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

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

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Speaker 1: this is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: They said, Date's brought to you buy American Arbitration Association.

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Speaker 1: U s Dock Index future is lower as investors assessed

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Speaker 1: China's growth prospects. We checked the markets every fifteen minutes

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Speaker 1: throughout the trading day on Bloomberg Snpe Many futures down

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Speaker 1: seven points Downie Many futures down forty one and Nasdachi

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Speaker 1: many futures down eighteen. DAX in Germany's down nine tenths percent.

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Speaker 1: Ten year treasury down eight thirty seconds. The yield one

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Speaker 1: point nine zero percent, yield on the two year point

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Speaker 1: eight eight percent. Non max screwed oil up one point

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Speaker 1: seven percent or fifty nine cents to thirty six fifty two.

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Speaker 1: A barrel comes gold up to tenths per cent or

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Speaker 1: two dollars to seventy two seventy announced the euro and

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Speaker 1: all our oh nine six one the en one thirteen

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Speaker 1: point five eight iron ores sore the most ever after

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Speaker 1: Chinese policymakers signaled their willingness to buttress economic growth, boosting

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Speaker 1: the outlook for steel consumption and the top user, and

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Speaker 1: igniting speculation that some investors who had bet against the

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Speaker 1: market had been caught out and people familiar with the matter.

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Speaker 1: SYBS s F is working with advisors and financing banks

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Speaker 1: on the merits of making a counterbid for du Pont,

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Speaker 1: the billion dollar chemical company that agreed to a merger

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Speaker 1: with dal Chemical in December. That's a Bloomberg business flash,

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Speaker 1: Tom and Mike Mosca, thank you very much. We're talking

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Speaker 1: with the dean of the Tufts Fletchers School, Admiral James

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Speaker 1: de Res. He is a former Supreme Commander of US

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Speaker 1: Forces in Europe and he's making a smarter about foreign policy.

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Speaker 1: As we considered the two thousand sixteen presidential race, Uh,

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Speaker 1: we have candidate, most of the candidates, shall we say,

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Speaker 1: who are running for president on both sides of the aisle,

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Speaker 1: did not make a mark or their market in foreign policy. Admiral,

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Speaker 1: So what is it that a new president needs to

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Speaker 1: know what's the most important thing for them when they

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Speaker 1: come to office, because many of our presidents have not

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Speaker 1: had a lot of foreign policy experience when they take

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Speaker 1: the oath of office. Now that's a great point, Mike.

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Speaker 1: Let's say at the top of my list is actually temperaments. Um,

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Speaker 1: what you need is a president who, even if he

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Speaker 1: or she is not traveled extensively or had big jobs

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Speaker 1: in foreign policy, at least has a proclivity for the

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Speaker 1: international world, is interested in, is intrigued by it, and

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Speaker 1: recognizes how intertwined the US economy is with the rest

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Speaker 1: of the world. Secondly, a president needs to make good

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Speaker 1: choices about advisers. So I'll be listening as the campaign

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Speaker 1: unfolds as to who these candidates think they will bring

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Speaker 1: with them on their teams. So those are two things

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Speaker 1: that start with, and well, good morning. I should point

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Speaker 1: out if we pointed out before the animals, Davita's joined

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Speaker 1: when it was least popular to be part of the military.

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Speaker 1: I believe that was in the vicinity plus or minus

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Speaker 1: a year. We have coming up later, Jeff Garden, whose

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Speaker 1: father is truly one of the most distinguished soldiers of

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Speaker 1: this nation fighting in three wars, World War two, Korea

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Speaker 1: and Vietnam. How important is military service within an administration,

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Speaker 1: not just the president, but the vice president and the

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Speaker 1: lead advisors, even if they showed up for a cup

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Speaker 1: of coffee when they were twenty two. How big a

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Speaker 1: deal is that animal. It's a big plus I think

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Speaker 1: in any individual. And you know I'm going to say

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Speaker 1: that to put on the cloth of their country, but

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Speaker 1: to be practical in today's world, Thomas, you know, less

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Speaker 1: than one per cent of the US population ever serves

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Speaker 1: in the US military. It's really quite striking. So you're

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Speaker 1: not going to have a huge number of former military,

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Speaker 1: but I think a few in the mix is a

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Speaker 1: very positive thing. I look at where we are, and

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Speaker 1: there's any number of ways to go here. But to

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Speaker 1: stay on globalization, what are you teaching at Fletcher on

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Speaker 1: globalization right now? Is it a new globalization or is

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Speaker 1: it just the same old story now? I think there

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Speaker 1: are new vectors in what we think of as globalization, Tom,

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Speaker 1: And at the top of my list is actually biology.

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Speaker 1: The world of biology, the sequencing of the human genome, biotech,

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Speaker 1: all of those things will profoundly influence the international order. Secondly,

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Speaker 1: pretty obvious as cyber. Third, i'd say is the rise

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Speaker 1: of Africa, which is something we're driving into our curriculum

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Speaker 1: eight of the ten fastest growing economies, huge population surge.

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Speaker 1: Fourth the role of women, And fifth Tom i'd say

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Speaker 1: social networks, the way they're connecting us, influencing us and

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Speaker 1: helping move diplomacy globally. How does that influence what the

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Speaker 1: next president and the president after that are going to

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Speaker 1: have to deal with? I think, first and foremost, we

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Speaker 1: ought to be thinking more about cyber both as a benefit,

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Speaker 1: which it obviously is, but Mike, it's a huge risk

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Speaker 1: as well, and we see this in a cast scating

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Speaker 1: series of episodes. I'm most concerned about our electrical grid,

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Speaker 1: for example. Uh. Secondly, we need to invest more and

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Speaker 1: think more about bio biology and how that's going to

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Speaker 1: impact our economies going forward. Those are two areas that

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Speaker 1: I think our executive branch has not put enough focus

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Speaker 1: on that are well worth considering. Is it been a

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Speaker 1: surprise to you a little discussion of Pentagon budget we've

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Speaker 1: seen so far in the election. I mean, I believe

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Speaker 1: it's a small part of the budget. I'm just amazed

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Speaker 1: it doesn't come up. I agree with you, Tom. Frankly,

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Speaker 1: I think that today we've seen about a drop in

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Speaker 1: the budget as a percentage of GDP. We're at our

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Speaker 1: lowest level and number of soldiers, number of ups. I

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Speaker 1: think you'll see that perhaps come back to the four

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Speaker 1: when we get to the general election. But at the

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Speaker 1: moment it is submerged. We need to be cautious. It's

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Speaker 1: a dangerous world out there. Well, given the threats that

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Speaker 1: we see, where are we perhaps too shorthand? I think

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Speaker 1: three areas that I would put more focus on in

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Speaker 1: the military. One I mentioned already and it's cyber. I

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Speaker 1: think it's time to think about creating a small but

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Speaker 1: very capable cyber force, just like the Army, the Navy,

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Speaker 1: the Air Force, the Marine Corps. I think we need

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Speaker 1: a cyber force. Secondly, more emphasis on special forces. I

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Speaker 1: don't think we need to deploy a hundred thousand troops

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Speaker 1: to Iraq Afghanistan, but we need trainers and mentors those

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Speaker 1: elite forces. That's brilliant. How do you define special forces?

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Speaker 1: I mean we've all got our John Wayne movie, you know,

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Speaker 1: Green Beret images, which I'm sure totally incorrect. How does

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Speaker 1: the prole you define special forces? Well, the thing they're

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Speaker 1: the best at and the most important aspect of their

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Speaker 1: amitia tom is their training ability, their ability to advise

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Speaker 1: and matter. Were to remember special forces through out a

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Speaker 1: Green Berets in Vietnam who are there to train the

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Speaker 1: South Vietnamese. So we always think about putting red dots

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Speaker 1: on forehead sending people out to kill individuals. That's a

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Speaker 1: small part of what they do. Their tea mission is

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Speaker 1: to help train indigenous forces to fight better. That's the

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Speaker 1: key for special forces. What is the state of our

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Speaker 1: relations with the rest of the world, and uh, what's

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Speaker 1: the world looking for from us when we get a

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Speaker 1: new administration. I think the world is hoping to see

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Speaker 1: more leadership from us. You know, nature of horrors a vacuum,

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Speaker 1: but that Vladimir Putin loves one and as the US

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Speaker 1: has has failed to step up in crises as spirit,

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Speaker 1: as Syria has not pushed hard enough in Ukraine, has

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Speaker 1: not truly engaged the Islamic state to date, um that

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Speaker 1: vac hum is being filled by others, and I think

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Speaker 1: globally speaking, the world would like to see more US

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Speaker 1: engagement and foreign policy and secure In the final minutes

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Speaker 1: we've got left with you, Adam, Well, let's come up

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Speaker 1: to date and without question the intractable issue of the moment,

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Speaker 1: which is migrants and refugees. I keep reminding people that

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Speaker 1: the distance from Turkey to Greece is two and a

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Speaker 1: half miles. I don't know for those of you had

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Speaker 1: Bloomberg Boston, I think it's sort of like Felmuth the

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Speaker 1: Martha's Vineyard, or it's you know, Hyannista, it's not even

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Speaker 1: Houston Nantucket, it's Martha's Vineyard. I mean, we're the distances

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Speaker 1: here are unmanageable. What is the prescription to at least

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Speaker 1: get control of the flow? We've talked about it before,

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Speaker 1: Tom and on the treating the symptoms end of this,

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Speaker 1: I think what is needed is more resources and manpower

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Speaker 1: to help patrol, surveill set up refugee camps, run and

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Speaker 1: operate those and that can include using the military in

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Speaker 1: this soft power kind of context. But you and I

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Speaker 1: both know you have to deal with the disease. Why

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Speaker 1: why are these waves of refugees coming, And frankly, these

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Speaker 1: are not economic refugees by and large, these are asylum

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Speaker 1: seekers because of the meltdown of Syria. So we need

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Speaker 1: to address the problems in Syria. M will thank you

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Speaker 1: so much. James Javidas at the Fletcher School, Tough University

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Speaker 1: greatly appreciated this morning. You know, you know, you go

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Speaker 1: around the world, Mike, can you look at the issues

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Speaker 1: and you just wonder not so much in no Or

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Speaker 1: you know, to be critical before the conventions, but the

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Speaker 1: second or third week in October, you really wonder where

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Speaker 1: our discussion will be on foreign policy. I have no

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Speaker 1: clue because people certainly suggesting that some of the candidates

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Speaker 1: are not qualified to deal with foreign policy. Can we

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Speaker 1: do a shameless plug for a book that we're gonna

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Speaker 1: talk about. Robert Gordon's book is one thousand, seven hundred pages.

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Speaker 1: It's like the Old Testament on steroids. Robert Gordon was

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Speaker 1: in the yesterday Michael McKee's Book of the Year asking

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Speaker 1: about American growth and we're making jokes. Maybe it's not

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Speaker 1: a beach read. Here is your summer beach read. It

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Speaker 1: is an exquisite ten chapters on globalization and it's in

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Speaker 1: the King's English. It's from Jeffrey Garden and we will

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Speaker 1: look from Silk to Silicon. I love the chapter on

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Speaker 1: the underground cable that attached the Old World to the

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Speaker 1: New World a few decades ago. Do you think hundreds

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Speaker 1: some years ago. Jeffrey Garden will join us for a

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Speaker 1: I hope a wonderful half hour discussion on his new book,

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Speaker 1: hugely readable. Uh new book on ten people you need

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Speaker 1: to know more about to frame where this nation is going.

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Speaker 1: Let's frame the data for you right now. Negative six

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Speaker 1: on futures down, futures negative thirty four. Michael McKee and

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Speaker 1: Tom Keane Another Monday Hour of Bloomberg's Surveillance m