1
00:00:03,160 --> 00:00:07,760
Speaker 1: Broadcasting live to New York, Broomberg even to Washington, d C,

2
00:00:07,960 --> 00:00:13,240
Speaker 1: Bloomberg to Boston, Bloomberg dwell unders to San Francisco, Bloomberg

3
00:00:14,080 --> 00:00:17,720
Speaker 1: to the Country Series Exam Channel one ninety and around

4
00:00:17,760 --> 00:00:20,960
Speaker 1: the globe. The Bloomberg Radio Plus happened. Bloomberg dot Com.

5
00:00:21,320 --> 00:00:26,239
Speaker 1: This is Bloomberg Surveillance. Good morning. It is seven thirty

6
00:00:26,440 --> 00:00:29,480
Speaker 1: on Wall Street and Michael McKee along with Tom Keynes,

7
00:00:29,520 --> 00:00:33,599
Speaker 1: and it was just crossing the Bloomberg Professional Service Canadian Pacific.

8
00:00:33,640 --> 00:00:36,680
Speaker 1: Remember they backed off their merger efforts with Norfolk Southern.

9
00:00:37,040 --> 00:00:40,600
Speaker 1: Now they're boosting their quarterly dividend to fifty cents Canadian

10
00:00:40,720 --> 00:00:43,360
Speaker 1: from thirty five cents Canadian. They're also going to buy

11
00:00:43,400 --> 00:00:48,120
Speaker 1: back up to about five of their shares. Just a

12
00:00:48,159 --> 00:00:51,800
Speaker 1: few moments ago, Coca Cola reporting first quarter earnings on

13
00:00:51,840 --> 00:00:55,400
Speaker 1: a per share basis better than forecast forty five cents.

14
00:00:55,680 --> 00:00:59,280
Speaker 1: The instrument was for forty four revenue match ten point

15
00:00:59,320 --> 00:01:04,319
Speaker 1: three billion dollars Mitsubishi Motors. They're the latest to admit

16
00:01:04,400 --> 00:01:11,039
Speaker 1: they manipulated emissions test data. Shares down in Tokyo. Today,

17
00:01:11,120 --> 00:01:14,440
Speaker 1: Intel going to eliminate twelve thousand jobs eleven percent of

18
00:01:14,440 --> 00:01:17,280
Speaker 1: it's work force, shifting its focus to chips for data

19
00:01:17,400 --> 00:01:21,240
Speaker 1: center machines away from the PC things we are keeping

20
00:01:21,280 --> 00:01:24,840
Speaker 1: an eye on today. Michael Barr is keeping an eye

21
00:01:24,840 --> 00:01:28,240
Speaker 1: on what is happening in world and national news, and

22
00:01:28,360 --> 00:01:30,760
Speaker 1: he's with us now. Michael, Mike, thank you very much.

23
00:01:30,800 --> 00:01:33,640
Speaker 1: President Obama is in Saudi Arabia to meet with King

24
00:01:33,720 --> 00:01:37,319
Speaker 1: Salmon and of the Persian Gulf allies. The President will

25
00:01:37,360 --> 00:01:40,800
Speaker 1: also attend the Gulf Cooperation Council summit. Later. The President

26
00:01:41,120 --> 00:01:45,319
Speaker 1: will also visit London and Germany. Democrat Hillary Clinton and

27
00:01:45,400 --> 00:01:48,600
Speaker 1: Republican Donald Trump are the winners of the New York primary.

28
00:01:49,040 --> 00:01:52,000
Speaker 1: Hillary Clinton's win gives her at least one hundred thirty

29
00:01:52,000 --> 00:01:55,400
Speaker 1: five more delegates to rival Bernie Sanders roughly one hundred

30
00:01:55,440 --> 00:01:58,760
Speaker 1: four he picked up last nine. Donald Trump got at

31
00:01:58,840 --> 00:02:02,400
Speaker 1: least eighty nine of the state's ninety five Republican delegates.

32
00:02:02,720 --> 00:02:06,080
Speaker 1: Hundreds of mobile phones seized by the FBI over a

33
00:02:06,120 --> 00:02:10,400
Speaker 1: six month period cannot be opened. A Bureau official told

34
00:02:10,480 --> 00:02:14,720
Speaker 1: US lawmakers the encryption using pass codes cannot be broken.

35
00:02:15,000 --> 00:02:18,200
Speaker 1: It highlights the debate between helping law enforcement and the

36
00:02:18,240 --> 00:02:21,320
Speaker 1: possibility of hackers getting hold of a way to access

37
00:02:21,360 --> 00:02:24,679
Speaker 1: phones to millions. Global news twenty four hours a day,

38
00:02:24,720 --> 00:02:28,280
Speaker 1: powered by our twenty four hundred journalists more than one

39
00:02:28,360 --> 00:02:31,400
Speaker 1: hundred fifty news bureaus from around the world. I'm Michael Barr.

40
00:02:32,200 --> 00:02:34,799
Speaker 1: Thank you, Michael. Time now for the land over Parcipani

41
00:02:34,840 --> 00:02:39,040
Speaker 1: Bloomberg NBC Sports Update. Here's John Stesher. Al Right, My

42
00:02:39,120 --> 00:02:41,800
Speaker 1: three home losses doomed the Rangers in their last playoff

43
00:02:41,880 --> 00:02:44,320
Speaker 1: series last year, and they lost again last night at

44
00:02:44,320 --> 00:02:47,639
Speaker 1: the Guarden, Matt Cullens scaring a breakaway third period Penguins

45
00:02:47,639 --> 00:02:49,399
Speaker 1: at an empty Netterer at the end and won three

46
00:02:49,400 --> 00:02:52,240
Speaker 1: to one for a two one series lead. Rick nash

47
00:02:52,320 --> 00:02:55,400
Speaker 1: the Ranger goal shorthanded openment of the second period that

48
00:02:55,680 --> 00:02:58,840
Speaker 1: was at Sydney Crosby a power play goal for the Penguins,

49
00:02:58,880 --> 00:03:00,880
Speaker 1: and then two Ranger defense have been got tangled up

50
00:03:00,960 --> 00:03:04,000
Speaker 1: leading to the Cullen breakaway. Rangers only seventeen shots on

51
00:03:04,200 --> 00:03:07,880
Speaker 1: Pittsburgh goalie Matt Murray. Game four tomorrow Islanders in Florida.

52
00:03:07,919 --> 00:03:10,760
Speaker 1: Their game for tonight in Brooklyn. Tampa Bay and St.

53
00:03:10,800 --> 00:03:14,480
Speaker 1: Louis both won for three one series leads Anaheim one

54
00:03:14,520 --> 00:03:17,560
Speaker 1: at Nashville, who still leads to one. Two NBA blowouts

55
00:03:17,600 --> 00:03:20,480
Speaker 1: Atlanta and San Antonio, both easily at home for two

56
00:03:20,480 --> 00:03:23,320
Speaker 1: nothing leads over Boston and Memphis. Remember when the Mets

57
00:03:23,360 --> 00:03:26,480
Speaker 1: couldn't score? Not the case lately. Six more home runs

58
00:03:26,480 --> 00:03:28,240
Speaker 1: and eleven to one ro out of the Phillies. That's

59
00:03:28,240 --> 00:03:31,720
Speaker 1: seventeen homers the last five games. Neil Walker belted two.

60
00:03:31,800 --> 00:03:34,320
Speaker 1: He's got six on the season. Plenty of support for

61
00:03:34,360 --> 00:03:37,880
Speaker 1: Logan Bret six scoreless innings in second straight impressive start

62
00:03:37,920 --> 00:03:40,480
Speaker 1: at the stadium. Jed Lowry four hits for Oakland. He

63
00:03:40,560 --> 00:03:42,480
Speaker 1: doubled and scored in the eleventh and in the eights,

64
00:03:42,560 --> 00:03:45,520
Speaker 1: beat the last place Yankees three to two. With the

65
00:03:45,520 --> 00:03:49,840
Speaker 1: Bloomberg NBC Sports update, I'm John Stashamiler. Thank you John.

66
00:03:49,880 --> 00:03:54,240
Speaker 1: The EU accusing Google of anti trust violations. Google shares

67
00:03:54,320 --> 00:03:57,120
Speaker 1: now trading in the pre market, and where they are

68
00:03:57,200 --> 00:03:59,920
Speaker 1: depends on which shares you're talking about. The A shares

69
00:04:00,040 --> 00:04:03,360
Speaker 1: are up by two point four percent, the C shares

70
00:04:03,400 --> 00:04:07,440
Speaker 1: are up by one percent, So no impact from the

71
00:04:07,480 --> 00:04:11,320
Speaker 1: EU action on Google shares so far this morning. We'll

72
00:04:11,360 --> 00:04:14,200
Speaker 1: keep an eye on that as the day goes on.

73
00:04:18,520 --> 00:04:21,800
Speaker 1: This is bloom Bird Surveillance. I'm Michael McKee along with

74
00:04:21,839 --> 00:04:26,400
Speaker 1: Tom Keane. Google shares are up. So are the future

75
00:04:26,600 --> 00:04:29,640
Speaker 1: markets in the United States SMP up three points right

76
00:04:29,640 --> 00:04:32,360
Speaker 1: now a tenth of a percent down. Futures up by

77
00:04:32,520 --> 00:04:35,760
Speaker 1: fourteen points. Also higher by a tenth. We had seen

78
00:04:35,800 --> 00:04:38,880
Speaker 1: the futures markets lower through most of Asian and early

79
00:04:38,960 --> 00:04:42,960
Speaker 1: European trading. Time. Now for the n j I T

80
00:04:43,320 --> 00:04:46,240
Speaker 1: STEM Report, brought to you by New Jersey Institute of Technology,

81
00:04:46,279 --> 00:04:48,520
Speaker 1: investing more than a hundred and ten million dollars a

82
00:04:48,600 --> 00:04:51,360
Speaker 1: year that applied research to solve problems that improved life.

83
00:04:51,440 --> 00:04:53,599
Speaker 1: Learn more at Stories of Innovation dot n j I

84
00:04:53,680 --> 00:04:56,920
Speaker 1: T dot edu. Here's John Tucker. Now, let's see what's

85
00:04:56,960 --> 00:05:00,920
Speaker 1: making news and science, technology, engineering, and man. Next time

86
00:05:00,920 --> 00:05:04,600
Speaker 1: you fly a drone in Hong Kong, authorities in Beijing

87
00:05:04,760 --> 00:05:08,880
Speaker 1: maybe watching what you're doing. S z d j I Technology,

88
00:05:09,080 --> 00:05:12,680
Speaker 1: the world's largest maker of small civilian drones, says it's

89
00:05:12,760 --> 00:05:16,320
Speaker 1: in discussion with Chinese government officials who are keen to

90
00:05:16,360 --> 00:05:19,719
Speaker 1: gain access to the trove of data it's airborne devices

91
00:05:19,760 --> 00:05:24,119
Speaker 1: siphon up that includes location, flight records, and possibly video

92
00:05:24,200 --> 00:05:28,000
Speaker 1: shop by users and uploaded to its servers. It's unclear

93
00:05:28,120 --> 00:05:30,760
Speaker 1: how future data requests may apply to the US and

94
00:05:31,000 --> 00:05:34,360
Speaker 1: European customers, although the company will inform users if any

95
00:05:34,440 --> 00:05:38,479
Speaker 1: other information is handed over to authorities. D j I

96
00:05:38,600 --> 00:05:42,120
Speaker 1: notifies users in its privacy policy that their personal data

97
00:05:42,360 --> 00:05:45,960
Speaker 1: may be transferred to and from servers throughout China, Hong

98
00:05:46,040 --> 00:05:51,080
Speaker 1: Kong in the US, Intel's chief executive officer, Brian Kransick,

99
00:05:51,240 --> 00:05:54,880
Speaker 1: is eliminating twelve hundred jobs twelve thousand jobs, the chip

100
00:05:54,880 --> 00:05:58,840
Speaker 1: maker's deepest cutbacks in a decade, taking his most radical

101
00:05:58,880 --> 00:06:01,359
Speaker 1: step yet to move in tell in a new businesses

102
00:06:01,720 --> 00:06:05,200
Speaker 1: and ease its dependence of the shrinking personal computer market.

103
00:06:05,400 --> 00:06:08,960
Speaker 1: The world's biggest semiconductor makers that shifting its focus to

104
00:06:09,160 --> 00:06:13,279
Speaker 1: hire growth areas such as chips for data center machines

105
00:06:13,600 --> 00:06:17,360
Speaker 1: and internet connected devices, which so far aren't contributing enough

106
00:06:17,400 --> 00:06:20,839
Speaker 1: to make up for the decline in sales of PCs.

107
00:06:20,839 --> 00:06:23,440
Speaker 1: And that is this morning's Bloomberg n g I t

108
00:06:23,600 --> 00:06:26,560
Speaker 1: Stand Report. Mike John Tucker, thank you very much, well,

109
00:06:26,640 --> 00:06:29,839
Speaker 1: as you no doubt know by now, Hillary Clinton and

110
00:06:29,880 --> 00:06:34,480
Speaker 1: Donald Trump won the New York primaries. The narrative now

111
00:06:34,720 --> 00:06:38,679
Speaker 1: is that both of them are favorites for nomination by

112
00:06:38,720 --> 00:06:41,960
Speaker 1: their parties. Which leads me to wonder why this is

113
00:06:42,000 --> 00:06:45,359
Speaker 1: something of an Alfred E. Newman market. Remember Mad magazine,

114
00:06:45,400 --> 00:06:49,320
Speaker 1: Tom ALFREDY Newman? What me worry? Uh, You've got Hillary Clinton,

115
00:06:49,440 --> 00:06:53,680
Speaker 1: who is talking about bashing Wall Street and not supporting

116
00:06:53,880 --> 00:06:57,200
Speaker 1: free trade initiatives. And you've got Donald Trump, whose economic

117
00:06:57,440 --> 00:07:00,560
Speaker 1: proposals you can't even categorize because they're all over the place.

118
00:07:00,640 --> 00:07:03,960
Speaker 1: They make absolutely no sense at all. Letb. Cantrill is

119
00:07:04,120 --> 00:07:07,320
Speaker 1: executive vice president at PIMCO, and her job is to

120
00:07:07,360 --> 00:07:10,040
Speaker 1: track what's going on in the political world, and I'm

121
00:07:10,080 --> 00:07:12,640
Speaker 1: just wondering why that none of this is reflected it

122
00:07:12,680 --> 00:07:15,440
Speaker 1: seems in the markets. What me worry? You have? Right?

123
00:07:15,440 --> 00:07:18,800
Speaker 1: I know, the markets have been impervious really to date

124
00:07:19,040 --> 00:07:23,720
Speaker 1: um during this really unconventional election cycle. Now that might

125
00:07:23,880 --> 00:07:28,000
Speaker 1: change as we get closer to the convention and depending

126
00:07:28,080 --> 00:07:31,520
Speaker 1: especially on the Republican side, If no one candidate has

127
00:07:31,640 --> 00:07:34,360
Speaker 1: the simple majority of delegates going into the convention to

128
00:07:34,360 --> 00:07:37,560
Speaker 1: to win the nomination um, so a broker convention and

129
00:07:37,600 --> 00:07:40,200
Speaker 1: contested convention environment, we don't know so know how the

130
00:07:40,240 --> 00:07:42,280
Speaker 1: market will react. But yeah, to date, the market has

131
00:07:42,280 --> 00:07:45,200
Speaker 1: been pretty insensitive to all of this. Does it suggest

132
00:07:45,280 --> 00:07:49,880
Speaker 1: that maybe Washington has taken itself out as as as

133
00:07:49,880 --> 00:07:54,400
Speaker 1: a factor affecting investment. I mean, it may not be helping,

134
00:07:54,440 --> 00:07:57,000
Speaker 1: but nobody thinks it can hurt because they don't do anything.

135
00:07:57,840 --> 00:08:02,240
Speaker 1: Uh possibly, I think more more realistically, it's just people

136
00:08:02,240 --> 00:08:03,880
Speaker 1: who don't know what to make of this right now.

137
00:08:04,000 --> 00:08:07,920
Speaker 1: And I think once we once there are the nominees

138
00:08:07,920 --> 00:08:11,000
Speaker 1: are in place, um, once we get closer to to

139
00:08:11,040 --> 00:08:13,760
Speaker 1: the general election, once we have a better understanding what

140
00:08:13,800 --> 00:08:17,000
Speaker 1: Congress may look like in sev I think the markets

141
00:08:17,040 --> 00:08:19,600
Speaker 1: will likely focus more on this. But until now, I

142
00:08:19,640 --> 00:08:22,120
Speaker 1: don't I don't know why, you know, I think they're

143
00:08:22,120 --> 00:08:24,400
Speaker 1: just they're they're viewing this as noise instead of rightfully.

144
00:08:24,440 --> 00:08:27,280
Speaker 1: So at this point, Congressman King of New York brought

145
00:08:27,320 --> 00:08:31,400
Speaker 1: into stark reality in the lasts, the divides in the

146
00:08:31,440 --> 00:08:36,440
Speaker 1: Washington you cover. I'm fascinated by, I guess in general

147
00:08:36,600 --> 00:08:43,840
Speaker 1: Senate House dynamics, but particularly Republican Senate now House dynamics.

148
00:08:43,280 --> 00:08:47,320
Speaker 1: It could be a fly on the wall, must be something. Yeah,

149
00:08:47,480 --> 00:08:49,240
Speaker 1: you know, I think there was there was a lot

150
00:08:49,280 --> 00:08:52,439
Speaker 1: of hope on obviously on on the House side, especially

151
00:08:52,600 --> 00:08:55,920
Speaker 1: when Speaker Ryan came in and you to his credit,

152
00:08:56,000 --> 00:08:58,720
Speaker 1: and I'm not going to be an apologist for Washington

153
00:08:58,720 --> 00:09:01,480
Speaker 1: in action, but to his credit, he actually has done

154
00:09:01,559 --> 00:09:04,360
Speaker 1: some things that haven't really been reported. You know, he

155
00:09:04,600 --> 00:09:06,439
Speaker 1: passed the budget deal at the end of the last year.

156
00:09:06,480 --> 00:09:08,360
Speaker 1: He passed a five year highway bill, he passed a

157
00:09:08,360 --> 00:09:11,400
Speaker 1: Texas tax extenders bill, all which were signed into law.

158
00:09:11,559 --> 00:09:15,240
Speaker 1: So to sort of characterize this, Washington has absolutely do nothings,

159
00:09:15,280 --> 00:09:18,520
Speaker 1: probably not accurate. But the last couple of months, you know,

160
00:09:18,760 --> 00:09:22,000
Speaker 1: you've seen him challenging UM in terms of Puerto ric

161
00:09:22,080 --> 00:09:24,560
Speaker 1: passing puert Rico legislation, in terms of trying to get

162
00:09:24,559 --> 00:09:27,960
Speaker 1: a budget done. You know, he is dealing with the

163
00:09:27,960 --> 00:09:31,800
Speaker 1: realities of a very um kind of fractious caucus. And

164
00:09:31,840 --> 00:09:35,040
Speaker 1: if Paul Ryan honestly can't unite the House of Representatives

165
00:09:35,040 --> 00:09:37,120
Speaker 1: on the Republican side, I don't know. I don't know

166
00:09:37,160 --> 00:09:39,760
Speaker 1: who can. Some have suggested it could get worse for

167
00:09:39,880 --> 00:09:44,640
Speaker 1: him because moderates may be defeated in the election if

168
00:09:44,679 --> 00:09:47,719
Speaker 1: the if Trump is the nominee. Yeah, yeah, I think

169
00:09:47,720 --> 00:09:50,400
Speaker 1: that there is a there's a scenario where people vote

170
00:09:50,440 --> 00:09:53,280
Speaker 1: kind of down ballot, right, So if there's a big

171
00:09:53,320 --> 00:09:56,880
Speaker 1: turnout on the Democratic side to defeat Trump, UM and

172
00:09:56,960 --> 00:09:59,640
Speaker 1: folks and vote kind of down ballot for their senator

173
00:09:59,679 --> 00:10:02,640
Speaker 1: and from member of Congress, then that could be challenging.

174
00:10:02,880 --> 00:10:06,840
Speaker 1: You know, realistically, though the Republicans have the greatest majority

175
00:10:06,960 --> 00:10:10,600
Speaker 1: in the House since the Depression era, it's very difficult

176
00:10:10,640 --> 00:10:13,800
Speaker 1: to conceive a scenario in which the House swings Republicans

177
00:10:13,840 --> 00:10:17,599
Speaker 1: at this point. Um, just given congressional redistricting, given that

178
00:10:17,600 --> 00:10:20,760
Speaker 1: there's not many swing districts on the House side. UM,

179
00:10:20,920 --> 00:10:23,600
Speaker 1: So that is a it's possible, I would say at

180
00:10:23,600 --> 00:10:26,680
Speaker 1: this point it's it's still not probable though, but Ryan

181
00:10:26,679 --> 00:10:30,320
Speaker 1: will definitely be dealing with a more narrow majority next

182
00:10:29,200 --> 00:10:32,839
Speaker 1: to le cantroll with us with Pimco, will come back

183
00:10:32,840 --> 00:10:37,280
Speaker 1: and continuous discussion the dynamics of uh Washington, Mike, are

184
00:10:37,320 --> 00:10:41,880
Speaker 1: we Denver Broncos free today or never? Never? Come on never.

185
00:10:42,000 --> 00:10:44,679
Speaker 1: We We've got a whole quarterback controversy to sort out.

186
00:10:45,000 --> 00:10:47,840
Speaker 1: The NFL Draft is coming up. I will not handle

187
00:10:47,880 --> 00:10:50,800
Speaker 1: that this is surveillance sports, because of course we got

188
00:10:50,840 --> 00:10:53,120
Speaker 1: Levy and the Broncos, and then later on John Angelos

189
00:10:53,160 --> 00:10:55,880
Speaker 1: from the Baltimore or very cool from the Oriels. I

190
00:10:55,920 --> 00:11:03,080
Speaker 1: believe first place Bloomberg surveillances brought you by Mercedes Band's

191
00:11:03,080 --> 00:11:05,440
Speaker 1: outstanding offers are in full. Bloomit Your Mercedes Ben's Tri

192
00:11:05,520 --> 00:11:08,040
Speaker 1: State dealers take advantage of limited time LEAs and finance

193
00:11:08,080 --> 00:11:11,320
Speaker 1: programs on select bottles this spring season. Visit md USA

194
00:11:11,400 --> 00:11:19,360
Speaker 1: dot com for details. Today, Global business news twenty four

195
00:11:19,400 --> 00:11:22,480
Speaker 1: hours a day at Bloomberg dot com, the Radio Plus

196
00:11:22,520 --> 00:11:25,680
Speaker 1: mobile app, and on your radio. This is a Bloomberg

197
00:11:25,720 --> 00:11:29,040
Speaker 1: Business Flash and I'm Karen Moscow. This updates brought to

198
00:11:29,080 --> 00:11:33,559
Speaker 1: you by Eisner Amper, Hedge Week, Institutional Investor, All Credit Intelligence.

199
00:11:33,559 --> 00:11:36,960
Speaker 1: Fund managers reading these publications rank Eisner Amper high for

200
00:11:37,200 --> 00:11:40,760
Speaker 1: excellence and clients service. Find out why Osner Amper dot

201
00:11:40,760 --> 00:11:45,000
Speaker 1: Com slash excellence. The European Commission sending Google a formal

202
00:11:45,040 --> 00:11:49,000
Speaker 1: antitrust complaint, accusing the company of striking restrictive contracts that

203
00:11:49,040 --> 00:11:52,480
Speaker 1: prevent makers of tablets and phones from adding competing apps

204
00:11:52,520 --> 00:11:55,960
Speaker 1: and web browsers. We're also watching earnings this morning Abbott

205
00:11:56,000 --> 00:11:59,960
Speaker 1: Labs crossing the Bloomberg first quarter profit beating analysts estimate.

206
00:12:00,080 --> 00:12:04,520
Speaker 1: Coca Cola posted first quarter results, then mostly met analysts estimates,

207
00:12:04,559 --> 00:12:07,320
Speaker 1: underwhelming investors and shares her down about one point three

208
00:12:07,320 --> 00:12:11,000
Speaker 1: percent in early trading, Canadian Pacific Railway reporting first quarter

209
00:12:11,080 --> 00:12:14,760
Speaker 1: profit that beat analysts estimates. In US Bank Corps said

210
00:12:14,760 --> 00:12:17,880
Speaker 1: profit dropped three point one percent in the first quarter.

211
00:12:18,320 --> 00:12:22,480
Speaker 1: Futures this morning are higher, and this as oil declines

212
00:12:22,520 --> 00:12:26,160
Speaker 1: and investors assess earnings. Snpe Many futures up three points

213
00:12:26,440 --> 00:12:28,680
Speaker 1: now we many futures up night and as doc Emny

214
00:12:28,720 --> 00:12:31,959
Speaker 1: futures up eight. The decks in Germany's up to tenths percent.

215
00:12:32,040 --> 00:12:35,680
Speaker 1: European stocks also reversing in earlier decline. Ten. Your treasury

216
00:12:35,720 --> 00:12:38,200
Speaker 1: up one thirty second, the yield one point seven eight percent.

217
00:12:38,520 --> 00:12:41,360
Speaker 1: Nimex screwed oil down one point seven percent, or sixty

218
00:12:41,360 --> 00:12:44,280
Speaker 1: eight cents to forty dollars. Forty cents of barrel comes.

219
00:12:44,320 --> 00:12:46,440
Speaker 1: Gold is down three tenths per cent or four dollars

220
00:12:46,440 --> 00:12:50,120
Speaker 1: to twelve fifty thirty. Announced the euro another thirteen seventy eight.

221
00:12:50,200 --> 00:12:52,839
Speaker 1: The n one oh nine point one nine. And that's

222
00:12:52,840 --> 00:12:56,520
Speaker 1: a Bloomberg business flash. Tom and Mike, well, that's greatly

223
00:12:56,520 --> 00:13:00,319
Speaker 1: appreciate that. Let me cancel with us with Pimcole Libby.

224
00:13:00,400 --> 00:13:02,000
Speaker 1: I know, I know Mike's got a couple of themes

225
00:13:02,000 --> 00:13:05,240
Speaker 1: to UH had to hear just if I could quickly

226
00:13:06,160 --> 00:13:09,920
Speaker 1: the Republicans in Washington, if they have to get ready

227
00:13:09,920 --> 00:13:13,920
Speaker 1: for a Clinton presidency, how do they do that? I mean,

228
00:13:14,080 --> 00:13:17,760
Speaker 1: what is There's been very little discussion actually of what

229
00:13:17,800 --> 00:13:21,440
Speaker 1: a Clinton presidency would look like. Yeah, it's a it's

230
00:13:21,440 --> 00:13:23,440
Speaker 1: a really good question, and I think you could envision

231
00:13:23,480 --> 00:13:27,720
Speaker 1: some two scenarios. One scenario resembles the one that we've seen,

232
00:13:28,040 --> 00:13:31,040
Speaker 1: UM in terms of their strategy with Obama, in terms

233
00:13:31,040 --> 00:13:34,760
Speaker 1: of just trying to obstruct and trying to pass symbolic

234
00:13:34,920 --> 00:13:37,679
Speaker 1: lying uh legislation knowing that it would be vetoed by

235
00:13:37,679 --> 00:13:41,680
Speaker 1: the President. The other scenario is that, um, you know,

236
00:13:41,760 --> 00:13:45,080
Speaker 1: they actually want to partner with Clinton, and this will

237
00:13:45,120 --> 00:13:47,360
Speaker 1: this will be predicated on how much she reaches across

238
00:13:47,400 --> 00:13:50,160
Speaker 1: the aisle. I I'm a little bit more optimistic in

239
00:13:50,280 --> 00:13:52,320
Speaker 1: terms of the way that she interacts with Congress. I

240
00:13:52,320 --> 00:13:55,439
Speaker 1: think you'll see her trying to establish deeper relationships both

241
00:13:55,440 --> 00:13:57,280
Speaker 1: within her own party and on the other side of

242
00:13:57,280 --> 00:14:00,120
Speaker 1: the aisle in Congress. And if she does that and

243
00:14:00,480 --> 00:14:03,080
Speaker 1: you know her um, and she's welcome, then you can

244
00:14:03,120 --> 00:14:06,520
Speaker 1: actually see maybe a more productive Washington in two seventeen.

245
00:14:06,600 --> 00:14:09,080
Speaker 1: But um, you know, You're right, there hasn't been a

246
00:14:09,120 --> 00:14:12,200
Speaker 1: lot of strategy or discussion about that so far. Honestly,

247
00:14:12,240 --> 00:14:14,280
Speaker 1: they're just trying to figure out who their nominee is

248
00:14:14,280 --> 00:14:17,320
Speaker 1: going to be. Well, let's, uh, let's talk about what

249
00:14:17,520 --> 00:14:21,760
Speaker 1: could be done. We might as well be ridiculously optimistic here.

250
00:14:22,080 --> 00:14:26,400
Speaker 1: What's the top one or two things that business and

251
00:14:26,760 --> 00:14:31,640
Speaker 1: uh Wall Street would like to see accomplished? Well, um,

252
00:14:32,000 --> 00:14:34,560
Speaker 1: that might be different from what is most probably you're

253
00:14:34,600 --> 00:14:35,880
Speaker 1: going to get done. I mean, I think that if

254
00:14:35,920 --> 00:14:39,520
Speaker 1: you look at the issue areas that you Clinton has

255
00:14:39,680 --> 00:14:42,880
Speaker 1: has values a part of her platform. If she wants

256
00:14:42,880 --> 00:14:45,240
Speaker 1: to see, you know, more spending on infrastructure, and I

257
00:14:45,280 --> 00:14:48,200
Speaker 1: actually think that again, in it's more kind of Pollyannish

258
00:14:48,200 --> 00:14:52,200
Speaker 1: optimistic scenario, you could see her trying to trade a

259
00:14:52,200 --> 00:14:55,560
Speaker 1: big infrastructure bill for maybe corporate tax reform, so she

260
00:14:55,600 --> 00:14:58,240
Speaker 1: gets increased spending, uh, you know, which some of the

261
00:14:58,240 --> 00:15:01,320
Speaker 1: Republicans might be low to do. But in exchange, she

262
00:15:01,440 --> 00:15:04,120
Speaker 1: actually gives on corporate tax reform. And I think that

263
00:15:04,160 --> 00:15:06,880
Speaker 1: would be welcomed by the markets. I think Wall Street

264
00:15:06,880 --> 00:15:09,040
Speaker 1: would welcome that as well as a as a sign

265
00:15:09,080 --> 00:15:12,200
Speaker 1: that there is some functioning in Washington. When you say

266
00:15:12,200 --> 00:15:15,160
Speaker 1: corporate tax reform, what would it look like? Well, that's

267
00:15:15,160 --> 00:15:17,840
Speaker 1: you know, that's the big question mark obviously, and there's

268
00:15:17,920 --> 00:15:20,200
Speaker 1: lots of details. And this is you know, tax reform

269
00:15:20,280 --> 00:15:22,720
Speaker 1: just in general. I always characterize it as the unicorn

270
00:15:22,760 --> 00:15:25,400
Speaker 1: on on capital helps. Everyone likes to talk about it,

271
00:15:25,440 --> 00:15:27,600
Speaker 1: but it's you know, kind of mythical. UM. But I

272
00:15:27,600 --> 00:15:29,680
Speaker 1: think that if you were you're talking about just corporate

273
00:15:29,720 --> 00:15:33,120
Speaker 1: tax reform and individual tax reform, you could see something

274
00:15:33,160 --> 00:15:36,080
Speaker 1: on repeat creation. I guess the question would be, you know,

275
00:15:36,120 --> 00:15:38,960
Speaker 1: what what what rate people are allowed that corporations are

276
00:15:38,960 --> 00:15:42,960
Speaker 1: allowed to repeatreate? UM? There there foreign cash UM. But

277
00:15:43,040 --> 00:15:44,760
Speaker 1: a lot of the details obviously remain to be seen.

278
00:15:44,800 --> 00:15:47,320
Speaker 1: There's some work and the ways of means right now

279
00:15:47,720 --> 00:15:50,360
Speaker 1: and also in the Senate Finance Committee UM trying to

280
00:15:50,440 --> 00:15:52,840
Speaker 1: lay the foundation for a corporate for corporation And this

281
00:15:52,920 --> 00:15:54,840
Speaker 1: is this is maybe the wrong question to ask. And

282
00:15:54,880 --> 00:15:57,880
Speaker 1: if your attorneys at Pimical say this is not appropriate,

283
00:15:58,360 --> 00:16:01,080
Speaker 1: speak up. We don't want to be rude to one. L. Cantrell.

284
00:16:01,800 --> 00:16:05,000
Speaker 1: The basic idea here of a Republican party that has

285
00:16:05,040 --> 00:16:09,840
Speaker 1: to re form and move on from Reagan mythology to

286
00:16:09,960 --> 00:16:13,000
Speaker 1: a new Republican party. Do you see that within the

287
00:16:13,040 --> 00:16:16,040
Speaker 1: hotel lobbies and meeting rooms in your Washington Yeah, I

288
00:16:16,040 --> 00:16:18,080
Speaker 1: mean I think that there are definitely discussions of that

289
00:16:18,160 --> 00:16:19,920
Speaker 1: in kind of the back you know, the back rooms.

290
00:16:19,920 --> 00:16:22,320
Speaker 1: And honestly, if you look at what the twelve twelve

291
00:16:22,360 --> 00:16:26,240
Speaker 1: Atopsy report after Mitt Romney law so big in it

292
00:16:26,480 --> 00:16:30,240
Speaker 1: was questioning that that Republican orthodoxy, right, it was also

293
00:16:30,800 --> 00:16:34,720
Speaker 1: really encouraging Republicans to embrace things like immigration reform, trying

294
00:16:34,720 --> 00:16:37,560
Speaker 1: to reach out to women, to minorities. We haven't really

295
00:16:37,600 --> 00:16:40,080
Speaker 1: seen that necessarily, right, you know, right now. So if

296
00:16:40,080 --> 00:16:43,000
Speaker 1: they lose big again in twos sixteen, I think you

297
00:16:43,040 --> 00:16:46,480
Speaker 1: could see them returning to those principles and reevaluating some

298
00:16:46,560 --> 00:16:49,200
Speaker 1: of the sort of regular orthodoxy that they've held in

299
00:16:49,280 --> 00:16:51,840
Speaker 1: such kind of long stead for for so long. Well,

300
00:16:51,880 --> 00:16:55,800
Speaker 1: there is a view that perhaps what we're seeing now

301
00:16:56,560 --> 00:17:01,080
Speaker 1: from the Trump Eastas is what the Republican Party will be,

302
00:17:01,480 --> 00:17:06,000
Speaker 1: and the Republicans will no longer be the party of business. Yeah,

303
00:17:06,040 --> 00:17:08,760
Speaker 1: I don't know. I think it's difficult to take that

304
00:17:08,880 --> 00:17:11,639
Speaker 1: leap um, you know, honestly, and except for New York,

305
00:17:11,720 --> 00:17:15,760
Speaker 1: Trump actually hasn't won any primary more than fifty percent

306
00:17:15,920 --> 00:17:19,720
Speaker 1: and he is definitely benefited from a very crowded Republican field.

307
00:17:19,920 --> 00:17:22,159
Speaker 1: So I think to sort of extrapolate too much about

308
00:17:22,520 --> 00:17:25,040
Speaker 1: what is going on right now with Trump supporters and

309
00:17:25,080 --> 00:17:28,159
Speaker 1: extract broughting that to the entire Republican Party is a

310
00:17:28,160 --> 00:17:30,040
Speaker 1: little bit too much of a leap. But yes, there

311
00:17:30,200 --> 00:17:32,960
Speaker 1: is definitely a contingency in the Republican Party that feels

312
00:17:33,040 --> 00:17:35,440
Speaker 1: left behind by this recovery, and Republicans are going to

313
00:17:35,520 --> 00:17:40,480
Speaker 1: have to address that in what about immigration reformed? The

314
00:17:41,400 --> 00:17:46,520
Speaker 1: third rail for the Republicans right now? But business would

315
00:17:46,560 --> 00:17:49,080
Speaker 1: like to see that, Yeah, they would. And honestly, you

316
00:17:49,160 --> 00:17:50,919
Speaker 1: just look at and we've talked about this before on

317
00:17:50,960 --> 00:17:53,159
Speaker 1: your show. You just look at the electoral map in

318
00:17:53,200 --> 00:17:56,040
Speaker 1: the general election and the swing states that are likely

319
00:17:56,080 --> 00:17:59,560
Speaker 1: to determine the presidency, the Colorados, the Nevadas, the Virginia's

320
00:17:59,560 --> 00:18:02,800
Speaker 1: in north line is I mean immigration and that our

321
00:18:02,840 --> 00:18:06,680
Speaker 1: demographics are changing so much in that in those states

322
00:18:07,119 --> 00:18:09,720
Speaker 1: that if I would say, if Republicans want to win

323
00:18:09,800 --> 00:18:13,440
Speaker 1: national elections, they need to broaden their base much more

324
00:18:13,480 --> 00:18:16,920
Speaker 1: so than they have indication of that come out of convention.

325
00:18:17,400 --> 00:18:20,479
Speaker 1: They have I mean every candidate by definition, even with

326
00:18:20,560 --> 00:18:24,000
Speaker 1: respect to Mr Trump moves to the middle. The heart

327
00:18:24,119 --> 00:18:27,680
Speaker 1: of the matter is the formation, frankly, of both parties

328
00:18:28,119 --> 00:18:31,600
Speaker 1: around a different America than we all grew up. And

329
00:18:31,720 --> 00:18:34,800
Speaker 1: everybody in this room, you know an ex number of years,

330
00:18:34,920 --> 00:18:37,840
Speaker 1: is a minority in America. We all know that. And

331
00:18:37,880 --> 00:18:42,000
Speaker 1: within a broad spectrum melting pot of America. Where's the

332
00:18:42,080 --> 00:18:45,879
Speaker 1: Republican Party November December of this year. Yeah, I mean,

333
00:18:45,880 --> 00:18:47,320
Speaker 1: I think I don't think you're going to see this

334
00:18:47,359 --> 00:18:52,680
Speaker 1: pivot this cycle. But again, if they lose big in um,

335
00:18:53,200 --> 00:18:55,520
Speaker 1: which some people are prognosticating that they would do, if

336
00:18:55,560 --> 00:18:59,280
Speaker 1: Trump or the nominee, they're they're going to have to

337
00:18:59,480 --> 00:19:03,879
Speaker 1: broaden the base and change, you know, and change their rhetoric. Honestly, Uh,

338
00:19:03,920 --> 00:19:06,400
Speaker 1: they just what has worked for them so so well

339
00:19:06,480 --> 00:19:09,400
Speaker 1: over the last forty years is not going to work well.

340
00:19:09,520 --> 00:19:11,960
Speaker 1: And the in the next forty years. What is what

341
00:19:12,040 --> 00:19:15,120
Speaker 1: happens to Wall Street? Donald Trump of has has been

342
00:19:15,160 --> 00:19:18,240
Speaker 1: bashing uh, Wall Street right and left. Now, as you say,

343
00:19:18,280 --> 00:19:21,520
Speaker 1: he's probably gonna lose big. But Hillary Clinton has been

344
00:19:21,520 --> 00:19:23,919
Speaker 1: bashing Wall Street in response to Bernie Sanders. But she

345
00:19:23,960 --> 00:19:26,639
Speaker 1: did represent Wall Street in the Senate for years. So

346
00:19:27,119 --> 00:19:29,680
Speaker 1: is the best case scenario, maybe from her benign neglect

347
00:19:29,720 --> 00:19:31,920
Speaker 1: if she were like, yeah, and honestly, if you look

348
00:19:31,960 --> 00:19:34,360
Speaker 1: at her platform, and yeah, obviously she's had to sort

349
00:19:34,359 --> 00:19:37,440
Speaker 1: of go more, probably farther to the left than maybe

350
00:19:37,440 --> 00:19:40,280
Speaker 1: even she wanted to. But if you actually look at

351
00:19:40,280 --> 00:19:44,000
Speaker 1: her policy platform around Wall Street first, so much of

352
00:19:44,000 --> 00:19:48,400
Speaker 1: what she proposes happening would have to have congressional approval,

353
00:19:48,440 --> 00:19:51,520
Speaker 1: and that looks unlikely in a split Congress if Republicans

354
00:19:51,520 --> 00:19:53,480
Speaker 1: were to hold the or to hold the House in

355
00:19:54,240 --> 00:19:57,960
Speaker 1: sev But other than that, it's it's relatively benign, especially

356
00:19:58,040 --> 00:20:00,880
Speaker 1: compared to Sanders, who you know, his rhetoric is break

357
00:20:00,920 --> 00:20:02,879
Speaker 1: up the big banks, which he actually doesn't want to

358
00:20:02,920 --> 00:20:05,800
Speaker 1: have authority to do. Uh. But um, but so I

359
00:20:05,800 --> 00:20:09,119
Speaker 1: think it's it's relatively it's it's more benign than maybe

360
00:20:09,119 --> 00:20:11,320
Speaker 1: what has been characterized in the press. And I think

361
00:20:11,320 --> 00:20:14,000
Speaker 1: that's all you would see. And under a Clinton administration,

362
00:20:14,600 --> 00:20:18,359
Speaker 1: what about uh, just the current track that we're on,

363
00:20:18,600 --> 00:20:23,000
Speaker 1: leave aside the next president, but under Dodd Frank uh

364
00:20:23,040 --> 00:20:25,760
Speaker 1: and under the regulatory regime that the Federal Reserve and

365
00:20:25,880 --> 00:20:28,960
Speaker 1: the fd i C and others are following, where does

366
00:20:28,960 --> 00:20:31,440
Speaker 1: Wall Street to end up as a as a utility

367
00:20:31,600 --> 00:20:34,640
Speaker 1: or yeah, I don't think it's gonna be quite that extreme.

368
00:20:34,720 --> 00:20:37,000
Speaker 1: But you know clearly, and you're seeing this with the

369
00:20:37,520 --> 00:20:41,800
Speaker 1: bank's earnings reports that you know, regulation is absolutely affecting

370
00:20:42,359 --> 00:20:46,200
Speaker 1: the bank's business models here, and it is from our perspective.

371
00:20:46,359 --> 00:20:50,159
Speaker 1: You know, as market participants, it's impacted liquidity and it's

372
00:20:50,200 --> 00:20:53,600
Speaker 1: impacted their ability to make markets because of the capital requirements.

373
00:20:53,760 --> 00:20:57,600
Speaker 1: But you're seeing smaller banks, less leverage banks probably better

374
00:20:57,680 --> 00:21:00,000
Speaker 1: for the whole financial system at large in terms of

375
00:21:00,040 --> 00:21:02,879
Speaker 1: safety and soundness, but yes, they're grappling with a different

376
00:21:02,880 --> 00:21:06,080
Speaker 1: business mile going forward because of regulation. We have to

377
00:21:06,119 --> 00:21:08,480
Speaker 1: ask because of course around the country people listen to

378
00:21:08,600 --> 00:21:11,520
Speaker 1: Libby Cantell and want to know what's happening on Wall

379
00:21:11,520 --> 00:21:14,200
Speaker 1: Street and what's happening in Washington. But in Denver everybody

380
00:21:14,240 --> 00:21:17,879
Speaker 1: asks you about the football team. So we have to

381
00:21:17,920 --> 00:21:21,040
Speaker 1: ask before you go, who's under center for the Broncos

382
00:21:21,240 --> 00:21:23,560
Speaker 1: when they open this season against Now we were just

383
00:21:23,640 --> 00:21:26,040
Speaker 1: talking about that. Oh my god, my guess is as

384
00:21:26,080 --> 00:21:28,399
Speaker 1: good as yours, Mike. You know, I really don't know.

385
00:21:28,560 --> 00:21:31,800
Speaker 1: We I am still just basking in the glow of

386
00:21:31,840 --> 00:21:34,240
Speaker 1: our Super Bowl victory and that is what I'm going

387
00:21:34,280 --> 00:21:36,920
Speaker 1: to focus on. And I also think that's still defense

388
00:21:36,920 --> 00:21:38,600
Speaker 1: can as we've seen, and it can win games. So

389
00:21:39,720 --> 00:21:42,040
Speaker 1: the defense. Look first of all in New York, no

390
00:21:42,040 --> 00:21:44,919
Speaker 1: one's focused on the quarterback of Denver. They're looking at

391
00:21:45,160 --> 00:21:48,760
Speaker 1: Mr Strayhan moving from Kelly over the Good Morning America.

392
00:21:48,880 --> 00:21:53,240
Speaker 1: I mean, that's what matters. Enlighten us that don't care, Mike.

393
00:21:53,400 --> 00:21:57,040
Speaker 1: Who are the candidates to take over for st right now?

394
00:21:57,119 --> 00:22:00,280
Speaker 1: The only one they have is basically Mark. Mark Hench

395
00:22:00,320 --> 00:22:05,480
Speaker 1: has the you know, the former Jet they have, here's

396
00:22:05,480 --> 00:22:08,240
Speaker 1: a third string quarterback, and then they're they're in the market.

397
00:22:08,400 --> 00:22:11,480
Speaker 1: So if if you get tired of hosting surveillance and

398
00:22:11,520 --> 00:22:14,240
Speaker 1: you would like to play quarterback, you're certainly tall enough

399
00:22:14,440 --> 00:22:18,520
Speaker 1: for comedy lightness, folks. Sometime watch me throw a football.

400
00:22:18,600 --> 00:22:22,840
Speaker 1: There's never been a correct throw. Livy Cantroll with Pimco,

401
00:22:23,200 --> 00:22:25,960
Speaker 1: thank you for the brief and economics finance investment on

402
00:22:26,040 --> 00:22:29,280
Speaker 1: the Denver Broncos. Another hour of Bloomberg Surveillance