1 00:00:03,120 --> 00:00:07,720 Speaker 1: Broadcasting live to New York, Gloomberg to Washington, d C, 2 00:00:07,920 --> 00:00:14,079 Speaker 1: Bloomberg to Boston, Bloomberg dwellers to San Francisco, Bloomberg to 3 00:00:14,240 --> 00:00:18,480 Speaker 1: the Country Channel one ninety and around the globe the 4 00:00:18,480 --> 00:00:22,360 Speaker 1: Bloomberg Radio plus Abbot Bloomberg dot Com. This is Bloomberg 5 00:00:22,440 --> 00:00:25,759 Speaker 1: Surveillance the morning in his seventh thirty on Wall Street 6 00:00:25,760 --> 00:00:28,280 Speaker 1: and Michael McKee along with David Gura. This morning. Tom 7 00:00:28,360 --> 00:00:32,320 Speaker 1: Keene remains on vacation. We can't tell you where he is, 8 00:00:32,360 --> 00:00:35,000 Speaker 1: but the hint we were giving out yesterday is that 9 00:00:35,520 --> 00:00:38,520 Speaker 1: they drive on the left hand side. So that's that's 10 00:00:38,640 --> 00:00:40,879 Speaker 1: three clues. Will come up with a new one today, 11 00:00:41,000 --> 00:00:44,080 Speaker 1: uh for you and as as the great whereas Tom 12 00:00:44,159 --> 00:00:47,920 Speaker 1: Keene search continues. Tom is missing a lot this morning, 13 00:00:47,960 --> 00:00:49,280 Speaker 1: and if you haven't been with us for the last 14 00:00:49,280 --> 00:00:52,400 Speaker 1: half hour, you have missed a lot. Abbott gonna buy St. 15 00:00:52,479 --> 00:00:55,840 Speaker 1: Jude Medical. This is a twenty five billion dollar deal 16 00:00:55,960 --> 00:01:00,200 Speaker 1: cash and shares. Ab Vy is going to acquire the 17 00:01:00,200 --> 00:01:03,280 Speaker 1: cancer drugmakers Stem Centrics. That one was a five point 18 00:01:03,360 --> 00:01:06,200 Speaker 1: eight billion dollar deal, also cash and shares. Another four 19 00:01:06,240 --> 00:01:10,399 Speaker 1: billion at play depending on what they call certain regulatory 20 00:01:10,440 --> 00:01:15,760 Speaker 1: issues and Ford out with a record profit and earnings 21 00:01:15,840 --> 00:01:18,039 Speaker 1: of sixty eight cents to share. The forecast was for 22 00:01:18,040 --> 00:01:23,000 Speaker 1: forty eight cents, So a major beat for the dearborn folks. 23 00:01:23,520 --> 00:01:26,959 Speaker 1: And uh. We are also watching Deutsche Bank this morning. 24 00:01:27,200 --> 00:01:30,480 Speaker 1: Surprise profit in the first quarter, legal expenses drop, trading 25 00:01:30,640 --> 00:01:34,240 Speaker 1: better than forecast. Now let's check out with Michael Barr 26 00:01:34,360 --> 00:01:37,399 Speaker 1: and the latest world of national headlines. Mike David, thank 27 00:01:37,400 --> 00:01:40,360 Speaker 1: you very much. Italian prosecutors say a Moroccan born man 28 00:01:40,520 --> 00:01:43,839 Speaker 1: living in Italy was ordered to carry out terror attacks, 29 00:01:43,880 --> 00:01:49,280 Speaker 1: focusing especially on Rome. Prosecutors say that investigators intercepted communication 30 00:01:49,360 --> 00:01:52,520 Speaker 1: between the man and a fighter with the Islamic State Group. 31 00:01:53,040 --> 00:01:56,800 Speaker 1: Senator John McCain proposed legislation to make it easier for 32 00:01:56,960 --> 00:02:00,840 Speaker 1: vets to access medical care. McCain says the bill would 33 00:02:00,840 --> 00:02:04,080 Speaker 1: remove the restriction that veterans can go outside the v 34 00:02:04,160 --> 00:02:07,160 Speaker 1: A system if they want more than thirty days or 35 00:02:07,360 --> 00:02:11,559 Speaker 1: more to have a forty mile access to a VA facilitate. 36 00:02:11,840 --> 00:02:16,359 Speaker 1: It's important that we allow every veteran, no matter where 37 00:02:16,400 --> 00:02:22,000 Speaker 1: they are geographically, to access to the healthcare of their choice. 38 00:02:22,600 --> 00:02:26,280 Speaker 1: Republican presidential candidate Ted Cruz has named Curly Fie Arena 39 00:02:26,400 --> 00:02:29,600 Speaker 1: as his running mate. Crews made the announcement yesterday, even 40 00:02:29,600 --> 00:02:32,960 Speaker 1: though he is mathematically unable to become the nominee through 41 00:02:32,960 --> 00:02:35,799 Speaker 1: the regular voting process. Global News twenty four hours a day, 42 00:02:35,840 --> 00:02:38,959 Speaker 1: powered by our twenty four hundred journalists more than a 43 00:02:39,040 --> 00:02:42,320 Speaker 1: hundred fifty news bureaus from around the world. I'm Michael Barr, Mike, 44 00:02:43,080 --> 00:02:45,400 Speaker 1: Thank you, Michael. Time now for the Bloomberg NBC he 45 00:02:45,560 --> 00:02:48,880 Speaker 1: Sports updating. For that, we turned to John stash all Right, Mike. 46 00:02:48,960 --> 00:02:52,079 Speaker 1: The Islander's first second round playoff game in twenty three 47 00:02:52,160 --> 00:02:54,800 Speaker 1: years of success at Tampa Bay. Three first period goals 48 00:02:54,840 --> 00:02:57,160 Speaker 1: to by Shane France, one of those with three seconds 49 00:02:57,200 --> 00:02:59,960 Speaker 1: left in the period. First round hero John Tavera score 50 00:03:00,120 --> 00:03:02,320 Speaker 1: second period of the power play is sixth and seven 51 00:03:02,320 --> 00:03:05,040 Speaker 1: playoff games. The Islanders held on. They won five three. 52 00:03:05,440 --> 00:03:08,720 Speaker 1: They'll play Game two. Centuray. Nashville advances to one and 53 00:03:08,800 --> 00:03:10,840 Speaker 1: an on fourth. Uni Roe the Ducks. We've had a 54 00:03:10,840 --> 00:03:13,280 Speaker 1: free to lead and lost the series. NBA Steph Curry 55 00:03:13,320 --> 00:03:17,320 Speaker 1: lists Golden State Warriors won easily over Euston one one 56 00:03:17,360 --> 00:03:19,560 Speaker 1: win the series four one. Curre only played a game 57 00:03:19,560 --> 00:03:21,760 Speaker 1: and a half. Portlands won Game five. Of the banged 58 00:03:21,840 --> 00:03:23,840 Speaker 1: up l A Clippers one of eight ninety eight, Charlotte 59 00:03:23,880 --> 00:03:26,679 Speaker 1: one eight eight at Miami Blazers and Hornets. We're both 60 00:03:26,680 --> 00:03:29,160 Speaker 1: down to nothing. Now go home with three two leads. 61 00:03:29,160 --> 00:03:31,080 Speaker 1: City Field Mets made the most of their five hits, 62 00:03:31,080 --> 00:03:34,440 Speaker 1: Michael confordo to run double, yet another homer for Neil Walker, 63 00:03:34,520 --> 00:03:36,760 Speaker 1: now tied in the major league lead with nine. Met 64 00:03:36,760 --> 00:03:39,000 Speaker 1: speed Cincinnati five to their six win in a row. 65 00:03:39,280 --> 00:03:42,240 Speaker 1: Yankees managers seven hits, three by Alex Rodriguez back from 66 00:03:42,240 --> 00:03:44,320 Speaker 1: the line up, hit career home run number six ninety 67 00:03:44,360 --> 00:03:47,160 Speaker 1: but Elvis Andrews run scoring triple six. Theny dot cc 68 00:03:47,240 --> 00:03:50,640 Speaker 1: Sbathia gave Texas three to win. With the Bloomberg NBC 69 00:03:50,720 --> 00:03:55,480 Speaker 1: Sports update, John Stasha, Thank you, John, Well, we're watching 70 00:03:55,600 --> 00:03:58,240 Speaker 1: a lot of deals this morning, and we're watching some 71 00:03:58,320 --> 00:04:01,960 Speaker 1: reaction to it. Abot five percent right now. St. Jude 72 00:04:01,960 --> 00:04:06,680 Speaker 1: Medical shares are up twenty seven per cent, and uh, 73 00:04:06,720 --> 00:04:11,200 Speaker 1: we're also watching ab V those shares are falling a 74 00:04:11,240 --> 00:04:20,000 Speaker 1: little bit as they buy stem Centric. This is Bloomberg Surveillance. 75 00:04:20,040 --> 00:04:23,279 Speaker 1: I Michael McKay along with David Gura. All the deals 76 00:04:23,320 --> 00:04:26,039 Speaker 1: haven't really given a boost to the market. System futures 77 00:04:26,080 --> 00:04:30,760 Speaker 1: down seventeen points right now. That is a deterioration from 78 00:04:30,760 --> 00:04:33,159 Speaker 1: where we were earlier this morning eight tenths of a percent. 79 00:04:33,240 --> 00:04:35,640 Speaker 1: Dow futures off by a hundred and fifty seven points, 80 00:04:36,080 --> 00:04:39,920 Speaker 1: nine tenths of eight per cent. It is time now 81 00:04:40,000 --> 00:04:43,400 Speaker 1: for the Bloomberg n j I T STEM Report, brought 82 00:04:43,400 --> 00:04:46,280 Speaker 1: to you by New Jersey Institute of Technology, investing more 83 00:04:46,320 --> 00:04:47,919 Speaker 1: than a hundred and ten million dollars a year and 84 00:04:47,920 --> 00:04:51,280 Speaker 1: applied research to solve problems and improve life. Learn more 85 00:04:51,279 --> 00:04:54,480 Speaker 1: at Stories of Innovation dot n j I T dot E. 86 00:04:54,640 --> 00:04:58,839 Speaker 1: Du Well SpaceX yesterday announced plans for the first ever 87 00:04:58,880 --> 00:05:02,159 Speaker 1: private mission. Tomorrow. The company says it will enounce it 88 00:05:02,200 --> 00:05:05,520 Speaker 1: will launch an unmanned Dragon to spacecraft as early as 89 00:05:05,520 --> 00:05:09,520 Speaker 1: two thousand eighteen. New York lawmakers proposing legislation that would 90 00:05:09,520 --> 00:05:13,880 Speaker 1: allow police officers to use a so called textilizer to 91 00:05:13,920 --> 00:05:17,600 Speaker 1: deter texting while driving. The device, similar to a breathalyzer, 92 00:05:17,680 --> 00:05:19,800 Speaker 1: would allow officers arriving at the scene of a crash 93 00:05:20,120 --> 00:05:22,880 Speaker 1: to field tested driver's cell phone to see if it 94 00:05:22,920 --> 00:05:27,039 Speaker 1: had been used for multitasking prior to the accident. Situs 95 00:05:27,120 --> 00:05:30,880 Speaker 1: in Spain have successfully created a human sperm from skin cells. 96 00:05:30,920 --> 00:05:35,520 Speaker 1: Researchers from the Valencia Infertility Institute, working with Stanford University, 97 00:05:35,800 --> 00:05:40,039 Speaker 1: altered mature skin cells by introducing the genes for gammy formation. 98 00:05:40,400 --> 00:05:43,480 Speaker 1: The breakthrough could be a game changer for the treatment 99 00:05:43,800 --> 00:05:46,920 Speaker 1: of infertility. In the US House yesterday and animously approved 100 00:05:46,960 --> 00:05:51,479 Speaker 1: legislation requiring authorities to obtain a warrant for acquiring emails 101 00:05:51,560 --> 00:05:55,800 Speaker 1: or cloud data. This reverses a N six law which 102 00:05:55,839 --> 00:05:58,920 Speaker 1: previously held emails and other information stored in the cloud 103 00:05:58,920 --> 00:06:01,480 Speaker 1: for more than six months to be discarded and therefore 104 00:06:01,800 --> 00:06:05,000 Speaker 1: accessible without a ward. And that's this morning's Bloomberg n 105 00:06:05,040 --> 00:06:08,840 Speaker 1: j I T STEM Report. David, Mike, thanks so much. 106 00:06:08,839 --> 00:06:10,920 Speaker 1: You're listening to Bloomberg Surveillance here on Bloomberg. Ready, I'm 107 00:06:10,960 --> 00:06:13,640 Speaker 1: David Gurray in for Tom Keene with Michael McKee. I 108 00:06:13,680 --> 00:06:17,200 Speaker 1: want to bring in now Axel Merks, cio of Merk Investments. Obviously, 109 00:06:17,279 --> 00:06:21,240 Speaker 1: the cup of Central Bank news runneth over, and let's 110 00:06:21,240 --> 00:06:23,240 Speaker 1: start with the Bank of Japan. We've become so familiar 111 00:06:23,279 --> 00:06:27,400 Speaker 1: with the karda surprise. There is also a trademark element 112 00:06:27,480 --> 00:06:31,000 Speaker 1: of patients for wanting patients and dependence on data, and 113 00:06:31,040 --> 00:06:33,440 Speaker 1: it seems like, uh, that is at the very least 114 00:06:33,480 --> 00:06:35,839 Speaker 1: what we saw here overnight. The Bank of Japan designing 115 00:06:35,839 --> 00:06:38,279 Speaker 1: it is not going to do anything more at this juncture. 116 00:06:38,720 --> 00:06:42,800 Speaker 1: Good morning. Well, if you think about a few days ago, 117 00:06:43,040 --> 00:06:47,039 Speaker 1: the trial balloon was raised whether banks will get negative 118 00:06:47,080 --> 00:06:50,240 Speaker 1: interest rates. Technically that's not so easy to do. I mean, 119 00:06:50,279 --> 00:06:52,799 Speaker 1: a triballonment great if you're a Bank of Japan anyway, 120 00:06:53,040 --> 00:06:54,800 Speaker 1: but it doesn't mean you can turn on a dime 121 00:06:54,839 --> 00:06:57,279 Speaker 1: and just implement it. And so they need to have debuta, 122 00:06:57,320 --> 00:06:59,440 Speaker 1: custs and pencil PUSH's figure out how to do it. Um, 123 00:06:59,440 --> 00:07:03,159 Speaker 1: they're prob they calling Draggy every minute. They'll jointly away 124 00:07:03,200 --> 00:07:05,280 Speaker 1: to try to figure it out. Remember drug is this 125 00:07:05,360 --> 00:07:08,440 Speaker 1: intellectual genius who thinks he can with his brain single 126 00:07:08,520 --> 00:07:11,440 Speaker 1: handedly fixed the Eurozone. And he's a little too smartphon zone. 127 00:07:11,520 --> 00:07:14,080 Speaker 1: Good well, Corona is isn't a different camp. He knows 128 00:07:14,080 --> 00:07:16,440 Speaker 1: what the print print print, but um, he will need 129 00:07:16,440 --> 00:07:17,920 Speaker 1: to get some advice on how to do it. And 130 00:07:17,960 --> 00:07:19,960 Speaker 1: so I think the the idea is certainly not off 131 00:07:19,960 --> 00:07:22,000 Speaker 1: the table for them, but they just needed time and 132 00:07:22,080 --> 00:07:25,960 Speaker 1: the market obviously isn't very patient. Obviously it's not very patient. 133 00:07:25,960 --> 00:07:27,600 Speaker 1: When you look at the end one oh eight oh 134 00:07:27,720 --> 00:07:31,440 Speaker 1: seven three percent move on the day in euro envy 135 00:07:31,720 --> 00:07:35,680 Speaker 1: just about three as well. Is that going to continue? 136 00:07:36,120 --> 00:07:39,680 Speaker 1: Is is he end going to continue to strengthen. That's 137 00:07:39,680 --> 00:07:42,920 Speaker 1: a good question. I the let's put it this way, 138 00:07:43,240 --> 00:07:46,560 Speaker 1: central banks for years have been trying to core us 139 00:07:46,600 --> 00:07:49,760 Speaker 1: the markets just with their talk for what guidance they 140 00:07:49,760 --> 00:07:52,680 Speaker 1: called it more academically, and at some point it hasn't 141 00:07:52,680 --> 00:07:55,400 Speaker 1: worked anymore. Draw has noticed that, the FED has noticed that, 142 00:07:55,640 --> 00:07:58,400 Speaker 1: the Bank of Japan has noticed it. So so the 143 00:07:58,440 --> 00:08:00,080 Speaker 1: traders are pretty much on their own. They have no 144 00:08:00,240 --> 00:08:03,360 Speaker 1: no that they can test Corona in particular UM. And 145 00:08:03,400 --> 00:08:05,160 Speaker 1: by the way, one other thing that's happened in Japan 146 00:08:05,280 --> 00:08:07,840 Speaker 1: is the previous time when they moved to negative territory, 147 00:08:07,880 --> 00:08:11,000 Speaker 1: they destroyed liquidity, very different from what what drag has 148 00:08:11,000 --> 00:08:13,680 Speaker 1: done in the ECB. And so this is the tribe 149 00:08:13,720 --> 00:08:16,120 Speaker 1: balloon was kind of a relief rally. But yes, the 150 00:08:16,200 --> 00:08:18,040 Speaker 1: pressure is for the yend to get stronger for the 151 00:08:18,120 --> 00:08:20,520 Speaker 1: time being, and especially let's think about way of coming 152 00:08:20,520 --> 00:08:22,800 Speaker 1: the equity markets. We've had such a rally in recent 153 00:08:22,840 --> 00:08:26,240 Speaker 1: months that risk off is really UM a likely choice. 154 00:08:26,320 --> 00:08:28,320 Speaker 1: Let's put it this way and risk off environment historically 155 00:08:28,360 --> 00:08:30,040 Speaker 1: again as well. The only caveat to that is, of 156 00:08:30,040 --> 00:08:32,160 Speaker 1: course there again has rallied so much so it's not 157 00:08:32,160 --> 00:08:34,280 Speaker 1: gonna maybe sort of quite as much as a buffer 158 00:08:34,280 --> 00:08:36,040 Speaker 1: about yes, in the in the coming weeks, I think 159 00:08:36,080 --> 00:08:39,720 Speaker 1: that pressure is mout stronger yen and then weak Agena 160 00:08:39,800 --> 00:08:43,600 Speaker 1: here saying he doesn't see a limit to monetary policy. 161 00:08:43,640 --> 00:08:45,640 Speaker 1: Do you expect to move some point later this year? 162 00:08:46,160 --> 00:08:48,199 Speaker 1: Central bankas never see a limit to what they do, 163 00:08:48,400 --> 00:08:50,800 Speaker 1: and they always double down on policies that don't work. 164 00:08:51,240 --> 00:08:53,640 Speaker 1: Um And and yes, I've been given that the trial 165 00:08:53,720 --> 00:08:56,280 Speaker 1: balloon worked. Um. I believe they will be studying how 166 00:08:56,360 --> 00:08:57,640 Speaker 1: they can do it. I mean that the problems of 167 00:08:57,720 --> 00:09:00,520 Speaker 1: courses they are the limit um and and so what 168 00:09:00,880 --> 00:09:03,520 Speaker 1: what do you do? They've destroyed liquidity in the markets, 169 00:09:03,559 --> 00:09:05,480 Speaker 1: and now they wanted to push the currency down and 170 00:09:05,480 --> 00:09:07,960 Speaker 1: it's not working so well. And and so yes, they'll 171 00:09:08,040 --> 00:09:11,760 Speaker 1: try to figure out something with negative rights. Uh, what 172 00:09:12,000 --> 00:09:14,480 Speaker 1: what's gonna be the most important central bank to investors 173 00:09:15,040 --> 00:09:17,560 Speaker 1: as the year goes on. You're talking about the possibility 174 00:09:17,559 --> 00:09:22,080 Speaker 1: of additional moves on the easing side from the Bank 175 00:09:22,120 --> 00:09:25,120 Speaker 1: of Japan. Uh, there is still a forecast for at 176 00:09:25,200 --> 00:09:27,480 Speaker 1: least one move from the FED on the tightening side, 177 00:09:27,559 --> 00:09:30,240 Speaker 1: and the European Central Bank could go either way. Well, 178 00:09:30,559 --> 00:09:33,079 Speaker 1: he just play Devil's advocate. I think the the the 179 00:09:33,240 --> 00:09:35,199 Speaker 1: the important thing is exactly the opposite of what you're 180 00:09:35,200 --> 00:09:37,600 Speaker 1: talking about. The important thing is that maybe the FED 181 00:09:37,720 --> 00:09:40,199 Speaker 1: is more towards the end of its tightening cycle, and 182 00:09:40,440 --> 00:09:42,800 Speaker 1: that some other central banks are more towards the end 183 00:09:42,840 --> 00:09:45,440 Speaker 1: of the eating cycle. Remember Drugging said he's not going 184 00:09:45,480 --> 00:09:47,760 Speaker 1: to go any lower. Look at the sweets. The suites 185 00:09:47,960 --> 00:09:51,280 Speaker 1: decided to start the tapering. They print every time they 186 00:09:51,280 --> 00:09:53,520 Speaker 1: are on something, but they announced less and and so 187 00:09:53,960 --> 00:09:56,640 Speaker 1: the the reason why the dollar has been weakening, amongst 188 00:09:56,679 --> 00:09:59,439 Speaker 1: others is precisely because we've been thinking that all the 189 00:09:59,520 --> 00:10:01,360 Speaker 1: FED is going razor rates to the statusy and it's 190 00:10:01,400 --> 00:10:03,480 Speaker 1: not happening. The FETE is going to be firmly behind 191 00:10:03,559 --> 00:10:06,240 Speaker 1: the crew only raised rays as inflation picks up. That 192 00:10:06,360 --> 00:10:08,839 Speaker 1: means that real interest rates aren't gonna move Hiah And 193 00:10:09,000 --> 00:10:10,760 Speaker 1: in the rest of the world, Yep Corona is gonna 194 00:10:11,280 --> 00:10:13,400 Speaker 1: have a fit and try to do something I wouldn't 195 00:10:13,400 --> 00:10:17,200 Speaker 1: exactly call that policy. Um and and in the eurosl 196 00:10:17,240 --> 00:10:19,720 Speaker 1: and Mr Dog is now focusing on bank earnings more 197 00:10:19,760 --> 00:10:22,480 Speaker 1: than the euro and and with that he has really 198 00:10:22,880 --> 00:10:25,880 Speaker 1: very little incentive to go more negative. Actual Marcus with 199 00:10:26,000 --> 00:10:29,800 Speaker 1: us from Mark Investments UH he's the president and chief 200 00:10:30,080 --> 00:10:33,680 Speaker 1: investment officer, and will continue our conversation with him. We're 201 00:10:33,720 --> 00:10:36,280 Speaker 1: talking about the end. We haven't talked about his favorite 202 00:10:36,280 --> 00:10:40,200 Speaker 1: subject gold. We'll get to that in our next segment. 203 00:10:40,320 --> 00:10:45,360 Speaker 1: Here on Bloomberg, right now, we are watching futures deteriorate. 204 00:10:45,600 --> 00:10:49,559 Speaker 1: It's a merger Thursday, a lot of big combinations of 205 00:10:49,600 --> 00:10:52,920 Speaker 1: being announced, but that's not creating any confidence in the markets. 206 00:10:53,280 --> 00:10:56,760 Speaker 1: And P futures lower by sixteen, Dow futures lower by 207 00:10:56,800 --> 00:11:02,640 Speaker 1: a hundred and fifty two. This is Bloomberg. We'll continue 208 00:11:02,720 --> 00:11:05,920 Speaker 1: our conversation with Axel Murk and then later at a 209 00:11:06,080 --> 00:11:10,640 Speaker 1: thirty the government announces its GDP figures for the first quarter. 210 00:11:11,120 --> 00:11:13,800 Speaker 1: Raman Ravish of h S will help break them down 211 00:11:13,880 --> 00:11:14,200 Speaker 1: for us