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

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Speaker 1: bloom to Boston, Bloomberg dwelve unders to San Francisco, Bloomberg

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Speaker 1: nine to the country. So he is at channel one

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Speaker 1: ninety and around the globe the Bloomberg Radio plus seven

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Speaker 1: Bloomberg dot Com. This is Bloomberg Surveillance. The morning at

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Speaker 1: seven thirty. I'm Michael McKee along with Tom Keene seven

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Speaker 1: thirty Wall Street, where in a couple of hours we

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Speaker 1: will start the last training day of the week with

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Speaker 1: the Dow Jones Industrial is now positive for the first

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Speaker 1: time this year, and the futures suggest a higher opening today.

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Speaker 1: News that may affect training today. Tiffany out with earnings

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Speaker 1: fourth quarter better than forecast earnings per share of a

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Speaker 1: dollar forty six the estimate dollar forty cups. Sales were

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Speaker 1: down five percent, but that's better than the five point

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Speaker 1: one percent that was seen in Tiffany sees two thousand

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Speaker 1: sixteen earnings unchanged to down mid single didgets You'd be

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Speaker 1: s group raising its bonus pool by fourteen. In two

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Speaker 1: thousand fifteen, chief executive Sergio or Maadi got increase TransCanada,

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Speaker 1: undertaking his biggest ever deal with the purchase of Columbia

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Speaker 1: Pipeline Group ten point two billion dollars. Murder Friday. Here

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Speaker 1: now it's time to check in with Michael Barr and

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Speaker 1: get the latest world in national headlines Like Mike, thank

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Speaker 1: you very much. Bernie Sanders says he still believes there

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Speaker 1: is a way to win the Democratic presidential nomination despite

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Speaker 1: Hillary Clinton's lead of more than three committed delegates. He's

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Speaker 1: predicting the upcoming races in several Western states, including Arizona

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Speaker 1: and Washington, will offer him a chance to catch up.

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Speaker 1: Senator Marco Rubio says hopefully there is still time to

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Speaker 1: prevent a Donald Trump domination that would fracture the Republican

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Speaker 1: Party and damage the conservative movement. The former Republican presidential

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Speaker 1: candidate answered questions about his political future. Not gonna be

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Speaker 1: anybody's vice president. I'm not. I'm just not gonna. I don't.

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Speaker 1: I'm not interested in being vice president, and I mean

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Speaker 1: not in a disrespectful way. It's I'm not gonna be

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Speaker 1: a vice president. I'm not running for governor of Florida.

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Speaker 1: Rubio also says people are going to write books about

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Speaker 1: this political season. Global News twenty four hours a day,

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Speaker 1: powered by our twenty four hundred journalists and more than

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Speaker 1: a hundred fifty news bureaus from around the world. I'm

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Speaker 1: Michael Barr, Mike, thank you, Michael. Time now for the

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Speaker 1: Katina Outogon and Bloomberg NBC Sports Update with John stash Our,

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Speaker 1: John Michael, New York Area will represented the n C

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Speaker 1: Double A tournament, but first fairly Dickinson lost and now Seaton, Hall,

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Speaker 1: Iona and stony Brook all out as well. The surprise

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Speaker 1: was the Pirates, seated sixth after winning the Big East

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Speaker 1: Tournament but never really in it in their first tourney

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Speaker 1: game in a decade of sixty eight fifty two, lost

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Speaker 1: again Zaga, Seaton Hall star Isaiah whitehead shot just four

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Speaker 1: for twenty four. Iona also in Denver, felled Iowa State

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Speaker 1: ninety one. Dream season for stony Brook, but it was

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Speaker 1: the seawells first n C Double A game ever and

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Speaker 1: Kentucky's won the Toorney eight times. Wildcats ruled eighty five

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Speaker 1: fifty seven. The big story was Yale sev seventy five

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Speaker 1: upset of Baylor, fourth time in the seven years the

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Speaker 1: Ivy League champ has won. It's open our Gale plays

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Speaker 1: Duke tomorrow Defenny Champs. Trailed at the half, it came

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Speaker 1: back on nc Wilmington, Yukon wanted two years ago on

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Speaker 1: another post season run, seventy sixty seven over Colorado. Sixteen

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Speaker 1: more games today and tonight, including four in Brooklyn. All

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Speaker 1: three local hockey teams played, only the Devils were at home.

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Speaker 1: Only the Devil's won seven four over in Minnesota. Rangers

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Speaker 1: lost in overtime in l A, four to three. They

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Speaker 1: blew a three one third period lead on Jake Coopitar

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Speaker 1: tied the game for the Kings, and then one it

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Speaker 1: no t Islanders lost at Nashville four to two. In Chicago,

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Speaker 1: the Bulls beat the Nets one eighteen one oh two.

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Speaker 1: Where the Bloomberg NBC Sports Update I'm John Stashall, Thank you.

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Speaker 1: John mentioned that the doubt was positive for the year

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Speaker 1: so far and future suggest to higher opening forty six

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Speaker 1: points up right now on the E mini's three tenths

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Speaker 1: of a percent SMP Eveni's up by six points. That's

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Speaker 1: a three tenths game as well. Europe higher this morning.

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Speaker 1: It sucks six hundered up by one point four tents

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Speaker 1: of eight percent, and the foot seat is twenty six

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Speaker 1: points higher in London four tenths of eight percent as well.

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Speaker 1: So we're starting off a lot of green on the

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Speaker 1: screen and we'll keep track of all that up to

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Speaker 1: the open. At nine thirty this morning. This is Bloomberg

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Speaker 1: Surveillance siby Co McKee along with Tom Keene oil prices

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Speaker 1: driving stocks higher today West Texas over forty dollars forty

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Speaker 1: eight two and gaining up one point six percent today.

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Speaker 1: Brent twelve up one point four percent, also gaining on

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Speaker 1: the day, and it seems to be driving a lot

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Speaker 1: of optimism about equities right now. It is time for

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Speaker 1: the Bloomberg n j I T Stam Report, brought to

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Speaker 1: you by a New Jersey Institute of Technology partnering with

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Speaker 1: government and industry to apply the university's world class research

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Speaker 1: assets to innovate in spur economic growth. Learn more at

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Speaker 1: n j I T dot e d U. Here's Bob

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Speaker 1: Moon Michael, Good morning. What's happening in science, Technology, engineering

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Speaker 1: and math. Now, Apple's engineers might become the roadblock in

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Speaker 1: the battle over helping crack into a terrorist iPhone. The

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Speaker 1: New York Times reports Apple employees have discussed whether they'll

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Speaker 1: cooperate if their ordered to help the FBI and it's

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Speaker 1: Some have even talked about quitting their high paying jobs

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Speaker 1: to avoid being forced to weaken the software barriers they've

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Speaker 1: already created. Google's parent Alphabet Incorporated, is tightening up on

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Speaker 1: the various properties under its corporate umbrella to make sure

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Speaker 1: they'll generate real revenue to People familiar with the plans

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Speaker 1: say it's decided Boston Dynamics, Google's robotics operation, isn't likely

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Speaker 1: to produce a marketable product in the next few years,

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Speaker 1: so it is being put up for sale. When Atlas says,

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Speaker 1: what's happening in Japan should remove any doubts about the

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Speaker 1: Nintendo brands relevancy in the smartphone age. Nintendo aims to

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Speaker 1: bring back players who strayed from its dedicated hardware, the

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Speaker 1: Wei and handheld devices, and it's fort steps appear to

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Speaker 1: be solid in the Japanese market anyway. Market researcher app

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Speaker 1: Ani reports today that Nintendo's free messaging based app Mitomo,

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Speaker 1: which lets users create and interact with their own avatar,

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Speaker 1: are launched in the top spot among social networking apps

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Speaker 1: for Apple devices in Japan. It's only available there, but

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Speaker 1: Nintendo plans to release Mitomo in fifteen more countries, including

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Speaker 1: the US, this month. And that's your Bloomberg and j I. T.

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Speaker 1: Stone report, Michael, Thank you, Bob. Charles Millard Doo was

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Speaker 1: the former director of the Pension Benefit Guarantee Corporation, where

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Speaker 1: you got a chance to see just how bad shape

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Speaker 1: US pension systems are. And he then went to City

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Speaker 1: Group where he started studying pension systems around the world.

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Speaker 1: And you have found that we have a major problem

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Speaker 1: out there. The groundwork laid for problems around the world

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Speaker 1: because there's just not enough money to fulfill all the promises. Yeah,

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Speaker 1: good morning, UH, it's very good to be with you.

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Speaker 1: But it is a very very big problem. UM. We

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Speaker 1: have UH in twenty o e C D countries UM

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Speaker 1: balance sheet debt sovereign debt like treasuries UH for these

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Speaker 1: twenty countries of approximately forty four trillion dollars. But what

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Speaker 1: is not on their balance sheet is the additional seventy

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Speaker 1: eight trillion of existing unfunded retirement obligations. So think about

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Speaker 1: it this way. Imagine that you had a mortgage that

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Speaker 1: was four hundred thousand dollars and the bank Beljiuban said no,

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Speaker 1: Actually it's one point three million dollars because underneath the

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Speaker 1: bottom of the ASPERG is this enormous amount of unfunded

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Speaker 1: pension liabilities. And what's worse is that, you know, if

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Speaker 1: my payment stays the same, I can keep making it

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Speaker 1: in perpetuity. But if my salary gets cut, I'm not

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Speaker 1: gonna be able to keep up with that bank raising

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Speaker 1: my mortgage. And at this point, we're going to have

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Speaker 1: fewer people contributing to these pension funds with the demographic trends. Yeah,

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Speaker 1: the demographics are really astounding. Uh start with the idea

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Speaker 1: that when Social Security was created, uh, many people didn't

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Speaker 1: make it to sixty five. Now, of course, many many

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Speaker 1: more people do make it to sixty five, a much

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Speaker 1: greater sentence to the population. And then think about how

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Speaker 1: many years a sixty five year old expected to live.

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Speaker 1: In let's say ninety they expected to live about twelve years.

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Speaker 1: How many years does sixty year old expect to live today?

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Speaker 1: Twenty years. So one of our suggestions is that we

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Speaker 1: should raise retirement ages, and it would over time. We're

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Speaker 1: not going to raise them by two or three or

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Speaker 1: four years, you know, and in a year or in

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Speaker 1: a month or immediately, but over time raised them and

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Speaker 1: then set them to what is the real the amount

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Speaker 1: of retirement that we're willing to fund the many, you know,

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Speaker 1: the the years of retirement that we think are should

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Speaker 1: be the average would be let's say twelve, Then the

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Speaker 1: retirement age would go up to an age that would

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Speaker 1: be twelve years short of the expected average life ending.

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Speaker 1: Now most people, if you survey people, it doesn't seem

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Speaker 1: to be a lot of support for stuff like that,

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Speaker 1: maybe because they don't know how bad things are. Well,

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Speaker 1: the numbers that I mentioned to you, and the reason

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Speaker 1: we um in our reports show them as you know,

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Speaker 1: an udneath the ice ferg is because they're not published.

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Speaker 1: And I don't want to say anybody's hiding anything, it's

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Speaker 1: just that the nature of government budgets is they don't

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Speaker 1: put these on their balance sheet. So when you look

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Speaker 1: at these c D countries and you think they owe

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Speaker 1: forty four trillion, that's fine, but they're really going to

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Speaker 1: have to pay out one point three excuse me, forty

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Speaker 1: four trillion, They're gonna have to pay out a hundred

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Speaker 1: and thirty trillion. Now, there is one technical difference. We

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Speaker 1: refer to this as contingent debt in the sense that

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Speaker 1: some of this our pension obligations, but some of this

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Speaker 1: is more like social security, and a government could change

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Speaker 1: the law and say, well, we're going to make social

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Speaker 1: Security pay less. So that's possible. So in that sense,

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Speaker 1: it's not the exact same as a treasury debt. But

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Speaker 1: if you don't change the law, it's gonna cost you

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Speaker 1: just as much as if it were debt. I just

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Speaker 1: have about thirty seconds left. But if we don't change

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Speaker 1: the law, what happens, Well, if we don't change the law,

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Speaker 1: we're gonna have a lot less money available for police,

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Speaker 1: for firefighters, for teachers, for other government expenditures, for in

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Speaker 1: structure or for the ticker tape parade they're gonna have

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Speaker 1: in Worcester. When Holy Cross wins the n c A A. Uh, well,

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Speaker 1: it's still in you know, you're you haven't been knocked

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Speaker 1: out yet. But you gotta play, obviously, and we'll see

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Speaker 1: how that caused lay here today. Charles, Well, thank you

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Speaker 1: very much for joining us. Obviously, his bracket going a

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Speaker 1: little bit better John Tucker than Tom and Tom and mine.

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Speaker 1: He's gonna wait for his team to play first. Yeah,

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Speaker 1: that always helps. Um. Everybody's an optimist till they take

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Speaker 1: the court. Uh. We're still wondering what happened in my household.

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Speaker 1: To Arizona and to Baylor. Congratulations to Yale's Bulldogs, UM

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Speaker 1: fifty six years or something tournament and a one uh.

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Speaker 1: And then Arkansas Little Rock beating Ms. Rachel's team from

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Speaker 1: West Lafayette, NA. Hurt that hurt. Yeah. Bloomberg Surrounds brought

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Speaker 1: you by Audi meadow Lands in Secaucus, New Jersey, powered

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