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Speaker 1: This is Bloomberg Surveillance. One of the things we have

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Speaker 1: to do is reinvigorate the Atlantic relationship, which is strength

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Speaker 1: and relations with the European community. A consequence of set

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Speaker 1: tightening over the next year could be a US passion

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Speaker 1: in seen. I think that is going to add to

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Speaker 1: the upside for the young. When you value a basket

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Speaker 1: of stocks in Germany now and you're up against a

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Speaker 1: zero interest rate for years, they look very attractive. Here

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Speaker 1: Bloomberg Surveillance, your link to the world of economics, finance

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Speaker 1: and investment on Bloomberg Radio. Good morning everyone, Michael McKay

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Speaker 1: in time kening. Mr mckeoff today Francine Lacroix. She pulled

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Speaker 1: the shortest of short straws. She's in London assisting this morning.

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Speaker 1: She has pneumonia, the flu or eight other diseases. We

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Speaker 1: really don't know. She's medicated. Are you okay, francinc Can

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Speaker 1: you get through the next hour? We did great? We

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Speaker 1: just needs need to survive brexit. Good. I recommend some

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Speaker 1: uh what's at Fortnum and Mason Piccadilly TI or seventeen

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Speaker 1: o seven, Yeah, something like that. I don't know. Take

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Speaker 1: your tea. The four X brief this morning as we

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Speaker 1: get started here. Uh it is is always brought you

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Speaker 1: by Interactive Brokers, winner of f X weeks two thousand

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Speaker 1: fifteen award for the best retail for its trading platform.

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Speaker 1: Visit ib at I b k R dot com, slash

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Speaker 1: four x and really early early early this morning, yen,

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Speaker 1: excuse me, n memby weakness which really bears watching into

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Speaker 1: the China Monday call it Sunday evening, New York time.

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Speaker 1: My radars up, folks. I'll be blunt. We went from

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Speaker 1: a sixty seven to a six point five one. It's

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Speaker 1: not like trading envelopes or two standard deviations kind of move.

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Speaker 1: But nevertheless, a weakness to written memby which you should

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Speaker 1: be informed of yen euro one eleven sixty six dollar

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Speaker 1: strength the x y nine six point one eight Yahoo,

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Speaker 1: here's David Wilson, Yah, who indeed will get to that second,

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Speaker 1: doesn't get it's getting more interesting though, What do you

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Speaker 1: got to talk about that in a moment, because really,

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Speaker 1: if you look at what's going on with the futures

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Speaker 1: being lowers driven by oil prices, again, you've got crew

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Speaker 1: down more than a dollar a barrow in New York

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Speaker 1: trading for the second straight day. You look at Exon

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Speaker 1: Mobile and Chevron, they're both down about one percent in

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Speaker 1: early trading. Marathon Oil down three and a half percent,

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Speaker 1: and yes there's Yahoo. Not a whole lot of direction

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Speaker 1: in the stock so far was up one percent. Has

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Speaker 1: given back that game. The activist investor's Starboard value began

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Speaker 1: a proxy fight to replace the web portal's entire board.

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Speaker 1: That's where it gets interesting. They want all nine seats

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Speaker 1: on the board. Starboard owns at one point seven percent

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Speaker 1: Steak and Yahoo. It has called for an overhaul of

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Speaker 1: its management as well as its directors. You've got our

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Speaker 1: Tree a group down one a half percent. The cigarette

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Speaker 1: maker was cut to neutral from by a Bank of

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Speaker 1: America Merrill Lynch, citing valuation trea's shares of trading at

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Speaker 1: about twenty two times earnings, where the price earnings ratio

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Speaker 1: peaked twice last year. On the take over front, Staples

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Speaker 1: up four and a half percent. The federal judge criticized

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Speaker 1: US regulators were trying to obtain false information in their

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Speaker 1: effort to block the office products retailer from buying office Depot.

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Speaker 1: The judges hearing the Federal Trade Commission's anti trust lawsuit

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Speaker 1: against the six point three billion dollar deal, and the

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Speaker 1: Office Depot shares up about ten percent in early trading.

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Speaker 1: Uh Terrax up eight and a half percent. China zoom

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Speaker 1: Line Heavy Industry raised its offer for the maker of

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Speaker 1: cranes and other industrial equipment, and Terek said it will

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Speaker 1: whole talks with the company, and Terrax previously accepted an

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Speaker 1: offer from Finland's Conn of cranes. On the earnings front,

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Speaker 1: Accent You're up one percent. The consulting FIRMACE fiscal second

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Speaker 1: quarter profit and revenue exceeded analyst average estimates in the

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Speaker 1: Bloomberg survey. Signa Jewelers up two percent. The owner of

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Speaker 1: the Jared k and z Ale jewelry Change indicated fiscally,

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Speaker 1: your earnings are likely to beat estimates. PDH up four

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Speaker 1: and a half percent. The maker of Calvin Kleine and

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Speaker 1: Tommy Hilfinger apparel reported fiscal fourth quarter earnings and sales

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Speaker 1: and exceeded estimates. Katie Home up six percent. The home

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Speaker 1: builders fiscal first quarter profit and revenue beat projections finish line,

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Speaker 1: though down four and a half percent. The Athletic were

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Speaker 1: Retailers earnings forecast for the current fiscal year trailed estimates

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Speaker 1: and Portola Pharmaceuticals most actles stock and early trading down

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Speaker 1: twenty eight and a half percent. The drug maker set

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Speaker 1: a proposed treatment to prevent blood clots failed to meet

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Speaker 1: a goal for effectiveness in a final stage study. I

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Speaker 1: love when you're here, particularly when you have your dark

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Speaker 1: side of the Moon tie on. But David Gilmore moment,

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Speaker 1: good Friday's coming up. You know it's a dark time.

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Speaker 1: David Wilson with us with his pink Floyd tie on

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Speaker 1: this morning. Arthur Lovitt is not wearing a pink Floyd tie.

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Speaker 1: Is the former chairman of the Security and Exchange Commission,

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Speaker 1: board member for Bloomberg. Lbe Arthur within your research. Note

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Speaker 1: to me this morning. One thing stands out and you

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Speaker 1: are dead on. It is surreal how Wall Street and

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Speaker 1: bankers struggle with what would be in every other election,

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Speaker 1: totally normal runaway Republican candidate. And boy are they struggling

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Speaker 1: with someone that owns six of the skyscrapers they all

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Speaker 1: live in in Manhattan. Just give us, you know, granted

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Speaker 1: from a democratic aisle, give us Arthur Levitt some perspective

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Speaker 1: on how Mr Trump courts Wall Street well in almost

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Speaker 1: any other election, the bankers and Wall Street would be

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Speaker 1: celebrating the emergence of a highly visible Republican candidate. But

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Speaker 1: there are many reasons that they're holding back. Trump isn't

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Speaker 1: committed to regulatory relief, He's not committed to Dodd Frank

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Speaker 1: repeal or any other bank prayer party, and when in doubt,

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Speaker 1: Trump is a populist and that's that's bad for banks,

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Speaker 1: and Trump pursues Vendetta's would you like him over seeing

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Speaker 1: the SEC or CFPB? Trump could cost Republicans the Senate

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Speaker 1: and maybe even the House. Do you have a perspective

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Speaker 1: on his financial platform as people struggle with his foreign

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Speaker 1: policy platform? I absolutely do not. Uh, you know, I'd ask,

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Speaker 1: I'd ask back, what policy program has Trump clearly defined?

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Speaker 1: And you couldn't come up with an answer. And I

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Speaker 1: really blame the media for not pinning him down on

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Speaker 1: the incredibly vague policy proposals, and Wall Street and financial

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Speaker 1: markets is probably the least likely area of of Trump's

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Speaker 1: imprint in terms of specific proposals. Are we yes? Sorry,

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Speaker 1: go ahead, no? No. I was going to ask you about,

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Speaker 1: you know, political spending and whether the SEC will actually

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Speaker 1: take up the issue of disclosure of more political spending

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Speaker 1: this year not a chance, I'd saying not likely for

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Speaker 1: next year as well. Uh, it's a hot button issue.

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Speaker 1: The Oversight Committee, headed by Jeb henzel Ring of the House,

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Speaker 1: simply wouldn't tolerate that kind of bill. And the power

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Speaker 1: has shifted so heavily against regulation and against the SEC

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Speaker 1: in particular on the part of its oversight body that

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Speaker 1: to take on a hot button issue such as can

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Speaker 1: revealing campaign funding is absolutely out of the question for

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Speaker 1: this year, and I would say next year as well,

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Speaker 1: unless the Democrats were to take back the House, which

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Speaker 1: is extraordinarily unlikely. I look, Arthur, some of the challenges

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Speaker 1: are we at a point in the election cycle where

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Speaker 1: everything just gets on hold in the game of the

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Speaker 1: SEC and regulation. I mean, does everybody basically shut down

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Speaker 1: to see who wins the first Tuesday? And I think,

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Speaker 1: I think in the absence of some extraordinary scandal or

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Speaker 1: break up of some sort, or failure of some sort,

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Speaker 1: the SEC is not going to implement anything really dramatic

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Speaker 1: in the area of rulemaking this year. And a lot

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Speaker 1: depends next year on who was elected president. I think

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Speaker 1: in a Hillary who led country, the SEC will be

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Speaker 1: more of an activist agency then in a Donald Trump environment. Yeah, Arthur,

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Speaker 1: I just find it amazing. Uh where we are, it's extraordinary.

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Speaker 1: I thought that Bernie made Off was the biggest surprise

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Speaker 1: of my professional life. But I think that Donald Trump

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Speaker 1: trumps that well, very good. That's quite agree. I don't

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Speaker 1: give my opinion, Arthur. I get shot if I do.

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Speaker 1: But John Tucker was laughing at me. But well, what

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Speaker 1: Arthur Levitty says, he does it. But Arthur Levitt, by

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Speaker 1: the way, folks, so we're the way a rod got

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Speaker 1: his two year retirement tour is some Arthur Levitt. Arthur's

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Speaker 1: got out of five year retirement tour. Arthur Levitt, thank

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Speaker 1: you so much. He is the former chairman of the

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Speaker 1: Security Exchange Commission h joining us today. Francine, I'll tell

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Speaker 1: you I have no idea where we'll be in eight

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Speaker 1: weeks on the politic after Wisconsin, after the political derby,

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Speaker 1: shout out to with all due respect, John Heilman and

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Speaker 1: Mark Halperin are doing what actually needs to be done,

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Speaker 1: which is have conversations with the candidates that are not

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Speaker 1: incendiary and gotcha and all that. I give them major

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Speaker 1: marks for driving the conversation forward. I urge you to

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Speaker 1: consider the digital access and the actual show with all

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Speaker 1: due respect, that you can see at five pm typically

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Speaker 1: worldwide on Bloomberg. They've done a great job of moving

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Speaker 1: the conversation with the candidates forward away from the sterea

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Speaker 1: that's UH epidemic today, futures negative fourteen, doubt futures at

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Speaker 1: negative one twelve A tenure yield one point eight six

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Speaker 1: percent UH accrued Donna dollar fifty nine. And now to

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Speaker 1: the news in New York is Michael Barr, Tom Francine,

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Speaker 1: thank you very much. The chief Paris attacks suspect has

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Speaker 1: appeared in cool word in Brussels, where his lawyer declared

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Speaker 1: that Salah obvious Slam is not interested in fighting extradition

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Speaker 1: to France. Meanwhile, French and Belgian media reports speak of

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Speaker 1: an additional bomber in Brussels who is alive and on

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Speaker 1: the run. Democrats are evenly split between Hillary Clinton and

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Speaker 1: Bernie Sanders. That is, according to a new Bloomberg pole

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Speaker 1: It shows that Sanders has of people who planned to

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Speaker 1: vote or have voted in Democratic contests this year. Clinton

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Speaker 1: has forty percent. Today is the deadline for Indiana governor

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Speaker 1: Mike Pence to act on the controversial anti abortion measure.

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Speaker 1: It would ban abortions because of genetic abnormalities such as

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Speaker 1: down syndrome. Global News twenty four hours a day, powered

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Speaker 1: by our two journalists and more than a hundred fifty

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Speaker 1: news bureaus from around the world. Michael bar Franzing, Tom,

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Speaker 1: Michael bar thanks so much. We are thrilled with you.

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Speaker 1: From our London and New York World headquarters. Fransing Okua

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Speaker 1: and Tom King will continue our discussion on economics, finance,

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Speaker 1: investment in international relations futes A negative fourteen Bloomberg Surveillance

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