1 00:00:03,080 --> 00:00:07,680 Speaker 1: Broadcasting live to New York, Gloomberg to Washington, d C. 2 00:00:07,920 --> 00:00:13,160 Speaker 1: Bloom to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg 3 00:00:14,000 --> 00:00:18,240 Speaker 1: to the Country series Exam General one and around the globe. 4 00:00:18,360 --> 00:00:21,759 Speaker 1: The Bloomberg Radio Plus happened. Bloomberg dot Com. This is 5 00:00:21,840 --> 00:00:25,919 Speaker 1: Bloomberg Surveillance. Good morning everyone, and Michael McKey along with 6 00:00:25,960 --> 00:00:28,240 Speaker 1: Tom Keene seven thirty on Wall Street the corporate story 7 00:00:28,240 --> 00:00:31,160 Speaker 1: of the day. Home Depot first quarter profit much better 8 00:00:31,200 --> 00:00:34,199 Speaker 1: than analysts estimated, also raised its earning forecast for the 9 00:00:34,240 --> 00:00:37,199 Speaker 1: yearmated dollar forty four a share. Analysts estimates were for 10 00:00:37,240 --> 00:00:41,400 Speaker 1: a dollar thirty five. Sales up nine percent twenty two 11 00:00:41,400 --> 00:00:45,000 Speaker 1: point eight billion. Company also increasing. As I mentioned annual 12 00:00:45,040 --> 00:00:48,279 Speaker 1: forecast revenue might increase six point three percent. They say 13 00:00:48,440 --> 00:00:52,040 Speaker 1: shares are increasing. Uh, they are up about a quarter 14 00:00:52,120 --> 00:00:55,600 Speaker 1: of a percentage point right now. Lending Club fell fifty 15 00:00:55,640 --> 00:00:58,880 Speaker 1: one last week, remember after the surprise departure of its leader. 16 00:00:59,360 --> 00:01:02,840 Speaker 1: UH says this scandals prompting investors to suspend debt purchases. 17 00:01:03,520 --> 00:01:07,960 Speaker 1: Along with some government investigations, companies ability to field new 18 00:01:08,000 --> 00:01:11,680 Speaker 1: loan applications of being affected. JP Bargain Asset Management says 19 00:01:11,760 --> 00:01:15,759 Speaker 1: US corporate bonds are attractive. PIMCO total turn Fund doubling 20 00:01:15,800 --> 00:01:19,280 Speaker 1: the amount it's allowed to invest in junk debt, corporate securities, 21 00:01:19,360 --> 00:01:22,080 Speaker 1: chounting treasuries so far this year. By the way, it's 22 00:01:22,160 --> 00:01:25,160 Speaker 1: JP Morgan Day, and we'll talk with your Ard Cassidy 23 00:01:25,200 --> 00:01:27,400 Speaker 1: about that a little later in the program, But first 24 00:01:27,440 --> 00:01:29,240 Speaker 1: let's check out with Michael Barr and get the latest 25 00:01:29,240 --> 00:01:32,319 Speaker 1: world at national headlines. Mike, thank you very much. Democratic 26 00:01:32,360 --> 00:01:36,320 Speaker 1: primaries take place today in Oregon and Kentucky. Meanwhile, and 27 00:01:36,520 --> 00:01:39,399 Speaker 1: ugly incident happened in Las Vegas over the weekend involving 28 00:01:39,440 --> 00:01:43,440 Speaker 1: Bernie Sanders supporters. They are accused of throwing shares and 29 00:01:43,560 --> 00:01:46,440 Speaker 1: making death threats against an abound of Democratic Party Chairwoman 30 00:01:46,720 --> 00:01:50,200 Speaker 1: Roberta Laying at a weekend convention. Security at the Paris 31 00:01:50,280 --> 00:01:53,320 Speaker 1: Las Vegas casino said they could no longer insure order 32 00:01:53,640 --> 00:01:57,559 Speaker 1: and the event closed. State Party console suggest there could 33 00:01:57,560 --> 00:02:01,480 Speaker 1: be similar Sanders tactics at the national convention. The Senate 34 00:02:01,520 --> 00:02:04,120 Speaker 1: plans to vote today on funding to fight the Zeke 35 00:02:04,120 --> 00:02:07,840 Speaker 1: of virus. President Obama requested the funding in February and 36 00:02:07,880 --> 00:02:10,639 Speaker 1: has been forced to tap unspent twenty fifteen funds from 37 00:02:10,639 --> 00:02:14,160 Speaker 1: the successful battle against Bola. Iraqi officials now say at 38 00:02:14,240 --> 00:02:17,360 Speaker 1: least twenty eight people are dead after our car bombing 39 00:02:17,360 --> 00:02:21,079 Speaker 1: and an outdoor market in Baghdad. Police saying today's explosion 40 00:02:21,120 --> 00:02:24,400 Speaker 1: happened and the SHII dominated neighborhood. No one has immediately 41 00:02:24,400 --> 00:02:28,200 Speaker 1: claimed responsibility for the attack. Global News twenty four hours 42 00:02:28,200 --> 00:02:31,280 Speaker 1: a day, powered by our twenty four hundred journalists more 43 00:02:31,280 --> 00:02:33,520 Speaker 1: than a hundred fifty news bureaus around the world. At 44 00:02:33,520 --> 00:02:37,519 Speaker 1: Michael Bar Thank you, Michael. Time now for the land 45 00:02:37,560 --> 00:02:43,320 Speaker 1: over Parsippani Bloomberg NBC Sports Update with Rob Bushka, Come Morning, Mike. 46 00:02:43,360 --> 00:02:46,560 Speaker 1: The Diamondbacks played a long vault the Yankees expanse in 47 00:02:46,600 --> 00:02:49,679 Speaker 1: the desert, pounding New York twelve to two. Is The 48 00:02:49,800 --> 00:02:52,600 Speaker 1: d Backs scored in six of eight innings, including a 49 00:02:52,680 --> 00:02:56,000 Speaker 1: five run fifth. Jake Lamb was three for four with 50 00:02:56,040 --> 00:02:58,440 Speaker 1: a three run home run. Yankees are seven and a 51 00:02:58,480 --> 00:03:00,760 Speaker 1: half back of the front running Orioles and Red Sox. 52 00:03:00,800 --> 00:03:03,560 Speaker 1: Help is on the way those both Alex Rodriguez, n 53 00:03:03,600 --> 00:03:06,600 Speaker 1: C C Sabathia are expected back by the weekend. Series 54 00:03:06,639 --> 00:03:09,720 Speaker 1: continues tonight, Mets. They opened up a series of city 55 00:03:09,760 --> 00:03:13,360 Speaker 1: field versus the Nationals. Max Scherzer meets Noah synder Guard 56 00:03:13,919 --> 00:03:17,320 Speaker 1: NBA Western Conference Finals. The Thunder continue to impress this 57 00:03:17,400 --> 00:03:20,280 Speaker 1: they're not only surprises Spurs, but they beat the Warriors 58 00:03:20,360 --> 00:03:22,639 Speaker 1: one on eight, one o two in Game one in Oakland, 59 00:03:22,840 --> 00:03:26,200 Speaker 1: Russell Westbrook had twenty seven m v P Steph Curry 60 00:03:26,440 --> 00:03:29,520 Speaker 1: twenty six in a losing cause. The Nets announced that 61 00:03:29,600 --> 00:03:32,680 Speaker 1: Hawks assistant Kenny Atkinson will be their next head coach, 62 00:03:32,760 --> 00:03:36,280 Speaker 1: and he feels that the foundation for success is already 63 00:03:36,280 --> 00:03:39,200 Speaker 1: in place. I'm excited to work with the young, talented 64 00:03:39,240 --> 00:03:42,280 Speaker 1: group of players and also some pretty good veterans and 65 00:03:42,440 --> 00:03:45,240 Speaker 1: Daddius and and Brooke and uh how the guy like 66 00:03:45,280 --> 00:03:49,560 Speaker 1: that is an established player in the NBA. Excellent player. Meanwhile, 67 00:03:49,600 --> 00:03:51,920 Speaker 1: on the frozen floor, another thriller and over time the 68 00:03:51,960 --> 00:03:54,160 Speaker 1: Penguins they need the lightning three to two of the 69 00:03:54,200 --> 00:03:56,960 Speaker 1: Igloo and the Eastern Conference Finals tie to game one. 70 00:03:57,520 --> 00:04:01,480 Speaker 1: A piece at your NBC Bloomberg Sports update, Mike, thank 71 00:04:01,520 --> 00:04:04,720 Speaker 1: your up. Well. We are watching the markets struggle to 72 00:04:04,760 --> 00:04:08,880 Speaker 1: find an identity. Features were up a little bit, now 73 00:04:08,920 --> 00:04:12,800 Speaker 1: they're down a little bit. SMP features off by three points. 74 00:04:12,800 --> 00:04:19,480 Speaker 1: We'll see how the date develops. This is Bloomberg surrounts 75 00:04:19,600 --> 00:04:23,360 Speaker 1: keeping the markets under surpillance all day. Michael McGee along 76 00:04:23,400 --> 00:04:26,200 Speaker 1: with Tom Keane da features down to there off eighteen 77 00:04:26,240 --> 00:04:28,600 Speaker 1: and nasdaike features off by two. But the stock six 78 00:04:28,680 --> 00:04:32,359 Speaker 1: hundred in Europe is up by a point, the Footsie 79 00:04:32,440 --> 00:04:35,480 Speaker 1: up by twenty three points. A lot of numbers out 80 00:04:35,480 --> 00:04:38,000 Speaker 1: at eight thirty this morning that may set the direction 81 00:04:38,200 --> 00:04:41,720 Speaker 1: for US today. Time now for the Bloomberg n j 82 00:04:41,880 --> 00:04:43,480 Speaker 1: I T STAM Report, brought to you by the New 83 00:04:43,560 --> 00:04:46,120 Speaker 1: Jersey Institute of Technology, investing more than a d and 84 00:04:46,160 --> 00:04:48,400 Speaker 1: ten million dollars a year and applied research to solve 85 00:04:48,480 --> 00:04:51,600 Speaker 1: problems and improve life. Learn more at Stories of Innovation 86 00:04:51,640 --> 00:04:54,760 Speaker 1: dot j I T dot e DU. Here's Bob Michael, 87 00:04:54,760 --> 00:04:57,760 Speaker 1: good morning. Here's what's making news and science, technology, engineering, 88 00:04:57,839 --> 00:05:01,000 Speaker 1: and Matthew. You've probably never heard of this turt beutyl 89 00:05:01,160 --> 00:05:04,839 Speaker 1: alcohol also called turt button all but according to the 90 00:05:04,880 --> 00:05:08,080 Speaker 1: Environmental Protection Agency, companies released a total of one point 91 00:05:08,200 --> 00:05:12,680 Speaker 1: nine million pounds of the stuff into the environment. It's 92 00:05:12,680 --> 00:05:15,520 Speaker 1: a widely used fuel, additive and solvent and the e 93 00:05:15,640 --> 00:05:17,960 Speaker 1: p A is just determined in a draft assessment that 94 00:05:18,000 --> 00:05:21,479 Speaker 1: it can harm kidney function and may cause cancer in humans. 95 00:05:21,760 --> 00:05:25,200 Speaker 1: The agency is now soliciting comments on key science questions 96 00:05:25,279 --> 00:05:28,039 Speaker 1: raised by the assessments at a meeting set for June. 97 00:05:29,279 --> 00:05:32,840 Speaker 1: Here's the paradox. It's been used to boost oxygen, thereby 98 00:05:32,920 --> 00:05:36,880 Speaker 1: reducing carbon monoxide, soot, and some other pollutants from the 99 00:05:36,920 --> 00:05:40,719 Speaker 1: combustion of unladed gasoline. And something that gives wholly meaning 100 00:05:40,760 --> 00:05:44,520 Speaker 1: to the next big thing. Picture. This an eighteen wheel 101 00:05:44,560 --> 00:05:47,440 Speaker 1: truck barreling down the highway with eighty thousand pounds of 102 00:05:47,440 --> 00:05:50,600 Speaker 1: cargo and no one but a robot at the wheel. 103 00:05:50,720 --> 00:05:54,159 Speaker 1: It's the dream of Anthony Lewandowski, a robot loving engineer 104 00:05:54,200 --> 00:05:57,200 Speaker 1: who helps steer Google self driving technology. He's one of 105 00:05:57,240 --> 00:05:59,960 Speaker 1: the founders of a startup called Otto, aiming to equip 106 00:06:00,000 --> 00:06:03,520 Speaker 1: trucks with software, sensors, lasers, and cameras so they'll eventually 107 00:06:03,520 --> 00:06:06,240 Speaker 1: be able to navigate the more than two twenty miles 108 00:06:06,240 --> 00:06:09,479 Speaker 1: of US highways on their own. For now, the robots 109 00:06:09,480 --> 00:06:12,080 Speaker 1: would only take control on the highways, leaving humans to 110 00:06:12,120 --> 00:06:15,039 Speaker 1: handle the tougher task of winding through city streets. The 111 00:06:15,120 --> 00:06:18,320 Speaker 1: idea is similar to the automated pilots that fly jets 112 00:06:18,320 --> 00:06:21,840 Speaker 1: at high altitudes while leading the takeoffs and landings to humans. 113 00:06:22,200 --> 00:06:25,520 Speaker 1: And that's this morning's Bloomberg and j I t Stem Report. 114 00:06:25,560 --> 00:06:29,080 Speaker 1: Michael bob moonon, Thank you very much. Brian Dolski was 115 00:06:29,120 --> 00:06:30,960 Speaker 1: wondering by We grabbed him and pulled him into the 116 00:06:31,000 --> 00:06:33,080 Speaker 1: studio here because we had an important question to ask, 117 00:06:33,080 --> 00:06:37,479 Speaker 1: and that is the self driving economy UM is going 118 00:06:37,520 --> 00:06:42,919 Speaker 1: to be affected by Janet yelling at the controls UM. 119 00:06:42,960 --> 00:06:46,320 Speaker 1: There's been an awful lot Brian, of course is the 120 00:06:46,400 --> 00:06:50,000 Speaker 1: chief investment strategist at BMO UM. They've been awful lot 121 00:06:50,000 --> 00:06:54,960 Speaker 1: of talk from FED officials lately to the UH idea 122 00:06:55,040 --> 00:06:57,520 Speaker 1: that they're going to raise rates this summer, whether it's done, 123 00:06:57,520 --> 00:07:00,120 Speaker 1: whether it's July, but you know that they're rather upset 124 00:07:00,120 --> 00:07:03,880 Speaker 1: that the markets don't seem to be buying that UH 125 00:07:03,960 --> 00:07:06,680 Speaker 1: and I'm wondering how if they do it, what kind 126 00:07:06,680 --> 00:07:09,479 Speaker 1: of reaction are we going to get? Well, it's a 127 00:07:09,480 --> 00:07:15,240 Speaker 1: great question. I think the the problem with investing, quite frankly, 128 00:07:15,360 --> 00:07:17,520 Speaker 1: is we all kind of wait until we absolutely positively 129 00:07:17,560 --> 00:07:19,920 Speaker 1: know what's going to happen. So you know, the FED 130 00:07:19,920 --> 00:07:21,840 Speaker 1: funds futures and the rest of the market is telling 131 00:07:21,880 --> 00:07:23,800 Speaker 1: you that the FED is not gonna do anything the 132 00:07:23,800 --> 00:07:27,160 Speaker 1: FED continues to I wouldn't say warn, but kind of 133 00:07:27,240 --> 00:07:30,760 Speaker 1: point people with respect of their communication that they may, can, will, 134 00:07:30,800 --> 00:07:33,800 Speaker 1: and should do that. I think the economic stability of 135 00:07:33,840 --> 00:07:37,560 Speaker 1: the US economy UM is improving. A lot of people 136 00:07:37,600 --> 00:07:40,160 Speaker 1: talk about how negative it is, but at the end 137 00:07:40,200 --> 00:07:43,560 Speaker 1: of the day, UM, we're not heading towards recession UM 138 00:07:43,880 --> 00:07:46,880 Speaker 1: and the ship is has kind of left the port 139 00:07:46,920 --> 00:07:49,640 Speaker 1: in terms of overall longer term improvement. So we would 140 00:07:49,680 --> 00:07:51,760 Speaker 1: venture to guess that we have to get back to 141 00:07:51,800 --> 00:07:55,080 Speaker 1: a point, Michael, where we understand and believe that interest 142 00:07:55,160 --> 00:07:57,240 Speaker 1: rates going up is actually good for the economy and 143 00:07:57,280 --> 00:07:59,520 Speaker 1: good for the stock market. We haven't seen that, or 144 00:08:00,000 --> 00:08:01,920 Speaker 1: we kind of lived in that type of paradigm for 145 00:08:02,400 --> 00:08:07,080 Speaker 1: over twenty years, so it's gonna take some readjusting from 146 00:08:07,240 --> 00:08:09,560 Speaker 1: the investor base to kind of understand that. So as such, 147 00:08:09,880 --> 00:08:11,600 Speaker 1: long would answer, the market's going to be vol at 148 00:08:11,600 --> 00:08:14,080 Speaker 1: all if the FED races rates, because you know the 149 00:08:14,080 --> 00:08:16,320 Speaker 1: majority of investors out there quite frankly haven't been through 150 00:08:16,320 --> 00:08:18,120 Speaker 1: a regular cycle, and because of that, they're gonna be 151 00:08:18,120 --> 00:08:23,040 Speaker 1: reactive and probably sell stocks. Well, we saw the financial conditions, 152 00:08:23,400 --> 00:08:27,200 Speaker 1: uh in the next Titan somewhat after the Fed raised 153 00:08:27,200 --> 00:08:29,800 Speaker 1: interest rates in December, but now it's way below that. 154 00:08:29,880 --> 00:08:33,280 Speaker 1: Conditions are a lot looser, so people really can't complain 155 00:08:33,320 --> 00:08:37,679 Speaker 1: again they about uh custom money. No, they can't complain um. 156 00:08:37,760 --> 00:08:40,480 Speaker 1: And that's been that way for a while. And so 157 00:08:40,760 --> 00:08:43,760 Speaker 1: you've seen from a consumer base, you know, debt levels 158 00:08:43,800 --> 00:08:46,880 Speaker 1: from the consumer sides uh down. Savings rates are a 159 00:08:46,880 --> 00:08:50,640 Speaker 1: little bit up because people are worried corporate America. It 160 00:08:50,640 --> 00:08:53,319 Speaker 1: continues to retrench and under promise and over deliver. So 161 00:08:53,760 --> 00:08:55,480 Speaker 1: that's been that way for a while. So you know, 162 00:08:55,520 --> 00:08:58,400 Speaker 1: the risk is if you kind of take three steps 163 00:08:58,400 --> 00:09:00,920 Speaker 1: back and look at what's happened for the last thirty 164 00:09:01,160 --> 00:09:03,679 Speaker 1: four years. We've been in a thirty four year bullmarket 165 00:09:03,679 --> 00:09:06,000 Speaker 1: in bonds and rates have been going lower for the 166 00:09:06,040 --> 00:09:09,520 Speaker 1: most part, aside from some some some rallies here and 167 00:09:09,559 --> 00:09:12,320 Speaker 1: there with respect to yield, but the predominant trend for 168 00:09:12,360 --> 00:09:14,320 Speaker 1: thirty four years is that interest rates have gone down. 169 00:09:14,360 --> 00:09:16,559 Speaker 1: So I think, you know, at the end of the day, 170 00:09:16,559 --> 00:09:18,680 Speaker 1: it's going to take a lot to kind of turn that, 171 00:09:18,840 --> 00:09:22,920 Speaker 1: and it's the development of the upward trajectory of of 172 00:09:23,040 --> 00:09:25,880 Speaker 1: yields have gone a lot slower than everybody thought, I 173 00:09:25,880 --> 00:09:28,600 Speaker 1: think principally because for the most part, this has been 174 00:09:28,600 --> 00:09:30,960 Speaker 1: the slowest economic recovery in the history recoveries, and all 175 00:09:31,000 --> 00:09:33,240 Speaker 1: we've seen is monetary policy and fiscal policy, and I 176 00:09:33,320 --> 00:09:35,439 Speaker 1: think that's part part and parcel by things have been 177 00:09:35,440 --> 00:09:38,600 Speaker 1: so slow. A lot of people have suggested one reason 178 00:09:38,640 --> 00:09:40,319 Speaker 1: that FED would be on hold is we've seen this 179 00:09:40,360 --> 00:09:42,920 Speaker 1: earnings recession where earnings haven't grown, but we're starting to 180 00:09:42,960 --> 00:09:46,920 Speaker 1: see companies for the current quarter raised their forecast. So 181 00:09:47,160 --> 00:09:50,440 Speaker 1: from home depot today, um, is it a mistake to 182 00:09:50,440 --> 00:09:53,880 Speaker 1: look at the earnings because it's backward looking well at 183 00:09:53,920 --> 00:09:56,040 Speaker 1: the end. At the end of the day, we have 184 00:09:56,040 --> 00:09:58,839 Speaker 1: not seen an earnings recession in certain areas on a 185 00:09:58,920 --> 00:10:02,360 Speaker 1: year over your basis, Literally earnings have slowed, but you know, 186 00:10:02,360 --> 00:10:04,200 Speaker 1: the strength of the U. S economy is the consumer, 187 00:10:04,240 --> 00:10:06,040 Speaker 1: So it does not surprise us what we're seeing out 188 00:10:06,040 --> 00:10:09,240 Speaker 1: of home depot um today. Number one. Number two, the 189 00:10:09,240 --> 00:10:12,040 Speaker 1: majority of what we've seen from from earnings on the 190 00:10:12,080 --> 00:10:14,280 Speaker 1: downside has really been driven by the energy space. If 191 00:10:14,320 --> 00:10:16,120 Speaker 1: you take out energy, earnings are a little bit better, 192 00:10:16,160 --> 00:10:19,040 Speaker 1: but clearly it's impacted what's happened in the industrial space 193 00:10:19,080 --> 00:10:22,679 Speaker 1: as well. And again remember so many investors have focused 194 00:10:22,679 --> 00:10:29,520 Speaker 1: on on on international growth in terms of industrials, UH, materials, energy, 195 00:10:29,559 --> 00:10:32,440 Speaker 1: the last center fifteen years and you know, going forward, 196 00:10:32,480 --> 00:10:34,240 Speaker 1: we think it's going to be more along the lines 197 00:10:34,280 --> 00:10:42,960 Speaker 1: of financials, technology, consumer space. Tom Keene, Mr Handyman driving 198 00:10:43,000 --> 00:10:47,360 Speaker 1: the home Depot shares higher. We'll have some brilliant questions 199 00:10:47,360 --> 00:10:51,120 Speaker 1: for right, let's to continue our conversation. A threat to 200 00:10:51,240 --> 00:10:55,160 Speaker 1: society to see me and I'll buy anything by Martha 201 00:10:55,240 --> 00:11:01,439 Speaker 1: Stewart at Home Depot. That's what I'll dollance. Little Merce 202 00:11:01,480 --> 00:11:04,120 Speaker 1: of Balance brought you by Withem, Smith and Brown CPAs audit, 203 00:11:04,160 --> 00:11:06,719 Speaker 1: tax and advisory services to help your business be in 204 00:11:06,760 --> 00:11:09,360 Speaker 1: a position of strength. Experienced the within way by visiting 205 00:11:09,360 --> 00:11:15,200 Speaker 1: with him dot com