Speaker 1: Broadcasting live to New York, Cloomberg eleventh Rio to Washington,
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Speaker 1: This is Bloomberg Surveillance. Good morning. It is Say thirty
Speaker 1: on Well Street Michael McKee along with Tom Keene Economic
Speaker 1: indicators brought to you by Commonwealth Financial Network. When it's
Speaker 1: time to change the conversation, talk with a broker dealer
Speaker 1: r I A that's ready to listen Call eight six
Speaker 1: six four six two three six three. Visit Calealth dot
Speaker 1: com to learn more. Here's Vinnedale Judais with some economic data. Hello, Michael.
Speaker 1: Jobless claims up last week, up by seven thousand and
Speaker 1: two hundred sixty five thousand, just about in line with forecast.
Speaker 1: The current account trade deficit the broadest measure of trade
Speaker 1: meantime narrowing in the fourth quarter. We're still waiting for
Speaker 1: the Philadelphia Feeds Regional Manufacturing Report ten am, New York.
Speaker 1: Time we get figures on Jolt's job openings. Let's talk
Speaker 1: about the FED and the CPI real quickly Thursday, Uh,
Speaker 1: the CPI core topping forecast, a barage of reports from
Speaker 1: Wall Street. I might say I was kicking myself for
Speaker 1: missing it, A barage of reports saying this means the
Speaker 1: Fed is gonna go hawk ish. They're gonna signal a
Speaker 1: tighter grip. What happens, you know what happens, you know,
Speaker 1: they go otherwise. Now this morning we have Alan Greenspan. You,
Speaker 1: of course remember him saying inflation coming back is an
Speaker 1: issue when he cites the CPI data. Thoughts, I think
Speaker 1: that the Broncos are gonna have to find a quarterback somewhere. Well,
Speaker 1: there is that, but you have to wonder. No, But
Speaker 1: I think video you bring up a really important point,
Speaker 1: which is the jumble is out there right now. I
Speaker 1: like the I'm putting out right now in Bloomberg go
Speaker 1: Vinnie's comment on the current account balance, which I haven't
Speaker 1: looked at the ages and it's still I have to
Speaker 1: look at it compared to GDP. But it's sporting. Mike, absolutely, Vinnie,
Speaker 1: Thank you. Video. Uh. Vinny raises a good point. Chris
Speaker 1: Rupti Bank of Tokyo mitsu Ishi to answer the question.
Speaker 1: Chris we got this economic data. We don't care right
Speaker 1: because the FEDS doesn't care what's happening in the US
Speaker 1: right now. I mean, how do you how do you do? Yeah?
Speaker 1: I don't know. You know. Sometimes I hope I didn't
Speaker 1: overreact to the FEDS news yesterday. You know, the tone
Speaker 1: of the chairs testimony Q and A session is a
Speaker 1: little irritating with all the risks and uncertainty. She points
Speaker 1: to I. You know, I guess when you just break
Speaker 1: down what happened yesterday, ten of seventeen, we're looking for
Speaker 1: four rate hikes. You know, the committee split, you know,
Speaker 1: in terms of ideology and what they should do about it.
Speaker 1: So before in December ten of seventeen looks for for
Speaker 1: four great hikes. Now seven of seventeen hold that position,
Speaker 1: which is essentially three. So we went from ten to
Speaker 1: seven out of seventeen. I hope we didn't exaggerate it,
Speaker 1: but yeah, I was a little disappointed. Uh oh, come on,
Speaker 1: come on, folks, let me reach stop it. Chris, let
Speaker 1: me translate this for all of you worldwide. Chris Rusky
Speaker 1: synthesizes in short cogent balanced notes the full faith and
Speaker 1: credit fixed income market into economics. Literally like no one
Speaker 1: in the world. I mean, every every economist has skill sets. Chris,
Speaker 1: you are the foundation of optimistic com I quote Michael Incredibly,
Speaker 1: the fedacies even less urgency to normalize interest rates at
Speaker 1: today's meeting. Rutky was on fire yesterday at three p m.
Speaker 1: I say, yeah, well, what can I tell you? It's uh,
Speaker 1: it's with a wind up like that. I'm almost speechless here. Yeah,
Speaker 1: you know, it's just the policy is being run under
Speaker 1: the yelling sad, which is similar to the Bernaki said,
Speaker 1: it's been ten years now. It's it's being done very
Speaker 1: different than how Greenspan would have done it. How do
Speaker 1: you have done I think they would have normalized rates
Speaker 1: when Yelling says they're not on a presect course to
Speaker 1: raise rates. I don't think that's appropriate. Apology. Well, Mike,
Speaker 1: I don't mean to interrupt Chris, but I think this
Speaker 1: is really important. Mike. Did Ellen Greenspan ever have dead
Speaker 1: or live meetings? They were all alive because there was
Speaker 1: no news conference in those days. I mean, and that's
Speaker 1: the bizarre thing is they've added the news conference, but
Speaker 1: only every other meeting, So uh, the ones without news conferences, Chris,
Speaker 1: everybody just ignores. Yeah, it's just I mean, everything seems
Speaker 1: to be a little broken. I hope I'm not showing
Speaker 1: my age here, the baby boom generation. But the markets
Speaker 1: are very, very different. And one of the crazy things
Speaker 1: is that, you know, the Feds looking to the markets,
Speaker 1: the markets are looking at the said everyone's relying on
Speaker 1: your dollar futures, which is the string of you know,
Speaker 1: futures contracts where you can bet on where three month
Speaker 1: libel is going to be in the future. The path
Speaker 1: of rates the sad things, but that curves enormously distorted
Speaker 1: by the fact all this corporate bond issuance and swapping
Speaker 1: where people want to pay floating rates. Who wouldn't you know,
Speaker 1: you usul a bond at three or four percent and
Speaker 1: you end up paying just point five right, the said
Speaker 1: funds rates. So that curve is distorted by the fact
Speaker 1: that the Fed's kept rates down here for eight years.
Speaker 1: You know, people are taking the bed. It's like I
Speaker 1: tell people rates are going to go up, and people say, okay,
Speaker 1: but in the meantime, I'm gonna pay floating here. I mean,
Speaker 1: who would not want to x money free? Remember the
Speaker 1: concept of the risk free interest rate, risk free return
Speaker 1: I mean everything I learned as a c if A
Speaker 1: has gone out the window here at the moment with
Speaker 1: this zero zero rate idea. But I don't want to
Speaker 1: get two worked up here. No I'm not angry. No,
Speaker 1: you wouldn't be. You come into work every day and
Speaker 1: you have no reason for being well. I think we're
Speaker 1: gonna come back with Chris Ruppie quickly, Chris, how many
Speaker 1: rate hikes this year? I'm gonna say free, because really
Speaker 1: I have to. I have to be the lone voice
Speaker 1: and the wilderness. Yeah, no, I think they need in
Speaker 1: a normal, live po Okay, we're gonna set up here.
Speaker 1: This is a beautiful and respectful debate between Mr Ruskie
Speaker 1: and Bank of Tokyo, and it's a bi of course,
Speaker 1: ellen Zenter making a huge splash a Morgan Stanley aggressively
Speaker 1: last year and now even further going to one rate
Speaker 1: hike uh this year. So that sets up a nice
Speaker 1: tension to move his forward, and of course the effect
Speaker 1: on yields and the effect on markets as well, some
Speaker 1: real emotion. Two hours ago after the BOE announcement, currency
Speaker 1: markets have stabilized. Yeah, one eleven eighty three weaker yen.
Speaker 1: What's happening around the world. Let's get the answer from
Speaker 1: Michael Barb. Mike con thank you very much. President Vladimir
Speaker 1: Putin says Russia can again build up its forces in
Speaker 1: Syria in a few hours if necessary, and we will
Speaker 1: continue to strike extremist groups. On Monday, Putin ordered the
Speaker 1: withdrawal of the bulk of Russian war planes from Syria,
Speaker 1: as Syrian peace talks began in Geneva. U s Supreme
Speaker 1: Court nominee Merritt Garland will meet Democratic Senators Harry Reid
Speaker 1: and Patrick Leahy on Capitol Hill today. Senate Republicans insists
Speaker 1: they will not consider any nominee until a new president
Speaker 1: takes office. Anti government protests erupted in Brazil, and it
Speaker 1: comes after President dil Marusso named Luis Ignatio Lula the
Speaker 1: Silva as chief of staff yesterday. Russef says the move
Speaker 1: was not the shield the former president from a corruption probe,
Speaker 1: but a federal judge released phone recordings that critics say
Speaker 1: suggest otherwise. President Obama spoke at a White House event
Speaker 1: yesterday to celebrate a women's history month. The president says
Speaker 1: it's time for the nation's leaders to reflect the majority
Speaker 1: of its population. Wouldn't it be better for America if
Speaker 1: women weren't discouraged from seeking office because of double standards,
Speaker 1: and we have more women and possessions of power of
Speaker 1: high office. Global News twenty four hours a day, powered
Speaker 1: by our journalists and more than one hundred fifty news
Speaker 1: bureaus from around the world. Michael la Bar, Mike Tom,
Speaker 1: Thank you, Michael. Time now for the ran Contina Auto
Speaker 1: Group Bloomberg NBC Sports Update. If that means John stash up, Michael.
Speaker 1: The Knicks play of the Warriors. Nick fans can't help
Speaker 1: but wonder what could have been the two thousand nine
Speaker 1: NBA draft. Golden State had the seventh pick that year
Speaker 1: and took Steph Curry. The Knicks picked eight, would have
Speaker 1: taken and Curry. Had the Warriors not, they settled for
Speaker 1: the long since forgotten Jordan Hill day at the office
Speaker 1: for Curry last night, thirty four points without even playing
Speaker 1: the fourth quarter, made eight of thirteen threes. The Warriors
Speaker 1: rolled eighty five, now sixty one and six with fifty
Speaker 1: consecutive regular season home victories. It's the knicks nineteenth loss
Speaker 1: in their last twenty five games. Rangers in Anaheim out
Speaker 1: ended two games losing streak at Kevin Klein. Giveaway in
Speaker 1: the first period led to a Duck's goal, but Clients
Speaker 1: scored in the second and then then again with six
Speaker 1: forty left in the third for a two one win.
Speaker 1: Cliented only scored six goals all year. He had never
Speaker 1: had a two goal game. It's eleven year NHL career
Speaker 1: college basketball n C Double A wins for Holy Cross
Speaker 1: and Michigan. The tournament begins in Earnest today. Seaton Hall,
Speaker 1: having just won the Big East Tournament for the first
Speaker 1: time since nineteen three, takes on Ginzaga in Denver. That's
Speaker 1: the last of the games today. Iona is also in Denver.
Speaker 1: The Gale tip at two o'clock against Iowa State Stony
Speaker 1: Brooks first Turney game ever Tonight in Des Moines, Iowa
Speaker 1: against Kentuck. Also Yale's first n C double Day games
Speaker 1: with nineteen sixty two versus Baylor. Yukon takes on Colorado.
Speaker 1: Monmouth got snugged by the n C Double A did
Speaker 1: advance of the n I t over buck Now Wagner
Speaker 1: me St. Bonaventure, Hofstra outstoed by g W eight two
Speaker 1: eighty Princeton lofton overtime at Virginia Tech with the Bloomberg
Speaker 1: NBC Sports update of John Stashow. John, thanks so much.
Speaker 1: What an interesting market, and of course things have quieted
Speaker 1: down here or futures were negative eight nine, you didn't
Speaker 1: see it so much in the equity markets. The two
Speaker 1: year yield point eight five right now is almost round
Speaker 1: trip this morning. I need to get up here, uh quickly,
Speaker 1: just the entry day, the two year yield the low
Speaker 1: point eight one zero six, so we've really bounced back
Speaker 1: off of the Bank of England meeting. Stay with us.
Speaker 1: Bloomberg Surveillance, Bloomberg Sports were what brought you by the
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