Speaker 1: Broadcasting live to New York Bloomberg eleven, to Washington, d
Speaker 1: C Bloomberg to Boston, Bloomberg Well under It, to San
Speaker 1: Francisco Bloomberg ninety to the Country Series Exam Channel one
Speaker 1: nine and around the globe the Bloomberg Radio Plus app
Speaker 1: and Bloomberg Got Gone. This is taking stock. I'm Kathleen
Speaker 1: Hayes Long pim Blos for broadcasting live the Bloomberg Markets
Speaker 1: Most Influential Summit at our Bloomberg World headquarters. Globalization. Where
Speaker 1: is it heading? Have we reached the end of globalization?
Speaker 1: This is one of the topics here at Bloomberg Markets
Speaker 1: Most Influential PIM And we're going to be speaking to
Speaker 1: a panelist shortly to talk about, you know, maybe Donald
Speaker 1: Trump shouldn't be so worried the trade is actually shrinking
Speaker 1: in the global economy. Yes, our guests tub will be
Speaker 1: Alan Krueger, a Princeton University professor of economics and public affairs,
Speaker 1: former head of the Council Economic Advisors in the administration.
Speaker 1: Right now, that let's Charlie Pellet in the Blue of
Speaker 1: News Corporder Business left and I think it very much
Speaker 1: PIM Fox. Thank you, Kathleen, Hayes, speaking of influence, gott
Speaker 1: to begin with crude oil today surging four point four percent,
Speaker 1: helping lift equities, the DAL, the SMP nestack all the
Speaker 1: advancing West Texas intermediate crude now at forty six sixty
Speaker 1: three for a barrel. OPEC agreeing to cut production for
Speaker 1: the first time in eight years. And this uptake brought
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Speaker 1: OPEC cutting production for the first time in eight years,
Speaker 1: according to a delegate briefed on the matter, sending oil
Speaker 1: prices up as Saudi Arabia and Irrong or Iran wrong
Speaker 1: footed traders who expected a continuation of the pump and
Speaker 1: Will policy Group adopted it in two thousand fourteen. Crude
Speaker 1: oil up now by four point four percent, rallying two
Speaker 1: dollars of the barrel to forty six sixty three. California,
Speaker 1: the nation's largest issue of municipal bonds, is barring Wells
Speaker 1: Fargo from underwriting state debt and handling its banking transactions
Speaker 1: after the company admitted to opening potentially millions of bogus
Speaker 1: customer accounts. Wells Fargo shares up one tenth of one percent,
Speaker 1: Goal down six sixty, the Ounce down five tenths of
Speaker 1: one percent, the tenure down to thirty seconds, Zeal one
Speaker 1: point five seven percent, SMP five index up six again.
Speaker 1: There of three tenths of one percent, and right now
Speaker 1: three thirty two on Wall Street. Let's take a look
Speaker 1: at some of the other stories making news. Thank you,
Speaker 1: Charlie from the Bloomberg news Room. I'm Jill Schneider. This
Speaker 1: news update is brought to you by the jeep Grand Cherokee,
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Speaker 1: For the first time in his presidency, Congress has voted
Speaker 1: to override a President Obama veto. The House overwhelmingly voted
Speaker 1: to seventy seven to override a bill that will allow
Speaker 1: Saudi Arabia to be sued for involvement in the nine
Speaker 1: eleven attacks. Earlier, the Senate voted nine seven to one,
Speaker 1: with the single no vote coming from Minority Leader Harry Reid.
Speaker 1: First Lady Michelle Obama is out campaigning for Hillary Clinton. Today,
Speaker 1: Mrs Obama addressed a crowd at Philadelphia's LaSalle University. Remember,
Speaker 1: it's not about voting for the perfect candidate. There is
Speaker 1: no such person, and this election, it's about making a
Speaker 1: choice between two very different candidates with very different visions
Speaker 1: for our nation. Mrs Obama also said the country needs
Speaker 1: quote an adult in the White House. Israel is mourning
Speaker 1: the death of former President and Prime Minister Shimon Perez.
Speaker 1: Former President Bill Clinton will be among those attending his
Speaker 1: funeral Friday. I'm very grateful to him for a lifetime
Speaker 1: of taking big thoughts and dreaming big dreams and figuring
Speaker 1: out practical ways to achieve. The Penn Station, the nation's
Speaker 1: busiest transit hub, could finally be getting a makeover. Governor
Speaker 1: Andrew Cuomo has unveiled at one point six billion dollar
Speaker 1: plan that would create a retail space at the James A.
Speaker 1: Farley Building across the Avenue and a waiting hall for
Speaker 1: Amtrak and Long Island Railroad passengers. Global News twenty four
Speaker 1: hours a day, powered by more than twenty journalists and
Speaker 1: analysts in more than one twenty countries. I'm Jil Schneider.
Speaker 1: This is Bloomberg, Charlie, and we thank you, but again,
Speaker 1: keeping an eye on crude oil. West Texas Intermediate up
Speaker 1: now by four point four percent, a barrel of w
Speaker 1: t I sixty three equities higher, SMP up six, a
Speaker 1: gain of three tenths of one percent. I'm Charlie Pellett.
Speaker 1: Thatath's a Bloomberg business flash. You're listening to Taking Stock
Speaker 1: with Kathleen Mays and Pim Fox on Bloomberg Radcroft broadcasting
Speaker 1: live today for the liver Market's most Influential Summit at
Speaker 1: our world headquarters here in New York. Take a look
Speaker 1: at globalization and where are the world is heading now,
Speaker 1: particularly in this election year when there are so many
Speaker 1: debates around trade, trade deals and more. Joining us now
Speaker 1: is Alan Krueger, who's former head of the Council of
Speaker 1: Economic Advisors, professor at Princeton University, and he's faring to
Speaker 1: you talk about his panel today. Whether the sun is
Speaker 1: setting on globalization? So Ellen, is it? Uh? Is it
Speaker 1: twilight for globalization? Or is it just some dark clouds
Speaker 1: obscuring the sun, so it feels like like the sun
Speaker 1: is setting. The word I used was moderation. I think
Speaker 1: we're seeing a moderate ration and globalization when it comes
Speaker 1: to trade as well as when it comes to immigration.
Speaker 1: Is this a bad thing or a good thing? I
Speaker 1: think it was a somewhat inevitable thing in that there
Speaker 1: was enormous rush of globalization when the Soviet Union collapsed
Speaker 1: and Eastern Europe joined the modern world, the capitalist system, uh,
Speaker 1: and then when China joined the world trading system, and
Speaker 1: I think that that led to a long period of
Speaker 1: expanding trade. And now we're reaching more of an equilibrium
Speaker 1: point where wages have been driven up in China, the
Speaker 1: infrastructure has been driven down to the point that they
Speaker 1: are really quite stretched in terms of their infrastructure. We're
Speaker 1: seeing companies bring more work back to the US. In fact,
Speaker 1: we're seeing companies re shoring UH some work in the US,
Speaker 1: and I think that trend will probably continue. The same
Speaker 1: thing with immigration. I think we saw very rapid immigration
Speaker 1: to the US, particularly from Mexico when we had our
Speaker 1: housing bubble, and since then we've actually had a net
Speaker 1: autmoinigration to Mexico. Professor Krueger, there's so much I want
Speaker 1: to answer, so I just want to throw out some
Speaker 1: topics and maybe get your maybe you can connect them.
Speaker 1: For for us UM, one of your earliest pieces of
Speaker 1: research has to do with the restaurant industry and minimum wage.
Speaker 1: You've written books about wage inequality. We've also written a
Speaker 1: book about terrorism. Wondering if there's a way to connect
Speaker 1: all those things in the context of trade agreements and
Speaker 1: what they will ultimately do in a variety of ways,
Speaker 1: because trade is not just about stuff, it's about people.
Speaker 1: And supposedly, if you actually know somebody, chances are you're
Speaker 1: gonna feel less aggressive towards them, uh, because you're gonna
Speaker 1: know something rather than just hear it or think it
Speaker 1: or get that information that might not be true. Well,
Speaker 1: there are a lot of crosscurrents are not So I'll
Speaker 1: do I'll do my best. The point I think which
Speaker 1: is underappreciated about trade agreements is they are as much
Speaker 1: international relations policy as they are economic policy. And if
Speaker 1: you look at NAFTA, for example, in our eighteen trillion
Speaker 1: dollar economy in the US, NAFTA had very little effect
Speaker 1: one way or the other in terms of our economic growth,
Speaker 1: or wages. I think it was positive on that. I
Speaker 1: think that's why the economy did so well in THEES
Speaker 1: after NAFTA. But I would have to acknowledge that was
Speaker 1: pretty small. But it did help our relationship with Mexico
Speaker 1: and Canada. And now when returning to the other parts
Speaker 1: of the world, do we want to have better relations
Speaker 1: but the rest of the world or worst relations? I
Speaker 1: think when it comes to our national security, it's better
Speaker 1: to have better relations. So I think one aspect of
Speaker 1: trade agreements is that it helps to further our national
Speaker 1: security interests. And if you have a candidate who says
Speaker 1: I'm going to tear up agreements that we have, I
Speaker 1: think that works in reverse. And I think it makes
Speaker 1: it very difficult to negotiate agreements that are in the
Speaker 1: interests of the US, both economically and in our international
Speaker 1: security interests. If we have bluster coming from politicians about
Speaker 1: withdrawing from agreements which we have previously negotiated in good faith,
Speaker 1: as we make future trader greaments, assuming that that happens. Uh.
Speaker 1: Is it important though, to see that our experience with
Speaker 1: China was not altogether good. Our our relationship with our trade,
Speaker 1: our trade relatestions and the fact that they pegged their
Speaker 1: currency for so long helped all about manufacturing in this country.
Speaker 1: There's I think it's hard to dispute that also they've
Speaker 1: blocked intellectual property, they stolen intellectual property. Is there some
Speaker 1: way in future trade agreements that will makes sure that
Speaker 1: free trade is fair trade. I think you raised very
Speaker 1: important points and also recognized it was not trade agreement
Speaker 1: that led to China's expansion in the US. UM, we
Speaker 1: don't have a trade agreement with China. And one of
Speaker 1: the arguments that President Obamas maybe I think is exactly
Speaker 1: right is t p P UH would prevent China from
Speaker 1: writing the rules of the road when it comes to
Speaker 1: the economic relations in Asia. UH, it will be US
Speaker 1: standards that would protect intellectual property. For example, we solved
Speaker 1: them a lot of treasuries. That was something that we
Speaker 1: did that they that they bought from us. Well, I
Speaker 1: think they bought treasuries from US because they recognize that
Speaker 1: we are the strongest, most responsible country in the world
Speaker 1: UH and a good place to invest UM. And I
Speaker 1: think we are now at a point where China's currency
Speaker 1: is roughly valued appropriately. I think for a long time
Speaker 1: it did um a weekend its currency. But I think now,
Speaker 1: given how poorly China has fared over the last few
Speaker 1: years and how much better the US has grown, you
Speaker 1: would see a reversal. UH. So, I think it's very
Speaker 1: hard to say that the currency manipulation UH is causing
Speaker 1: a lot of damage to this economy today. Now, I
Speaker 1: think that's something you need to monitor very closely going forward.
Speaker 1: I want to thank you very much for coming in
Speaker 1: and spending time with us. Alan Krueger. He is the
Speaker 1: former head of the Council of Economic Advisors, currently a
Speaker 1: professor at Princeton University, and the author of many books,
Speaker 1: one Quality Education and Terrorists. You're listening to taking Stock,
Speaker 1: I'm pin Fox my co host Kathleen Hayes. This is Bloomberg.
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