Speaker 1: Broadcasting live to New York, Bloomberg eleventh, bo to Washington,
Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve, under It to
Speaker 1: San Francisco, Bloomberg nine, to the Country series Exam General
Speaker 1: one nine and around the globe the Bloomberg Radio Plus
Speaker 1: Athen Bloomberg got gone. This is taking Stock. I'm Kathleen
Speaker 1: Hayes on him, Fox PIM out of the office this afternoon.
Speaker 1: FED in focus in this hour on taking Stock. Well,
Speaker 1: uncertainty over the Brexit, the UK deciding to leave the
Speaker 1: European Union. Could that slow the Fed's rate hiking hand
Speaker 1: this month. We've got a guest coming up who says
Speaker 1: it's short. Certainly should not and the Bank of England
Speaker 1: has no business predicting that it breaks. It will cause
Speaker 1: great harm to the UK economy. Now let's get to
Speaker 1: Charlie Felton issue with a Bloomberg business flash, and I
Speaker 1: thank you Kathleen. Right now, we've got the SMP highn
Speaker 1: Nestak as well, dal Jones Industrial Average, Laurel by two
Speaker 1: points little change, their SMP up a point, a gain
Speaker 1: to point one percent, and Astack Higer by eight a
Speaker 1: gain of two tenths of one percent. The U S
Speaker 1: economy expanded at a modest pace across most of the
Speaker 1: countries since mid April, causing the labor market to tighten.
Speaker 1: Those employers continue adding jobs and nudging wages higher. We
Speaker 1: will have more on the Beige Book coming right up here.
Speaker 1: On taking Stock. Matt Bosler covers the Federal Reserve for
Speaker 1: Bloomberg News. He was our guest minutes ago here on
Speaker 1: taking Stock. One of the good things here is that, um,
Speaker 1: you know, throughout this report there's a language about how
Speaker 1: businesses are feeling generally optimistic about the outlook, which is
Speaker 1: good because, um, you know, in the minutes of the
Speaker 1: April f MC meeting that we're just released a few
Speaker 1: weeks ago, there was a line in there about how
Speaker 1: most of policymakers business contacts, Um, we're you know, delaying
Speaker 1: expenditures and sort of waiting for uncertainty around the outlook
Speaker 1: to to resolve. And right now we do have the
Speaker 1: tenure up to thirty seconds with the yield of one
Speaker 1: point eight three percent. Auto sales, Hey, it is the
Speaker 1: first the day of the new month. Auto sales softer
Speaker 1: than predicted and May a bell weather month that may
Speaker 1: help the Federal Reserve decision decision makers determine whether the
Speaker 1: economy can handle it. Interest rate increase this summer, GM, Ford,
Speaker 1: Toyota all reporting sales that fell more than analysts had estimated.
Speaker 1: GM shares they are down now by three point three percent.
Speaker 1: Ford shares down by two point nine percent. Mixed picture
Speaker 1: for US equities smp hier now by a point. The
Speaker 1: Dow is down six points, Gold down three forty ounce
Speaker 1: dropped there of three tenths of one percent to thirty
Speaker 1: two on Wall Street. Now, let's take a look at
Speaker 1: some of the other stories making us. Thank you Charlie
Speaker 1: from the Bloomberg news room. I'm Ramie. In Essensio. Searchers
Speaker 1: may have found a new clue in the hunt for
Speaker 1: egypt Air Flight eight oh four that went down in
Speaker 1: the Mediterranean Sea last month. Here's Bloomberg's Michael Barr. A
Speaker 1: French Navy ship has picked up a ping that is
Speaker 1: likely coming from the all important black boxes from an
Speaker 1: egypt airplane that crashed May nine. If it is indeed
Speaker 1: the flight recorders, you could be a major piece of
Speaker 1: the puzzle as to what happened to Egypt Air Flight
Speaker 1: eight oh four. Egypt's Ministry of Civil Aviations as once
Speaker 1: the black boxes are located, a ship from deep ocean
Speaker 1: Search we joined the effort in the Mediterranean to retrieve
Speaker 1: the DEATHA recorders. The Arabs crashed while heading from Paris
Speaker 1: to Cairo, killing all sixty six passengers and crew on board.
Speaker 1: Michael Barr Bloomberg Radio for Your Health. Restaurants and food
Speaker 1: manufacturers are being asked to hold the salt. Health and
Speaker 1: Human Services Secretary at Sylvia Matthews Burwell on the new
Speaker 1: guidelines in terms of what we're doing is creating a
Speaker 1: situation where the consumers can control. If that consumer wants
Speaker 1: to add more sodium, they're going to be able to
Speaker 1: do it. What the consumer can't do now is take
Speaker 1: it half of the product and have real knowledge about it.
Speaker 1: Burwell also says seventy of the sodium that most people
Speaker 1: consume comes from either prepared or processed food. And the
Speaker 1: baby born in New Jersey has birth defects caused by
Speaker 1: the zeke of virus. It's a first in the Tri
Speaker 1: state region and only the second time it's happened in
Speaker 1: the US. Hospital officials say the infants thirty one year
Speaker 1: old mother is asking for privacy at Hackensack University Medical
Speaker 1: Center as the newborn receives care. The mother is from Honduras,
Speaker 1: where she may have contracted the virus. Global News twenty
Speaker 1: four hours a day, powered by our journalists in more
Speaker 1: than one fifty news bureaus around the world. From the
Speaker 1: Bloomberg News Room. I'm Rami Innocentio Charlie, and we thank you,
Speaker 1: and again recapping a mixed picture for US equities SMP
Speaker 1: five hundred index higher by a lesser than half a point.
Speaker 1: Now little change down, Industrials down twelve, a drop of
Speaker 1: point one percent. I'm Charlie Pelt. That's a Bloombird business flash.
Speaker 1: This is taking stock the FED in focus on Bloombird Radio.
Speaker 1: I'm Kathleen Hayes, my co host Pim Fox. Out of
Speaker 1: the office this afternoon, we're gonna take a look at
Speaker 1: Brexit now, in particular warnings last month stark warnings from
Speaker 1: the Bank of England that a vote to leave the
Speaker 1: European Union by the UK, the so called Brexit, could
Speaker 1: slam the brakes on growth in that area, push up unemployment,
Speaker 1: stoke inflation, and spook forward investors. And the feder Reserve,
Speaker 1: of course, has expressed some concern about not knowing the
Speaker 1: result of the June Brexit before it votes on US
Speaker 1: monetary policy on June fifteenth. Joining us now as a
Speaker 1: guest who has slammed the Bank of England for making
Speaker 1: such statements, saying that it is cynically exploiting its authority.
Speaker 1: Ashoka Modi joins this now. He's a Bloom Review contributor.
Speaker 1: He is also a visiting professor in International Economic Policy
Speaker 1: at the Woodrow Wilson School at Princeton University, and previously
Speaker 1: was Deputy director in the I m f S Research
Speaker 1: and European Departments, and so much more. Professional Moody, welcome
Speaker 1: to the show. Thank you, thank you very much. So
Speaker 1: what do you think would happen? Let's start there. Do
Speaker 1: you think the brigsit won't have much impact on the
Speaker 1: UK economy if that occurs. I think Brexit will have
Speaker 1: some impact, but how much impact it has will depend
Speaker 1: also a lot on how how the policymakers and the
Speaker 1: UK authorities behave Uh. If they if they create a
Speaker 1: sense of panic, uh, then there will be panic. But
Speaker 1: if they calmly and they take it as a matter
Speaker 1: of course, Uh, then I think it's a very manageable process.
Speaker 1: Is uh, Governor Karney Mark Arney, the head of the
Speaker 1: Bank of England, Is he waiting into political waters? Is
Speaker 1: that implicitly what you're saying that he's trying to help
Speaker 1: the government in his position that Brexit should not occur.
Speaker 1: But what what Mr Kearney and the Bank of England
Speaker 1: have done are two things. Does they say that not
Speaker 1: only will Brexit cause problems, but it is already causing problems,
Speaker 1: That growth has slowed down, that investment has slowed down
Speaker 1: because of the fear of Brexit. The problem with that
Speaker 1: statement is that there is simply no evidence for that
Speaker 1: the UK economy has slowed down. But we completely understand
Speaker 1: why it has slowed down. Has slowed down because once
Speaker 1: again austerity has been stepped up and the world economy
Speaker 1: is slow, world trade is barely growing, and that pretty
Speaker 1: much explains the slowdown of the of the UK economy.
Speaker 1: So for him to add that there is a Brexit
Speaker 1: related uncertainty said is just a completely ad hoc. But
Speaker 1: the more most serious problem that the Bank of England
Speaker 1: has created is by saying that if there is Brexit,
Speaker 1: there will be panic and in effect civilization. As we
Speaker 1: know it will come to an end. And I think
Speaker 1: that it's completely a response because they're creating a narrative
Speaker 1: which is likely to become full self fulfilling if they
Speaker 1: continue this way. A central bank's role, a central bank's
Speaker 1: role has to be to stop the planet, to state
Speaker 1: calm and stop the pandits. I think whether it was
Speaker 1: a political gesture or not, it was clearly unnecessary and
Speaker 1: ill advised. I have kept quiet, waited till bregsit decision
Speaker 1: was taken, and then acted as a centralman. Should I
Speaker 1: want to ask, do you want to switch? Here's just
Speaker 1: a bit, but look at India where they had of
Speaker 1: India's Central Bank or gam Rajan, who uh is Indian
Speaker 1: by birth, has lived in work in the the United States
Speaker 1: for many years. Professor, very well respected at the University
Speaker 1: of Chicago. He's been almost three years running the central
Speaker 1: bank in India. Many politicians now or some anyways saying
Speaker 1: he should leave. He hasn't cut rates enough. Today he said,
Speaker 1: just what, I don't want another term. When my three
Speaker 1: three years are up, I'm leaving. Do you think India's
Speaker 1: heading in the right direction without ragu Rajan? Well, look,
Speaker 1: they let there are two different things one how the
Speaker 1: political system has treated Ragu and that's that's completely abominabous. Uh.
Speaker 1: There is I think a small group, in fact, maybe
Speaker 1: one politician who has been hounding him. And I think
Speaker 1: I think if India wanted to keep Ragu, the Prime
Speaker 1: Minister should have been out there on the stump, Uh
Speaker 1: telling his party folks to to keep quiet and to
Speaker 1: go away. And and because this is completely uncalled. But
Speaker 1: Ragu is, as you said, quite rightly, one of the
Speaker 1: most distinguished economists of his generation. And India is fortunate
Speaker 1: that you know, he he feels it is part of
Speaker 1: his obligation to to be a senior policy in get
Speaker 1: in in India. Now it's luck we leaves. You know,
Speaker 1: I don't believe that an individual mix or breaks and institution.
Speaker 1: And you know there will be other people who will
Speaker 1: come and who will do a very fine job. But
Speaker 1: I hope very much, but in the estate that he continues.
Speaker 1: You know, he has himself said that the dusk is
Speaker 1: not yet done, and I think he should stay and
Speaker 1: and did the dusk alright, A Shokmote, thank you so
Speaker 1: very much for joining us. Uh looking at the Bank
Speaker 1: of England saying there is no evidence that Brexit fears
Speaker 1: are slowing the economy. There's a lot of factors doing that.
Speaker 1: And as for India, very fast growing, important economy in
Speaker 1: the world. Now, maybe they should try to keep their
Speaker 1: current central bank chief, A Shokomoti. Joining us from Princeton University.
Speaker 1: I'm Kathleen Hayes. This is taking stock on Bloomberg Radio,
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