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

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Speaker 1: dot com, the Radio plus mobile app and on your radio,

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Speaker 1: this is a Broomberg business flash and I'm parent Moscow.

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Speaker 1: This update has brought to you buy untucked It. Think

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Speaker 1: Shares in developing nations around the break of a bowl

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Speaker 1: market as oil rises and favorable shifts in central bank

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Speaker 1: policy supported riskier assets, bonds extending this week's gain. US

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Speaker 1: DOT Index futures higher, SNP e Many futures up six

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Speaker 1: points this morning, now e Many futures up fifty one,

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Speaker 1: and nasdaki many futures up eleven. The decks in Germany's

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Speaker 1: up four tenths per cent, ten year treasury up six

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Speaker 1: thirty seconds. The yelled one eight seven percent. Nimex Hered

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Speaker 1: oil up one percent or seventy two cents to forty

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Speaker 1: ninety two cents of barrel co Max Schold is down

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Speaker 1: eight ten percent, or ten dollars to announced. The euro

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Speaker 1: a dollar twelve seventy eight and one eleven point four four.

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

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Speaker 1: so much. What is James Sweeney of Credit Sweet Mike.

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Speaker 1: It now has its own Wikipedia page, which I think

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Speaker 1: is pretty cool. And if you want to get a

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Speaker 1: date on the phrase ring fence, you sort of within

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Speaker 1: the jargon of it, go back to seven in n

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Speaker 1: run regulatory chat and it's just sort of thing. Neil Sauce,

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Speaker 1: the Credit Sweez codified the phrase as far as I'm concerned,

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Speaker 1: around August of two thousand seven, where we we we

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Speaker 1: needed to ring fence our financial crisis. James Sweeney's with us,

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Speaker 1: working with Dr Sauce every day at Credit Sweez. What

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Speaker 1: are we ring fencing right now? Nominal gdp UM. I

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Speaker 1: think we are ring frencing the bond market. We've heard

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Speaker 1: that this week. Yeah, we're keeping yields law. And you know,

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Speaker 1: you could go back in time to the post war

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Speaker 1: period when yields were very low when World War two

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Speaker 1: ended and they rose very slowly for the next two

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Speaker 1: or three decades, and um, you know, I don't know

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Speaker 1: whether we have the same world, and that is possible,

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Speaker 1: but it appears that the central banks are going to

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Speaker 1: do what it takes to keep risk premier, low duration, low,

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Speaker 1: long term yields low for a variety of reasons. UM,

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Speaker 1: they say it's to keep inflation near two percent. The

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Speaker 1: trouble is it in the US case, core inflation is

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Speaker 1: drifting up above two So there's a conflict. How long

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Speaker 1: can we keep this uh uncoordinated coordinated action going? Well

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Speaker 1: that obviously it depends on inflation. I think that we

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Speaker 1: will see the labor market continue to tighten in the US.

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Speaker 1: I think we're seeing wages at the low end of

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Speaker 1: the of the scale start to rise, low end of

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Speaker 1: the income distribution, which is which is helpful UM. But

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Speaker 1: financial markets, I think the outlook for returns and in

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Speaker 1: a lot of asset classes is really not great right

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Speaker 1: now on a medium term perspective. And fragilities and markets

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Speaker 1: around the world, given given especially concerns about China are high.

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Speaker 1: So there's there's that the tension is large. I think

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Speaker 1: they're gonna they're gonna keep it this way as long

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Speaker 1: as they can. There's no chance that we get any

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Speaker 1: kind of non monetary help for the global economy. No,

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Speaker 1: And the the reason, UM, the reason simply printing money

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Speaker 1: and handing it out to people who would spend it

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Speaker 1: immediately UM is not likely to happen anytime soon. Is

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Speaker 1: because the costs of such a policy are very high

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Speaker 1: relative to the benefits of getting inflation somewhat higher, especially

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Speaker 1: in places where really UM Unemployment is low. In the US,

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Speaker 1: unemployment is low, in Japan, it's low. In Europe it's high,

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Speaker 1: but but falling. Uh. We don't really have economies and collapse.

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Speaker 1: We just have low productivity and income distribution concerns, and

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Speaker 1: that makes us unhappy and full of angst. But I'm

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Speaker 1: not sure central banks can actually set productivity or make

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Speaker 1: people feel good when they're when their wages aren't going up,

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Speaker 1: all other people's are. How do we break out of this? Uh?

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Speaker 1: While it probably requires fiscal measures or it requires some

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Speaker 1: changes in the world, I'm I'm optimistic over the long

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Speaker 1: term that we will have UH some more productivity. There

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Speaker 1: will be new waves of technology. I think we have

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Speaker 1: hacked had actually a lot of technology in the past

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Speaker 1: ten or fifteen years. It's just it's not that hype

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Speaker 1: that really drives GDP immediately. But it isn't our history

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Speaker 1: when we have a jump condition and technology. Let's think railroads,

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Speaker 1: that we go through a decade or two of failures

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Speaker 1: before coal US is into real value, productivity and growth,

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Speaker 1: and maybe all the mumbo jumbo is starting about is

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Speaker 1: a couple of decades. And do you have any optimism

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Speaker 1: that five ten, twenty years out it coal US is

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Speaker 1: into legitimate morning in America? I do? I do. I

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Speaker 1: think the the antidote to reading a lot of Robert

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Speaker 1: Gordon is reading a lot of Ray Kurts while and

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Speaker 1: and and thinking about, um, how the world is changing

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Speaker 1: on the ground and what smart machines are gonna do

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Speaker 1: for us. I mean, they might not solve our distribution problems,

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Speaker 1: but they sure are going to give us a lot

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Speaker 1: of products. And that and Mike, that goes to Bryn

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Speaker 1: Jolson and McAfee and they're wonderful book of of a

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Speaker 1: year ago. Mike, I think it is you know, we

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Speaker 1: do this with Laron when we talk about the Jets

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Speaker 1: and they go under five hundred. Is it too rude

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Speaker 1: to mention how short Florida State season was in basketball?

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Speaker 1: I mean, is it two rude? We did it? We

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Speaker 1: just did it. Was I looked at my bracket, they

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Speaker 1: weren't there, So they were in that other tournament and

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Speaker 1: then they weren't there. What happened, James, My my n

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Speaker 1: I T bracket is not doing some kind of in

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Speaker 1: an I T bracket nerd. But they're a young team.

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Speaker 1: I think they've got good recruits coming in next year.

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Speaker 1: They've got good freshman this year. Don't don't you wear

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Speaker 1: in North Carolina and Duke in Syracuse and year? Okay,

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Speaker 1: but seriously, Florida State basketball is that like duke football?

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Speaker 1: I mean, I mean, you guys are so dominant with

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Speaker 1: the Duke football has been all right in the last

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Speaker 1: three or four years. Yeah, but it's definitely overshadowed by

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Speaker 1: another team on campus. We've gotten through twenty four minutes

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Speaker 1: of this hour without me mentioning the total clips was

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Speaker 1: that song? Total eclipse of the sun? Total eclipse of

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Speaker 1: my bracket? I don't even want to mention that was

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Speaker 1: not a good day yesterday for a lot of people,

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Speaker 1: linked the people in this room. Uh, you know, it

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Speaker 1: is gonna be the first day of spring on Sunday,

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Speaker 1: and it is the earliest spring since eighteen ninety six.

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Speaker 1: It all has to do with the vernal equinox we'll

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Speaker 1: talk about school should have learned later in the program

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Speaker 1: Vital Equinox. They were so damn good. They had a

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Speaker 1: song in Watership remember them in the sixties, were so,

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Speaker 1: they were like early seventies. They were so. They were

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Speaker 1: in Watership down Friday. What passes for it? Michael McKee

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Speaker 1: and Tom Keats stay with It's Bloomberg Surveillance on Wall Street.

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Speaker 1: Bloomberg Surveilance brought to you by Mercedes Benz this month,

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