1
00:00:03,920 --> 00:00:07,480
Speaker 1: This is Bloomberg Surveillance. In terms of the world, I

2
00:00:07,520 --> 00:00:09,600
Speaker 1: think that commodity prices, you know, they've got to be

3
00:00:09,640 --> 00:00:11,560
Speaker 1: pretty close to about him. I think it's time to

4
00:00:11,600 --> 00:00:14,080
Speaker 1: start looking for them to turn around. I think we'll

5
00:00:14,120 --> 00:00:16,880
Speaker 1: be at our above two percent year over year inflation

6
00:00:16,920 --> 00:00:18,640
Speaker 1: by the end of the year of both headline corps.

7
00:00:18,640 --> 00:00:21,840
Speaker 1: But thought he want to increase their production because they

8
00:00:21,920 --> 00:00:24,079
Speaker 1: understand some of the oil they have in the ground

9
00:00:24,239 --> 00:00:27,520
Speaker 1: will never be produced due to global warming considerations. Bloomberg

10
00:00:27,560 --> 00:00:31,319
Speaker 1: Surveillance your link to the world of economics, finance, and

11
00:00:31,480 --> 00:00:35,440
Speaker 1: investment on Bloomberg Radio. Good morning everyone, Michael McKee and

12
00:00:35,440 --> 00:00:39,279
Speaker 1: Tom King. Mr McKee on assignment in Gainesville, Florida. Scarlet

13
00:00:39,320 --> 00:00:42,200
Speaker 1: Food said, I'm not coming in if the Rangers can

14
00:00:42,360 --> 00:00:46,200
Speaker 1: only lose by four goals, don five nothings. She called

15
00:00:46,280 --> 00:00:48,720
Speaker 1: up last night for medicine. Square Garden said, I'll see

16
00:00:48,760 --> 00:00:52,239
Speaker 1: you at nine am. Scarlet Foot with us, A very

17
00:00:52,280 --> 00:00:54,680
Speaker 1: depressed Scarlet Film, very depressed. You know it was. It

18
00:00:54,760 --> 00:00:57,520
Speaker 1: was quite a slacking, uh. Speaking of shellacking in the

19
00:00:57,560 --> 00:01:01,000
Speaker 1: foreign exchange markets, shellacked over a non vall utility. The

20
00:01:01,040 --> 00:01:04,200
Speaker 1: Forex Brief brought to you by Interactive Broker's winner of

21
00:01:04,280 --> 00:01:08,520
Speaker 1: FX Week's two thousand fifteen award for the Best Retail

22
00:01:08,600 --> 00:01:12,360
Speaker 1: Forex training Platform. Visit ib as you can at ib

23
00:01:12,600 --> 00:01:16,320
Speaker 1: kr dot com slash four x. I mentioned it all morning.

24
00:01:16,360 --> 00:01:21,720
Speaker 1: Weekend one ten blows out one eleven nineteen. That's a

25
00:01:21,760 --> 00:01:23,839
Speaker 1: big move. Let me get that up on the Bloomberg

26
00:01:24,319 --> 00:01:28,760
Speaker 1: right now and look at that stochastic move because we

27
00:01:28,840 --> 00:01:33,080
Speaker 1: are Technical Friday, Technical Friday. Yeah, it's a leg up.

28
00:01:33,920 --> 00:01:36,160
Speaker 1: It's a it's a leg up. And yet obviously on

29
00:01:36,200 --> 00:01:38,840
Speaker 1: the negative interest rate news at midnight and then we've

30
00:01:38,840 --> 00:01:41,240
Speaker 1: got a new leg up as well. Really quite something,

31
00:01:41,640 --> 00:01:45,000
Speaker 1: one oh nine fifty out the one eleven nineteen. Do

32
00:01:45,000 --> 00:01:47,920
Speaker 1: you think everyone's rejiggering their forecast for the year end

33
00:01:47,960 --> 00:01:49,920
Speaker 1: on where the yen will end? You're getting to the

34
00:01:49,920 --> 00:01:54,440
Speaker 1: weekend a little negative, little negative tone to the the weekend.

35
00:01:54,520 --> 00:01:57,000
Speaker 1: You don't see in equity features. But you're a one

36
00:01:57,440 --> 00:02:00,080
Speaker 1: fifty one in sterling and out of the queen, the

37
00:02:00,080 --> 00:02:06,240
Speaker 1: president will pick up the tab one pounded sterling. David

38
00:02:06,240 --> 00:02:09,880
Speaker 1: Wilson has looked at an interesting week of equities. What

39
00:02:09,919 --> 00:02:13,320
Speaker 1: do you start with today? You got to start with Microsoft.

40
00:02:13,360 --> 00:02:15,799
Speaker 1: I mean the shares are down five and a half

41
00:02:15,840 --> 00:02:19,799
Speaker 1: percent in early trading. The software maker's fiscal third quarter

42
00:02:19,880 --> 00:02:23,919
Speaker 1: profit trailed analysts average estimate of Bloomberg survey company sided

43
00:02:23,960 --> 00:02:28,639
Speaker 1: weakness in software purchases and a higher tax rate. Microsoft

44
00:02:28,680 --> 00:02:31,639
Speaker 1: sales forecast for the fourth quarter was lower than some

45
00:02:31,680 --> 00:02:35,360
Speaker 1: projections as well. Then you have Alphabet, the parent company

46
00:02:35,360 --> 00:02:39,560
Speaker 1: of Google, down five. Alphabet failed to meet first quarter

47
00:02:39,600 --> 00:02:42,880
Speaker 1: profit and revenue estimates. Chief financial officer Ruth Poor rats

48
00:02:42,960 --> 00:02:45,480
Speaker 1: down a conference called that growth in mobile phone use

49
00:02:45,760 --> 00:02:49,720
Speaker 1: and an automated ads may hurt earnings. Uh. Microsoft one

50
00:02:49,720 --> 00:02:52,480
Speaker 1: of five companies in the down Jones industrial average that

51
00:02:52,520 --> 00:02:56,919
Speaker 1: has reported since late yesterday, and four of the five

52
00:02:57,000 --> 00:02:59,080
Speaker 1: or down, Microsoft being one of them. Then you have

53
00:02:59,280 --> 00:03:02,480
Speaker 1: Visa down three and a half percent. Uh. There you

54
00:03:02,560 --> 00:03:05,720
Speaker 1: have an issue with their plan takeover Visa Europe, the

55
00:03:05,760 --> 00:03:08,680
Speaker 1: world's largists payments that work, saying, uh, it's amended the

56
00:03:08,800 --> 00:03:11,440
Speaker 1: terms and the deal may not be completed until after

57
00:03:11,520 --> 00:03:15,600
Speaker 1: the projected date of June. You have Caterpillar down two percent,

58
00:03:15,680 --> 00:03:18,800
Speaker 1: the world's biggest maker of construction mining equipment, cut profit

59
00:03:18,880 --> 00:03:21,240
Speaker 1: and sales work has for this year. They're concerned that

60
00:03:21,600 --> 00:03:24,000
Speaker 1: the rebound we've seen the commodity prices the last three

61
00:03:24,000 --> 00:03:27,120
Speaker 1: months may run out of steam. General Electrics down one percent.

62
00:03:27,400 --> 00:03:31,320
Speaker 1: First quarter revenue from gees industrial businesses was lower than

63
00:03:31,360 --> 00:03:33,640
Speaker 1: the average estimate, and that matters because g is really

64
00:03:33,680 --> 00:03:37,560
Speaker 1: focusing on that area, getting out of finance. And the

65
00:03:38,400 --> 00:03:41,960
Speaker 1: Dania McDonald's. It's the one stock in the down we've

66
00:03:42,000 --> 00:03:45,400
Speaker 1: seen gains after earnings, uh and it's up one a

67
00:03:45,400 --> 00:03:48,680
Speaker 1: half percent. First quarter earnings at the restaurant chain, beating estimates.

68
00:03:48,720 --> 00:03:51,560
Speaker 1: All about US sales growth coming ahead of projections. The

69
00:03:51,680 --> 00:03:56,480
Speaker 1: Mickpick value deals in all day breakfast attracting customers. Value

70
00:03:56,520 --> 00:03:59,520
Speaker 1: Pharmaceuticals up five and a half percent. Wall Street Journal

71
00:03:59,600 --> 00:04:02,840
Speaker 1: reporting that the drug maker is close to a deal

72
00:04:02,920 --> 00:04:07,120
Speaker 1: to hire Parago's chief executive, Joseph Poppa to run the company.

73
00:04:07,520 --> 00:04:11,560
Speaker 1: So not surprising Paragos shares are down on that prospect,

74
00:04:11,760 --> 00:04:14,240
Speaker 1: five out five and a half percent. We got so

75
00:04:14,280 --> 00:04:17,240
Speaker 1: many more earnings, but let me just sham to all right,

76
00:04:17,520 --> 00:04:20,400
Speaker 1: two more. Let's start with Starbucks down three and a

77
00:04:20,440 --> 00:04:22,919
Speaker 1: half percent. Fiscal second quarter sales at the world's largest

78
00:04:22,960 --> 00:04:26,240
Speaker 1: chain of coffee shops trailed estimates. Starbrucks growth in the

79
00:04:26,279 --> 00:04:31,359
Speaker 1: America's regions slowed single competitors againing market share. So do

80
00:04:31,400 --> 00:04:35,520
Speaker 1: you have a summary Friday tone for what you've observed? You, Well,

81
00:04:35,680 --> 00:04:40,080
Speaker 1: you have a bigger percentage of companies beating analysts earnings

82
00:04:40,200 --> 00:04:44,039
Speaker 1: estimates than usual. That said, you go back and look

83
00:04:44,080 --> 00:04:47,400
Speaker 1: at the projections and they came down more during the

84
00:04:47,480 --> 00:04:50,599
Speaker 1: quarter than usual. So in other words, the analysts lower

85
00:04:50,680 --> 00:04:53,479
Speaker 1: the bar the companies jump over, but only on earnings.

86
00:04:53,680 --> 00:04:56,120
Speaker 1: I mean you have you had more companies in the

87
00:04:56,240 --> 00:04:58,720
Speaker 1: s and P five hundred come up short on sales

88
00:04:58,839 --> 00:05:02,120
Speaker 1: estimates and from up head very good. Revenue dynamics are

89
00:05:02,160 --> 00:05:06,280
Speaker 1: just as important. David Wilson on the equity markets. UM,

90
00:05:06,320 --> 00:05:09,760
Speaker 1: I have been looking for weeks forward to this interview.

91
00:05:09,800 --> 00:05:14,920
Speaker 1: Carlos gudierras serve the Nation and Secretary of Commerce, obviously

92
00:05:15,160 --> 00:05:19,360
Speaker 1: his esteemed thirty year career at Kellogg and Company as well,

93
00:05:19,839 --> 00:05:21,840
Speaker 1: and I don't even know what his title is now.

94
00:05:22,360 --> 00:05:26,960
Speaker 1: Maybe as Carlos Gudieri's senior vice president, vice chairman and

95
00:05:27,080 --> 00:05:31,599
Speaker 1: all around guru of common sense. Maybe we'll go with that.

96
00:05:31,720 --> 00:05:35,400
Speaker 1: Secretary Gudier's wonderful to speak to you. UM. You and

97
00:05:35,480 --> 00:05:39,039
Speaker 1: I spoke on an historic day years ago with the

98
00:05:39,120 --> 00:05:42,840
Speaker 1: collapse of an immigration bill. It's not even feasible we

99
00:05:42,880 --> 00:05:46,320
Speaker 1: could have an immigration debate. Now, what does your Republican

100
00:05:46,440 --> 00:05:51,479
Speaker 1: party do to heal the damage and move forward? Well,

101
00:05:51,480 --> 00:05:53,400
Speaker 1: that's a great question. And by the way, Tom, it's

102
00:05:53,440 --> 00:05:56,120
Speaker 1: great talking to you again. I I always enjoy it

103
00:05:56,279 --> 00:06:01,839
Speaker 1: and appreciate the invitation. I think it's a big Allan's because, um,

104
00:06:03,880 --> 00:06:09,680
Speaker 1: you know what what Donald Trump has said is hard

105
00:06:09,760 --> 00:06:12,840
Speaker 1: to walk away from. I mean, I think he's going

106
00:06:12,920 --> 00:06:16,400
Speaker 1: to have to if he if he is a nominee

107
00:06:16,600 --> 00:06:19,920
Speaker 1: and he wants to get the immigrant vote, because it's

108
00:06:19,920 --> 00:06:24,960
Speaker 1: not just Hispanics. We have to recall that the Governor

109
00:06:25,080 --> 00:06:30,280
Speaker 1: Romney lost Hispanics by you know, seven to seventy three,

110
00:06:30,600 --> 00:06:36,120
Speaker 1: but he also lost Asian Americans, Um, and he lost immigrants.

111
00:06:36,360 --> 00:06:41,200
Speaker 1: And the way people read or hear what he's saying

112
00:06:41,320 --> 00:06:44,440
Speaker 1: is this man doesn't like immigrants, he doesn't like me

113
00:06:44,760 --> 00:06:49,000
Speaker 1: or whatever community had come from. Ted Cruz is sort

114
00:06:49,040 --> 00:06:52,400
Speaker 1: of the same. So it's it's very um, it's very

115
00:06:52,480 --> 00:06:58,520
Speaker 1: frustrating that the field has been narrowed to you know, uh,

116
00:06:58,880 --> 00:07:02,400
Speaker 1: one idea logue and one who knows who he is

117
00:07:03,000 --> 00:07:06,800
Speaker 1: within that Uh, it was your secretary and everyone I

118
00:07:06,839 --> 00:07:09,520
Speaker 1: think knows your story of coming from Cuba. I have

119
00:07:09,560 --> 00:07:11,600
Speaker 1: to ask, let me rip up the script here, what

120
00:07:11,720 --> 00:07:15,160
Speaker 1: was your emotion to see the president visit Cuba. I

121
00:07:15,200 --> 00:07:18,560
Speaker 1: mean I felt I was. I was very proud. And

122
00:07:19,240 --> 00:07:22,600
Speaker 1: it's a very interesting question because I I was in

123
00:07:22,680 --> 00:07:26,680
Speaker 1: the theater where he made his speech, and I was

124
00:07:26,800 --> 00:07:31,120
Speaker 1: very proud of him. Uh, he was. You know, I'm

125
00:07:31,160 --> 00:07:33,440
Speaker 1: a Republican, so I don't say this very often, but

126
00:07:33,560 --> 00:07:37,680
Speaker 1: he was. He was diplomatic, but clear, and he showed

127
00:07:37,760 --> 00:07:42,840
Speaker 1: great showed great poise. The irony is that in the

128
00:07:42,960 --> 00:07:47,320
Speaker 1: US some people thought that he hadn't been strong enough.

129
00:07:48,840 --> 00:07:51,720
Speaker 1: I was just in Cuba a few days ago, and

130
00:07:52,360 --> 00:07:56,360
Speaker 1: the all of this negative alric that came out of

131
00:07:56,440 --> 00:08:01,760
Speaker 1: the Party Congress is because they felt he went too far. Uh,

132
00:08:01,840 --> 00:08:05,240
Speaker 1: he's sort of lectured. They feel that he lectured row

133
00:08:05,400 --> 00:08:08,880
Speaker 1: castor in front of the whole country on national TV,

134
00:08:10,040 --> 00:08:13,800
Speaker 1: um and um and that, and all of a sudden,

135
00:08:13,800 --> 00:08:17,880
Speaker 1: the rhetoric has gone back to tensifteen years ago. UM.

136
00:08:17,920 --> 00:08:21,480
Speaker 1: I don't blame the president or his advisors, because again

137
00:08:21,520 --> 00:08:23,880
Speaker 1: I thought the speech was very good, but it just

138
00:08:23,960 --> 00:08:29,280
Speaker 1: goes to show that everything in Cuba is viewed to

139
00:08:29,400 --> 00:08:34,080
Speaker 1: the lens of the history of US and Cuban relations. Yeah,

140
00:08:34,520 --> 00:08:36,280
Speaker 1: well you have lived in We're gonna come back with

141
00:08:36,320 --> 00:08:40,160
Speaker 1: Carlos Gudierras and speak further on the nation's immigration and

142
00:08:40,160 --> 00:08:43,280
Speaker 1: of course what his Republican party needs to adapt and

143
00:08:43,320 --> 00:08:47,680
Speaker 1: adjust too. After the first Tuesday of November. Right now,

144
00:08:47,960 --> 00:08:52,240
Speaker 1: Scarlett is the first stream of headlines from VW, and

145
00:08:52,360 --> 00:08:55,800
Speaker 1: by any definition of my years of experience at Bloomberg,

146
00:08:56,280 --> 00:08:59,560
Speaker 1: these are shocking heavelins. Yeah. I'll begin with the main one,

147
00:08:59,600 --> 00:09:02,720
Speaker 1: which is VW, which is listed in Germany, cutting its

148
00:09:02,800 --> 00:09:06,559
Speaker 1: dividend to seventeen euro cents a share after posting a

149
00:09:07,040 --> 00:09:10,120
Speaker 1: fifteen loss. The company is also raising provisions for the

150
00:09:10,120 --> 00:09:13,000
Speaker 1: emission scandal, which means it's setting aside more money to

151
00:09:13,120 --> 00:09:16,079
Speaker 1: deal with this as a result of the fall out,

152
00:09:16,080 --> 00:09:18,520
Speaker 1: the continued fallout from the emission scandal, and that is

153
00:09:18,559 --> 00:09:22,600
Speaker 1: now at sixteen point two billion euros. In addition, they

154
00:09:22,640 --> 00:09:25,439
Speaker 1: come out with all their sales numbers for the full year. Um,

155
00:09:25,679 --> 00:09:29,360
Speaker 1: you've got a twenty fifteen pre tax loss, full year

156
00:09:29,400 --> 00:09:32,880
Speaker 1: pre tax loss of three one point three billion euros

157
00:09:33,000 --> 00:09:35,840
Speaker 1: as well. Um, in looking at the stock price, tom

158
00:09:35,920 --> 00:09:38,160
Speaker 1: not much of a reaction, so much of this maybe

159
00:09:38,160 --> 00:09:41,400
Speaker 1: have been anticipated. The headline that really caught my eye,

160
00:09:41,440 --> 00:09:44,040
Speaker 1: of course, was the cutting of the dividend to seventeen euros.

161
00:09:44,040 --> 00:09:46,840
Speaker 1: Sense of share, Yeah, I totally agree with that, but

162
00:09:46,880 --> 00:09:49,840
Speaker 1: I would also say that the view forward is pretty

163
00:09:49,840 --> 00:09:52,760
Speaker 1: moldy when you look at unit countdown six percent. Of course,

164
00:09:52,760 --> 00:09:57,080
Speaker 1: that juxtaposes against what we saw from Generous Motors here

165
00:09:57,120 --> 00:09:59,120
Speaker 1: a few days ago, and to that end, the full

166
00:09:59,200 --> 00:10:02,240
Speaker 1: year group sale revenue will fall as much as five

167
00:10:02,320 --> 00:10:07,200
Speaker 1: percent for versus. Remember v W Volkswa is not just

168
00:10:07,320 --> 00:10:10,640
Speaker 1: the v W vehicle, but also said it's a it's

169
00:10:10,640 --> 00:10:13,640
Speaker 1: a much lower for that matter, much larger company. When

170
00:10:13,679 --> 00:10:16,720
Speaker 1: we see if we're going to continue with Carlos Gouodiers

171
00:10:16,760 --> 00:10:20,720
Speaker 1: Albret Stonebridge Group talk to him about immigration and of

172
00:10:20,760 --> 00:10:24,520
Speaker 1: course the mix of the nation and what it means

173
00:10:24,520 --> 00:10:29,280
Speaker 1: for his Republican party. The Friday screen is a jumble.

174
00:10:29,720 --> 00:10:32,560
Speaker 1: I think that is news in itself. Uh. The yen

175
00:10:32,760 --> 00:10:36,840
Speaker 1: is demonstrably weaker this morning, one eleven twenty nine. That's

176
00:10:36,960 --> 00:10:44,079
Speaker 1: one eight to figures yen one eleven euro fifty four. Uh,

177
00:10:44,679 --> 00:10:47,559
Speaker 1: excause we dollar gating some steam on d X y

178
00:10:48,760 --> 00:10:51,959
Speaker 1: point eight nine. We're counting down to the opening bell.

179
00:10:52,040 --> 00:10:53,959
Speaker 1: We have about twenty minutes ago. Brought to you by

180
00:10:54,000 --> 00:10:57,200
Speaker 1: the jeep Grand Cherokee, the most awarded suv ever. The

181
00:10:57,240 --> 00:10:59,960
Speaker 1: Grand Cherokee continues to raise the bar with its luxurious

182
00:11:00,000 --> 00:11:03,319
Speaker 1: and true and legendary four by four capability. Drive one

183
00:11:03,400 --> 00:11:08,800
Speaker 1: at your local juke dealer today, Scarlett, Tom, thank you

184
00:11:08,880 --> 00:11:11,120
Speaker 1: very much. More than a hundred fifty countries will gather

185
00:11:11,200 --> 00:11:13,679
Speaker 1: today at the United Nations to sign the Paris Agreement

186
00:11:13,679 --> 00:11:17,280
Speaker 1: on Climate Change. Under the non binding agreement, countries set

187
00:11:17,280 --> 00:11:20,440
Speaker 1: their own targets for reducing emissions of carbon dioxide and

188
00:11:20,440 --> 00:11:24,120
Speaker 1: other greenhouse gases. President Obama is having lunch with Queen Elizabeth.

189
00:11:24,120 --> 00:11:27,120
Speaker 1: The President is in Britain at Windsor Castle. He would

190
00:11:27,160 --> 00:11:29,920
Speaker 1: later meet with Prime Minister David Cameron. The President is

191
00:11:29,960 --> 00:11:32,559
Speaker 1: pushing for the UK to stay in the European Union.

192
00:11:32,880 --> 00:11:35,840
Speaker 1: Investigators are hoping and autopsy will reveal what led to

193
00:11:35,880 --> 00:11:38,959
Speaker 1: the death of musician Prince. Fifty seven year old was

194
00:11:39,000 --> 00:11:42,280
Speaker 1: found on responsive yesterday in the elevator at a suburban

195
00:11:42,280 --> 00:11:45,959
Speaker 1: Minneapolis compound. Global News twenty four hours a day, powered

196
00:11:45,960 --> 00:11:50,320
Speaker 1: by our twenty four hundred journalists. Michael bar Scarlett, Tom Michael,

197
00:11:50,320 --> 00:11:55,480
Speaker 1: thank you so much. Good futures negative, Well, futures flat,

198
00:11:56,400 --> 00:11:59,920
Speaker 1: They're flat. Fractually, they're flat. On a Friday, This is

199
00:12:00,040 --> 00:12:07,560
Speaker 1: Bloomberg surveillance. It is a different America. It is a

200
00:12:07,600 --> 00:12:10,880
Speaker 1: different American now it will be a different America called

201
00:12:10,880 --> 00:12:14,760
Speaker 1: the Election of two thousand twenty. Coming up Carlos Gudierras

202
00:12:14,800 --> 00:12:23,559
Speaker 1: in the future of his Republican Party. Global business News

203
00:12:23,640 --> 00:12:26,560
Speaker 1: twenty four hours a day at Bloomberg dot Com, the

204
00:12:26,679 --> 00:12:29,760
Speaker 1: Radio plus Mobile Act and on your radio. This is

205
00:12:29,800 --> 00:12:33,600
Speaker 1: a Bloomberg Business Flash and I'm Karen moscown the Bloomberg

206
00:12:33,600 --> 00:12:36,960
Speaker 1: Futures Report, brought to you by Interactive Brokers and CME Group.

207
00:12:37,000 --> 00:12:39,959
Speaker 1: If you're looking for global futures contracts with low trading costs,

208
00:12:40,120 --> 00:12:43,400
Speaker 1: look no further. Interactive Brokers as the industry leader. Learn

209
00:12:43,440 --> 00:12:47,640
Speaker 1: more at Interactive Brokers dot com, slash, CME Group US

210
00:12:47,600 --> 00:12:50,720
Speaker 1: stock index futures are a little change after the SNP

211
00:12:50,840 --> 00:12:53,319
Speaker 1: fun hunter treated from a four month high as a

212
00:12:53,360 --> 00:12:56,200
Speaker 1: gain in crude oil helps offset weaker than forecast earnings

213
00:12:56,200 --> 00:13:00,560
Speaker 1: from Microsoft and Google parent Alphabet SNP. EVENI futures again,

214
00:13:00,559 --> 00:13:02,880
Speaker 1: that will change now even a future is up fifteen

215
00:13:02,920 --> 00:13:07,000
Speaker 1: now NASDAC give any futures down thirteen Jacks in Germany

216
00:13:07,200 --> 00:13:09,920
Speaker 1: is down six tenths percent. Ten, Your treasury down five

217
00:13:09,960 --> 00:13:13,120
Speaker 1: thirty seconds, the yield one eight percent. Non x scrude

218
00:13:13,120 --> 00:13:15,480
Speaker 1: oil up one point eight percent or seventy nine cents

219
00:13:15,520 --> 00:13:18,440
Speaker 1: to forty ninety six of barrel COMEXS gold is down

220
00:13:18,440 --> 00:13:20,480
Speaker 1: three tents per cent or four dollars thirty cents at

221
00:13:20,480 --> 00:13:23,120
Speaker 1: twelve forty six ten and ounce, the euro a dollar

222
00:13:23,160 --> 00:13:26,079
Speaker 1: twelve fifty seven, the en one eleven point three five,

223
00:13:26,440 --> 00:13:29,440
Speaker 1: and Alphabet is down five percent this morning. Microsoft down

224
00:13:29,440 --> 00:13:32,880
Speaker 1: more than six percent. That's a Bloomberg business flash. Tom

225
00:13:32,880 --> 00:13:36,120
Speaker 1: and Scarlett Karen, thanks so much greatly, appreciate that. Good

226
00:13:36,120 --> 00:13:39,920
Speaker 1: morning Everyone's Scarlett fu and Tom Keane Bloomberg surveillance. Mr

227
00:13:39,960 --> 00:13:43,640
Speaker 1: McKee is a glorious panel in Gainesville, Florida. Is a

228
00:13:43,720 --> 00:13:47,240
Speaker 1: good morning to all in Florida listening. Carl's goodieris with us,

229
00:13:47,240 --> 00:13:51,679
Speaker 1: the former Secretary of Commerce Secretary goodieris. I notice a

230
00:13:52,480 --> 00:13:55,559
Speaker 1: think tank out of California stating that forty percent of

231
00:13:55,640 --> 00:14:02,040
Speaker 1: Californians a Democrat independent, which I believe by mathis right

232
00:14:03,120 --> 00:14:08,640
Speaker 1: Republicans even so one report are Republicans. How does your

233
00:14:08,640 --> 00:14:14,000
Speaker 1: party get those independent voters? Well, I think it's it's

234
00:14:14,200 --> 00:14:21,680
Speaker 1: moving more toward a moderate center right position. I'm not saying,

235
00:14:21,880 --> 00:14:24,320
Speaker 1: you know, go to the left, but there is such

236
00:14:24,360 --> 00:14:26,560
Speaker 1: thing as a center right, which I think is where

237
00:14:26,560 --> 00:14:30,880
Speaker 1: the country is. UM. But you know, we're once again

238
00:14:30,960 --> 00:14:35,480
Speaker 1: falling into the trap of having to use really extreme

239
00:14:35,560 --> 00:14:39,000
Speaker 1: rhetoric during the primary and then think that we can

240
00:14:39,120 --> 00:14:42,680
Speaker 1: walk our way back to the center in the national election,

241
00:14:42,760 --> 00:14:46,880
Speaker 1: and it just doesn't work that way. So um, you know,

242
00:14:46,920 --> 00:14:50,360
Speaker 1: I think it's about leadership. It's about the person um

243
00:14:51,400 --> 00:14:54,480
Speaker 1: and there there is a leader out there who can

244
00:14:54,520 --> 00:14:57,880
Speaker 1: do it, but it's going to have to be um

245
00:14:58,160 --> 00:15:03,000
Speaker 1: done through leadership like President Reagan who did many things

246
00:15:03,200 --> 00:15:07,920
Speaker 1: through leadership and changed the party. President Lincoln changed the party.

247
00:15:08,360 --> 00:15:12,240
Speaker 1: We need someone like that and not just to continue

248
00:15:12,320 --> 00:15:17,760
Speaker 1: to to you know, regurgitate talking points, which is uh,

249
00:15:18,080 --> 00:15:21,400
Speaker 1: which is what we have, or maybe even of empty

250
00:15:21,440 --> 00:15:25,360
Speaker 1: talking points. There have been reports that you mentioned the

251
00:15:25,360 --> 00:15:28,800
Speaker 1: extreme red rig during the primaries. Tom Donald Trump's new

252
00:15:29,040 --> 00:15:32,520
Speaker 1: campaign chief, has been assuring members of the Republican National

253
00:15:32,520 --> 00:15:35,920
Speaker 1: Committee that he's going to become a more professional candidate.

254
00:15:36,200 --> 00:15:39,280
Speaker 1: Basically moved more to the center during the general elections.

255
00:15:39,840 --> 00:15:42,760
Speaker 1: Have you seen that article? It's it's it's I have

256
00:15:42,840 --> 00:15:44,920
Speaker 1: seen it, and I have seen it. There's been some

257
00:15:44,920 --> 00:15:47,120
Speaker 1: discussion over the last couple of days, and yeah, I

258
00:15:47,160 --> 00:15:50,520
Speaker 1: think that's now he starts his move towards the center.

259
00:15:50,560 --> 00:15:56,360
Speaker 1: He started. He's starting to think about post convention, assuming

260
00:15:56,480 --> 00:15:59,000
Speaker 1: he gets the nomination. And I think of any point

261
00:15:59,040 --> 00:16:02,400
Speaker 1: points to that. Uh, you know, Richard Nixon used to say,

262
00:16:02,600 --> 00:16:05,760
Speaker 1: run a primary to the right and a national election

263
00:16:05,880 --> 00:16:08,560
Speaker 1: to the center. That was the nineteen sixties. That was

264
00:16:08,600 --> 00:16:11,640
Speaker 1: easy to do in the television channels. You can't do

265
00:16:11,760 --> 00:16:16,280
Speaker 1: that today. No one is going to forget, um, what

266
00:16:16,320 --> 00:16:19,320
Speaker 1: Trump has said about Hispanics, what he said about Muslims,

267
00:16:19,360 --> 00:16:22,640
Speaker 1: what he said about that's gonna be If I take

268
00:16:22,680 --> 00:16:25,360
Speaker 1: your point on this in folks, I might point out,

269
00:16:25,400 --> 00:16:29,120
Speaker 1: I'm with Mr Goodyer's and Miss Food if it is

270
00:16:29,280 --> 00:16:34,040
Speaker 1: a new America that won't forget. What is the response

271
00:16:34,160 --> 00:16:38,280
Speaker 1: of the so called establishment you're in those meetings? Do

272
00:16:38,320 --> 00:16:41,520
Speaker 1: you have Pauled Bryan on your speed dial? I mean,

273
00:16:42,160 --> 00:16:47,680
Speaker 1: what's the solution for a traditional Republican experiment that was

274
00:16:47,760 --> 00:16:52,560
Speaker 1: watching its soul drift away? Well? And I think what

275
00:16:52,560 --> 00:16:55,280
Speaker 1: what you said is so right that that the shape

276
00:16:55,320 --> 00:16:58,640
Speaker 1: of the country, the profile of the country is so

277
00:16:58,840 --> 00:17:03,280
Speaker 1: different from what it was. And UM, you know, our

278
00:17:03,400 --> 00:17:07,120
Speaker 1: core has always been free enterprise. I believe it has

279
00:17:07,280 --> 00:17:12,560
Speaker 1: free enterprise and freedom of the individual, um the marketplace,

280
00:17:13,440 --> 00:17:19,359
Speaker 1: and UM immigration falls right into that. UM. I worry

281
00:17:19,400 --> 00:17:21,440
Speaker 1: that I hear you know, I hear people like Ted

282
00:17:21,560 --> 00:17:26,240
Speaker 1: Cruz criticizing business people. You know, so what are we now?

283
00:17:26,280 --> 00:17:31,199
Speaker 1: Are we a populous European right wing party? Uh? And

284
00:17:31,280 --> 00:17:33,479
Speaker 1: that's what we sound like. But I think we need

285
00:17:33,560 --> 00:17:37,680
Speaker 1: to get back to our core. Even the businessman Donald

286
00:17:37,680 --> 00:17:42,000
Speaker 1: Trump has gone often criticized Wall Street and criticize uh.

287
00:17:42,240 --> 00:17:45,360
Speaker 1: And and it is just, you know, it's losing the

288
00:17:45,400 --> 00:17:48,239
Speaker 1: soul of the party. And I don't believe that the

289
00:17:48,280 --> 00:17:53,879
Speaker 1: soul of the party is we are a white person's party. Uh.

290
00:17:53,880 --> 00:17:59,840
Speaker 1: We Um, we are all about social issues. I don't

291
00:18:00,040 --> 00:18:03,320
Speaker 1: by that. I think it's about freedom, individuality. I think

292
00:18:03,359 --> 00:18:08,159
Speaker 1: it's about free enterprise. UM, all those great things that

293
00:18:08,240 --> 00:18:11,119
Speaker 1: we stand for. But usiness Secretary, how does the Republican

294
00:18:11,160 --> 00:18:15,240
Speaker 1: Party uh combine all of that, embrace that, and come

295
00:18:15,320 --> 00:18:19,399
Speaker 1: up with a consistent message that resonates with their base.

296
00:18:20,680 --> 00:18:23,160
Speaker 1: I I do think that something has to be done.

297
00:18:23,400 --> 00:18:26,960
Speaker 1: Uh in the primary system. Uh. You know in California

298
00:18:27,000 --> 00:18:30,040
Speaker 1: they have the Democrats and Republicans can vote in each

299
00:18:30,080 --> 00:18:36,080
Speaker 1: other's primaries. Uh. That tends to bring out more moderate

300
00:18:36,600 --> 00:18:41,440
Speaker 1: uh cardates and more moderate rhetoric. Uh. Something like that

301
00:18:41,560 --> 00:18:44,639
Speaker 1: needs to happen, because you know, the chairman of the

302
00:18:44,720 --> 00:18:49,560
Speaker 1: party talked four years ago about the postmortem and how

303
00:18:49,560 --> 00:18:53,720
Speaker 1: we've learned our lessons. Four years later, you know, we're

304
00:18:53,720 --> 00:18:56,080
Speaker 1: doing it worse than we did four years ago. So

305
00:18:56,160 --> 00:18:58,600
Speaker 1: we haven't learned our lessons. You could argue with a

306
00:18:58,640 --> 00:19:02,520
Speaker 1: lot more moderate candidate in John Kasik, but he's not

307
00:19:02,560 --> 00:19:08,200
Speaker 1: really resonating that's true, that that that that is true. Um.

308
00:19:08,240 --> 00:19:11,880
Speaker 1: I mean this this has not been the year of

309
00:19:11,880 --> 00:19:16,080
Speaker 1: of the moderate, thoughtful candidates. And I think it is

310
00:19:16,119 --> 00:19:20,160
Speaker 1: a reflection that people as as as many people have said,

311
00:19:20,280 --> 00:19:23,080
Speaker 1: you know, people are angry, people are frustrated. I think

312
00:19:23,119 --> 00:19:26,119
Speaker 1: what people like about Trump is that they get the

313
00:19:26,200 --> 00:19:31,600
Speaker 1: impression that he's someone who would fight for people. So

314
00:19:31,800 --> 00:19:34,000
Speaker 1: you know, boy, if we put this guy in front

315
00:19:34,000 --> 00:19:37,840
Speaker 1: of Vladimir Putin, he is not going to take it,

316
00:19:37,920 --> 00:19:40,879
Speaker 1: and he's gonna push for us, and I think that's

317
00:19:40,920 --> 00:19:44,000
Speaker 1: the part that maybe emotionally people aren't paying attention to

318
00:19:44,040 --> 00:19:46,720
Speaker 1: what he says, but but they like what they see,

319
00:19:47,160 --> 00:19:49,600
Speaker 1: and that's the only way I can kind of rationalize that.

320
00:19:49,720 --> 00:19:51,960
Speaker 1: We hope to have you one against secretaries we get

321
00:19:51,960 --> 00:19:56,639
Speaker 1: closer to the election. Carlos Gudieris joins us this morning,

322
00:19:56,720 --> 00:19:59,399
Speaker 1: Scarlett Food and Tom Keene on your Friday. We need

323
00:19:59,440 --> 00:20:06,200
Speaker 1: to get the market something. It's Bloomberg's Savants. We're cutting

324
00:20:06,200 --> 00:20:08,639
Speaker 1: down to the opening bell, brought to you by the

325
00:20:08,720 --> 00:20:11,680
Speaker 1: Jeep Grand Cherokee, the most awarded suv ever. The Grand

326
00:20:11,720 --> 00:20:14,720
Speaker 1: Cherokee continues to raise the bar with its luxurious interior

327
00:20:14,760 --> 00:20:17,719
Speaker 1: and legendary four by four capability. Drive one at your

328
00:20:17,720 --> 00:20:19,840
Speaker 1: local Jeep dealer today