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

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Speaker 1: dot Com, the radio plus mobile lapp 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: breaking economic news. Crossing the Bloomberg. We go to Vinnie

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Speaker 1: del Judais with the latest, Vinny Karen Moore progress in

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Speaker 1: the US labor market. Payroll Provider a DP reporting businesses

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Speaker 1: at a two hundred fourteen thousand jobs in February, topping

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Speaker 1: forecast January revised higher again the ADP report showing private

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Speaker 1: payrolls top forecast in February up two hundred fourteen thousand.

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Speaker 1: At the Bloomberg First Work Desk on vity dell Jus, Karen, alright,

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Speaker 1: thanks Vinny, and futures remained lower following that report. Let's

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Speaker 1: go to the First Word Breaking news desk for today's

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

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Speaker 1: We are seeing small losses in the US futures. Doubt

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Speaker 1: you just currently lower by nineteen points. Sespy's drop three

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Speaker 1: and as the futures are lower by two, the US

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Speaker 1: ten yield at one point eight five per cent. In Europe,

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Speaker 1: Spain gains one point one percent and Italy is higher

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Speaker 1: by point seven percent on the US economic front. At

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Speaker 1: ten thirty look for energy inventory numbers, and at two

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Speaker 1: o'clock FED releases Beige Book. In other news, Weatherford prices

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Speaker 1: a hundred million shares at five sixty five a share.

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Speaker 1: Sports Authority files for chapter eleven, and trans Ocean CFO

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Speaker 1: sees no rig market recovery in the next twelve to

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Speaker 1: twenty four months. In deal news, I f r Age

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Speaker 1: reports IBM seeks to sell entire steak in Lenovo, CCL

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Speaker 1: Industries to buy Checkpoint Systems for ten fifteen a share.

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Speaker 1: Regarding arians. This morning, Abercrombie and fit gps B Brown

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Speaker 1: reform at EPs inline revenue missed, and Monsanto cut your

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Speaker 1: ongoing EPs views shares her down six percent pre market. Finally,

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Speaker 1: some of your Wallstreet upgrades and downgrades e q T

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Speaker 1: cut the equate over at Morgan Stanley, Dollatree cutter market

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Speaker 1: perform at Raymond James, and finally Universal Health raised to

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Speaker 1: neutral over at stern A g with a price target

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Speaker 1: of one four. Live in the first breaking news, that's

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Speaker 1: Scombll Maloney, Karen Alright thanks to bailan to hear live

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Speaker 1: breaking news of your Bloomberg type squawk and go on

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Speaker 1: your term atal that's s uu A w K go,

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Speaker 1: and that's a Bloomberg business flash. Tom and Mike Karen,

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Speaker 1: thank you so much. Bloomberg Surveillance this morning from Washington,

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Speaker 1: brought you by Investco. Investco believes it's time to bench

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Speaker 1: the benchmarks and to consider active management and factor based strategies.

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Speaker 1: Find out more at investco dot com slash high conviction.

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Speaker 1: That's investco dot com slash high conviction. We're sure to

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Speaker 1: bring to Jared Bernstein uh from the Center on Budget

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Speaker 1: and Policy Priorities. But Mike first, I've never seen Mike

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Speaker 1: an earthquake with such a little information. Well, it's all

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Speaker 1: beginning to come out now and maybe partly because of

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Speaker 1: the location with the U S Geological Survey does have

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Speaker 1: it on their maps now they're calling it a seven

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Speaker 1: point nine earthquake some point nine magnitude. If you draw

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Speaker 1: line draw triangle uh sort of south southwest of Kuala

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Speaker 1: Lumpur and Singapore out into the uh Java Sea the

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Speaker 1: Indian Ocean, you will see where the earthquake is. It's

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Speaker 1: off the coast of Indonesia at this point, and no

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Speaker 1: reports of damage yet there is a tsunami warning, which

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Speaker 1: would be normal for this magnitude of an earthquake, but

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Speaker 1: no sign of one yet, so again we continue to monitor.

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Speaker 1: We do know it was about six miles deep, which

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Speaker 1: is uh, not particularly deep, so it could have an impact. Um, well,

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Speaker 1: we don't know yet. Yeah, Sumatra quickly here, Sumatra is

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Speaker 1: protecting Singapore from large waves. At least that's the theory

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Speaker 1: right now. Sumatra with the southern coast of Sumatra with

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Speaker 1: a tsunami, uh, tsunami warning. Jared Bernstein with US he

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Speaker 1: never thought he gets so much earthquake in geology. Uh

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Speaker 1: within his is it to Bloomberg's yeah something something, But Jared,

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Speaker 1: it goes to a budget reality, which is somebody pays

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Speaker 1: for the USGS, don't they. We'd like to talk about

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Speaker 1: spending now. It's a great point. Uh. Interestingly, in our

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Speaker 1: last bit of conversation, I mentioned that suppose you wanted

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Speaker 1: to really pursue some of these big tax cut ideas.

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Speaker 1: It's not uncommon, by the way, for someone campaigning for

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Speaker 1: presidents say they want to cut taxes. What they never

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Speaker 1: tell you is that if you want to prevent a

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Speaker 1: real budget debacle, then you're going to have to cut

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Speaker 1: spending to balance out the tax cuts. Well, the only

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Speaker 1: type of spending that people want to cut these days.

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Speaker 1: They don't want to cut entitlements. They don't want to

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Speaker 1: cut the sense is the part of the budget that

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Speaker 1: supports things exactly like the geological survey, but also some infrastructures,

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Speaker 1: some education and training, health and research, the non discretionary

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Speaker 1: defense part of the non defense discreptioning part of the budget.

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Speaker 1: We we did this with Jason Furman yesterday. Let's do

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Speaker 1: it with you again to review what have we cut

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Speaker 1: in our budget given our deb Democratic president's austerity review

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Speaker 1: for US entitlement cuts versus USGS kind of cuts exclusively

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Speaker 1: the ladder. That is, if you look at where the

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Speaker 1: spending cuts have occurred, they're almost exclusively on what's called

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Speaker 1: the non defense discretionary side of the budget. So this

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Speaker 1: is the part of the budget that helps states pay

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Speaker 1: for education, It pays for some infrastructure, It pays for

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Speaker 1: the kinds of weather of fore testing roles that we

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Speaker 1: were just discussing, the geological seminary, the geological survey. It

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Speaker 1: pays for um as I mentioned, medical research. Uh and

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Speaker 1: and this is now down as a share of g

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Speaker 1: d P to its lowest level on record going all

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Speaker 1: the way back to the nineties sixties. That's where the

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Speaker 1: cuts have been concentrated, because that's where the cuts are

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Speaker 1: the least politically insulated people are. People don't want to

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Speaker 1: see cuts to entitlement programs, and there's lots of hawks

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Speaker 1: who don't want to see cuts the defense. So what's left.

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Speaker 1: What I've been describing then that that famous Wall Street

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Speaker 1: Journal aadline of a year and a half, two years

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Speaker 1: ago of bombing the Pentagon back to night or nineteen

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Speaker 1: forty percent of g d P? Are we getting there?

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Speaker 1: Are we going to have a Pentagon budget that takes

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Speaker 1: us back pre Eisenhower? Well, I actually think that the Penta,

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Speaker 1: the Pentagon budget is kind of holding constant to the

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Speaker 1: level of GDP that's not particularly high. Interestingly, UH, defense

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Speaker 1: haven't been um completely spared, but it's mostly not growing

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Speaker 1: as much as it is getting cut. Where we're really

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Speaker 1: cutting is on the non defense discretionary part of the

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Speaker 1: budget that has very few protectors. Jared, thank you so much.

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Speaker 1: Jared Bernstein with us with the Center and Budget and

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Speaker 1: Policy Priorities, and uh, we had a month for too

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Speaker 1: short a time as we look at the news of

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Speaker 1: the earthquake far to the south of Singapore and Koala

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Speaker 1: Lumpour out off the southern coast of Somatra, a little

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Speaker 1: bit of exposure to Australia very far away again a

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Speaker 1: seven point nine earthquake according to the U s g S.

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Speaker 1: Let's review the view forward for surveillance here in support

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Speaker 1: of FM Washington. Thank you for the many notes of

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Speaker 1: listeners in the Washington and Baltimore area with FM. We

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Speaker 1: greatly appreciate your comments and joining us today as well.

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Speaker 1: Lonnie chen will join us. He is with the Rubio

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Speaker 1: campaign advising then we've spoken to him many times before.

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Speaker 1: Kevin Hassett, Kevin Hassett with a E. I will talk

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Speaker 1: to him about what the establishment will do. And also

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Speaker 1: Liberty Cantroll will join us from PIMCO on policy moving forward.

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Speaker 1: This is Bloomberg Surveillance coming up there, with all due respect.

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