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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: bloom to Boston, Bloomberg twelve hours to San Francisco, Bloomberg

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Speaker 1: to the country General one, and around the globe the

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Speaker 1: Bloomberg Radio Plus Happen Bloomberg dot Com. This is Bloomberg Surveillance.

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Speaker 1: Good morning at seventh thirty on Wall Street. I might

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Speaker 1: com McKey along with Tom keenan good morning to everyone

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Speaker 1: listening in the Washington d C Baltimore area. He had

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Speaker 1: a nice note from someone who was listening to us

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Speaker 1: this morning, and do we thank them for their hospitality

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Speaker 1: over the last couple of days. To Tom and me,

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Speaker 1: here's a couple of things that are happening in the markets.

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Speaker 1: We've been talking about Herbal Life, saying it's significantly inflated.

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Speaker 1: The number of new members it reported a gained the

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Speaker 1: correct value thirty point seven percent, and so the stock

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Speaker 1: down by a percent this morning. To good and bad

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Speaker 1: news from ided US or Adidas. If you live in Europe,

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Speaker 1: sales may rise at the fastest space in five years,

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Speaker 1: gross margins narrowing because of higher purchasing costs in Asia.

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Speaker 1: Adidas shares down by eight tenths of a percent. Costco

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Speaker 1: posting second quarter earnings, trailing analysts estimates, hire income, shoppers

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Speaker 1: maybe showing signs of curtailing spending at the discounter. Shares

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Speaker 1: down in premarket two point one. Time now to check

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Speaker 1: in with Michael Marr get the latest world of national headlines.

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Speaker 1: Michael Frank, thank you very much. Former Massachusetts government of

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Speaker 1: Romney plans to lash out at Republican presidential front runner

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Speaker 1: Donald Trump. In prepared remarks for a speech later today

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Speaker 1: in Utah, Romney says Donald Trump is quote a phony

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Speaker 1: of fraud and is playing the American public for suckers. Romney,

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Speaker 1: who was the Republican presidential nominee in twelve, says Trump

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Speaker 1: is a boon to get Democratic candidate Hillary Clinton elected

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Speaker 1: to the White House. Meanwhile, Clinton says she's running for

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Speaker 1: president the knock down all of the barriers. The stars

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Speaker 1: aligned Clinton in New York City last night at a

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Speaker 1: fundraising concert where she celebrated her strong Super Tuesday performance

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Speaker 1: with some of her famous friends. The campaign was able

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Speaker 1: to secure supporters Katie Perry and Sir Elton John, who

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Speaker 1: performed to a sold out crowd at Radio City Music.

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Speaker 1: Home Is at the end of the line for Republican

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Speaker 1: Ben Carson's campaign. In an online statement, Carson noted that

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Speaker 1: he does not plan to take part in tonight's debate.

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Speaker 1: In Detroit. Global News twenty four hours a day, powered

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Speaker 1: by our twenty four hundred journalists more than one hundred

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Speaker 1: fifty news bureaus from around the world. I am Michael Barr, Mike,

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Speaker 1: Thank you, Michael. Time now for the Bloomberg NBC Sports

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Speaker 1: Update with John Statuew Mike. The start of exhibition baseball Yankees.

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Speaker 1: Of course, she used to bunch of guys who will

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Speaker 1: not be in pinstripes when the season begins in a month.

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Speaker 1: And Mark the sheriff, played back from the leg injury

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Speaker 1: that derailed his season. Luis Severino, who earned a spot

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Speaker 1: on the Yankee rotation with what he did late last year,

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Speaker 1: though he got roughed up in Tampa, gave up a

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Speaker 1: Grand Slam. Yanks, after trailing seven nothing actually beat the

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Speaker 1: Tigers ten to nine. They host the Phillies today. Mets

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Speaker 1: play the Nationals and Maxtures with this afternoon local NBA

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Speaker 1: and the HL team were off last night. The three

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Speaker 1: hockey teams returned to the ice this evening. Nixon Nets tomorrow.

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Speaker 1: The Knicks have released Jimmer Fredett, who had signed a

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Speaker 1: ten day contract. College basketball. Stony Brook has never made

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Speaker 1: the n C Double a tournament. This could be the

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Speaker 1: sea wolves best chance, not only a win last night

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Speaker 1: in the quarterfinals the America East Tournament, but the second

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Speaker 1: seed Albany, who beat stony Brook at the buzzer of

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Speaker 1: last year's final, got upset by Hartford. Waggoner's last n

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Speaker 1: C double as was two thousand three of the Seahawks,

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Speaker 1: top seed of the Northeast Conference, opened up with the

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Speaker 1: wind l i U Fairlie Dickinson also advanced. St. Francis

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Speaker 1: was eliminated. Seaton Hall has been playing well of life,

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Speaker 1: but got cooled off by Butler eight five seventy eight. Rutgers,

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Speaker 1: still winless in the Big Ten, lost the second right

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Speaker 1: Michigan State nineties seven sixty six Ford and beat Touquees

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Speaker 1: seventy eight sixty nine. With the Bloomberg NBC Sports update,

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Speaker 1: I'm John Stas Shambler almost forgot. It's just about that

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Speaker 1: time for march Man and this. We're gonna have to

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Speaker 1: check in on that and get someone to update us

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Speaker 1: on who the likely favorites are. Since everybody seems to

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Speaker 1: be losing in the basketball. Any time you get to

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Speaker 1: the number one spot, you'll get knocked off. Much more

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Speaker 1: on that coming up on Bloomberg Surveillance. This is Bloomberg

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Speaker 1: Surveillance sign Michael McKee along with Tom Keene. And there

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Speaker 1: is literally no conviction in the markets right now. SMP,

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Speaker 1: Dow and Nasdaq futures are unchanged. On the day where

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Speaker 1: we're gonna go. Maybe that will depend on how the

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Speaker 1: economic data come out today. We do have numbers on

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Speaker 1: jobless claims a little bit later. That will be one

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Speaker 1: focus for people today and productivity and costs a lot

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Speaker 1: of talk about productivity these days and what it means

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Speaker 1: for long term growth. So we will see where that

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Speaker 1: takes us. Uh time now, speaking of productivity and growth

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Speaker 1: of the Bloomberg and j I T STEM Report, the

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Speaker 1: New Jersey Institute of Technology partnering with government and industry

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Speaker 1: to apply the university's world class research assets to innovate

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Speaker 1: and spur economic growth. Learn more at n j I

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Speaker 1: T dot e d U. Here is Bob Moon. Thanks

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Speaker 1: in good morning, Michael, and coming up on on Wall Street,

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Speaker 1: Here's what's making news in science, Technology, engineering, and math.

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Speaker 1: Apple's resistance to a judge's order to help unlock the

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Speaker 1: iPhone of a dead terrorist draw support from a trio

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Speaker 1: of advocacy groups That's say the case sets a dangerous

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Speaker 1: precedent for privacy. Access Now and Wicker Foundation, which advocate

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Speaker 1: for digital rights, are seeking permission to submit front of

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Speaker 1: the court filings, saying they're concerned about the impact that

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Speaker 1: the intentional weakening of digital security would have on global

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Speaker 1: human rights. The American Civil Liberties Union weighed in separately,

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Speaker 1: arguing if the government's attempt to compel Apple to help

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Speaker 1: its investigation raises important constitutional questions regarding the limits of

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Speaker 1: law enforcement authority, and by the way, this issue has

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Speaker 1: also helped Apple find some rare common ground with its

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Speaker 1: biggest smartphone arch rival, Samsung Electronics, waiting on apple standoff,

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Speaker 1: calling customer privacy extremely important and saying that any requirement

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Speaker 1: to build backdoors into its devices would undermine trust. Samsung,

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Speaker 1: the world's largest smartphone vendor, echoed many of Apple's arguments.

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Speaker 1: It also said it hadn't yet decided if it will

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Speaker 1: file a friend of the Court brief in support of

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Speaker 1: the iPhone maker. And that's this morning's Bloomberg and j

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Speaker 1: I T Stem Report, Bob Boon, thank you very much. Well.

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Speaker 1: The UH the word that seems to be creeping into

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Speaker 1: people's vocabulary these days, the delex con is divergence, the

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Speaker 1: US growing faster again, it seems than many of its neighbors,

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Speaker 1: which has implications for the currency market and the dollar

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Speaker 1: against various currencies. Serene and Harra Gelie is h f

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Speaker 1: X strategist for Missoojo Securities. She joins US now, Serene Um,

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Speaker 1: you began the week with a note highlighting the fact

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Speaker 1: that the U S data is getting a little bit better,

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Speaker 1: and it does seem to be playing out somewhat in

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Speaker 1: the markets against the major's, but the d X Y

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Speaker 1: index at the moment be calmed. It's down a little bit,

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Speaker 1: but hasn't really moved over the last week or so,

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Speaker 1: so it doesn't appear that the divergence is taking US

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Speaker 1: any anywhere. Major Well, yes, I mean there is there

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Speaker 1: definitely has been an improvement in economic data, but I

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Speaker 1: think there continues to be a high level of our

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Speaker 1: certainty in the markets, and that's keeping UH investors somewhat cautious,

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Speaker 1: especially this week ahead of tomorrow's non farm pay rolls record. Uh.

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Speaker 1: So I think you know, this high level of uncertainty

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Speaker 1: is is has curb market moves a little bit this

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Speaker 1: week until we get more information tomorrow, and obviously those

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Speaker 1: will have implications on FED policy going forward. Now, the

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Speaker 1: implied policy curve for the FED has certainly moved higher

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Speaker 1: faster over the last week. Yes, yes, and that has

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Speaker 1: been a result of the improvement in economic data and

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Speaker 1: also given that there has been some sort of stability

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Speaker 1: in the risk sentiments overall in the markets in terms

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Speaker 1: of concerns regarding China or even oil markets stabilizing a

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Speaker 1: little bit. Uh, that has also been positive overall. Where

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Speaker 1: are we seeing the biggest effects? I think it's several things.

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Speaker 1: I think you know, obviously, risk has become a major

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Speaker 1: factor at place since the beginning of the year, given

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Speaker 1: the slowdown in emerging markets led by China, and also

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Speaker 1: you know the situation in oil prices being quite low

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Speaker 1: for quite some time. So I think risk has been

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Speaker 1: a big factor. Uh. And you know, obviously during times

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Speaker 1: when risk comes down, then central bank policy becomes the

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Speaker 1: major player. Well. And with with that situation, um, what

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Speaker 1: pairs are being affected? Well, the safe haven currencies have

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Speaker 1: experienced some very interesting moves. I think the d N

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Speaker 1: has been one very good example where even though the

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Speaker 1: b o J decided to cut traits and go into

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Speaker 1: negative rates territory UM, d N actually strengthened after that.

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Speaker 1: And that's because it's one of, you know, the biggest

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Speaker 1: safe haven currencies. Serene, let me see a question that

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Speaker 1: I was asked this morning, and I didn't have a

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Speaker 1: bright answer, so I'm gonna get one from you. How

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Speaker 1: do you determine liquidity on your trading desk right now

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Speaker 1: you're in the heart of the Treasury division at Missouri.

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Speaker 1: How do you figure out liquidity? How do you measure

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Speaker 1: that in a post libor world? I think, you know,

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Speaker 1: it all depends on UM, A lot of it depends

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Speaker 1: on market sentiment. I mean, it's really several things that

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Speaker 1: are going on. Obviously, during times of high stress we

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Speaker 1: see a decline in liquidity overall, but I think you know,

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Speaker 1: stress and risk have have a lot to do with it. Sorry, Serene,

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Speaker 1: thank you so much, Serene harage Lee. That's with miszoo o.

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Speaker 1: As we look at the bond market today, Mike, this

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Speaker 1: is a growing thing. I don't mean to put any

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Speaker 1: kind of angst into it. But we keep hearing this

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Speaker 1: word liquidity, and it used to be simple. We go library,

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Speaker 1: oh I s blah blah blah bl our, commercial paper, whatever,

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Speaker 1: and and and getting a handle on it now seems

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Speaker 1: to be such a challenge. It just seemed to be

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Speaker 1: fewer trades being made in many assets. Um, whether it's regulation,

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Speaker 1: whether it's concerned about what's going on? Is jobs day tomorrow? Good?

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Speaker 1: Did we did our team do okay? Jobs? Teams to

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Speaker 1: day tomorrow? Is the usual, you know, Mad magazine, the

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Speaker 1: old mass headline, the usual gang of idiots huge and

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Speaker 1: it's me, It's Bill Gross, It's Alan Krueger, Will Krueger.

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Speaker 1: You know, we will keep everybody well and for the

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Speaker 1: most important job to say, of course, before the March

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Speaker 1: sixteen FED meeting, stay with us. Bloomberg Surveillance, Good morning,

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Speaker 1: Bloomberg Savellance quaranted by the Town of Hempstead Industrial Development Agency.

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Speaker 1: Find out how to put the Town of Hempstead at

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Speaker 1: I D to work for your business called one D

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Speaker 1: five nine three three eight seven zero or visit t

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Speaker 1: O H I D a dot org