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Speaker 1: Broadcasting live to New York Gilberg eleven we Old to Washington,

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Speaker 1: d C, Bloomberg Night to Droston, Bloomberg twelve Winners, to

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Speaker 1: San Francisco Bloomberg nine sixty, to the country cities at

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Speaker 1: SAM Channel one ninety and around the globe the Bloomberg

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Speaker 1: Radio plus Aben Bloomberg dot com. This is Bloomberg Surveillance.

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Speaker 1: Good morning. I'm Karrot Moscow along with Tom Keene and

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Speaker 1: Michael McKee, and the opening bell is brought to you

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Speaker 1: by s C. I have evolving investor in regulatory demands

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Speaker 1: affected your investment firms operational readiness. Imagine transforming your business

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Speaker 1: slash Imagine. Stocks are lower at the open. The S

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Speaker 1: and P five hundred down two tenths per cent or

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Speaker 1: four points to twenty seventy nine. Downtown's industrial average down

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Speaker 1: four tenths per cent or sixty three points to seventeen thousand,

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Speaker 1: eight hundred sixty five. Now IS dacts down two tenths

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Speaker 1: per center eleven points to forty ten. Your treasury up

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Speaker 1: one thirty second. The yield one point seven five per

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Speaker 1: cent yield on the two year point seven three percent.

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Speaker 1: Now I'm ex screwed oil down nine tenths per cent

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Speaker 1: or forty cents to six of barrel comex schooled up

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Speaker 1: one or thirteen dollars ten cents at twelve seventy, announced

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Speaker 1: the euro another fourteen eleven the end one oh eight

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Speaker 1: point six four, Tom and Mike. It is as if

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Speaker 1: from Richard hasas of the Council on Foreign Relations, or

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Speaker 1: for that matter, from Ambassador Hormetts Robert Hormets with us tomorrow,

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Speaker 1: from Kissinger associates serving both Democrats and Republicans. That is

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Speaker 1: something familiar to some would argue the most interesting man

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Speaker 1: in the Republican Party, which would be the twenty four

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Speaker 1: Secretary Defense of the United States of America. And I

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Speaker 1: believe he's dark in the door from Nebraska politics for

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Speaker 1: a few years. We welcome Chuck Hagel, Senator, good morning, Well,

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Speaker 1: thank you, and I have to say that's the most

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Speaker 1: creative inventive introduction i've ember head. Well, that's what we tried.

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Speaker 1: That's what we try to do. And we could literally

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Speaker 1: talk to you, Senator for six words, or at least

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Speaker 1: tell Paul Ryan Tells what he's gonna do with Mr. Trump.

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Speaker 1: You this morning in support of Peter G. Peterson, who

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Speaker 1: is a very good person. Good morning, UM. Secretary Peterson,

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Speaker 1: if you're listening on something has and hormats have always

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Speaker 1: said you got to get your fiscal house in order

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Speaker 1: to get your foreign national security house in order discuss

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Speaker 1: why is that important right now? Well, they're absolutely correct.

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Speaker 1: And by the way, I would just add you mentioned

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Speaker 1: my state of Nebraska, which I was very proud to

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Speaker 1: serve as a senator for twelve years. But Peter G.

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Speaker 1: Peterson is a proud son of Nebraska. So we're very

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Speaker 1: proud of what Pete has done over the years, contributions

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Speaker 1: he's made, And this is just another manifestation I think

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Speaker 1: this UH this conference today. But as to your question, UM,

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Speaker 1: the strength of a nation UM UH is directly proportional

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Speaker 1: to its economic strength. And the economic strength of a

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Speaker 1: nation that really is the foundation, UH for the possibilities,

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Speaker 1: the capabilities, the capacities a nation has and if that

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Speaker 1: is shaky or weak or uncertain, UM, that will play

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Speaker 1: out in in a dramatically dangerous uncertain ways. For for

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Speaker 1: a country, Well, is our is our country shaky or

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Speaker 1: weak on either of those skills, particularly on a comparative

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Speaker 1: basis to the rest of the world. No, I think

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Speaker 1: the United States of America possesses the strongest, not just

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Speaker 1: present day economy for the reasons we know, and I

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Speaker 1: think the numbers bear that out. And I understand the

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Speaker 1: large shutteral debt and the other depths that we have,

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Speaker 1: states have pitching plans have in this country that hang

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Speaker 1: over all of that. But we are national laws. We

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Speaker 1: do have a constitution. UM are a nation that is

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Speaker 1: capable of self correction when we need to. We have

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Speaker 1: twenty seven amendments to constitution. Is is some evidence of

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Speaker 1: that we can adjust. We have the most flexible economy

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Speaker 1: in the world. Uh, it's the largest that there are

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Speaker 1: so many dimensions to what we have. It's creative, it's inventive.

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Speaker 1: We reward incentives and we reward hard work and inventiveness.

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Speaker 1: So it doesn't even always be that way. And if

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Speaker 1: we are irresponsible stewarts, then UM wheel drive our countrary

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Speaker 1: our economy into a ditch. But I think we're not

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Speaker 1: on the precipice. Yes, we have a lot of problems,

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Speaker 1: a lot of issues. Uh, the debt is a concern,

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Speaker 1: But overall, to answer your question, no, we're the strongest

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Speaker 1: economy in the world. Well, I I don't want to

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Speaker 1: minimize the economic and fiscal angle here, And obviously, um uh,

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Speaker 1: this piece has done some terrific work of bringing all

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Speaker 1: this to light. But you're the expert on defense. There

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Speaker 1: was a fascinating article in speaking of Richard hass in

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Speaker 1: the Foreign Affairs magazine the last month about whether the Chinese, Um,

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Speaker 1: everybody's focused on them, but whether the Chinese or anybody

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Speaker 1: else will be able to overtake the U. S military

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Speaker 1: in the same way that their economy will eventually overtake ours.

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Speaker 1: And the argument was no, that the United States just

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Speaker 1: has the technology advantage, the creative advantage, that our military

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Speaker 1: is so advanced that we, you know, barring very poor leadership,

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Speaker 1: that we are not being threatened by anyone in terms

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Speaker 1: of our capabilities. Well, um, I think that promise of

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Speaker 1: that statement is correct if we stay on the course

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Speaker 1: that we're on, if we if we continue to invest

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Speaker 1: in our future, like like company or or any end,

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Speaker 1: you have to always look ahead. It's it's about tomorrow,

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Speaker 1: it's not about yesterday. And the technological advantage is we

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Speaker 1: have today, and I think we'll continue to be there

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Speaker 1: if we're wise and how we uh we use our

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Speaker 1: our advantages. Uh. I think we'll continue to keep the

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Speaker 1: head of everyone that China is that uh it had

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Speaker 1: a large gap to start with. Of course it's like

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Speaker 1: its economy and jobs, but it is covering a lot

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Speaker 1: of ground brely and the the focus I think has

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Speaker 1: to also always be on how the world because of

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Speaker 1: the technology, but other things, but because mainly technology is

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Speaker 1: changing the threats, whether they're nuclear or cyber. I think cyber,

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Speaker 1: for example, represents one of the greatest threats to our

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Speaker 1: country as there is we have out there today. I mean,

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Speaker 1: without firing a shot, as you will know, ship, you

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Speaker 1: can paralyze the nation, their economy, their power grids, all

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Speaker 1: the things that we know. So I wouldn't minimize the

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Speaker 1: sprint of or the advances that China's making, because they'll

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Speaker 1: continue to make those advances. But I think the United

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Speaker 1: States will and can uh stay ahead. Uh. Question in

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Speaker 1: this area, Senator, let me delicately, delicately get into the

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Speaker 1: current politics. You've been acclaim for wearing Halloween costumes dressed

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Speaker 1: as Vice President Biden, General Powell and others. Can you

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Speaker 1: wear a Donald Trump costume as Halloween there's a great well,

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Speaker 1: I would probably didn't have to don a Captain America

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Speaker 1: outset could probably make it anyway decent replica of Mr Trump. Uh. Well,

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Speaker 1: I've always had fun doing that, and I surprised a

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Speaker 1: lot of my colleagues. I think I've been for seven

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Speaker 1: Halloween when I was in the Senate, when we were

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Speaker 1: in when i'd i'd come over and see him or

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Speaker 1: disrupt the hearing or something at to one with it.

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Speaker 1: But Trump would be an interesting one to have to duplicate. Uh,

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Speaker 1: we'll see how all this turned out. But there'll be

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Speaker 1: some Trump mass out there already. And if they're not,

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Speaker 1: they're already they're already appearing quickly. Senator, what is your

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Speaker 1: advice or Speaker Ryan? And is an important meeting with

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Speaker 1: Mr Trump today? I think I think Speaker Ryan because

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Speaker 1: he is the right now the titular head of the

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Speaker 1: Republican Party. Um, he has to be be very desk

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Speaker 1: in how he handles this situation because he has an

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Speaker 1: awesome responsibility not just a Speaker of the House that

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Speaker 1: is a legislative duties, but also with the Republican Party.

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Speaker 1: The fact is, unless something dramatic happens that Donald Trump

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Speaker 1: is going to be the nominee for the Republican Party

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Speaker 1: for president, and he will be at the top of

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Speaker 1: the ticket. You've got many vulnerable Republican senators up for

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Speaker 1: re election. It's kind of this this uh top of

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Speaker 1: the ticket always affects uh the rest of the not

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Speaker 1: the same way always, but but it does. And so

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Speaker 1: Ryan has to play this senator. We're gonna have to

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Speaker 1: leave it there. Chuck Hagel, thank you so much. All right,

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Speaker 1: let's check it in with Michael barn Now. All this

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Speaker 1: hour surveillance, partly by west Chester Subaru is at west

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Speaker 1: Chester Subaru dot com. Michael's got the headlines. Mike Tom,

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Speaker 1: thank you very much. The death sold from a car

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Speaker 1: bombing in a Baghdad neighborhood has climbed to at least

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Speaker 1: sixty three. The RANKI officials say the bomb ripped through

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Speaker 1: a crowded outdoor market in Baghdad's eastern district of Sounder City. Today,

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Speaker 1: the Islamic State is claiming responsibility. It's Memorial Day in Israel.

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Speaker 1: The siren rang out today across the country to onto

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Speaker 1: the more than twenty three thousand Israelis who have died

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Speaker 1: in wars in Israel. Presumptive Republican presidential nominee Donald Trump

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Speaker 1: says he has not ruled out New Jersey Governor Chris

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Speaker 1: Christie as his running mate. Trump told the Associated Press

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Speaker 1: to shortened his VP list to about five or six names.

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Speaker 1: Vice President Joe Biden says Donald Trump should be taken seriously,

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Speaker 1: but the victory all that is coming from the Republican

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Speaker 1: side is not going to wear well over the next

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Speaker 1: several months. Biden was asked who he thinks would be

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Speaker 1: the next president today on ABC's Good Morning America. You

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Speaker 1: bring up the next president we're all anxious to see.

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Speaker 1: Biden says he feels confident that Hillary Clinton will be

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Speaker 1: in the White House come next January. Global News twenty

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

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Speaker 1: journalists more than a hundred fifty news burreaus from around

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Speaker 1: the world. Michael Barr Michael, thanks so much. Harry just

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Speaker 1: emails in. He suggests Michael McKee should go for Halloween's

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Speaker 1: Donald Trump. I'm trying to imagine that I would scare

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Speaker 1: the children. And how's my Trump face this morning? Portunates radio.

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Speaker 1: No one can see him there. It is Stay with

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Speaker 1: this Bloomberg Todas Bluemrick surveillance brought to by ancient block

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Speaker 1: and engine, named the best accounting firm in North America,

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Speaker 1: where the sixth year in a row by Hedgewick dot

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Speaker 1: com