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

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

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Speaker 1: to the Country General one and around the globe the

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Speaker 1: Bloomberg Radio plus Bloomberg dot Com. This is Bloomberk Surveillance.

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Speaker 1: Good morning, I Michael McKee along with Tom King at

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Speaker 1: seven thirty on Wall Street. There is news other than

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Speaker 1: the Federal Reserve today. Deutsche Bank's co CEO John Cryan,

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Speaker 1: at an investrior conference in London, says the bank will

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Speaker 1: not be profitable this year. Um He says, we may

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Speaker 1: make a small profit, we may make a small loss.

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Speaker 1: We don't know, but plan on not making money. Deutche

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Speaker 1: Bank shares trading in Frankfort down by five point three

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Speaker 1: percent right now. Deutsche Bors in London Stock Exchange Group,

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Speaker 1: agreeing to merge Ellis's equity holders will own forty five

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Speaker 1: point six percent of the large group. Deutsche Bors stock

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Speaker 1: holders get the remaining fifty four point four percent. Peabody

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Speaker 1: Energy may not have enough liquidity to continue as a

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Speaker 1: going concern, exploring options for other capital, the company says

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Speaker 1: in a ten K filing. It also may seek bankruptcy protection. Now,

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Speaker 1: let's check out with Michael Barr get the latest world headlines.

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Speaker 1: Thank you very much, Michael. President Obama plans the name

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Speaker 1: is Supreme Court nominee. Today. Bloomberg Radio would carry the

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Speaker 1: President's announcement live at eleven am Wall Street. Time. Republican

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Speaker 1: senators that promised to block the nomination for now, it's

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Speaker 1: four states for Democrat Hillary Clinton and three states where

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Speaker 1: Republican Donald Trump. After yesterday's primaries. Clinton's victories over Bernie

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Speaker 1: Sanders were in Florida, Illinois, Ohio, and North Carolina, but

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Speaker 1: the race between them is too close to call in Missouri.

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Speaker 1: Trump one in North Carolina, Illinois, and Florida, beating Marco

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Speaker 1: Rubio in his home state Ohio Governor John Casey one

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Speaker 1: in his home states, too close to call in Missouri.

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Speaker 1: After losing in his home state of Laurida, the Donald

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Speaker 1: Trump Senator Marco Rubio announced he is suspending his campaign.

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Speaker 1: I want to congratulate Donald Trump on his victory, a

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Speaker 1: big victory in Florida. No no, no, no, no, no

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Speaker 1: no no no he uh no, guys. This. We live

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Speaker 1: in a republic and our voters make these decisions and

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Speaker 1: we respect that very much and it was a big win. Washington,

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Speaker 1: d C's entire subway system has been shut down for

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Speaker 1: the day for an emergency safety inspection, causing commuter headaches.

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Speaker 1: Global News twenty four hours a day, powered by our

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Speaker 1: twenty four hundred journalists and more than a hundred fifty

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Speaker 1: news bureaus from around the world. I'm Michael Barr, Mike,

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Speaker 1: thank if I hold time now for the Ricotina Auto Group.

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Speaker 1: Bloomberg NBC Sports Update with Rob Bushka the Morning, Mike,

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Speaker 1: the Rangers have some company in the Metro Division. They

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Speaker 1: don't have to look for to find it. As the

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Speaker 1: Islanders fell short to the one at Pittsburgh, but in

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Speaker 1: a shootout, so they picked up a point. They moved

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Speaker 1: into a tie for second place in the Metro Division,

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Speaker 1: which suits Islanders coach Jack Cappawano just fine. I thought

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Speaker 1: wet stuff real well for three periods. Obviously they haven't

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Speaker 1: the Senate all the time. They had seven shots. The

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Speaker 1: game was pretty much even. You know for that point

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Speaker 1: that Paul plays struggled early but cut us the big

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Speaker 1: goal when we needed so. I'm real proud of the

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Speaker 1: guys in the ffort they put forth. They come into

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Speaker 1: this building against a really high quality team on a

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Speaker 1: back to back night with a lot of travel, and

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Speaker 1: we come out with the point when we lose the

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Speaker 1: skills competition. The Rangers look to answer tonight as they

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Speaker 1: skate and Anaheim at ten thirty. March Madness dipped off

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Speaker 1: Tuesday in Dayton, FAIRLEYE. Dickinson lost in the East Region

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Speaker 1: matchup from Florida Gulf Coast nineties six to sixty five,

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Speaker 1: which Ada State beat Vanderbilt seventy to fifty. In the

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Speaker 1: South Regionets beat the Sixers one thirty one to one.

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Speaker 1: Four team the Knicks, they were idle. They do have

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Speaker 1: their hands full of ninth though. The Knicks play at

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Speaker 1: Golden States at ten thirty and Great Fruit League. Despite

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Speaker 1: David Pryce fanning six, Yankees New York beat the Red

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Speaker 1: Sox six to three and the Mets edge the Marlins

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Speaker 1: h six at your NBC Bloomberg A Sports update, Mike,

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Speaker 1: Thank you very much, Rob Bushka. We should mention we

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Speaker 1: haven't talked about this today, but oil prices have caught

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Speaker 1: a little bit of a bid West Texas in them

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Speaker 1: media two percent right now thirty seven and nine. Brent

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Speaker 1: is at thirty nine forty seven. That's a one point

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Speaker 1: nine percent increase. We'll see if it has any impact

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Speaker 1: on equity markets today. This is Bloombergs and Allen Side,

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Speaker 1: Michael McKinney along with Tom Keane. FED Day also the

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Speaker 1: name of the President's going to announce a new Supreme

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Speaker 1: Court nominee. And we've got certainly a lot of political

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Speaker 1: results over the last twenty four hours. We'll talk about

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Speaker 1: those a little bit later in the program with Greg

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Speaker 1: Ye of Horizon Investments. Right now, we're not seeing any

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Speaker 1: movement in the markets ahead of the FED. S and

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Speaker 1: P futures are flat, Dow futures are flat, NASDAC futures

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Speaker 1: are flat. Everybody wants to know what Jenny Yellen is

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Speaker 1: going to do. It appears before we trade today. Anastasia

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Speaker 1: Amarroso would like to know what Janet Yellen is going

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Speaker 1: to do today. She's a global market strategist on the

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Speaker 1: JP Morket Funds Global Market Insights Team. UM. But not

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Speaker 1: only do you want to know, but you have to

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Speaker 1: guess in advance. That's what they pay you to do. UM.

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Speaker 1: I presume you're in the camp of suggesting no movement,

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Speaker 1: and we all got to watch the statement. Well, that's right.

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Speaker 1: I guess I'm in the camp where the markets are,

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Speaker 1: which is there's very little probability of a rating increase

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Speaker 1: this time around. But at the same time, I think

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Speaker 1: we will be very carefully watching the statement, will be

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Speaker 1: very carefully watching the press conference. One thing that when

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Speaker 1: missing in the January statement is the assessment of the

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Speaker 1: balance of risks. That's how challenging the situation was, where

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Speaker 1: the FED couldn't even comment on whether this risks were

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Speaker 1: balanced due to the downside or the upside. So what

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Speaker 1: I'm watching for is does Janet Yelling acknowledge that some

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Speaker 1: of this manufacturing slowdown is translating into some of the

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Speaker 1: service slowdown or does she look past that. The other

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Speaker 1: thing I'm gonna be watching is, of course the infamous dots.

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Speaker 1: You know, how does the FED expect the rate hikes

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Speaker 1: to evolve? Why do you watch the dots? Everybody knows

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Speaker 1: the FED dots don't correlate to what actually happens. They

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Speaker 1: change them all the time. They're also not a consensus forecast,

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Speaker 1: even though the market takes that way. Why don't you

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Speaker 1: just tell your clients ignore the dots? You know, Minut's

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Speaker 1: a really good point because you write that the good

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Speaker 1: point from my care Uh you know, it's a good

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Speaker 1: point because the Fed, all it does, it seems, is

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Speaker 1: catching up with market expectations. But nevertheless, it's helpful to

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Speaker 1: know how the FED is reprising their assessment of the economy.

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Speaker 1: And I think what the Fed is having to do

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Speaker 1: is well, first of all, they're stuck between a rock

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Speaker 1: and a hard place because if they don't raise rates,

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Speaker 1: they risk having inflation that is rising faster than objective.

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Speaker 1: If they do raise rates, they risk having the dollar

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Speaker 1: rise faster than the objective. So I think what the

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Speaker 1: Feed is coming to terms with is, yes, the inflation data,

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Speaker 1: the wage data is warranting some rate increases, but those

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Speaker 1: rate increases are going to be have to be so

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Speaker 1: gradual because in this world of play see divergence, it

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Speaker 1: turns out that you can't have a whole lot of divergence. Well,

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Speaker 1: I mean, do you have the European Central Bank, you

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Speaker 1: have the Bank of Japan going to negative interest rates.

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Speaker 1: The FED raised interest rates and the dollar got weaker,

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Speaker 1: not stronger. Yeah, a lot of it was baked in.

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Speaker 1: And also you know, we've got weaker versus the Yanagat

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Speaker 1: weaker versus the Euro. But one thing where we're still

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Speaker 1: looking for strength. Strength of the dollar is relative to

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Speaker 1: a lot of the emerging market economies. Yes, oilcott a

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Speaker 1: bid here and that has been so did the rest

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Speaker 1: of the commodity complex. So that was a big help

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Speaker 1: to the commodity currencies. But still if the Fed hikes,

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Speaker 1: I think you're back to the proposition with a dommy

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Speaker 1: not strengthen a lot, but it should strengthen some. Well,

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Speaker 1: you can't have this interest rate differential and not have

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Speaker 1: a market reaction, or can you let me ask you

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Speaker 1: this this It's kind of a crazy world out there

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Speaker 1: these days. The old rules don't seem to apply. Every

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Speaker 1: time we think we know what's going to happen, something

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Speaker 1: else happens different to you and the rest of people

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Speaker 1: on your team. Ever, sit back at the end of

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Speaker 1: the day and go, I really don't know whether I'm

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Speaker 1: right or not because we don't know what's goin. You know,

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Speaker 1: the models aren't working. We constantly have to challenge, of course,

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Speaker 1: our expectations, and I think the dollar has been a

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Speaker 1: big one. The consensus, as you know, headed into this

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Speaker 1: year that the dollar was going to strengthen well instead

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Speaker 1: of pulled back by two or three percent. I guess

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Speaker 1: my counterpoint to that is it's still early in the year,

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Speaker 1: it's still marsh, and it's still very much possible the

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Speaker 1: Fed will have some catching up to do. But yes,

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Speaker 1: to your point is we're constantly having to challenge and

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Speaker 1: reassess those projections. What's your projection now for end of

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Speaker 1: two thousands sixteen federal funds? Right? Well, I think the

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Speaker 1: Fed is giving us a very optimistic scenario of we

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Speaker 1: expect they will pull back those dots, not from four

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Speaker 1: to three rate increases. We think that's really still very optimistic.

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Speaker 1: That's if everything goes exactly right as we just talked about.

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Speaker 1: Not everything is going to go exactly, and I think

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Speaker 1: to rating increases is our best case scenario. We do

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Speaker 1: expect a rating increase in June and perhaps towards the

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Speaker 1: tail end of the year. You know why June, why not, Marge,

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Speaker 1: Why it's not not April, is because I think what

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Speaker 1: the FEED is wanting to see is all these measures

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Speaker 1: that the c B is now thrown out there, all

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Speaker 1: this continued quantitative easing from Japan and easy from China,

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Speaker 1: will that actually translate into some tangible economic results. It's

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Speaker 1: too early to tell now since last week, but maybe

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Speaker 1: we'll see in the next few months. Rich put Anastasia

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Speaker 1: down for an appearance in June. We're gonna hold her

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Speaker 1: to this. We'll come back with Anastasia Amarrosa from JP

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Speaker 1: Morgan right now. What we want to check in with

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Speaker 1: Bob Moon because the n j i T STEM Report

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Speaker 1: is along here and it's brought to you by the

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Speaker 1: New Jersey Institute of Technology, partnering with government and industry

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Speaker 1: to apply the university's world class research assets to innovate

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Speaker 1: and spur economic growth. Learn more at n j I

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Speaker 1: T dot edu. Here's Bob Michael. Here's what's making news

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Speaker 1: and science, technology, engineering, and math. Apple took a final

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Speaker 1: swing at the Justice Department ahead of their first courtroom

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Speaker 1: face off over whether the company must help investigators unlock

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Speaker 1: an iPhone used by a terrorist gunman killed in a

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Speaker 1: police shootout. In its latest court filing, Apple urged the

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Speaker 1: court to reject government overreaching and zealously guards civil liberties

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Speaker 1: even in the face of a highly charged and emotional

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Speaker 1: case like it a not Instagram, the Facebook owned photo

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Speaker 1: sharing app, is rearranging posts and its user fees using

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Speaker 1: an algorithm tune to make sure people don't miss what

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Speaker 1: the company thinks is most important to them. And Spoon Rocket,

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Speaker 1: one of the first food delivery startups to sell meals

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Speaker 1: cooked in its own kitchens, shut down its operations. Nobody

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Speaker 1: was biting the company failed to raise funding. That's this

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Speaker 1: morning's Bloomberg and j I t Stem Report. Mike and

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Speaker 1: Tom Bob Mooon, thank you very much. Good thing Tom

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Speaker 1: was out of the room because that whole Facebook algorithm

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Speaker 1: on the news drives him crazy. We'll ask about that

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Speaker 1: maybe when he comes back. Bloomberg Surveillance on Bloomberg Radio worldwide.

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Speaker 1: Bloomberg Surveillance is brought to you by s c n

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