1 00:00:03,200 --> 00:00:06,520 Speaker 1: This is Bloomberg Surveillance. You can't count on the United 2 00:00:06,559 --> 00:00:09,120 Speaker 1: States providing all the demand for the world. It can't 3 00:00:09,119 --> 00:00:12,040 Speaker 1: be the consumer first and last resort. There needs to 4 00:00:12,080 --> 00:00:14,280 Speaker 1: be more and I think the Fed got it right 5 00:00:14,400 --> 00:00:18,640 Speaker 1: last December when they said they would have four increases 6 00:00:18,720 --> 00:00:21,919 Speaker 1: this year. Investment really is the global issue that we're 7 00:00:21,920 --> 00:00:24,600 Speaker 1: facing a shortage of right now, and that's really holding 8 00:00:24,640 --> 00:00:28,240 Speaker 1: back the global economies. Bloomberg Surveillance your link to the 9 00:00:28,280 --> 00:00:34,200 Speaker 1: world of economics, finance, and investment on Bloomberg Radio. Good Morning, 10 00:00:34,200 --> 00:00:36,800 Speaker 1: got Michael McKenna is seven am on Wall Street. It's 11 00:00:36,840 --> 00:00:39,640 Speaker 1: a PM in Shanghai, where Chinese officials are dealing with 12 00:00:39,680 --> 00:00:42,840 Speaker 1: a bit of a public relations oops. More than six 13 00:00:42,840 --> 00:00:45,519 Speaker 1: percent decline in Chinese shares the day before the G 14 00:00:45,640 --> 00:00:49,000 Speaker 1: twenty finance ministers and central bankers arrived to talk about 15 00:00:49,040 --> 00:00:54,400 Speaker 1: state podcast embarrassing. It is, uh at least it's only 16 00:00:54,520 --> 00:00:56,840 Speaker 1: embarrassing because it wasn't a market killer for the rest 17 00:00:56,920 --> 00:00:58,760 Speaker 1: of the world. The rest of the world is stable 18 00:00:59,280 --> 00:01:02,320 Speaker 1: this morning after a big turnaround in US markets yesterday. 19 00:01:02,800 --> 00:01:06,119 Speaker 1: European forces are higher. These stock six hundred up by 20 00:01:06,120 --> 00:01:08,280 Speaker 1: six points now one point eight percent. It's a two 21 00:01:08,319 --> 00:01:11,520 Speaker 1: point three percent increase for the foot see a hundred 22 00:01:11,520 --> 00:01:15,560 Speaker 1: and thirty three points Brexit worries calming down. Maybe the 23 00:01:15,680 --> 00:01:18,800 Speaker 1: docks a hundred and twenty eight points higher one point 24 00:01:18,800 --> 00:01:23,160 Speaker 1: four percent. We should mention better than forecast GDP for 25 00:01:23,319 --> 00:01:27,080 Speaker 1: the UK in the fourth quarter. That may be helping 26 00:01:27,240 --> 00:01:30,000 Speaker 1: that stock market. As I mentioned, Shanghai was down six 27 00:01:30,040 --> 00:01:32,959 Speaker 1: point four percent, but Tokyo up one point four percent. 28 00:01:33,000 --> 00:01:34,880 Speaker 1: So go figure the bond market about where it was 29 00:01:34,920 --> 00:01:37,080 Speaker 1: when we started this show yesterday. The ten here note 30 00:01:37,200 --> 00:01:40,679 Speaker 1: yield at one point seven four percent, the five year 31 00:01:40,760 --> 00:01:44,920 Speaker 1: one point two and seventy five basis points for your 32 00:01:44,959 --> 00:01:48,200 Speaker 1: two year not. Not a movement in currencies either. Right now. 33 00:01:48,400 --> 00:01:52,920 Speaker 1: The dollar index is down five basis points basically, UH, 34 00:01:53,320 --> 00:01:56,520 Speaker 1: little change, the en one forty, about where it was yesterday. 35 00:01:56,600 --> 00:02:00,120 Speaker 1: The euro touched stronger one thirty, and the power on 36 00:02:00,200 --> 00:02:03,200 Speaker 1: the back of that better GDP report is higher still 37 00:02:03,200 --> 00:02:07,080 Speaker 1: below one sixty three, but it is up by three 38 00:02:07,120 --> 00:02:09,960 Speaker 1: tenths of a percent this morning. UH. And oil prices 39 00:02:10,280 --> 00:02:13,040 Speaker 1: little changed on the day. Thirty two h six West Texas, 40 00:02:13,080 --> 00:02:16,960 Speaker 1: thirty four nineteen Brent big surplus yesterday, but oil seems 41 00:02:17,000 --> 00:02:21,160 Speaker 1: to have stabilized. So is this good news? Is it 42 00:02:21,480 --> 00:02:25,360 Speaker 1: the calm before the storm? Well, that's the view of 43 00:02:25,440 --> 00:02:29,200 Speaker 1: Saxo Banks, Steam Jacobson. Yesterday, Tom Treasury Secretary and Jack 44 00:02:29,280 --> 00:02:31,959 Speaker 1: Will you'll remember, told us there is no global crisis. 45 00:02:32,040 --> 00:02:36,239 Speaker 1: But some disagree. Yeah, Saxo's chief economist, no one who 46 00:02:36,600 --> 00:02:42,840 Speaker 1: you say, Steam just wait March maybe ugly, Absolutely, I 47 00:02:42,880 --> 00:02:46,639 Speaker 1: think the steam and the fact that a center banger 48 00:02:46,800 --> 00:02:50,320 Speaker 1: or five minutes finance minister is actually indicating that nothing 49 00:02:50,440 --> 00:02:53,840 Speaker 1: is going on is probably my biggest concern. If you 50 00:02:53,919 --> 00:02:55,679 Speaker 1: look at the p m I in the U s. 51 00:02:55,760 --> 00:02:58,640 Speaker 1: If you look at China down again this morning on 52 00:02:58,760 --> 00:03:01,720 Speaker 1: high i'm money market rate. If you look at japan 53 00:03:02,000 --> 00:03:05,520 Speaker 1: inter negative indust rate, the Japanese banking index is down 54 00:03:05,560 --> 00:03:08,600 Speaker 1: twenty five since they're moving into negative indust rate, and 55 00:03:08,760 --> 00:03:12,840 Speaker 1: forty five percent since the peak of the Fooria after 56 00:03:12,880 --> 00:03:16,640 Speaker 1: the economics was introduced. I think there is a pattern 57 00:03:16,720 --> 00:03:19,080 Speaker 1: here that March could be pretty nasty. We all have 58 00:03:19,160 --> 00:03:23,280 Speaker 1: expectations that du j has another bazooga, and we also 59 00:03:23,480 --> 00:03:26,960 Speaker 1: expect drug It to be coming in with full force 60 00:03:27,080 --> 00:03:30,000 Speaker 1: trying to talk to the market again. The problem is, 61 00:03:30,520 --> 00:03:33,760 Speaker 1: I think the Japanese experience the negatively interstrate is already 62 00:03:33,800 --> 00:03:36,760 Speaker 1: indicating what will happens to the European banking sector, and 63 00:03:36,840 --> 00:03:39,080 Speaker 1: that is that it would be a huge tax on 64 00:03:39,200 --> 00:03:42,440 Speaker 1: the bank's earnings power, first because they have to protect 65 00:03:42,480 --> 00:03:45,160 Speaker 1: the depositors from negative industrate as we've seen in my 66 00:03:45,240 --> 00:03:48,000 Speaker 1: country denmog right now. And suddenly, of course, because the 67 00:03:48,280 --> 00:03:51,120 Speaker 1: curve goes instead of speeping, it actually goes flat to 68 00:03:51,280 --> 00:03:53,840 Speaker 1: two inverse, which is the worst in now you can have. 69 00:03:53,960 --> 00:03:56,360 Speaker 1: On top of that, of course, it reflects an economy 70 00:03:56,400 --> 00:03:59,440 Speaker 1: where the growth rate at the top line level is 71 00:03:59,720 --> 00:04:02,600 Speaker 1: from inating very sluggish. So you know, a lot of concerns, 72 00:04:02,880 --> 00:04:06,560 Speaker 1: but you know, I don't have the prediction. Unfortunate that 73 00:04:06,880 --> 00:04:09,400 Speaker 1: I don't know what will happen, but I'm very concerned 74 00:04:09,400 --> 00:04:11,280 Speaker 1: from March also because I think a lot of things 75 00:04:11,280 --> 00:04:14,040 Speaker 1: are lining up and a lot of hope is placed 76 00:04:14,040 --> 00:04:18,120 Speaker 1: on it on the center Vengas and finest and they 77 00:04:18,160 --> 00:04:20,680 Speaker 1: tend to disappoint. Are they going to be reacting to 78 00:04:20,720 --> 00:04:22,080 Speaker 1: what's going on? Or are they going to be the 79 00:04:22,120 --> 00:04:25,080 Speaker 1: cause of what's going on? They will always be the 80 00:04:25,120 --> 00:04:27,240 Speaker 1: course when you look in the in the in a 81 00:04:27,279 --> 00:04:30,120 Speaker 1: lot of history, they are always the core stuffing you know, 82 00:04:30,160 --> 00:04:32,159 Speaker 1: think about back to the time before Bank of England 83 00:04:32,200 --> 00:04:34,560 Speaker 1: as a first center bangas introduced, we rarely had any 84 00:04:34,600 --> 00:04:36,960 Speaker 1: financial crisis. Is ever since the Bank of England has 85 00:04:37,040 --> 00:04:40,120 Speaker 1: introduced in sixteen ninety four, every twenty five years we 86 00:04:40,120 --> 00:04:41,719 Speaker 1: had a made a crisis. So I think that is 87 00:04:41,760 --> 00:04:44,920 Speaker 1: your academic response. Now you bring a lot of that 88 00:04:45,080 --> 00:04:48,680 Speaker 1: history to your research. Good morning everyone, Bloomberg Surveillance. Aren't 89 00:04:48,680 --> 00:04:51,279 Speaker 1: you buy Investco? Investco believes it's trying to bench the 90 00:04:51,320 --> 00:04:56,960 Speaker 1: benchmarks to consider active management and factor based strategies. Find 91 00:04:56,960 --> 00:05:00,839 Speaker 1: out more and investco dot com slash high conviction. I 92 00:05:01,040 --> 00:05:06,359 Speaker 1: n v s CEO in bustco dot com slash high conviction. 93 00:05:06,440 --> 00:05:08,760 Speaker 1: We thank them for their support. We are throw to 94 00:05:08,800 --> 00:05:12,239 Speaker 1: bring you Stein Jacobson, he writes Razors Sharp Notes opinionated 95 00:05:12,320 --> 00:05:16,679 Speaker 1: notes out of saxel Bank in Copenhagenstein. You talk about 96 00:05:16,720 --> 00:05:20,719 Speaker 1: two canaries in the coal mine. It's a worn out cliche, 97 00:05:20,960 --> 00:05:25,080 Speaker 1: but you're brilliant on the linkages of the two canaries chirping. 98 00:05:25,520 --> 00:05:30,000 Speaker 1: What are the canaries and why are they chirping together? Yeah? 99 00:05:30,040 --> 00:05:32,160 Speaker 1: So the first one, of course, is the easy one, 100 00:05:32,200 --> 00:05:34,760 Speaker 1: which is the the sterling and the Brexit and the 101 00:05:34,800 --> 00:05:37,760 Speaker 1: whole conversation about the Sterling, whether they're going to be 102 00:05:38,080 --> 00:05:41,000 Speaker 1: opting in or hopping out. But I think the bigger 103 00:05:41,040 --> 00:05:43,279 Speaker 1: background to that, of course is the fact that the 104 00:05:43,360 --> 00:05:46,400 Speaker 1: fact of Europe is now in two tiers. Uh UK 105 00:05:46,600 --> 00:05:50,240 Speaker 1: got a deal this possible weekend, which is and constitutes 106 00:05:50,640 --> 00:05:54,159 Speaker 1: clear violation of the principle of the U. So whatever 107 00:05:54,200 --> 00:05:57,040 Speaker 1: happens with the UK, I think the biggest implication here 108 00:05:57,200 --> 00:05:59,880 Speaker 1: is actually is negative for your but Sterling is back 109 00:06:00,000 --> 00:06:03,200 Speaker 1: two levels, which is and has only been seen during 110 00:06:03,240 --> 00:06:06,200 Speaker 1: the Piggot financial crisis in two thousand and five two 111 00:06:06,240 --> 00:06:08,880 Speaker 1: thousand and eight, one thirty five being the next level probably, 112 00:06:09,320 --> 00:06:14,000 Speaker 1: So that is the European sort of uh whistle that 113 00:06:14,000 --> 00:06:16,560 Speaker 1: that has been blown. And of course the go to 114 00:06:16,880 --> 00:06:20,600 Speaker 1: currency in terms of flight is always begin and has 115 00:06:20,640 --> 00:06:23,840 Speaker 1: historically always been again and actually we've been long enough, 116 00:06:24,200 --> 00:06:27,080 Speaker 1: like you Tom in the market to know that when 117 00:06:27,120 --> 00:06:30,680 Speaker 1: things start to to get worse and the outlook version 118 00:06:30,680 --> 00:06:33,320 Speaker 1: in terms of the re scenario is always then we 119 00:06:33,400 --> 00:06:35,640 Speaker 1: go to and we're you know, we've taken out all 120 00:06:35,680 --> 00:06:38,159 Speaker 1: of the game since economics in the talar un rate. 121 00:06:38,560 --> 00:06:40,800 Speaker 1: And on top of that, as I just mentioned, depending 122 00:06:40,839 --> 00:06:45,400 Speaker 1: index and the topic index in Japan is under severe pressure. 123 00:06:45,520 --> 00:06:48,160 Speaker 1: Basically all of economics has been lost in the space 124 00:06:48,240 --> 00:06:50,600 Speaker 1: of two months. On top of that, we the huge 125 00:06:50,600 --> 00:06:53,680 Speaker 1: amount of repatriation in Again, of course today beginn is 126 00:06:53,760 --> 00:06:56,880 Speaker 1: up one big figure, so it's sort of counter moving 127 00:06:57,200 --> 00:06:59,599 Speaker 1: to that. But I think the en is you're leading 128 00:06:59,600 --> 00:07:02,560 Speaker 1: indicate and think back to seven. Think that to mostly 129 00:07:02,920 --> 00:07:06,479 Speaker 1: financial crisis in the inn Asian comrection crisis. Very often 130 00:07:06,560 --> 00:07:10,040 Speaker 1: the impulse to the marketplace confirm Asia, and in my opinion, 131 00:07:10,080 --> 00:07:13,680 Speaker 1: the Japanese story, the Yan story, is the one leading 132 00:07:13,720 --> 00:07:16,160 Speaker 1: story to all all the interas Right now, did you 133 00:07:16,200 --> 00:07:19,840 Speaker 1: note Michael McKee how Mr Jacobson partitioned him and me 134 00:07:20,080 --> 00:07:24,320 Speaker 1: as fossils and did not mention you because of your 135 00:07:24,320 --> 00:07:29,640 Speaker 1: Peyton manning as ute? Well, I appreciate Dad Stein. Uh, 136 00:07:29,880 --> 00:07:34,920 Speaker 1: you know Tom is experienced that way. Just keep it, 137 00:07:35,120 --> 00:07:40,360 Speaker 1: keep it going, folks, keep it going. Uh. Back in Japan, they're, 138 00:07:41,120 --> 00:07:45,240 Speaker 1: as you say, they're expected to take additional action given 139 00:07:45,280 --> 00:07:49,080 Speaker 1: the loss of progress over the last couple of weeks. 140 00:07:49,440 --> 00:07:52,920 Speaker 1: Uh Are they doing the wrong thing? Now? Would they 141 00:07:53,000 --> 00:07:56,600 Speaker 1: be better off getting out of the business of trying 142 00:07:56,600 --> 00:07:59,440 Speaker 1: to manage the economy leading it to the fiscal authorities 143 00:07:59,480 --> 00:08:02,960 Speaker 1: are letting the Japanese markets clear. However, they might do 144 00:08:03,040 --> 00:08:07,600 Speaker 1: that absolutely, but as you've been directly for, the chrision 145 00:08:07,680 --> 00:08:11,680 Speaker 1: is also saying it's impossible. Just this morning, the bf 146 00:08:11,760 --> 00:08:14,240 Speaker 1: J Governor Corona was in front of the Parliament. He 147 00:08:14,360 --> 00:08:17,720 Speaker 1: took a lot of states from the parliamentarians. Even within 148 00:08:17,760 --> 00:08:20,400 Speaker 1: the Bank of Japan there is a huge diversion on 149 00:08:20,600 --> 00:08:24,080 Speaker 1: whether negative injuries worked. Is a very vocal part of 150 00:08:24,120 --> 00:08:27,000 Speaker 1: the BUJ saying this is actually adding to the commotion 151 00:08:27,120 --> 00:08:30,440 Speaker 1: non returned, not reducing risk. But I think you know, 152 00:08:30,960 --> 00:08:33,959 Speaker 1: in the perfect world and and unfortunately the world with 153 00:08:34,200 --> 00:08:36,840 Speaker 1: the bankers and politician is not a perfect world. But 154 00:08:36,920 --> 00:08:39,040 Speaker 1: that that then there will all step aside and just 155 00:08:39,160 --> 00:08:41,960 Speaker 1: leave it to the long term things that we work 156 00:08:42,000 --> 00:08:45,400 Speaker 1: for an economy, which of course is productivity, infrastructure investment, 157 00:08:45,640 --> 00:08:48,760 Speaker 1: and a focus on the hild incentive structure of hard 158 00:08:48,800 --> 00:08:52,120 Speaker 1: white people and how they're okay capital How do you 159 00:08:52,240 --> 00:08:57,200 Speaker 1: respond to the optimus saying we will find productivity, we 160 00:08:57,240 --> 00:09:01,520 Speaker 1: will find technical logical progress even in Europe, will at 161 00:09:01,600 --> 00:09:04,240 Speaker 1: least get the stability in stasis. How do you push 162 00:09:04,280 --> 00:09:09,240 Speaker 1: back against that inherent optimism. I don't tell them because 163 00:09:09,280 --> 00:09:12,320 Speaker 1: it's right over the long term, but recyclically, we are 164 00:09:12,360 --> 00:09:14,760 Speaker 1: in a found period in terms of productivity, and I 165 00:09:14,800 --> 00:09:17,080 Speaker 1: have the luxury of guarantee about thirty five countries on 166 00:09:17,080 --> 00:09:20,760 Speaker 1: an average here, I mean a thousand upon thousand of smart, aggressive, 167 00:09:21,320 --> 00:09:25,120 Speaker 1: innovative people who in the microeconomy, as I like to 168 00:09:25,160 --> 00:09:27,679 Speaker 1: call it, is trying to do better, to do you know, 169 00:09:27,840 --> 00:09:30,559 Speaker 1: with a higher profit and productivity. But the fact of 170 00:09:30,600 --> 00:09:33,160 Speaker 1: the matter is, and the way we mentioned productivity, we 171 00:09:33,200 --> 00:09:36,480 Speaker 1: are on a negative downward spiral. I mean, it seems 172 00:09:36,520 --> 00:09:38,760 Speaker 1: like people think that getting more acts when your Apple 173 00:09:39,240 --> 00:09:42,240 Speaker 1: phone is actually productivity, which of course is not in 174 00:09:42,280 --> 00:09:45,760 Speaker 1: economic terms. But but but the pushbag is that, yes, 175 00:09:45,920 --> 00:09:48,040 Speaker 1: that could be at the end of the rainbow, some 176 00:09:48,080 --> 00:09:50,640 Speaker 1: sort of improvement that but that would be quantum computing 177 00:09:50,640 --> 00:09:54,120 Speaker 1: on something of that magnitude. The fact is that technology 178 00:09:54,320 --> 00:09:57,080 Speaker 1: was productivity has been on the downtrend for a very 179 00:09:57,080 --> 00:09:58,960 Speaker 1: long time, and a lot of that has to do 180 00:09:59,240 --> 00:10:01,079 Speaker 1: with the way we do it is today. Think about 181 00:10:01,080 --> 00:10:05,120 Speaker 1: the concept like digitiz station, Digita station worse in order 182 00:10:05,160 --> 00:10:07,520 Speaker 1: to save money. But if that saved money is not 183 00:10:07,640 --> 00:10:11,040 Speaker 1: reinvested into new and beta quality product what we end 184 00:10:11,120 --> 00:10:13,560 Speaker 1: up with is a business model where the product get 185 00:10:13,600 --> 00:10:17,040 Speaker 1: worse and the experience of buying the product gets you know, 186 00:10:17,160 --> 00:10:22,360 Speaker 1: indifferent from each other. Let's come back. Jean Jakobson is 187 00:10:22,360 --> 00:10:25,400 Speaker 1: the chief economist at Saxo Bank, and uh he has 188 00:10:25,440 --> 00:10:27,640 Speaker 1: a different view, shall we say, than the Secretary of 189 00:10:27,640 --> 00:10:30,680 Speaker 1: the Treasury. Well, yeah, but it's also not a public official. 190 00:10:30,760 --> 00:10:33,000 Speaker 1: This is great. We're gonna get huge response from our 191 00:10:33,040 --> 00:10:37,480 Speaker 1: comments from Copenhagen this morning. Futures of five down, futures 192 00:10:37,480 --> 00:10:40,320 Speaker 1: of forty three is Mike mentioned all in all, the 193 00:10:40,360 --> 00:10:44,680 Speaker 1: constructive tape Oil with a nice bid thirty two zero 194 00:10:44,800 --> 00:10:53,160 Speaker 1: eight on West Texas Intermediate this morning. This hour of 195 00:10:53,240 --> 00:10:55,680 Speaker 1: surveillance is brought to you by Westchester Sewer Up. Visit 196 00:10:55,720 --> 00:10:58,959 Speaker 1: Westchester suwar u dot com. Here's John Tucker with news headline, 197 00:10:59,160 --> 00:11:02,720 Speaker 1: Houston will be the side of tonight's Republican presidential debate 198 00:11:02,760 --> 00:11:05,600 Speaker 1: with Donald Trump rivals. They'll get one more chance to 199 00:11:05,720 --> 00:11:08,960 Speaker 1: try and to rail the Republican front runner before Super Tuesday. 200 00:11:09,240 --> 00:11:11,920 Speaker 1: The White House said to be considering Republican Governor Brian 201 00:11:12,000 --> 00:11:15,880 Speaker 1: Sandelville of Nevada as a possible nominee to the Supreme Court, 202 00:11:16,760 --> 00:11:20,600 Speaker 1: and Washington State new variety of Apple about to make 203 00:11:20,640 --> 00:11:24,520 Speaker 1: its debut. Scientists at Washington State University have come up 204 00:11:24,520 --> 00:11:27,959 Speaker 1: with Cosmic Crisp, which has been developed over the last 205 00:11:28,080 --> 00:11:31,560 Speaker 1: twenty years. Global News twenty a day, powered by a 206 00:11:32,400 --> 00:11:35,959 Speaker 1: journalists in more than one fifty news bureaus around the world. 207 00:11:36,160 --> 00:11:40,760 Speaker 1: I'm John Tucker. Cosmic christ is the Cosmic Crisp. Is 208 00:11:40,800 --> 00:11:45,480 Speaker 1: the eighteen year old socks which a breakfast cereal could 209 00:11:46,360 --> 00:11:49,520 Speaker 1: It's going to have alcohol, John Tucker helping us out 210 00:11:49,520 --> 00:11:53,400 Speaker 1: this morning. Here my idea of the Gallan guest during 211 00:11:53,440 --> 00:11:56,160 Speaker 1: the show. Futures up five Down, Futures up forty five. 212 00:11:56,360 --> 00:11:59,960 Speaker 1: Michael McKeen and Tom Keene Coast to coast Worldwide. Bloom 213 00:12:00,200 --> 00:12:07,839 Speaker 1: Surveillance Bloomberg Surveillances brought to you by your Try State 214 00:12:07,960 --> 00:12:10,320 Speaker 1: BMW centers. Visit them online It Try State d MW 215 00:12:10,520 --> 00:12:13,240 Speaker 1: dot Com. At BMW they make only one thing, ultimate 216 00:12:13,320 --> 00:12:25,079 Speaker 1: driving machine. Global Business News twenty four hours a day 217 00:12:25,280 --> 00:12:28,240 Speaker 1: at Bloomberg dot Com, the radio plus mobile lap and 218 00:12:28,400 --> 00:12:32,160 Speaker 1: on your radio. This is a Bloomberg Business Flash. And 219 00:12:32,200 --> 00:12:35,360 Speaker 1: I'm Karen Moscow. This updates ROSSI you buy Eisner Emperor. 220 00:12:35,360 --> 00:12:38,600 Speaker 1: When entrepreneurs faced challenges like choosing a business structure or 221 00:12:38,640 --> 00:12:41,760 Speaker 1: access to capital. They call the accountants and advisers at 222 00:12:41,760 --> 00:12:44,560 Speaker 1: Oisner Emper, connect with them Oisner Emper, dot com, slash 223 00:12:44,600 --> 00:12:48,080 Speaker 1: tech best buy reporting fourth quarter profit at beat analysts 224 00:12:48,160 --> 00:12:51,240 Speaker 1: estimates while it's forecast for the first quarter missed and 225 00:12:51,240 --> 00:12:54,679 Speaker 1: shares her down three point coals fourth quarter profit beat. 226 00:12:55,000 --> 00:12:58,280 Speaker 1: Treasuries are higher as oil falls, US DOCK Index futures 227 00:12:58,280 --> 00:13:01,320 Speaker 1: reverse the clients. They're moving high s and b EVENI 228 00:13:01,360 --> 00:13:03,640 Speaker 1: futures up four and a half points now EVENI futures 229 00:13:03,679 --> 00:13:06,800 Speaker 1: up forty two, nasadac eveny futures up ten. DAX in 230 00:13:06,840 --> 00:13:09,439 Speaker 1: Germany's up one point eight percent ten. Your treasury of 231 00:13:09,559 --> 00:13:12,200 Speaker 1: four thirty seconds, the yield one point seven three percent. 232 00:13:12,600 --> 00:13:14,480 Speaker 1: N i'm ex scret oil down three tens per cent 233 00:13:14,559 --> 00:13:16,920 Speaker 1: er ten cents to thirty two oh five of barrel 234 00:13:17,280 --> 00:13:19,920 Speaker 1: and comic school is down half percent or six dollars 235 00:13:19,920 --> 00:13:22,480 Speaker 1: ten cents to twelve thirty three and ounce the euro 236 00:13:22,640 --> 00:13:24,960 Speaker 1: at dollar ten thirty nine and the yen one twelve 237 00:13:25,000 --> 00:13:28,080 Speaker 1: point five one. That's a Bloomberg business flash. Tom and 238 00:13:28,080 --> 00:13:30,800 Speaker 1: Mike Karen I think so much greatly appreciate a good 239 00:13:30,800 --> 00:13:33,800 Speaker 1: morning everyone, futures up five is Karen mentions a better 240 00:13:33,880 --> 00:13:38,079 Speaker 1: tape Steen Jacobson with us A Saxo Bank Copenhagen, Steen 241 00:13:38,240 --> 00:13:40,240 Speaker 1: A lot of pros that we speak to. Look at 242 00:13:40,280 --> 00:13:45,640 Speaker 1: Asia d X Y, which partitions a blended bundled Asia 243 00:13:45,679 --> 00:13:49,600 Speaker 1: currency mix including China, but does not include the yen. 244 00:13:50,000 --> 00:13:52,640 Speaker 1: How do you look at the prism that is different 245 00:13:52,720 --> 00:13:57,440 Speaker 1: Asia currencies. Well, I think a lot of one goes 246 00:13:57,440 --> 00:14:00,520 Speaker 1: on in China, even in the worst cases contain because 247 00:14:00,559 --> 00:14:03,720 Speaker 1: they have the financial ability to maneuver and do something. 248 00:14:04,040 --> 00:14:05,720 Speaker 1: And that is also the case for a lot of 249 00:14:05,720 --> 00:14:08,719 Speaker 1: the currencies included in the H and d H Y. 250 00:14:08,760 --> 00:14:11,160 Speaker 1: But in Japan you have a free trading market, you 251 00:14:11,200 --> 00:14:14,200 Speaker 1: don't have the ability anymore of the center bank or 252 00:14:14,200 --> 00:14:16,959 Speaker 1: the political system to help. So I think the end 253 00:14:17,040 --> 00:14:21,600 Speaker 1: remains the most important single Asian currency that together with Aussie, 254 00:14:21,680 --> 00:14:25,280 Speaker 1: which I think is the proxy for all of Asia's 255 00:14:25,320 --> 00:14:27,600 Speaker 1: growth and the potential on the dollar. I think in 256 00:14:27,640 --> 00:14:30,920 Speaker 1: Assie you actually have everything you need to know about 257 00:14:31,000 --> 00:14:34,280 Speaker 1: the world in terms of economic development. Why then everybody 258 00:14:34,360 --> 00:14:38,520 Speaker 1: get everybody gets so upset about movements in the Chinese 259 00:14:38,520 --> 00:14:43,560 Speaker 1: from n B because there's a change from the standard 260 00:14:43,600 --> 00:14:46,040 Speaker 1: operation procedure that we've seen over time, which is a 261 00:14:46,320 --> 00:14:49,480 Speaker 1: sort of a lazy tag to the U. S dollar 262 00:14:49,920 --> 00:14:52,800 Speaker 1: now and I think it's totally misunderstood. And I think 263 00:14:52,840 --> 00:14:56,360 Speaker 1: with all the respect for Anglo saction educated economists, they 264 00:14:56,400 --> 00:15:00,120 Speaker 1: tend to look at China with the eyes of a 265 00:15:00,200 --> 00:15:03,240 Speaker 1: balance sheet. The balance sheet of China is one pool 266 00:15:03,280 --> 00:15:06,360 Speaker 1: of capital. It is a long plan. It's not a 267 00:15:06,440 --> 00:15:08,880 Speaker 1: short it's not it's not a soft landing. It's not 268 00:15:08,920 --> 00:15:10,880 Speaker 1: a heart landing. It's a long landing. And I think 269 00:15:11,320 --> 00:15:13,960 Speaker 1: in between, you know, trying to find a hard or 270 00:15:14,080 --> 00:15:17,000 Speaker 1: soft landing and not recognizing this a long landing, you 271 00:15:17,080 --> 00:15:20,040 Speaker 1: miss the point that on the currency side, what China 272 00:15:20,120 --> 00:15:24,400 Speaker 1: wants is to internationalize the remaindy. The internationalization of the 273 00:15:24,440 --> 00:15:28,000 Speaker 1: RMBY is a national extension of the Asian Investment Bank, 274 00:15:28,440 --> 00:15:33,360 Speaker 1: of the geopolitical strategy of closing in on a trading 275 00:15:33,440 --> 00:15:35,680 Speaker 1: zone that goes from the Eastern Seas the street boarder 276 00:15:35,760 --> 00:15:38,120 Speaker 1: of China to Venetia and then all the way down 277 00:15:38,120 --> 00:15:41,040 Speaker 1: to Capo. Don't forget in tenuous time, I will wageing 278 00:15:41,120 --> 00:15:43,400 Speaker 1: you a good dinner at a steakhouse in New York 279 00:15:43,880 --> 00:15:47,320 Speaker 1: that most of the financing to the Asian markets will 280 00:15:47,360 --> 00:15:52,640 Speaker 1: come from not come from the US race dollar liabilities, 281 00:15:52,760 --> 00:15:55,120 Speaker 1: but it would be raised from China. And remember, so 282 00:15:55,320 --> 00:15:57,320 Speaker 1: the you know, a long answer to a short question, 283 00:15:57,520 --> 00:16:02,560 Speaker 1: Remamber internationalization is the answer to your question, Well, we're 284 00:16:02,560 --> 00:16:05,040 Speaker 1: making a reservation right now. But Mike pick it up here. 285 00:16:05,320 --> 00:16:08,200 Speaker 1: But I do want to point out the shot the 286 00:16:08,280 --> 00:16:13,359 Speaker 1: young man from Copenhagen took it Anglos Sex and houses 287 00:16:13,480 --> 00:16:17,360 Speaker 1: bankers strategists. Did you see that he took a shot 288 00:16:17,400 --> 00:16:20,600 Speaker 1: from Copenhagen. He's he's Dinger. You add the bank It 289 00:16:20,720 --> 00:16:23,320 Speaker 1: was like a Baltic shot. That's how I put up. 290 00:16:23,440 --> 00:16:26,200 Speaker 1: Are you confident? So you're confident that the Chinese are 291 00:16:26,200 --> 00:16:28,720 Speaker 1: going to be able to manage the transition to a 292 00:16:29,120 --> 00:16:33,240 Speaker 1: the un being a reserve currency. Yes, and that I'm 293 00:16:33,320 --> 00:16:36,520 Speaker 1: very confident enough. But but my my confidence doesn't go 294 00:16:36,640 --> 00:16:38,600 Speaker 1: to the fact that I think it's a good model 295 00:16:38,680 --> 00:16:40,880 Speaker 1: or a great model, or in different model. What I'm 296 00:16:40,880 --> 00:16:44,000 Speaker 1: trying to say is that when you don't understand an economy, 297 00:16:44,000 --> 00:16:46,040 Speaker 1: and clearly a lot of people, including myself, do not 298 00:16:46,520 --> 00:16:49,960 Speaker 1: get the Chinese economy, but you cannot do it from 299 00:16:50,200 --> 00:16:53,800 Speaker 1: a a premise of trying to figure out the assets 300 00:16:53,800 --> 00:16:57,240 Speaker 1: and liabilities. Don't forget that the whole exercise by the 301 00:16:57,280 --> 00:17:01,000 Speaker 1: government in China is to pen and lie the private 302 00:17:01,080 --> 00:17:04,440 Speaker 1: saving which is roughly anywhere between forty and fifty percent 303 00:17:04,520 --> 00:17:07,199 Speaker 1: of GDP. I mean, de private saving rate in the 304 00:17:07,280 --> 00:17:09,719 Speaker 1: US is five percent of GDP. Which of these two 305 00:17:09,800 --> 00:17:12,000 Speaker 1: countries do you think has the great ability to do 306 00:17:12,080 --> 00:17:15,560 Speaker 1: mistakes over the next twenty years. Thank you, Thank you 307 00:17:15,640 --> 00:17:19,160 Speaker 1: so much. Stean Jacobson greatly appreciated with Saxel Bank put 308 00:17:19,200 --> 00:17:21,080 Speaker 1: out a bunch on social you'll look for this out 309 00:17:21,119 --> 00:17:25,520 Speaker 1: on our digital product. As Ald Mike Mr Bullard speaking 310 00:17:25,560 --> 00:17:28,600 Speaker 1: over at say and they say that's the French version saying, 311 00:17:28,680 --> 00:17:31,960 Speaker 1: they say, I love this quote fed knot on freight 312 00:17:31,960 --> 00:17:35,800 Speaker 1: train path. You have to be the St. Louis Bank 313 00:17:36,680 --> 00:17:40,160 Speaker 1: just say fed knot on a freight train pad those 314 00:17:40,240 --> 00:17:43,480 Speaker 1: trains passing through the midway. Basically, he's trying to reassure 315 00:17:43,600 --> 00:17:46,280 Speaker 1: the markets that it's not automatic that you're going to 316 00:17:46,280 --> 00:17:50,760 Speaker 1: see a rate increase every other meeting. Um, he has 317 00:17:50,840 --> 00:17:55,000 Speaker 1: switched sides. He was one of the more anxious to 318 00:17:55,080 --> 00:17:57,600 Speaker 1: raise rates last year. Now he's concerned to give speech 319 00:17:57,680 --> 00:18:02,119 Speaker 1: last night upon which this is all based. UM. Expanding 320 00:18:02,160 --> 00:18:06,240 Speaker 1: on his view that inflation expectations have fallen too far 321 00:18:07,000 --> 00:18:10,080 Speaker 1: and that will make it harder to get inflation up, 322 00:18:10,480 --> 00:18:13,159 Speaker 1: and that means FED should not be raising rate and 323 00:18:13,240 --> 00:18:15,880 Speaker 1: the forward guidance Dian Swank out in the Midwest as 324 00:18:15,880 --> 00:18:21,560 Speaker 1: well in Chicago, uh as St. Louis is west of Chicago. 325 00:18:21,720 --> 00:18:25,680 Speaker 1: Is that I think I can barely. It's very close, 326 00:18:26,359 --> 00:18:28,440 Speaker 1: A very good question. My only knowledge is is the 327 00:18:28,480 --> 00:18:32,000 Speaker 1: baseball team wins the others north and south of here. 328 00:18:32,200 --> 00:18:34,199 Speaker 1: But but this headline is important and goes to what 329 00:18:34,359 --> 00:18:37,520 Speaker 1: MS want. Dr Swanks said yesterday, which is want to 330 00:18:37,520 --> 00:18:40,199 Speaker 1: get away from predicting number of rate rises, which is 331 00:18:40,280 --> 00:18:44,960 Speaker 1: what what is forward guidance? Michael, how do you defict? Okay, 332 00:18:45,000 --> 00:18:46,719 Speaker 1: that's what That's what I was hoping to have it. 333 00:18:47,000 --> 00:18:49,320 Speaker 1: I mean they wanted, they want to have it, but 334 00:18:49,359 --> 00:18:51,040 Speaker 1: they haven't figured out what they want. They wanted both ways, 335 00:18:51,040 --> 00:18:53,360 Speaker 1: but they haven't figured out how to do it yet. Yeah. 336 00:18:53,520 --> 00:18:56,760 Speaker 1: I'll go with that, and that's with respect. Is it 337 00:18:56,880 --> 00:19:02,080 Speaker 1: work in progress? Shameless plugged five am tomorrow morning surveillance 338 00:19:02,080 --> 00:19:05,040 Speaker 1: on Bloomberg Television. Mike, I maybe we can drag you 339 00:19:05,080 --> 00:19:07,000 Speaker 1: out for this if we could figure out the schedule. 340 00:19:07,560 --> 00:19:12,320 Speaker 1: Robert Hormats and Richard Berner talking about a move back 341 00:19:12,400 --> 00:19:15,200 Speaker 1: to pre crisis when they were on the watch at 342 00:19:15,200 --> 00:19:18,439 Speaker 1: Golden Sas and Morgan Stanley. It took Rachel Worsban, our 343 00:19:18,480 --> 00:19:22,359 Speaker 1: executive producer, had to jump through like eighteen hoops to 344 00:19:22,400 --> 00:19:28,240 Speaker 1: get the Burner entourage to agree with the Hormett's entourage them. Yes, 345 00:19:28,680 --> 00:19:30,680 Speaker 1: but really looking forward to that. We'll try to get 346 00:19:30,720 --> 00:19:32,920 Speaker 1: you out there. I mean, it's really it's a very 347 00:19:32,920 --> 00:19:35,680 Speaker 1: emotional thing for us folks, with what we've been through 348 00:19:36,600 --> 00:19:39,240 Speaker 1: over the last eight minion years. Have Burner and Hormetts together. 349 00:19:40,880 --> 00:19:44,679 Speaker 1: I'm looking at you know, I saw it. I was 350 00:19:44,800 --> 00:19:47,800 Speaker 1: in St. Louis as a kid when the Raging debate 351 00:19:47,880 --> 00:19:50,199 Speaker 1: was with the Arch meet at the Top. I was 352 00:19:50,280 --> 00:19:53,119 Speaker 1: literally we were to some eclipse or something, and that 353 00:19:53,160 --> 00:19:55,320 Speaker 1: was they Arch did meet at the top. For those 354 00:19:55,320 --> 00:19:57,399 Speaker 1: of you that are on a need to know basis, 355 00:19:57,520 --> 00:20:07,080 Speaker 1: futures up five Bloomberg Surveillance. Bloomberg Surveillance is brought to 356 00:20:07,080 --> 00:20:09,840 Speaker 1: you by c I T. From transportation to healthcare to manufacturing. 357 00:20:09,840 --> 00:20:12,360 Speaker 1: C i T offers commercial lending, leasing, a treasury management 358 00:20:12,400 --> 00:20:15,600 Speaker 1: services for small and middle market businesses. Learn more at 359 00:20:15,640 --> 00:20:23,920 Speaker 1: c I T dot com. But knowledge to worm Broadcasting 360 00:20:24,000 --> 00:20:27,760 Speaker 1: live to New York, Bloomberg eleventh, Rio to Washington, d C, 361 00:20:27,960 --> 00:20:33,200 Speaker 1: Bloomberg to Boston, Bloomberg twelve unders to San Francisco, Bloomberg 362 00:20:33,320 --> 00:20:37,119 Speaker 1: nine to the Country series Exam Channel one ninety and 363 00:20:37,280 --> 00:20:41,280 Speaker 1: around the globe the Bloomberg Radio Plus happened. Bloomberg dot com. 364 00:20:41,320 --> 00:20:45,440 Speaker 1: This is Bloomberg surveillance. Marty at seven thirty All Street 365 00:20:45,440 --> 00:20:48,560 Speaker 1: at Michael McKee along with Tom Keene. This is Bloomberg Surveillance. 366 00:20:48,600 --> 00:20:52,679 Speaker 1: Here's a couple of things happening in the company's space 367 00:20:52,840 --> 00:20:55,159 Speaker 1: that you'll want to know about before trading starts in 368 00:20:55,160 --> 00:20:57,680 Speaker 1: about two hours from now. Best Buy. IM not gonna 369 00:20:57,680 --> 00:21:00,399 Speaker 1: do this for them. Earnings per share a dollar fifty 370 00:21:00,440 --> 00:21:02,920 Speaker 1: three for the most recent quarter, better than the dollar 371 00:21:03,040 --> 00:21:05,760 Speaker 1: thirty nine that was forecast, But that's on fourth quarter 372 00:21:05,760 --> 00:21:09,439 Speaker 1: profit that was seven point seven percent weaker than in 373 00:21:09,520 --> 00:21:12,840 Speaker 1: the same quarter a year ago, the investors shrugging off 374 00:21:12,880 --> 00:21:15,720 Speaker 1: twenty billion dollars in losses, rewarding two of North America's 375 00:21:15,720 --> 00:21:20,040 Speaker 1: biggest natural gas producers. Yesterday, Chesapeake Energy and in Conna 376 00:21:20,160 --> 00:21:24,719 Speaker 1: rose twenty three percent each. Lloyd's banking group raising its dividend, 377 00:21:24,720 --> 00:21:27,679 Speaker 1: introducing a special payout, and indicating it may have reached 378 00:21:27,720 --> 00:21:31,160 Speaker 1: the end of charges for wrongly sold payment protection insurance 379 00:21:31,520 --> 00:21:34,920 Speaker 1: it costs it five point six billion dollars last year. 380 00:21:34,960 --> 00:21:38,479 Speaker 1: And Anheuser Busch in BEV reported fourth quarter earnings that 381 00:21:38,560 --> 00:21:44,399 Speaker 1: missed analyst estimates. Americans apparently drank less beer. Hard to believe, 382 00:21:44,600 --> 00:21:48,119 Speaker 1: but apparently true. Now, let's spring in John Tucker and 383 00:21:48,320 --> 00:21:52,320 Speaker 1: the latest world In national headlines, John and Michael Houston 384 00:21:52,320 --> 00:21:55,960 Speaker 1: will be decided tonight's Republican presidential debate, but Donald Trump 385 00:21:56,080 --> 00:21:58,639 Speaker 1: rivals getting one more chance to try and derail the 386 00:21:58,760 --> 00:22:02,000 Speaker 1: GOP front rudder be We're super Tuesday. There's a state 387 00:22:02,040 --> 00:22:04,879 Speaker 1: of emergency in Virginia. That's where four people were killed 388 00:22:05,040 --> 00:22:08,840 Speaker 1: after tornadoes damaged homes and left thousands without power across 389 00:22:08,880 --> 00:22:12,080 Speaker 1: the state. China's Defense Ministry says the commander of US 390 00:22:12,119 --> 00:22:15,120 Speaker 1: Forces the E in the Pacific smeared to China while 391 00:22:15,160 --> 00:22:18,520 Speaker 1: seeking additional defense funding for the US Congress. A spokesman 392 00:22:18,560 --> 00:22:22,800 Speaker 1: strongly criticized Admiral Harry Harris Jrs. Testimony before Congress this weekend, 393 00:22:22,800 --> 00:22:26,600 Speaker 1: which Harris said China was militarizing the South China Sea, 394 00:22:27,200 --> 00:22:29,879 Speaker 1: and a Coastguard vessel overturned after it was sent to 395 00:22:29,920 --> 00:22:32,640 Speaker 1: assist a fishing boat that ran aground in an inlet 396 00:22:32,680 --> 00:22:35,440 Speaker 1: off New York City. The crew of the Coastguard vessel 397 00:22:35,480 --> 00:22:37,560 Speaker 1: and those aboard the fishing boat did make it safely 398 00:22:37,640 --> 00:22:41,320 Speaker 1: to shore early this morning. Global News twenty four hours 399 00:22:41,359 --> 00:22:44,159 Speaker 1: a day, powered by twenty four hundred Jouralism more than 400 00:22:44,200 --> 00:22:48,000 Speaker 1: one hundred fifty news bureaus around the world. I'm John Tucker, Michael, 401 00:22:48,680 --> 00:22:52,320 Speaker 1: Thanks John. Time now for the Katina Autogroup Bloomberg NBC 402 00:22:52,480 --> 00:22:55,760 Speaker 1: Sports update. Here's John Stashour, John all right, Mike wads 403 00:22:55,840 --> 00:22:58,359 Speaker 1: Nick lost last night and Indiana game where they let 404 00:22:58,400 --> 00:23:00,600 Speaker 1: a halftime tied. Going to the four quarter, they had 405 00:23:00,640 --> 00:23:02,840 Speaker 1: three point shots in the last two seconds that would 406 00:23:02,840 --> 00:23:04,720 Speaker 1: have either tied the game or given them the lead. 407 00:23:05,080 --> 00:23:07,200 Speaker 1: Neither went in. The Pacers won one O eight, one 408 00:23:07,200 --> 00:23:10,080 Speaker 1: oh five. Paul George twenty seven points, all but two 409 00:23:10,440 --> 00:23:13,160 Speaker 1: in the second half. Chris stops Porzingis scored twenty two, 410 00:23:13,160 --> 00:23:17,160 Speaker 1: but Carmelo Anthony had only fourteen on five of twenty shooting. 411 00:23:17,200 --> 00:23:19,680 Speaker 1: Both missed threes down the stretch and the Knicks stuff 412 00:23:19,680 --> 00:23:21,840 Speaker 1: for their thirteenth loss in the last fifteen games, but 413 00:23:21,920 --> 00:23:26,120 Speaker 1: Porzingis called it a moral victory. And today we've got 414 00:23:26,160 --> 00:23:28,880 Speaker 1: back to to the team that that we are actually are. 415 00:23:29,160 --> 00:23:33,080 Speaker 1: We were playing physical or not letting guys, you know, 416 00:23:33,119 --> 00:23:36,520 Speaker 1: push us around, and and um, that's that's a team 417 00:23:36,520 --> 00:23:38,440 Speaker 1: we are, and that's a team you've gotta be every night. 418 00:23:38,480 --> 00:23:41,800 Speaker 1: And so I think from now this is the game 419 00:23:41,840 --> 00:23:43,880 Speaker 1: that we can build on and then go from here 420 00:23:44,000 --> 00:23:46,440 Speaker 1: back at the Garden tomorrow to play Orlando. Golden State. 421 00:23:46,480 --> 00:23:49,640 Speaker 1: Gotta combine sixty five points on the all star backcourt 422 00:23:49,640 --> 00:23:51,720 Speaker 1: of Steph Curry and Clay Thompson to win in Miami, 423 00:23:51,960 --> 00:23:54,560 Speaker 1: raises the Warriors record of fifty one and five. They 424 00:23:54,600 --> 00:23:57,560 Speaker 1: called it the biggest game between Catholic schools and St. 425 00:23:57,600 --> 00:24:02,000 Speaker 1: John's and Georgetown fifth XAVI your avenged a thirty one 426 00:24:02,000 --> 00:24:04,520 Speaker 1: point lost earlier in the year of Illanova knocked off 427 00:24:04,560 --> 00:24:08,080 Speaker 1: the top rank Wildcats ninety three. With the Bloomberg NBC 428 00:24:08,240 --> 00:24:13,320 Speaker 1: Sports Update, I'm John stam Shamler. Thank you, John. Let's 429 00:24:13,400 --> 00:24:17,240 Speaker 1: check the driver of the market's oil, West Texas eight 430 00:24:17,400 --> 00:24:20,359 Speaker 1: is down two tents of eight percent. Brent crude thirty 431 00:24:20,400 --> 00:24:23,320 Speaker 1: fourteen is off by eight tenths of a percent and 432 00:24:23,400 --> 00:24:26,280 Speaker 1: oddly enough not having an impact. Futures are higher in 433 00:24:26,280 --> 00:24:28,640 Speaker 1: the United States, stocks are higher in Europe. We'll talk 434 00:24:28,640 --> 00:24:32,120 Speaker 1: with Vince Piazza from Bloomberg Intelligence about oil. Coming up 435 00:24:32,160 --> 00:24:41,760 Speaker 1: here Bloomberg Radio. This is Bloomberg Surveillance. I'm Michael McKee 436 00:24:41,880 --> 00:24:45,520 Speaker 1: along with Tom Keene. As I mentioned, SMP futures are 437 00:24:45,600 --> 00:24:47,880 Speaker 1: up by four points two tents of eight percent, same 438 00:24:47,960 --> 00:24:51,199 Speaker 1: gain for DAL evening features, They're up thirty one points. 439 00:24:51,480 --> 00:24:55,200 Speaker 1: Nasdaq one emnies up five points tenths of a percent. 440 00:24:55,280 --> 00:24:58,400 Speaker 1: The stock six hundred in Europe up six points right now, 441 00:24:58,720 --> 00:25:01,880 Speaker 1: that is a one point nine gain on the day, 442 00:25:01,920 --> 00:25:04,920 Speaker 1: So green on the screen, except for in China, where 443 00:25:04,920 --> 00:25:08,520 Speaker 1: we did see a six percent decline today. That's the outlier, 444 00:25:08,560 --> 00:25:13,120 Speaker 1: but it hasn't affected everyone else. Right now, right now, 445 00:25:13,320 --> 00:25:15,520 Speaker 1: let's check in with Bob Moon. The Bloomberg n j 446 00:25:15,680 --> 00:25:17,760 Speaker 1: i T STEM Report brought to you by New Jersey 447 00:25:17,760 --> 00:25:21,040 Speaker 1: Institute of Technology, partnering with government and industry to apply 448 00:25:21,080 --> 00:25:24,400 Speaker 1: the university's world class research assets to innovate and spur 449 00:25:24,520 --> 00:25:27,880 Speaker 1: economic growth. Learn more at n j i T dot com. 450 00:25:27,960 --> 00:25:31,560 Speaker 1: Writer Michael Good morning at Wall stret Here's what's making 451 00:25:31,560 --> 00:25:35,000 Speaker 1: news in science, technology, engineering, and math. We what if 452 00:25:35,040 --> 00:25:37,600 Speaker 1: we could, but we can't. That's the essence of Tim 453 00:25:37,640 --> 00:25:41,480 Speaker 1: Cook's argument against helping the FBI crack into a terrorist iPhone. 454 00:25:42,040 --> 00:25:44,560 Speaker 1: As the clock ticks to war to California courts deadline 455 00:25:44,560 --> 00:25:47,520 Speaker 1: to respond tomorrow, the Apple chief was interviewed by ABC 456 00:25:47,640 --> 00:25:50,040 Speaker 1: News and explained that it's not a matter of just 457 00:25:50,119 --> 00:25:53,480 Speaker 1: opening up the phone, but rewriting special software code to 458 00:25:53,600 --> 00:25:58,119 Speaker 1: reverse apples carefully crafted privacy protections. If we knew a 459 00:25:58,240 --> 00:26:01,639 Speaker 1: way to get the information on the phone that we 460 00:26:01,680 --> 00:26:04,640 Speaker 1: haven't already given, if we knew a way to do 461 00:26:04,680 --> 00:26:07,920 Speaker 1: this that would not expose hundreds of millions of other 462 00:26:08,040 --> 00:26:11,640 Speaker 1: people's issues, we would obviously do it, and Cook told 463 00:26:11,680 --> 00:26:14,440 Speaker 1: ABC News the government is going too far. What is 464 00:26:14,480 --> 00:26:19,119 Speaker 1: at stake here is can the government compel Apple to 465 00:26:19,320 --> 00:26:23,000 Speaker 1: write software that we believe would make hundreds of millions 466 00:26:23,000 --> 00:26:26,800 Speaker 1: of customers vulnerable around the world, including the US. The 467 00:26:26,840 --> 00:26:29,959 Speaker 1: government claims it only wants access to one dead terrorist 468 00:26:30,080 --> 00:26:33,320 Speaker 1: encrypted smartphone, while Cook says this will obviously lead to 469 00:26:33,440 --> 00:26:36,439 Speaker 1: unlimited requests, He says his company is standing tall on 470 00:26:36,480 --> 00:26:39,840 Speaker 1: principle and argues that there's probably more information about you 471 00:26:39,920 --> 00:26:42,840 Speaker 1: on your phone than there is in your house. And 472 00:26:42,880 --> 00:26:46,040 Speaker 1: that's this morning's Bloomberg and j I t. Stammer point, Michael, 473 00:26:46,560 --> 00:26:50,760 Speaker 1: nobody's torturing my phone. Give up everything they know, Bob Loot, 474 00:26:50,880 --> 00:26:54,000 Speaker 1: thank you very much. Vich Piasm is in charge of 475 00:26:54,040 --> 00:26:57,840 Speaker 1: our coverage of the oil and energy industry for Bloomberg Intelligence, 476 00:26:57,840 --> 00:26:59,280 Speaker 1: and we asked him to come by because we've been 477 00:26:59,280 --> 00:27:02,280 Speaker 1: talking a lot of out uh, the influence of oil 478 00:27:02,440 --> 00:27:06,280 Speaker 1: on the markets and where we go from here, especially 479 00:27:06,280 --> 00:27:09,080 Speaker 1: a month ahead of when the banks all reset the 480 00:27:09,119 --> 00:27:14,400 Speaker 1: loans that they have made to energy exploration and production companies. 481 00:27:14,800 --> 00:27:17,280 Speaker 1: And so what we wanted to do is is kind 482 00:27:17,280 --> 00:27:19,359 Speaker 1: of get caught up with you, Vince, because it's been 483 00:27:19,359 --> 00:27:22,479 Speaker 1: a little while about where we are with I know 484 00:27:22,680 --> 00:27:26,200 Speaker 1: it's impossible to predict prices basically, but um, we were 485 00:27:26,200 --> 00:27:29,000 Speaker 1: talking with a guest earlier this week who said prices 486 00:27:29,000 --> 00:27:32,400 Speaker 1: could go to ten dollars a barrel because the marginal 487 00:27:32,480 --> 00:27:34,880 Speaker 1: cost of just turning on the taps is still so 488 00:27:35,000 --> 00:27:39,360 Speaker 1: low even if we cut back on new wells out there. Well, 489 00:27:39,400 --> 00:27:42,520 Speaker 1: I think that is in part true, Um, what we 490 00:27:42,640 --> 00:27:45,520 Speaker 1: have seen of late we've had, we have seen a 491 00:27:45,520 --> 00:27:50,240 Speaker 1: few green shoots. So the net petroleum draw that we 492 00:27:50,280 --> 00:27:53,920 Speaker 1: saw on Wednesday was a step in the right direction. 493 00:27:54,320 --> 00:27:58,080 Speaker 1: UM crew did build, but the refined products side, uh, 494 00:27:58,119 --> 00:28:00,960 Speaker 1: they all decline. So net net you had a small 495 00:28:01,119 --> 00:28:06,840 Speaker 1: modest draw. Production continues to bleed down modest as well, 496 00:28:06,960 --> 00:28:10,880 Speaker 1: but still continues to bleed down. What you really need 497 00:28:10,920 --> 00:28:15,440 Speaker 1: to see is a better sentiment on the demand side. 498 00:28:16,160 --> 00:28:21,199 Speaker 1: Right now, the imbalances remain wide, and investor indifference to 499 00:28:21,240 --> 00:28:25,480 Speaker 1: the space remains wide as well. UH So, still a 500 00:28:25,560 --> 00:28:28,040 Speaker 1: lot of wood to chop. I've used that terms several 501 00:28:28,080 --> 00:28:33,440 Speaker 1: times here. But you still have across the petroleum value chain, uh, 502 00:28:33,560 --> 00:28:37,560 Speaker 1: significant imbalances that you need to work through. UH. Crude 503 00:28:37,760 --> 00:28:41,240 Speaker 1: thirty above the five year average. This is known on 504 00:28:41,280 --> 00:28:46,440 Speaker 1: the products side themselves, gasoline and also distal. It's quite 505 00:28:46,520 --> 00:28:51,000 Speaker 1: robust relative to the five year average. We're coming into 506 00:28:51,160 --> 00:28:54,120 Speaker 1: uh in the process of of of a seasonal maintenance. 507 00:28:54,640 --> 00:28:58,640 Speaker 1: UH So you still have some some negative headwinds to 508 00:28:58,800 --> 00:29:01,840 Speaker 1: push through. But there are some green shoots that we 509 00:29:01,880 --> 00:29:05,120 Speaker 1: do see in front of us. Perhaps everybody saying, you know, 510 00:29:05,240 --> 00:29:08,920 Speaker 1: no deal on cutting output from OPEQ and non OPEC 511 00:29:09,000 --> 00:29:15,760 Speaker 1: companies countries. But did they cap agreement announced last week, 512 00:29:16,440 --> 00:29:18,280 Speaker 1: did that put a floor under oil because we really 513 00:29:18,280 --> 00:29:21,880 Speaker 1: haven't seen a big drop since then. Well, I really 514 00:29:22,640 --> 00:29:27,160 Speaker 1: can't agree with the argument that the freeze provided a 515 00:29:27,360 --> 00:29:32,800 Speaker 1: positive inflection because when you think about Russian output UM, 516 00:29:32,840 --> 00:29:36,160 Speaker 1: it's doubtful that that growth could have been much more 517 00:29:36,240 --> 00:29:41,520 Speaker 1: significant UM and Saudi capacity UH, it's doubtful that that 518 00:29:41,640 --> 00:29:44,360 Speaker 1: they could have raised this turn the spigin on even 519 00:29:44,400 --> 00:29:47,840 Speaker 1: more UM. So I don't see how that can be 520 00:29:47,960 --> 00:29:52,320 Speaker 1: viewed as a significant positive net net. You still have 521 00:29:52,520 --> 00:29:57,000 Speaker 1: Iranian capacity that's coming on, and you still have growth 522 00:29:57,080 --> 00:30:00,440 Speaker 1: from Iraq, so you still have on a global asis 523 00:30:00,640 --> 00:30:05,840 Speaker 1: these imbalances UH promoted by OPEK and it's willingness to 524 00:30:05,880 --> 00:30:10,480 Speaker 1: continue to produce. We've got just about thirty forty seconds left, 525 00:30:10,480 --> 00:30:12,920 Speaker 1: so I have to ask this quickly. But the bankruptcy 526 00:30:13,080 --> 00:30:17,959 Speaker 1: situation a month from now, well, we have seen UM. 527 00:30:19,000 --> 00:30:23,680 Speaker 1: What we have seen is continuing pressure on the operators, 528 00:30:23,840 --> 00:30:28,720 Speaker 1: especially those that have not hedged. Coming into sixteen. There 529 00:30:28,880 --> 00:30:32,680 Speaker 1: is a view that additional cap capex cuts are coming 530 00:30:32,760 --> 00:30:36,520 Speaker 1: in order to UH bring cash flow more in line 531 00:30:36,560 --> 00:30:40,239 Speaker 1: with capex. But there is stress in the system and 532 00:30:40,280 --> 00:30:42,920 Speaker 1: the operators are doing what they can to continue to 533 00:30:42,960 --> 00:30:46,480 Speaker 1: stay in the fight, but there will be ongoing stress 534 00:30:46,720 --> 00:30:49,480 Speaker 1: on some of the higher yield operators. Alright, well, we 535 00:30:49,520 --> 00:30:51,440 Speaker 1: gotta have you back talk more about that as we 536 00:30:51,480 --> 00:30:55,360 Speaker 1: get closer, uh to March. We're very close to March. 537 00:30:55,480 --> 00:30:57,840 Speaker 1: As we get into March, and we have to start 538 00:30:57,880 --> 00:31:00,120 Speaker 1: thinking about whether the banks are gonna start pulling their 539 00:31:00,200 --> 00:31:03,440 Speaker 1: loans or not. Vince Piazza from Bloomberg Intelligence, thanks very 540 00:31:03,520 --> 00:31:07,560 Speaker 1: much for coming in and joining us today, West Texas 541 00:31:07,720 --> 00:31:10,720 Speaker 1: thirty two oh six, Brent thirty four twelve, and we 542 00:31:10,760 --> 00:31:13,600 Speaker 1: were talking about gasoline and gasoline futures at a dollar 543 00:31:13,720 --> 00:31:17,600 Speaker 1: one right now retail gas one seventy two a gallon. 544 00:31:18,400 --> 00:31:23,680 Speaker 1: This is Bloomberg Radio Bloomberg Surrounds, brought to you by 545 00:31:23,760 --> 00:31:25,719 Speaker 1: s c n B. The Bank for Business is on 546 00:31:25,760 --> 00:31:27,880 Speaker 1: the move. Are you looking for the right banking partner? 547 00:31:27,880 --> 00:31:29,560 Speaker 1: Go to s c NB dot com to learn more. 548 00:31:29,640 --> 00:31:31,920 Speaker 1: Now open in Long Island City. Get your business moving 549 00:31:31,960 --> 00:31:40,200 Speaker 1: with s CNBLO Global Business News twenty four hours a day, 550 00:31:40,360 --> 00:31:43,560 Speaker 1: if Bloomberg dot Com, the radio plus mobile and on 551 00:31:43,640 --> 00:31:47,560 Speaker 1: your radio. This is a Bloomberg Business Flash and I'm 552 00:31:47,600 --> 00:31:49,880 Speaker 1: Karen Moscow This updates brought to you by c v 553 00:31:50,040 --> 00:31:51,880 Speaker 1: o E r MC. Come to the c b o 554 00:31:51,960 --> 00:31:55,120 Speaker 1: E Risk Management Conference February twenty nine to March two 555 00:31:55,440 --> 00:31:58,560 Speaker 1: at the highest regency Coconut Point, Florida. Register and learn 556 00:31:58,640 --> 00:32:01,040 Speaker 1: more at c b O E r M c US 557 00:32:01,080 --> 00:32:04,800 Speaker 1: dot com Best Buy, the largest US electronics retailer, saying 558 00:32:04,840 --> 00:32:08,120 Speaker 1: fourth quarter profit falls seven point seven percent as week 559 00:32:08,160 --> 00:32:11,320 Speaker 1: demand for phones and tablets heard sales. It's forecast for 560 00:32:11,360 --> 00:32:13,840 Speaker 1: the first quarter missed analysts estimates, and IT shares are 561 00:32:13,880 --> 00:32:17,280 Speaker 1: down three percent This morning. Toronto Dominion Banks and fiscal 562 00:32:17,280 --> 00:32:19,840 Speaker 1: first quarter profit rose seven point nine percent on gains 563 00:32:19,840 --> 00:32:23,040 Speaker 1: at its Canadian and US retail businesses. The lender raising 564 00:32:23,040 --> 00:32:25,680 Speaker 1: its quarterly dividends seven point eight percent to fifty five 565 00:32:25,680 --> 00:32:29,080 Speaker 1: cents a share. European stocks in US DOT Index futures 566 00:32:29,120 --> 00:32:32,120 Speaker 1: are higher, led by banks and energy company says Oil 567 00:32:32,480 --> 00:32:34,680 Speaker 1: Well Oil has turned lower again and we checked the 568 00:32:34,680 --> 00:32:38,200 Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg SNP, 569 00:32:38,320 --> 00:32:40,920 Speaker 1: EVENI futures are up to points, DOWI mini futures of 570 00:32:41,040 --> 00:32:44,080 Speaker 1: nineteen and NAS doc E many futures are up three dogs. 571 00:32:44,080 --> 00:32:47,000 Speaker 1: In Germany's up one point six percent ten your treasury 572 00:32:47,000 --> 00:32:49,719 Speaker 1: of six thirty seconds, the yield one point seven two percent. 573 00:32:50,080 --> 00:32:52,480 Speaker 1: Nimex screwed oils down four tenths per cent or twelve 574 00:32:52,560 --> 00:32:55,120 Speaker 1: cents to thirty two oh three. A barrel comes goal 575 00:32:55,200 --> 00:32:57,360 Speaker 1: down three tenths per cent or three dollars twenty cents 576 00:32:57,360 --> 00:33:00,120 Speaker 1: at twelve thirty five ninety an ounce the euros at 577 00:33:00,120 --> 00:33:02,520 Speaker 1: all our ten thirty six the en one twelve point 578 00:33:02,560 --> 00:33:05,440 Speaker 1: four six And that's a Bloomberg business flash. Tom and 579 00:33:05,480 --> 00:33:10,120 Speaker 1: Mike Karen, thank you very much. Sidney Finkelstein is one 580 00:33:10,160 --> 00:33:12,680 Speaker 1: of the loneliest people in the world. I think he 581 00:33:12,880 --> 00:33:15,920 Speaker 1: is the Roth Professor of Management at the Tuch School 582 00:33:15,920 --> 00:33:18,960 Speaker 1: of Business at Dartmouth College, which is in of course, Hanover, 583 00:33:19,000 --> 00:33:21,320 Speaker 1: New Hampshire. He and our old friend Danny Blanche for 584 00:33:21,320 --> 00:33:23,960 Speaker 1: our tim the only two people left in the state. 585 00:33:24,320 --> 00:33:27,200 Speaker 1: Now that the presidential candidates have all moved on and 586 00:33:27,200 --> 00:33:30,640 Speaker 1: the reporters have left the state, the primary is over, 587 00:33:31,120 --> 00:33:34,520 Speaker 1: and uh Professor Finkelstein, now, with enough time on his hands, 588 00:33:34,560 --> 00:33:38,480 Speaker 1: he was able to write a new book. It's called Superbosses. 589 00:33:39,040 --> 00:33:42,000 Speaker 1: And we hope our super bosses are listening because he 590 00:33:42,000 --> 00:33:44,920 Speaker 1: will give us advice on how to be one and uh, 591 00:33:45,040 --> 00:33:47,520 Speaker 1: weighing on some of the management issues out there in 592 00:33:47,520 --> 00:33:51,160 Speaker 1: the world today. Uh, you can you define a super 593 00:33:51,160 --> 00:33:53,360 Speaker 1: boss other than one that gives Tom and I a 594 00:33:53,400 --> 00:33:57,040 Speaker 1: big race? Well, you know, the super boss is a 595 00:33:57,120 --> 00:33:59,760 Speaker 1: leader of boss that actually helps the other people a 596 00:34:00,000 --> 00:34:02,000 Speaker 1: pumplish more than they ever thought possible. And you see 597 00:34:02,040 --> 00:34:04,600 Speaker 1: these people in different industries. When you look at a 598 00:34:04,640 --> 00:34:06,960 Speaker 1: generation of town that was developed by to have Bill 599 00:34:07,000 --> 00:34:10,279 Speaker 1: Walsh and football or an Alice Waters and in high 600 00:34:10,360 --> 00:34:13,719 Speaker 1: end restaurants, they just helped produce and generate tremendous town, 601 00:34:13,840 --> 00:34:16,440 Speaker 1: helped other people do great things. All Right, this is 602 00:34:16,480 --> 00:34:20,120 Speaker 1: an interesting question and interesting timing because we do have 603 00:34:20,200 --> 00:34:23,280 Speaker 1: this presidential campaign that blew through your state not long ago. 604 00:34:24,239 --> 00:34:27,279 Speaker 1: Do we have any evidence that any of the candidates 605 00:34:28,320 --> 00:34:31,080 Speaker 1: know how to manage? That's one of the criticisms of 606 00:34:31,120 --> 00:34:33,399 Speaker 1: the incumbent these days was that he was not a 607 00:34:33,480 --> 00:34:37,600 Speaker 1: boss before he became in charge of the hundreds of 608 00:34:37,640 --> 00:34:40,160 Speaker 1: thousands of people who worked for the United States government. 609 00:34:41,280 --> 00:34:44,880 Speaker 1: The amazing thing about politics is that pretty much until 610 00:34:45,239 --> 00:34:47,480 Speaker 1: the last couple of election cycles, you didn't have to 611 00:34:47,520 --> 00:34:50,719 Speaker 1: have any business experience. In fact, that would be really Odd, 612 00:34:50,719 --> 00:34:52,719 Speaker 1: and we ad mid Romney. Of course we have we 613 00:34:52,760 --> 00:34:55,799 Speaker 1: have Donald Trump, and the styles of all these people 614 00:34:55,800 --> 00:35:00,400 Speaker 1: are very different. But um, Trump certainly has a a 615 00:35:00,480 --> 00:35:04,000 Speaker 1: big track record. But running a real estate company and 616 00:35:04,440 --> 00:35:08,239 Speaker 1: mostly licensing your name to lots of other businesses is 617 00:35:08,320 --> 00:35:11,120 Speaker 1: less about management and more about branding. So even him, 618 00:35:11,280 --> 00:35:13,759 Speaker 1: even you know Trump, who's the most business like of 619 00:35:13,800 --> 00:35:16,720 Speaker 1: any of the players in the field today, um probably 620 00:35:16,840 --> 00:35:19,239 Speaker 1: is not done nor as a great manager. A rave 621 00:35:19,320 --> 00:35:21,360 Speaker 1: review for this book, folks, I'm gonna go to page 622 00:35:21,360 --> 00:35:24,200 Speaker 1: one in a minute, Professor Finkelstein. Even Jeff m. L. 623 00:35:24,320 --> 00:35:27,200 Speaker 1: He of the Dartmouth Green Luncher book, so at least 624 00:35:27,239 --> 00:35:29,840 Speaker 1: one copy was sold. Uh, you know, I saw Julian 625 00:35:29,920 --> 00:35:33,680 Speaker 1: robertson the other day and truly his Central Park you 626 00:35:33,880 --> 00:35:37,600 Speaker 1: feature him as a hands on delegator. M L is 627 00:35:37,680 --> 00:35:42,000 Speaker 1: known as a hands on delegator. This is a magical thing. 628 00:35:42,400 --> 00:35:46,399 Speaker 1: How do you be a hands on delegator? It's one 629 00:35:46,440 --> 00:35:49,480 Speaker 1: of the secrets to what superbosses they do. Took They 630 00:35:49,520 --> 00:35:52,160 Speaker 1: do two things that most people look at as as opposites. 631 00:35:52,200 --> 00:35:55,200 Speaker 1: You know, you're either a big delegator or your micro manager. Well, 632 00:35:55,280 --> 00:35:57,080 Speaker 1: what super bosses do is that they'll give you a 633 00:35:57,080 --> 00:35:59,399 Speaker 1: big job, will give you a big opportunity, but they'll 634 00:35:59,440 --> 00:36:01,480 Speaker 1: also show up to work with you up and on 635 00:36:01,600 --> 00:36:03,640 Speaker 1: an ounce for an hour, for a day. And it's 636 00:36:03,640 --> 00:36:05,680 Speaker 1: not that they're going to do your job, but because 637 00:36:05,719 --> 00:36:09,000 Speaker 1: they know so much about the business themselves, they're challenging you. 638 00:36:09,080 --> 00:36:11,600 Speaker 1: They're pushing you, they're teaching you, and they do both 639 00:36:11,600 --> 00:36:14,560 Speaker 1: of those things together. One of the things I deal 640 00:36:14,600 --> 00:36:17,000 Speaker 1: with every day, and folks, we have a really large 641 00:36:17,040 --> 00:36:20,200 Speaker 1: surveillance team that makes the show go for five hours, 642 00:36:20,640 --> 00:36:23,400 Speaker 1: is the way you tell people they screwed up, but 643 00:36:23,480 --> 00:36:27,439 Speaker 1: it's okay that you screwed up. That's a that That's 644 00:36:27,480 --> 00:36:30,640 Speaker 1: a delicate issue, isn't it. Yeah, that's a hard thing 645 00:36:30,719 --> 00:36:34,239 Speaker 1: to do, and you know, you have to provide feedback 646 00:36:34,320 --> 00:36:36,839 Speaker 1: whether somebody's doing a good job or not a good job, 647 00:36:37,040 --> 00:36:39,120 Speaker 1: you gotta tell him. But at the same time, you 648 00:36:39,160 --> 00:36:41,640 Speaker 1: can't kind of tamp down on anyone taking a risk, 649 00:36:41,680 --> 00:36:44,040 Speaker 1: taking a chance and getting getting punished for you know, 650 00:36:44,080 --> 00:36:46,080 Speaker 1: anything doesn't go quite right. Like you know, I go 651 00:36:46,160 --> 00:36:48,560 Speaker 1: to the index is always to find out where anybody, 652 00:36:48,600 --> 00:36:53,360 Speaker 1: including Sydney Finkelstein, is doing Yahoo or Marissa Meyer aren't 653 00:36:53,360 --> 00:36:57,880 Speaker 1: in the index, because you know that's that's an interesting thing. 654 00:36:58,040 --> 00:37:02,560 Speaker 1: Give us your appreciation of Merissa Meyer's tenure. Yeah, it's 655 00:37:02,560 --> 00:37:07,640 Speaker 1: been so visible, so controversial. It it has, and I 656 00:37:07,719 --> 00:37:10,919 Speaker 1: have some sympathy for her because she is he came 657 00:37:10,920 --> 00:37:13,800 Speaker 1: in with this mega, big brand name and as a result, 658 00:37:13,880 --> 00:37:16,399 Speaker 1: she's under the microscope. Of course, it goes hand in hand. 659 00:37:16,440 --> 00:37:18,160 Speaker 1: That big brand name is what helped you get that 660 00:37:18,280 --> 00:37:20,640 Speaker 1: job and helped her make as much money as she makes, 661 00:37:20,840 --> 00:37:23,640 Speaker 1: So now you have to produce. It hasn't gone well obviously. 662 00:37:24,040 --> 00:37:26,319 Speaker 1: Um I didn't include her in the in the book 663 00:37:26,360 --> 00:37:29,560 Speaker 1: because I didn't find any evidence that she was a 664 00:37:29,640 --> 00:37:32,279 Speaker 1: person that has this track record developing lots and lots 665 00:37:32,280 --> 00:37:35,120 Speaker 1: of other people. But you know, more specifically, I think 666 00:37:35,160 --> 00:37:37,400 Speaker 1: the problem Yahoo is no one's really figured out to 667 00:37:37,440 --> 00:37:39,640 Speaker 1: make money out of the thing other than some genius 668 00:37:39,680 --> 00:37:43,640 Speaker 1: moved to buy invest in Alibaba years ago. The thing 669 00:37:43,680 --> 00:37:45,520 Speaker 1: you hear over and over again for people who have 670 00:37:45,600 --> 00:37:48,760 Speaker 1: been successful is you should hire people who are smarter 671 00:37:48,880 --> 00:37:52,879 Speaker 1: than you. How do you do that? I don't think 672 00:37:52,920 --> 00:37:55,799 Speaker 1: it's actually that that hard. It takes some guts. You 673 00:37:55,840 --> 00:37:57,960 Speaker 1: have to be willing to look, you look at the 674 00:37:58,200 --> 00:38:01,279 Speaker 1: people you're you're interviewing and talking to and saying, you know, 675 00:38:01,320 --> 00:38:03,960 Speaker 1: I'm I want the world's mess people around me. And 676 00:38:04,000 --> 00:38:06,520 Speaker 1: you know what it takes. It takes tremendous if you 677 00:38:06,520 --> 00:38:09,200 Speaker 1: think about it, it it takes tremendous self confidence. You've got 678 00:38:09,200 --> 00:38:12,560 Speaker 1: to have that confidence not to feel threatened by people 679 00:38:12,600 --> 00:38:15,279 Speaker 1: that come in with tremendous track records. So we all know. 680 00:38:15,520 --> 00:38:17,160 Speaker 1: You know, it's a good thing to do, is you say, 681 00:38:17,360 --> 00:38:19,000 Speaker 1: But I think a lot of people have this this 682 00:38:19,080 --> 00:38:21,480 Speaker 1: element of insecurity. They don't want to be shown up, 683 00:38:21,560 --> 00:38:23,759 Speaker 1: and it's exactly the wrong thing that you want to 684 00:38:23,760 --> 00:38:25,520 Speaker 1: have because you're gonna you're gonna do way better if 685 00:38:25,520 --> 00:38:30,920 Speaker 1: you're surrounded by great people. What's the one thing, the 686 00:38:30,960 --> 00:38:32,959 Speaker 1: one thing somebody could do if they want to move 687 00:38:33,120 --> 00:38:39,400 Speaker 1: along the path to becoming a super boss. Well, for me, um, 688 00:38:39,440 --> 00:38:42,080 Speaker 1: it's it's a mindset. It's a way of it's a 689 00:38:42,120 --> 00:38:45,000 Speaker 1: way of thinking. It's saying, you know, I'm not just 690 00:38:45,120 --> 00:38:46,960 Speaker 1: going to do what I'm gonna do, but I'm going 691 00:38:47,000 --> 00:38:49,920 Speaker 1: to I'm going to focus very specifically on the people 692 00:38:49,960 --> 00:38:51,839 Speaker 1: around me and in my team. And there's so many 693 00:38:51,840 --> 00:38:55,839 Speaker 1: ways to start. You could, for example, customize how you 694 00:38:55,920 --> 00:38:59,160 Speaker 1: interact with people on your team. Customization, you know, being 695 00:38:59,160 --> 00:39:01,920 Speaker 1: close to customs is such a common obvious thing in 696 00:39:02,000 --> 00:39:04,360 Speaker 1: so many walks of life. But when it comes to 697 00:39:04,400 --> 00:39:07,279 Speaker 1: management and managing people, how bosses behave We have this 698 00:39:07,320 --> 00:39:10,080 Speaker 1: thing called leadership styles. Everybody talks about what type of 699 00:39:10,080 --> 00:39:12,040 Speaker 1: style they are, and I think that's I think it's 700 00:39:12,080 --> 00:39:15,080 Speaker 1: actually a dumb idea, because a leadership style gives you 701 00:39:15,120 --> 00:39:18,239 Speaker 1: an excuse to act the same way to everybody. That's 702 00:39:18,239 --> 00:39:20,120 Speaker 1: who I am. Yeah. But the heart of this, going 703 00:39:20,160 --> 00:39:23,319 Speaker 1: back to Catherine Happard and other great method actors, is 704 00:39:23,320 --> 00:39:26,200 Speaker 1: it's about method versus style. And in your world, and 705 00:39:26,200 --> 00:39:28,320 Speaker 1: I don't mean Tuck, but I mean in the pseudo 706 00:39:28,440 --> 00:39:32,080 Speaker 1: NBA world, you've got too many people yammering about style 707 00:39:32,440 --> 00:39:35,000 Speaker 1: and not worried about the core method, the day to 708 00:39:35,080 --> 00:39:38,759 Speaker 1: day method abow to provide leadership drive. That right, Well, 709 00:39:38,800 --> 00:39:41,520 Speaker 1: I'm not gonna denigrate the whole NBA world on that one, 710 00:39:41,520 --> 00:39:43,880 Speaker 1: but I happen agree to denigrade half of it. You 711 00:39:43,920 --> 00:39:46,080 Speaker 1: know why, the half that's not up in handled in 712 00:39:46,160 --> 00:39:49,279 Speaker 1: Hampshire maybe, Um, yeah, you know method, And I think 713 00:39:49,320 --> 00:39:51,680 Speaker 1: that's not a bad analogy. How you treat deeper, how 714 00:39:51,719 --> 00:39:55,000 Speaker 1: you interact with people, knowing what each person on your team, 715 00:39:55,120 --> 00:39:57,200 Speaker 1: what makes them tick, what now do you motivate them? 716 00:39:57,239 --> 00:39:59,800 Speaker 1: I mean that's something you mentioned Julian Robertson before, and 717 00:40:00,040 --> 00:40:02,040 Speaker 1: some with some of the interviews I did with you know, 718 00:40:02,080 --> 00:40:04,440 Speaker 1: people like Chase Coleman and others that have been, you know, 719 00:40:04,560 --> 00:40:08,319 Speaker 1: very successful. They talked about how Julian with Taylor, how 720 00:40:08,320 --> 00:40:10,920 Speaker 1: he interact with people and and some people he was 721 00:40:11,080 --> 00:40:13,640 Speaker 1: really really, really tough on, and other ones he understood 722 00:40:13,680 --> 00:40:15,279 Speaker 1: a different you know, maybe a little bit of a 723 00:40:15,360 --> 00:40:17,520 Speaker 1: lighter touch was needed to get people to go where 724 00:40:17,560 --> 00:40:21,560 Speaker 1: they needed to go. I'm curious as to how, if 725 00:40:21,600 --> 00:40:24,160 Speaker 1: you're a superboss you look at this. Is it an 726 00:40:24,160 --> 00:40:29,120 Speaker 1: effort to make the company great, make others succeed underneath you, 727 00:40:29,640 --> 00:40:32,520 Speaker 1: or is it an effort to make yourself look good 728 00:40:32,560 --> 00:40:37,120 Speaker 1: reflected in the way the company performs. So there's two 729 00:40:37,120 --> 00:40:39,080 Speaker 1: things I'd say that to that. You know, one is 730 00:40:39,080 --> 00:40:42,120 Speaker 1: a motivation in the first place, Not every superboss that's 731 00:40:42,160 --> 00:40:45,600 Speaker 1: the same motivation. Some are are driven by the idea 732 00:40:45,600 --> 00:40:48,920 Speaker 1: of helping other people get better, their nurtures, their their mentors. 733 00:40:49,160 --> 00:40:51,200 Speaker 1: And then there's others I think of Um, you know 734 00:40:51,280 --> 00:40:54,760 Speaker 1: someone like Larry Ellison who is really, really tough, and 735 00:40:55,000 --> 00:40:56,640 Speaker 1: it's not that he cares so much about the people 736 00:40:56,640 --> 00:40:58,880 Speaker 1: around him, but he does care about winning, and he 737 00:40:59,000 --> 00:41:01,719 Speaker 1: understands to win, you need the world's best talent, you 738 00:41:01,760 --> 00:41:04,560 Speaker 1: need the world best teams, and that's what helps those 739 00:41:04,560 --> 00:41:08,040 Speaker 1: other people get to get better. So the mindset could 740 00:41:08,040 --> 00:41:09,759 Speaker 1: be a little bit different depending on the person, but 741 00:41:09,800 --> 00:41:11,719 Speaker 1: they end up in the same place. They end up 742 00:41:11,760 --> 00:41:14,080 Speaker 1: doing pretty much the same types of things and how 743 00:41:14,120 --> 00:41:17,640 Speaker 1: they how they interact, and how they act. Thank you 744 00:41:17,680 --> 00:41:20,560 Speaker 1: so much, Citniy Finkelstein. Uh, it is short, it is sharp. 745 00:41:20,600 --> 00:41:25,160 Speaker 1: How exceptional leaders master the flow of talent superbosses This, 746 00:41:25,239 --> 00:41:28,640 Speaker 1: of course the good work out of Talk up at Dart. 747 00:41:28,680 --> 00:41:31,480 Speaker 1: But Mike, it's it just it really moves. I mean, 748 00:41:31,680 --> 00:41:35,280 Speaker 1: there's the show. The book rather uh two d twelve 749 00:41:35,320 --> 00:41:39,200 Speaker 1: two and fourteen pages just flies by. Are you are 750 00:41:39,239 --> 00:41:41,760 Speaker 1: you a superboss? To Aur, Well, you know I alluded 751 00:41:41,800 --> 00:41:43,480 Speaker 1: to that earlier. I don't know if I'm a super 752 00:41:43,480 --> 00:41:47,120 Speaker 1: boss or you're a super boss. But the basic idea 753 00:41:47,760 --> 00:41:51,600 Speaker 1: of doing it from a distance, you can't do that anymore. 754 00:41:52,400 --> 00:41:56,440 Speaker 1: John Rice ge and Davos, who works out of Hong 755 00:41:56,520 --> 00:41:59,920 Speaker 1: Kong was adamant. Distance is done. I mean you just 756 00:42:00,239 --> 00:42:04,280 Speaker 1: you don't do it from some throne or world headquarters 757 00:42:04,760 --> 00:42:08,200 Speaker 1: from a distance anymore. It's just done. You gotta be 758 00:42:08,239 --> 00:42:10,840 Speaker 1: in the trenches, even if you're keeping your mouth shut. 759 00:42:11,200 --> 00:42:13,080 Speaker 1: I don't do that. Why used with us while you 760 00:42:13,120 --> 00:42:14,719 Speaker 1: get Did I keep my mouth shut at the five 761 00:42:14,760 --> 00:42:19,160 Speaker 1: am meeting this morning? Never? Okay? Answer was never there. 762 00:42:19,160 --> 00:42:21,120 Speaker 1: It is, folks, in terms of how we do it. 763 00:42:21,120 --> 00:42:25,040 Speaker 1: It's yeah, my book is gonna be called super Putchets. 764 00:42:25,040 --> 00:42:28,200 Speaker 1: That's what I am. No, but but but but seriously, folks, 765 00:42:28,239 --> 00:42:32,560 Speaker 1: it's an interesting book. Sydney Finkelstein super Bosses as well. 766 00:42:32,600 --> 00:42:34,719 Speaker 1: We've got a super data check features up to down, 767 00:42:34,719 --> 00:42:39,080 Speaker 1: futures up nineteen yen stable at one forty four, actually 768 00:42:39,080 --> 00:42:42,680 Speaker 1: dollar declining off d x y a little bit. Michael 769 00:42:42,719 --> 00:42:46,880 Speaker 1: McKee and Tom Keane were delegating another hour of Bloomberg 770 00:42:46,960 --> 00:42:47,560 Speaker 1: surveillance