,600 --> 00:30:18,440 Speaker 1: that could be more likely to go to the polls 550 00:30:18,440 --> 00:30:21,600 Speaker 1: and vote to leave. Essentially, the message here is that 551 00:30:21,640 --> 00:30:23,560 Speaker 1: if you do, there's going to be some economic and 552 00:30:23,640 --> 00:30:27,440 Speaker 1: financial pain. Bloomberg's Jonathan Pharaoh thanks, and you can get 553 00:30:27,440 --> 00:30:30,360 Speaker 1: all the littlest briggit news on the Bloomberg terminal by 554 00:30:30,440 --> 00:30:34,000 Speaker 1: typing b r e x go It's one of the 555 00:30:34,000 --> 00:30:37,080 Speaker 1: biggest dilemmas facing currency managers. How to protect against the 556 00:30:37,160 --> 00:30:40,200 Speaker 1: fallout from the UK leaving the European Union without losing 557 00:30:40,200 --> 00:30:43,160 Speaker 1: money should it vote to remain. With the pounds volatility 558 00:30:43,160 --> 00:30:45,680 Speaker 1: against the dollar at the highest and six years, some investors, 559 00:30:45,680 --> 00:30:50,959 Speaker 1: including Unigestion and Aberdeen Asset Management, are buying options on 560 00:30:51,000 --> 00:30:54,400 Speaker 1: the Swiss franc and Swedish Krona, or using the euro 561 00:30:54,560 --> 00:30:58,440 Speaker 1: as a proxy for sterling. Options that guard against future 562 00:30:58,520 --> 00:31:02,800 Speaker 1: losses on the pound are the most expensive on record. 563 00:31:03,440 --> 00:31:05,880 Speaker 1: Right now, the pound is treading down a tenth of 564 00:31:05,920 --> 00:31:08,280 Speaker 1: one percent at a dollar forty six fifty one. The 565 00:31:08,360 --> 00:31:10,719 Speaker 1: Euro is treading down a tenth of a percent at 566 00:31:10,720 --> 00:31:15,000 Speaker 1: a dollar eighty two. The end is unchanged at this hour, 567 00:31:15,320 --> 00:31:20,880 Speaker 1: at one oh nine s one. This is Bloomberg and 568 00:31:20,920 --> 00:31:22,840 Speaker 1: you try. State Business Report was brought to you by 569 00:31:22,880 --> 00:31:25,160 Speaker 1: T two Computing, a new kind of I T solutions 570 00:31:25,160 --> 00:31:28,520 Speaker 1: company for workflow, mobility and infrastructure. Let them explain how 571 00:31:28,560 --> 00:31:31,480 Speaker 1: their expertise can help you gain greater business value. VI's 572 00:31:31,480 --> 00:31:38,160 Speaker 1: a T two computing dot com for more information global 573 00:31:38,240 --> 00:31:41,640 Speaker 1: business news twenty four hours a day. If Bloomberg dot com, 574 00:31:41,840 --> 00:31:44,720 Speaker 1: the radio plus Mobile Act and on your radio. This 575 00:31:45,080 --> 00:31:49,120 Speaker 1: is a Bloomberg business flash. And I'm Karen Moscow and 576 00:31:49,360 --> 00:31:51,800 Speaker 1: US DOT index futures they are a little changed to 577 00:31:51,960 --> 00:31:55,080 Speaker 1: hire this morning, with SNP Emnate futures up two points, 578 00:31:55,160 --> 00:31:58,360 Speaker 1: DOWI Mini futures up twenty and NAS documity futures up 579 00:31:58,360 --> 00:32:01,320 Speaker 1: ten and a half. That in Germany's up a tenth 580 00:32:01,320 --> 00:32:04,160 Speaker 1: of upper set and your treasury up one thirty second. 581 00:32:04,200 --> 00:32:06,560 Speaker 1: The yield one two percent, a yield on the two 582 00:32:06,600 --> 00:32:09,840 Speaker 1: year point eight seven percent. Nimex crude oil down nine 583 00:32:09,840 --> 00:32:11,960 Speaker 1: tenths per cent, or forty four cents at forty nine 584 00:32:11,960 --> 00:32:14,800 Speaker 1: dollars four cents of barrel Comex gold is down to 585 00:32:14,960 --> 00:32:17,880 Speaker 1: tenths per center. A dollar eighty to twelve an ounce, 586 00:32:18,280 --> 00:32:20,800 Speaker 1: the euro dollar eleven seventy nine, a yen one oh 587 00:32:20,880 --> 00:32:24,080 Speaker 1: nine point seven one. That's a Bloomberg business flash. Now 588 00:32:24,080 --> 00:32:26,920 Speaker 1: here's Michael Barr with more on what's going on around 589 00:32:26,960 --> 00:32:30,600 Speaker 1: the world. Michael dar In, one retiree walking through Hiroshima, 590 00:32:30,680 --> 00:32:34,440 Speaker 1: Japan's Peace Memorial Park, says it's time for the US 591 00:32:34,520 --> 00:32:38,720 Speaker 1: and Japanese people to move forward without grudges. President Barack 592 00:32:38,760 --> 00:32:43,160 Speaker 1: Obama visited Hiroshima today, becoming the first US president to 593 00:32:43,280 --> 00:32:46,040 Speaker 1: walk the ground where a hundred forty thousand people died 594 00:32:46,320 --> 00:32:49,840 Speaker 1: from a US atomic bomb decades ago. The Script's National 595 00:32:49,920 --> 00:32:52,240 Speaker 1: Spelling Bee has ended in a tie for the third 596 00:32:52,320 --> 00:32:54,719 Speaker 1: year in a row. A thirteen year old and an 597 00:32:54,760 --> 00:32:58,240 Speaker 1: eleven year old were declared co champions last night after 598 00:32:58,320 --> 00:33:01,720 Speaker 1: a roller coaster finish, which will receive a trophy and 599 00:33:02,600 --> 00:33:06,080 Speaker 1: grand in cash and prices. In sports and Major League Baseball, 600 00:33:06,160 --> 00:33:09,800 Speaker 1: the Yankees lost, the Nationals won. The Orioles lost in 601 00:33:09,840 --> 00:33:12,800 Speaker 1: the NBA Western Conference Finals. The Warriors live to see 602 00:33:12,840 --> 00:33:16,240 Speaker 1: another day. Golden State beat the funder Oklahoma City still 603 00:33:16,320 --> 00:33:19,280 Speaker 1: leads that series three games to two. NHL Playoffs, the 604 00:33:19,280 --> 00:33:22,600 Speaker 1: Penguins advanced to face the Sharks in the finals. More 605 00:33:22,640 --> 00:33:24,120 Speaker 1: on these and know the stories at the top of 606 00:33:24,120 --> 00:33:28,360 Speaker 1: the hour. Karen Ally thanks Michael Well. It's Memorial Day weekend. 607 00:33:28,400 --> 00:33:31,400 Speaker 1: That means rilling season is upon us, and it looks 608 00:33:31,400 --> 00:33:33,800 Speaker 1: like you'll be paying a little less for your hamburger. 609 00:33:37,360 --> 00:33:41,000 Speaker 1: Americans planning to celebrate the Memorial Day weekend by firing 610 00:33:41,080 --> 00:33:44,120 Speaker 1: up the grill will be pleasantly surprised at the grocery store. 611 00:33:44,240 --> 00:33:46,800 Speaker 1: Ground Leaf places um in the most frecent months. We 612 00:33:46,920 --> 00:33:50,040 Speaker 1: have been available for two eight two year low, and 613 00:33:50,120 --> 00:33:52,680 Speaker 1: so that's a good sign for consumers who are probably 614 00:33:52,720 --> 00:33:57,000 Speaker 1: gearing up to grill burgers for the upcoming Memorial Day season. 615 00:33:57,160 --> 00:34:00,400 Speaker 1: Megan Dorrison wrote the story for Bloomberg News. In the 616 00:34:00,400 --> 00:34:03,280 Speaker 1: past few years, consumers have been contending with record beef 617 00:34:03,280 --> 00:34:05,760 Speaker 1: prices that was a result of a decline in the 618 00:34:05,840 --> 00:34:08,320 Speaker 1: US cattle herd. It fell to the lowest since the 619 00:34:08,440 --> 00:34:12,120 Speaker 1: nineteen fifties after a multi year drought that really perched 620 00:34:12,160 --> 00:34:15,879 Speaker 1: pastures and sent greencrost boring. Now green crosts have come 621 00:34:15,920 --> 00:34:18,680 Speaker 1: down a lot and pastures have improved, so the cattle 622 00:34:18,680 --> 00:34:21,560 Speaker 1: herd is expanding, and that means production is rising and 623 00:34:21,719 --> 00:34:25,120 Speaker 1: beef costs therefore our falling. The decline in retail prices 624 00:34:25,160 --> 00:34:27,920 Speaker 1: has also gotten the attention of the fast food chains. 625 00:34:28,840 --> 00:34:33,200 Speaker 1: That's rights crunch Burrito. Taco Bell, for example, last month 626 00:34:33,239 --> 00:34:36,040 Speaker 1: brought back It's Beefy crunch Burrito and the Cheesy double 627 00:34:36,080 --> 00:34:39,440 Speaker 1: Beef Burrito, both being sold for one dollar. Greg Creed, 628 00:34:39,560 --> 00:34:43,360 Speaker 1: chief executive of Taco Bell parent company Young Brands, commented 629 00:34:43,360 --> 00:34:46,080 Speaker 1: on the decline in beef prices in an earning skull 630 00:34:46,160 --> 00:34:48,920 Speaker 1: with investors last month. The good news he is obviously 631 00:34:48,960 --> 00:34:52,040 Speaker 1: talk about beneiting from the process of BAP right now. Uh, 632 00:34:52,080 --> 00:34:54,239 Speaker 1: And that's obviously why you're sing in the market place 633 00:34:54,320 --> 00:34:56,200 Speaker 1: a lot of value by both the bag of chains 634 00:34:56,200 --> 00:34:58,759 Speaker 1: and white Taco Bell can play you know and aggressive 635 00:34:58,800 --> 00:35:01,959 Speaker 1: play in in in beef as well, but don't feel 636 00:35:02,000 --> 00:35:04,120 Speaker 1: like you after run out and stock up the freezer. 637 00:35:04,280 --> 00:35:07,520 Speaker 1: Don closes a Ravo Bank International vice President of Food 638 00:35:07,520 --> 00:35:12,319 Speaker 1: and Agribusiness Research, specializing in animal protein. Given the decline 639 00:35:12,680 --> 00:35:17,080 Speaker 1: in cattle prices, given the decline and wholesale beat prices, 640 00:35:17,520 --> 00:35:24,319 Speaker 1: we're certainly expecting to see additional easing retail beat prices, 641 00:35:24,320 --> 00:35:28,000 Speaker 1: certainly for the remainder of this year, and that could 642 00:35:28,080 --> 00:35:30,440 Speaker 1: last in BacT in the in the next year as well. 643 00:35:30,480 --> 00:35:34,400 Speaker 1: Alton Kalo, analyst Siner Consulting Group and Economic and Commodity 644 00:35:34,440 --> 00:35:37,839 Speaker 1: Trading Advisor, agrees, but says there are still a few 645 00:35:37,880 --> 00:35:41,200 Speaker 1: areas to watch. It's a little bit unknown, is first, 646 00:35:41,480 --> 00:35:44,600 Speaker 1: what happens with green prices. In the green prices remain 647 00:35:44,680 --> 00:35:49,560 Speaker 1: at current levels, that again just feeds into this supply increase. 648 00:35:49,920 --> 00:35:52,879 Speaker 1: But at the same time, what happens with the US 649 00:35:52,960 --> 00:35:56,000 Speaker 1: dollar and the global economy or a stronger global economy 650 00:35:56,000 --> 00:35:58,399 Speaker 1: in a week er dollar, you know, then could change 651 00:35:58,400 --> 00:36:01,320 Speaker 1: a little bit the trajectory. But we're talking more about 652 00:36:01,400 --> 00:36:05,320 Speaker 1: changes in the trajectory and whether prices are going to 653 00:36:05,400 --> 00:36:09,200 Speaker 1: go down more or less, rather than whether prices are 654 00:36:09,360 --> 00:36:12,120 Speaker 1: we'll stop going down and start going up. I think 655 00:36:12,160 --> 00:36:13,800 Speaker 1: going down it's probably going to be the name of 656 00:36:13,840 --> 00:36:16,680 Speaker 1: the game for at least the next year and a 657 00:36:16,680 --> 00:36:19,160 Speaker 1: half two years. If you don't eat me, there's still 658 00:36:19,239 --> 00:36:22,239 Speaker 1: a bargain to be had here. Again is Bloomberg's Megan 659 00:36:22,320 --> 00:36:26,600 Speaker 1: Derrison Bloomberg Index that we have that track some products 660 00:36:26,600 --> 00:36:30,560 Speaker 1: that are often using grilling, things like you know, ground beef, potato, chips, 661 00:36:30,719 --> 00:36:33,920 Speaker 1: ice cream. That also fell to the lowest I believe 662 00:36:33,960 --> 00:36:36,840 Speaker 1: since August in April UM. So that means that you know, 663 00:36:36,920 --> 00:36:39,720 Speaker 1: costs are falling here right ahead of the peak grilling season, 664 00:36:39,840 --> 00:36:42,719 Speaker 1: I believe more Memorial Day July for its fathers. They 665 00:36:42,760 --> 00:36:45,200 Speaker 1: are all big grilling days here in the US. So 666 00:36:45,320 --> 00:36:47,840 Speaker 1: it's not just beef cross um food cross across the 667 00:36:47,880 --> 00:36:49,920 Speaker 1: board seemed to be falling a bit, which is a 668 00:36:49,920 --> 00:36:55,560 Speaker 1: good thing for consumer. So a little something where everyone here, 669 00:36:55,640 --> 00:37:00,000 Speaker 1: Bob and no reason to break the bait. Okay, stay 670 00:37:00,000 --> 00:37:02,239 Speaker 1: an egg sounds good to me. Right about now, It's 671 00:37:02,239 --> 00:37:05,520 Speaker 1: time for our daily Bloomberg Law Brief, exploring legal issues 672 00:37:05,560 --> 00:37:08,560 Speaker 1: in the news, brought to you by American Arbitration Association, 673 00:37:08,600 --> 00:37:12,120 Speaker 1: International Trade or Business Dispute Resolve Faster with the International 674 00:37:12,160 --> 00:37:15,760 Speaker 1: Center for Dispute Resolution, the leader in Alternative Dispute Resolution 675 00:37:15,840 --> 00:37:19,279 Speaker 1: around the World i c d R dot org. Today, 676 00:37:19,320 --> 00:37:23,040 Speaker 1: a Bloomberg Lahos student, Grossoe, discussed a State Department report 677 00:37:23,040 --> 00:37:26,200 Speaker 1: which says the former Secretary of State Hillary Clinton's use 678 00:37:26,320 --> 00:37:29,839 Speaker 1: of a private email system violated State Department rules and 679 00:37:29,880 --> 00:37:34,000 Speaker 1: the Federal Records Act. Spoke to Stephen Vladdock, a professor 680 00:37:34,120 --> 00:37:37,600 Speaker 1: at American University Washington College of Law, and David Deatch, 681 00:37:37,760 --> 00:37:42,000 Speaker 1: a partner at Harris st Lawrence and Chad ray Steve, 682 00:37:42,400 --> 00:37:46,000 Speaker 1: why don't you take us through what the Inspector General's 683 00:37:46,000 --> 00:37:50,400 Speaker 1: report found? Sure? What the report basically found was that 684 00:37:50,440 --> 00:37:54,960 Speaker 1: Semetary Clinton did not receive permission from any official entity 685 00:37:55,360 --> 00:37:58,320 Speaker 1: within the State Department for use of a private email server, 686 00:37:58,880 --> 00:38:01,640 Speaker 1: um that various cases her use of a private email 687 00:38:01,680 --> 00:38:05,600 Speaker 1: server seemed to contravene at least the guidance that the 688 00:38:05,600 --> 00:38:08,640 Speaker 1: State Department had previously issued with regard to handle them 689 00:38:08,640 --> 00:38:11,600 Speaker 1: the personal communications UM, and that although there were other 690 00:38:11,640 --> 00:38:16,560 Speaker 1: precedents for senior State Department officials using private servers and 691 00:38:16,640 --> 00:38:20,040 Speaker 1: private email accounts to communicate official business UM, that Secretary 692 00:38:20,080 --> 00:38:23,279 Speaker 1: Clinton's actions UM seems to abilities and beyond those precedents. 693 00:38:23,320 --> 00:38:26,040 Speaker 1: So in that regard, I think it's you know, fodder 694 00:38:26,120 --> 00:38:29,600 Speaker 1: for Secretary Clintons critics. I think it's important distress with 695 00:38:29,640 --> 00:38:32,880 Speaker 1: the report did not find, which is that any of 696 00:38:33,360 --> 00:38:37,000 Speaker 1: the private emails UM included the kind of information that 697 00:38:37,080 --> 00:38:41,920 Speaker 1: could possibly subject Secretary Clinton to criminal charges because, for example, 698 00:38:41,960 --> 00:38:45,759 Speaker 1: maybe they contained classic information. The report found that there 699 00:38:45,760 --> 00:38:51,040 Speaker 1: were three officials who used personal email accounts exclusively, all 700 00:38:51,120 --> 00:38:54,440 Speaker 1: for day to day operations. So if they didn't tell her, 701 00:38:54,680 --> 00:38:57,840 Speaker 1: how could they now say what they're saying. Well, the 702 00:38:57,960 --> 00:39:01,920 Speaker 1: question of whether or not UM Secretary Clinton's actions were 703 00:39:01,920 --> 00:39:06,200 Speaker 1: consistent with then the then existing rules really is a 704 00:39:06,280 --> 00:39:09,239 Speaker 1: question that is separate from her state of mind. What 705 00:39:09,320 --> 00:39:11,839 Speaker 1: you're really talking about is was there a reason why 706 00:39:11,880 --> 00:39:15,319 Speaker 1: Secretary Clinton should have known at the time that the 707 00:39:15,440 --> 00:39:19,000 Speaker 1: way she was proceeding with her separate email server was 708 00:39:19,200 --> 00:39:23,080 Speaker 1: against Department policy and I think you're exactly right that 709 00:39:23,160 --> 00:39:26,359 Speaker 1: there was a prevailing culture in the agency that I 710 00:39:26,360 --> 00:39:29,840 Speaker 1: think is probably similar to many agencies during that period 711 00:39:29,840 --> 00:39:33,440 Speaker 1: of time, UH that did not view or did not 712 00:39:33,600 --> 00:39:37,440 Speaker 1: know how really to treat emails in terms of federal 713 00:39:37,480 --> 00:39:41,359 Speaker 1: record keeping, Steve, this is a report done by an 714 00:39:41,360 --> 00:39:46,080 Speaker 1: inspector general. What is the inspector general of an agency? Yeah, 715 00:39:46,080 --> 00:39:48,640 Speaker 1: I mean so the inspector general of federal agency. It's 716 00:39:48,640 --> 00:39:52,040 Speaker 1: basically the watchdog or the obbuds person for the agency. 717 00:39:52,480 --> 00:39:56,160 Speaker 1: It's usually hit or her job to supervise the compliance 718 00:39:56,320 --> 00:40:01,400 Speaker 1: of agency officials with various federal laws. UM. Inspector's general 719 00:40:01,400 --> 00:40:04,520 Speaker 1: are usually the ones who received whistleblower complaints from agency 720 00:40:04,520 --> 00:40:06,759 Speaker 1: employees and so on. And so when you get an 721 00:40:06,760 --> 00:40:10,160 Speaker 1: inspector general report like this, UM, it's the culmination of 722 00:40:10,200 --> 00:40:16,520 Speaker 1: that agency's internal investigation into alleged breaches of its own procedures. 723 00:40:16,719 --> 00:40:18,400 Speaker 1: And in this case, I think you know, David has 724 00:40:18,440 --> 00:40:22,160 Speaker 1: exactly right. UM. The report, I think sort of tries 725 00:40:22,239 --> 00:40:25,200 Speaker 1: to walk the very's fine line between suggesting the Secretary 726 00:40:25,200 --> 00:40:29,680 Speaker 1: Clinton's email habits were never authorized and we're inconsistent with 727 00:40:29,680 --> 00:40:32,560 Speaker 1: the guidance that that that the State Department previously put 728 00:40:32,560 --> 00:40:35,720 Speaker 1: out um and resisting the conclusion that they were therefore 729 00:40:35,760 --> 00:40:40,279 Speaker 1: illegal because of the confusion and lack of clarity surrounding 730 00:40:40,360 --> 00:40:42,759 Speaker 1: the relevant email presses at the time. That's part of 731 00:40:42,760 --> 00:40:46,520 Speaker 1: why the report concludes with a series of recommendations to 732 00:40:46,640 --> 00:40:52,719 Speaker 1: avoid this situation from happening again in the future. And 733 00:40:52,800 --> 00:40:56,480 Speaker 1: that is Stephen Letik, professor at American University Washington College 734 00:40:56,480 --> 00:40:58,640 Speaker 1: of Law, and David Deech, a partner at Harris st 735 00:40:58,719 --> 00:41:01,440 Speaker 1: Lauren and chaud Ray, speaking to Bloomberg Law host Un 736 00:41:01,480 --> 00:41:04,120 Speaker 1: Grosso and Michael Best. You can listen to Bloomberg Law 737 00:41:04,200 --> 00:41:06,680 Speaker 1: weekdays at four thirty pm Wall Street Time right here 738 00:41:07,040 --> 00:41:11,680 Speaker 1: on Bloomberg Radio. Intuitive Surgical reached a settlement with one 739 00:41:11,680 --> 00:41:15,280 Speaker 1: of two insurance providers over its Da Vinci surgical robot. 740 00:41:15,320 --> 00:41:18,280 Speaker 1: The insurance companies alleged that the company failed to reveal 741 00:41:18,320 --> 00:41:21,279 Speaker 1: more than seven hundred seven hundred injury claims that had 742 00:41:21,320 --> 00:41:24,840 Speaker 1: applied for a liability coverage. The accord also resolves a 743 00:41:24,880 --> 00:41:29,800 Speaker 1: countersuit alleging Navigators Specialty Insurance acted deceitfully and broke its contracts. 744 00:41:29,800 --> 00:41:33,560 Speaker 1: As settlement as confidential and no details were released. And 745 00:41:33,600 --> 00:41:35,799 Speaker 1: that's this morning's Bloomberg Labbrary. If you can find more 746 00:41:35,800 --> 00:41:38,880 Speaker 1: illegal news at Bloomberg Law dot com and Bloomberg Vina 747 00:41:39,000 --> 00:41:43,640 Speaker 1: dot com. Snp Emity futures up too points, Dowemny futures 748 00:41:43,719 --> 00:41:49,840 Speaker 1: up sixteen. This is Bloomberg. This is the Bloomberg v 749 00:41:49,960 --> 00:41:55,279 Speaker 1: Enna Reportion Legal, tax, regulatory and business information. Here's PATRICEA. Cora. 750 00:41:56,040 --> 00:41:58,920 Speaker 1: The Senate Judiciary Committee has delayed consideration of a bill 751 00:41:59,040 --> 00:42:02,640 Speaker 1: to broaden the warrant requirement for law enforcement access to emails. 752 00:42:02,640 --> 00:42:05,680 Speaker 1: This after Republicans circulated a bevy if last minute amendments. 753 00:42:05,960 --> 00:42:08,000 Speaker 1: Given the number of editions, the final measure may be 754 00:42:08,120 --> 00:42:10,479 Speaker 1: very different from a House passed version, and that would 755 00:42:10,480 --> 00:42:13,919 Speaker 1: complicate the chances of enactment this year. A class action 756 00:42:14,000 --> 00:42:17,800 Speaker 1: lawsuit not arbitration, is what some fitbit owners want. Plaintants 757 00:42:17,800 --> 00:42:20,520 Speaker 1: in the potential case argue their commission study finds the 758 00:42:20,560 --> 00:42:24,120 Speaker 1: fitness trackers are not accurate for heartbeat. Fitbit has criticized 759 00:42:24,120 --> 00:42:27,520 Speaker 1: the studies methodology and maintains the owners agreed to terms 760 00:42:27,520 --> 00:42:32,080 Speaker 1: of service that include mandatory arbitration. Clausets and evaporated cane 761 00:42:32,160 --> 00:42:35,360 Speaker 1: juice or dried cane syrup should be called sugar on 762 00:42:35,480 --> 00:42:38,279 Speaker 1: food labels. The FDA has issued that guidance after a 763 00:42:38,320 --> 00:42:41,200 Speaker 1: wave of consumer lawsuits that alleged the wording is deceptive 764 00:42:41,239 --> 00:42:43,680 Speaker 1: and makes food appear healthier than it is. That's today's 765 00:42:43,680 --> 00:42:47,080 Speaker 1: Bloomberg Bienna Report. For more on these and other stories, 766 00:42:47,320 --> 00:42:50,160 Speaker 1: visit Benna dot com.