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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot Com, the radio plus mobile app and on your radio.

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: Future is moving higher this morning. Let's go to the

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Speaker 1: First Word Breaking news desk for today's morning call, and

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Speaker 1: here's Bill Maloney. Good morning Bill, Good morning Karen. Futures

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Speaker 1: are gaining today as w T I crew futures top

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Speaker 1: fifty dollars trade to the highest since October. Futures currently

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Speaker 1: hired by thirty two points, SIPs Game two and a half,

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Speaker 1: and Nazak futures rise by seven. The U s ten

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Speaker 1: Uel at one point eight six percent, a main up

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Speaker 1: markets are well off their session lows. Germany gains point

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Speaker 1: six percent on the US Economic Frinday thirty initial jobs

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Speaker 1: claims and durable goods orders at ten o'clock, Penning home

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Speaker 1: sales at ten thirty, Natural gas storage change at eleven o'clock.

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Speaker 1: Kansas City fed after the bellosnite costco Q three A

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Speaker 1: just dps topped estimates, although COMPS sales missed. An hp

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Speaker 1: Q you two A just dps eat estimates but lowered

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Speaker 1: the high end of EPs views. Riganni erans this morning,

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Speaker 1: tech Data Q two views beat estimates and Dollartrey raised

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Speaker 1: year forecast. In other news, the Financial Time supported Apple

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Speaker 1: executive said to have discussed Time Warner bid last year,

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Speaker 1: and sears to explore options for it's Ken Moore, Craftsman

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Speaker 1: and die Hard brands found the Ali Baba shares defended

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Speaker 1: over at ever k I s I remains a buy

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Speaker 1: with a price target of ninety eight, and Archer Daniels

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Speaker 1: raced to bide over at City Group Live from the

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Speaker 1: first year breaking news to scam, Bill Maloney, Karen Alry,

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Speaker 1: thanks bail to hear live breaking news over your Bloomberg

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Speaker 1: type squawk A go on your terminal, that's sq you

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Speaker 1: a w k go, that's a Bloomberg business flash, Tom

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Speaker 1: and Mike Karen thanks so much. Bloomberg Surveillis. This morning

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Speaker 1: is always brought you by Investco to the day's headlines.

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Speaker 1: Have you searching for more investment views Investco's experts. They

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Speaker 1: can help find the latest thought leadership at the Investco blog.

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Speaker 1: Visit investco dot com slash us to subscribe. It is

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Speaker 1: always a good time to catch up with Stan Colindar.

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Speaker 1: He has been a huge value to us over the

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Speaker 1: years on the nation's fiscal stresses. Maybe it's in the

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Speaker 1: background a little bit right now, but no, I would

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Speaker 1: say that, UM, it's it's really always in the forefront.

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Speaker 1: UM stand Calendar of CORPUS Communications stand, good morning, Good morning.

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Speaker 1: I I look at the CBO and the CBO idea

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Speaker 1: of where we're heading, and I know, I guess it's

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Speaker 1: on the back burner. But the summation is we're gonna

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Speaker 1: get some technical issues. Why don't you work those out.

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Speaker 1: I'll talk to Michael McKee about this as we set

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Speaker 1: up Mr Calendar again with his good audio Mike. This.

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Speaker 1: The Congressional Budget Office has a lot of plug in

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Speaker 1: from two thousand fifteen out to two thousand twenty six,

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Speaker 1: and they take a roughly ten year view. We bring in,

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Speaker 1: we bring in forty two trillion dollars. Stand, I guess

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Speaker 1: you're back with us. We bring in forty two trillion,

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Speaker 1: we spend fifty one trillion, and we got a nine

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Speaker 1: trillion dollar gap over a decade. And yet that's a

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Speaker 1: good budget. How can we feel good about that? Well,

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Speaker 1: you can't, um, but do What you should feel worse

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Speaker 1: about is that no one's talking about it. No one

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Speaker 1: has a solution. And when I testified in front of

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Speaker 1: the House Budget Committee yesterday, no one even mentioned it.

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Speaker 1: I mean, it's it's it's you know as well as

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Speaker 1: I do. Mike in particular, because of his years in Washington. Um,

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Speaker 1: Congress doesn't deal with things unless there's a crisis, and

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Speaker 1: we're gonna wait for this to happen and wait for

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Speaker 1: the bond market and international you know, the international economy

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Speaker 1: to crash before they decide they want to deal with

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Speaker 1: this type of situation. Yeah, there's where you're wrong. Stand.

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Speaker 1: Somebody is talking about it. Someone named Stan Collinder, the

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Speaker 1: a k a. The Budget guy, UH, went up to

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Speaker 1: Capitol Hill yesterday and UH said, basically, the emperor has

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Speaker 1: no clothes. Uh. The Budget Committee always blames other people

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Speaker 1: another problems, and you said, look, it's it's your fault

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Speaker 1: that things are screwed up. How did that go over? Well? Um,

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Speaker 1: First of all, I had to hold my tongue. I

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Speaker 1: was my testimony was pretty strong, But what I really

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Speaker 1: wanted to tell them was to grow a pair, um,

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Speaker 1: And they didn't want to hear that. Instead, they blamed

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Speaker 1: the process. They blamed uh, you know, with the White

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Speaker 1: House is failure to negotiate. Um. You know, it was

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Speaker 1: everyone else's fault but their own. UM. I was remarkably

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Speaker 1: surprised that they didn't rip me apart and send me

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Speaker 1: to the you know, the Russian Front. I was not

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Speaker 1: tired and feathered. But they didn't come up with a solution.

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Speaker 1: And Mike, I gotta tell you, the biggest disappointment to

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Speaker 1: me was no one. No one mentioned the phrase fiscal policy,

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Speaker 1: which is we need a process. They should have said

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Speaker 1: that would actually allow us to set a fiscal policy

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Speaker 1: that's appropriate to deal with the content issues that Tom

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Speaker 1: was mentioning. No one said that, not not one of

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Speaker 1: the twenty members who was their Democratic Republican Well you basically,

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Speaker 1: here's the word in your testimony. The increasingly dismal record

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Speaker 1: of these committees. Uh, did they do they acknowledge that

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Speaker 1: they had accomplished nothing for years. No, they would never

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Speaker 1: do that. They would they would just say it's all

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Speaker 1: they said. It kept saying is it's the process's fault.

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Speaker 1: And I reminded them that under the Constitution, they have

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Speaker 1: already had all the power they needed to do whatever

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Speaker 1: they wanted, to pass a budget, to pass appropriations, to

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Speaker 1: increase or decrease spending, both of all of which were discussed,

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Speaker 1: but none of them acknowledge the fact that they could

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Speaker 1: do it. They felt they felt that they had to

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Speaker 1: be forced to do it. And then, of course I

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Speaker 1: reminded them that when there are rules in place now

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Speaker 1: that theoretically forced them to do things like pass a budget,

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Speaker 1: and they routinely ignore them anyway. So why bought changing anything?

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Speaker 1: Is the forcing? Interest rates? Is the forcing the aggregate

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Speaker 1: that build up? What will be the force X number

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Speaker 1: of years out? Um, Well, it's not going to be

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Speaker 1: the aggregate debt build up, because that's too complicated for

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Speaker 1: most members of Congress to understand. Um, it's it would

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Speaker 1: be some combination of straits building up and the average

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Speaker 1: person at home saying enough, I can't afford my my

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Speaker 1: deet adjustable rate mortgage. Now I can't afford my credit card.

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Speaker 1: You gotta. So that's the that's got to be the

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Speaker 1: precipitating factor. It's got to be political, not economic. And

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Speaker 1: Mike I would point out CBO's lofty run rate seven

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Speaker 1: eight years out is three point five zero, not not

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Speaker 1: exactly a stratospheric yield. There isn't it would be very hard, uh,

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Speaker 1: stand to find an economist who would not suggest that

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Speaker 1: monetary policy is reaching its limits and its time for

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Speaker 1: some fiscal help. Was it possible to find anyone on

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Speaker 1: Capitol Hill who would agree? Um, they might actually Mike,

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Speaker 1: at least on the Republican side. Don't forget, they're very

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Speaker 1: critical of the FIT and they're very critical of what

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Speaker 1: the Fed does on interest rates, whether it's up or down.

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Speaker 1: So essentially, what you've got on Capitol Hill is a

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Speaker 1: formula for basically freeze in economic policy. That is, don't

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Speaker 1: do anything on the fiscal policy side that might be productive,

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Speaker 1: and don't do anything on the monetary side that that

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Speaker 1: might be helpful. So what the economy just go where

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Speaker 1: it is. And what you've got here is people playing politics.

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Speaker 1: We've got to get you back on again for a

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Speaker 1: longer discussion. Stand calendar with corvus MSR. Because you look

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Speaker 1: at your folks, you look at the CBO's best efforts

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Speaker 1: in March of this mess, and it completely identifies Mr

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Speaker 1: colanders testimony to Congress yesterday remarkable, Michael, the non differential

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Speaker 1: between the social security build up and the medical medicare

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Speaker 1: build up. They're not that too far apart futures up

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Speaker 1: to this is Bloomberg surveillance coming up. With all due respect,

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