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Speaker 1: Broadcasting Live to New York, Gloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg twelve Honors, to San Francisco, Bloomberg

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Speaker 1: to the Country, sees Exam General one nineteen and around

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Speaker 1: the globe the Bloomberg Radio plus Bloomberg dot Com. This

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Speaker 1: is Bloomberg Surveillance fan Bartic seven thirty on Wall Street.

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Speaker 1: I Michael McKee along with Tom Keane. Not major news,

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Speaker 1: but there's a lot going on out there. General Motors

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Speaker 1: CEO Mary bar She says they're undervalued. GM is after

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Speaker 1: a record profit last year and higher earnings in the

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Speaker 1: first quarter. GM shares down twelve percent this morning. You

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Speaker 1: haven't started training in pre market yet. Bara telling Bloomberg

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Speaker 1: Television GM can handle a downturn and sustain profits. They're

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Speaker 1: making investments in ride Cherry and self driving cars. Their

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Speaker 1: futures bright Valiant cut against two thousand sixteen profit forecast.

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Speaker 1: New CEO Joseph Papa, starting his attempt to turn around

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Speaker 1: the drug maker, earnings seven dollars a share in March

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Speaker 1: under the former CEO. They were anticipating eight fifty to

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Speaker 1: nine verising. Gotta been three billion dollars for you whose

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Speaker 1: main Internet assets, according to the Wall Street Journal, and

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Speaker 1: Samsung considering introducing two new smartphone models featuring bendable screens.

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Speaker 1: Also this wonderful news. Jerome Curiel, convictive causing record trading

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Speaker 1: loss of four point nine billion dollars at suck in one,

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Speaker 1: a lawsuit today claiming he was unfairly dismissed. It's four

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Speaker 1: hundred thousand euros for that. Now, let's check in with

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Speaker 1: John Tyler and get the latest world and national headlines.

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Speaker 1: John and Mike. Hillary Clinton, I'm hoping for victory of

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Speaker 1: today's primaries in California and New Jersey and contests and

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Speaker 1: for other states. But and a p count shows she's

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Speaker 1: already reached the number of delegates needed for the Democratic

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Speaker 1: presidential nomination. Democratic rival Bernie Sanders says tomorrow he'll return

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Speaker 1: to Vermont to, in his words, assess where we are.

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Speaker 1: Speaker Paul Ryant sent to unveil the first plank of

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Speaker 1: the House Republican legislative plan aimed at carving out an

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Speaker 1: agenda for a party who's presumptive presidential nommity, Donald Trump

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Speaker 1: hasn't offered many detailed policy positions. At least eleven people

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Speaker 1: are dead, another thirty six wounded after a rush hour

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Speaker 1: car bombing targeting and bus carrying riot police officers went

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Speaker 1: off in Easton bull Forecasters say tropical Storm Colin moving

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Speaker 1: rapidly toward the northeast as it continues to drop heavy

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Speaker 1: rains over the southeast. Global News twenty four hours a day,

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Speaker 1: Power Buyer twenty four hundred journalists in more than one

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Speaker 1: hundred fifty news gents around the world. I'm John Tucker,

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Speaker 1: Michael Time Now for the Land or Percipani Bloomberg NBC

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Speaker 1: Sports Update with Rob Bush, Robmary Mike. The Yankees, they

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Speaker 1: relied most of the season on their pitching and primarily

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Speaker 1: out of the bullpen, So when they got a much

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Speaker 1: needed power surge at the stadium, it's just what they wanted.

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Speaker 1: Swung on at to write, call on going back. He's

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Speaker 1: on the track, He's at the law, She's gone. Hello's

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Speaker 1: Beltron felt the three run home run, the yankees first

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Speaker 1: three run home run since April seven. That's Sean Sterling,

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Speaker 1: Yankees Radio on the call, as Beltron's home run was

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Speaker 1: the third and just two innings for New York and

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Speaker 1: provided all the Yankees needed and to come from behind

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Speaker 1: five to win. In the series opener against the Angels

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Speaker 1: Master Harrolton AKA. He allowed two runs in seven innings,

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Speaker 1: Andrew Miller struck out the side for his third win

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Speaker 1: of the year. Oldest Chapman earned his tent Say that

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Speaker 1: series continues today as Michael Pinato host David Huff Mats

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Speaker 1: and Pirates. They were postponed to Mother Nature in the

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Speaker 1: Steel City. They'll play a twin pill starting at one

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Speaker 1: at Stephen Matt's and Jonathan Neis in game one they

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Speaker 1: were supposed to start on Monday, followed by Jacob Degraham

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Speaker 1: and One Nicasio in the nightcap Mets. They enter in

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Speaker 1: second place, two games back in the Nationals and the

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Speaker 1: Penguins the three one winner over the Sharks for the

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Speaker 1: stand lake up. They're up three games to one. That cheer. NBC.

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Speaker 1: Bloomberg Sports Update, Mike rob Busk, thank you very much.

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Speaker 1: As we mentioned, it is kind of a quiet day,

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Speaker 1: but equities are higher. Everybody taking a breath. After Janet

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Speaker 1: Yellen suggested the Feds on hold, we are not on hold.

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Speaker 1: We are Bloomberg surveillance and we are on top of

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Speaker 1: all the news today. We will continue to watch the

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Speaker 1: markets has mentioned go higher on the day almost six

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Speaker 1: points now for SMP futures, fifty four for DOW futures.

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Speaker 1: The foot see in London up twenty nine points. New

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Speaker 1: Pole puts remain ahead just barely. That's a very interesting race.

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Speaker 1: The stock six hundred five points higher right now, one

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Speaker 1: point three percent. Now it's time for the Bloomberg n

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Speaker 1: j I T STEM Report, brought to you by a

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Speaker 1: New Jersey Institute of Technology investing more than a hundred

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Speaker 1: and ten million dollars a year in applied research to

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Speaker 1: solve problems that improve life. Learn more stories of innovation

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Speaker 1: dot m j I T dot ETU that we turned

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Speaker 1: to Bablu Michael, Good morning. Here's what's making news in science, Technology,

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Speaker 1: engineering and math. A Swedish proposal to ban imports of

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Speaker 1: American lobsters by European Union countries is being disputed by

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Speaker 1: US and Canadian scientists who say the move isn't supported

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Speaker 1: by science. US and Canadian lobsterman export two hundred million

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Speaker 1: dollars worth of lobsters to European markets each year. The

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Speaker 1: call for banning the imports follows discovery of thirty two

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Speaker 1: American lobsters in Swedish waters and officials their fear and

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Speaker 1: invasive species that could spread disease and overtake the European variety.

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Speaker 1: The US government scientists argues there's too much at stake

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Speaker 1: to act without robust, peer reviewed science. Well, the catch

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Speaker 1: have falling star look might not be a factor anymore.

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Speaker 1: Lena Okajima, an entrepreneur in Japan, wants to get into

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Speaker 1: business of creating tiny artificial meteors. Her company could start

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Speaker 1: offering on demand meteor showers by twenty eighteen, made with

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Speaker 1: small pellets released remotely from a small satellite. The shooting

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Speaker 1: stars will be available in different colors and could be

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Speaker 1: millions of could be seen by millions of people at

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Speaker 1: a time in urban areas. She's thinking of theme park operators,

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Speaker 1: event organizers, and governments as the most likely customers. The

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Speaker 1: media showers also have scientific application because they'll take place

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Speaker 1: in the mesosphere, a part of the sky that's too

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Speaker 1: low for satellites and too high for weather balloons and aircraft.

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Speaker 1: Spectral analysis of on demand shooting stars could help scientists

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Speaker 1: learn more about part of the atmosphere that may hold

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Speaker 1: key information about climate change. That's this morning's Bloomberg and

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Speaker 1: j I t stem report Michael Babo and thank you

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Speaker 1: very much. Well, there's a lot going on out there

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Speaker 1: that investors have to take consideration of, from Brexit to

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Speaker 1: Trump to what's going on in the Federal Reserve. And

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Speaker 1: one way you do that is through derivative strategies. You

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Speaker 1: can do your hedging. Edmund Shing is Global head of

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Speaker 1: Equity Derivative Strategy for BNP Parabagh he joins us. Now, Uh,

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Speaker 1: of all those things out there, I guess I'm just

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Speaker 1: kind of curious what is drawing the most interesting? What

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Speaker 1: are people most interested in hedging these days? In other words,

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Speaker 1: what's what's the greatest amount of uncertainty out there? Well,

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Speaker 1: I think you would have to say political uncertainty is

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Speaker 1: probably still number one of the agenda. I'm sitting in London,

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Speaker 1: and clearly within Europe we have a number of issues

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Speaker 1: politically to deal with, not just within the UK as

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Speaker 1: you've mentioned, but also you have the rest of Europe.

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Speaker 1: You have elections coming up again in Spain where we

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Speaker 1: had an inconclusive result in the first general election. We

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Speaker 1: have local elections in Italy, we will have elections in Germany,

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Speaker 1: and not to mention of course your little election state

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Speaker 1: side in November, so we really have really very much

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Speaker 1: an election charged year um and at the same time,

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Speaker 1: people are very much focused on central bank policies and

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Speaker 1: to divergence or maybe not, as it would see, in

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Speaker 1: between what happens in the US and of course what

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Speaker 1: happens in the rest will namely of course Europe and

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Speaker 1: Japan in particular. Well, let's break that down. If I

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Speaker 1: am worried about what's going to happen with the British election,

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Speaker 1: shall we say, then, what what? What? What are people buying? Well,

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Speaker 1: it's actually it's quite difficult because what people are actually

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Speaker 1: buying is not a lot. And I think what we

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Speaker 1: find is people generally are avoiding, for instance, equities within

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Speaker 1: the European sphere for that reason, they're not trying to

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Speaker 1: take a view one way or the other within equities

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Speaker 1: and rather thing well, actually, if I didn't want to

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Speaker 1: express a view, I would rather express in other assets classes,

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Speaker 1: and of course foreign exchange would be the most obvious

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Speaker 1: one where we have seen big moves in volatility. So

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Speaker 1: currently volatility probably has been the number one area which

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Speaker 1: people have looked to express a view auto hedge their

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Speaker 1: views on on on the various political events. Is it

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Speaker 1: the same story here in the United States with the

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Speaker 1: Trump risk? I think less so less so, I think people.

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Speaker 1: But again, if you look at something as simple as

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Speaker 1: the VIX index, clearly it is very low. And I

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Speaker 1: yet this morning was looking at the volatility of the

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Speaker 1: VIX index, of the volatility of the volatility which is

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Speaker 1: a second rift of not even, and that's actually sitting

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Speaker 1: at a twelve month low right now. So we would

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Speaker 1: see that despite the obvious political risks that you might

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Speaker 1: perceive coming from um, from from the Trump factor, in

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Speaker 1: actual factor, markets are quite calm and taking it very

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Speaker 1: very much in their stride. And you know, you have

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Speaker 1: the S and T obviously bumping up against thirty, which

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Speaker 1: for me is a very important resistance level. Um Actually,

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Speaker 1: I am quite surprised with that high and that we're

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Speaker 1: not taking into account more risk than it seems the

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Speaker 1: market is at the moment. Well, we've got a central

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Speaker 1: bank risk every month, or you know in the United

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Speaker 1: States and now with the ECB every six weeks. But

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Speaker 1: we don't get to political elections but every couple of years.

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Speaker 1: How far in advance do people generally start putting money

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Speaker 1: into hedging risk in a political set well, I think

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Speaker 1: generally the problem is when you look far enough ahead

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Speaker 1: with elections, you never really know what the actual policies are.

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Speaker 1: And and ultimately, I think, if anything, people do tend

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Speaker 1: to overreact to the various policy statements of the different candidates,

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Speaker 1: because in actual fact, the best policy, generally for all

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Speaker 1: the just the best way that politicians can treat the

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Speaker 1: economy is through normally a policy benign neglect. I. The

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Speaker 1: less they do in meddling in the economy, the better.

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Speaker 1: And so typically what will happen is investors will overreact

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Speaker 1: to every pronouncement by candidates before elections. But the ultimate

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Speaker 1: truth is candidates will never be put into force many

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Speaker 1: of the things they actually would like to or say

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Speaker 1: they would like to. Edmund s Ching from BMB Parry

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Speaker 1: bag Alom ahead of Equity Derivative Strategy, thanks for joining

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Speaker 1: us today here on Bloomberg Surveillance. You've got time, in

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Speaker 1: other words, to get your Trump hedges in Bloomberg. Brought

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Speaker 1: to you by Fordham University, the Gavelli School of a

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Speaker 1: Business Executive NBA top rank with the renowned professional network

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Speaker 1: Classes in Columbus Circle or Westchester learn more at Fordham

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Speaker 1: dot eu. Slash e m b A