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

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

3
00:00:14,080 --> 00:00:17,640
Speaker 1: to the Country series at Channel one nineteen and around

4
00:00:17,720 --> 00:00:21,560
Speaker 1: the globe the Bloomberg Radio plus Boomberg dot Com. This

5
00:00:21,760 --> 00:00:25,400
Speaker 1: is Bloomberg Surveillance. Good morning, seven thirty on Wall Street

6
00:00:25,400 --> 00:00:29,160
Speaker 1: at Michael McKee along with Tom Keane. Two hours away

7
00:00:29,200 --> 00:00:32,760
Speaker 1: from what looks to be a lower open on Wall Street.

8
00:00:32,840 --> 00:00:35,760
Speaker 1: S andp features off by four points right now. Ali

9
00:00:35,800 --> 00:00:38,600
Speaker 1: Bama Group out a little while ago, said the revenue

10
00:00:38,600 --> 00:00:42,680
Speaker 1: growth will accelerate this fiscal year. China's largest e commerce company.

11
00:00:43,120 --> 00:00:46,080
Speaker 1: They provide their first financial forecasting's going public in two

12
00:00:46,120 --> 00:00:49,240
Speaker 1: thousand fourteen. They say sales will rise at least forty

13
00:00:49,320 --> 00:00:53,760
Speaker 1: eight percent in the year ending March two thousand seventeen.

14
00:00:54,680 --> 00:00:59,160
Speaker 1: Zarco Pharma that's the UK biotech company. Their investors include

15
00:00:59,200 --> 00:01:03,120
Speaker 1: Fiser's ven Capital arm exploring a sale got a positive

16
00:01:03,120 --> 00:01:06,800
Speaker 1: study result for a dermatology treatment, according to people with

17
00:01:06,840 --> 00:01:10,800
Speaker 1: knowledge of the matter, and Valiant Pharmaceuticals working with advisors

18
00:01:10,800 --> 00:01:14,560
Speaker 1: at Morgan Stanley weighing the sale of its dermatology units

19
00:01:14,560 --> 00:01:18,640
Speaker 1: Oboggy medical products and salta medical well. It's to raise

20
00:01:18,760 --> 00:01:21,400
Speaker 1: cash to reduce debt. People familiar with the matter say

21
00:01:21,440 --> 00:01:25,240
Speaker 1: the two businesses could fetch up to five hundred million dollars.

22
00:01:25,319 --> 00:01:29,000
Speaker 1: Representatives of Valiant in Morgan Stanley declining to commit to

23
00:01:29,160 --> 00:01:32,520
Speaker 1: Bloomberg News This morning, Let's check out with Michael Barr

24
00:01:32,640 --> 00:01:36,039
Speaker 1: at the latest world in national headlines Michael Mike. Vigils

25
00:01:36,080 --> 00:01:38,280
Speaker 1: were held last night in honor of the victims of

26
00:01:38,319 --> 00:01:41,720
Speaker 1: Sunday's attack at the Gay Orlando nightclub in New York

27
00:01:41,800 --> 00:01:44,400
Speaker 1: City of Vigil was held at the historic Stone Wall

28
00:01:44,520 --> 00:01:48,000
Speaker 1: Inn in Greenwich Village. Vigil was also held at the

29
00:01:48,000 --> 00:01:51,040
Speaker 1: scene of the carnage in Orlando. Today wraps up the

30
00:01:51,080 --> 00:01:54,600
Speaker 1: Democratic primary season. People will head to the polls today

31
00:01:54,600 --> 00:01:58,680
Speaker 1: in Washington, d C. After the primary, the presumptive Democratic

32
00:01:58,720 --> 00:02:02,320
Speaker 1: nominee Hillary Clinton is scheduled to meet with rival Bernie

33
00:02:02,320 --> 00:02:05,720
Speaker 1: Sanders this evening. France is investigating the killings of a

34
00:02:05,720 --> 00:02:09,560
Speaker 1: policeman and his female living partner outside of Paris. The

35
00:02:09,600 --> 00:02:13,160
Speaker 1: attacker was killed by French police. President France Vallo Alan

36
00:02:13,280 --> 00:02:17,200
Speaker 1: says the stabbing attack was a terrorist act. The Senate

37
00:02:17,440 --> 00:02:19,520
Speaker 1: is set to vote on a six hundred two billion

38
00:02:19,520 --> 00:02:22,720
Speaker 1: dollar defense policy bill at the White House, says President

39
00:02:22,800 --> 00:02:26,959
Speaker 1: Barack Obama will veto. The President objects to numerous provisions,

40
00:02:27,000 --> 00:02:31,600
Speaker 1: including a prohibition on shuttering the prison at Guantanamo Bay, Cuba.

41
00:02:31,960 --> 00:02:35,240
Speaker 1: Global News twenty four hours a day, powered by our

42
00:02:35,360 --> 00:02:37,959
Speaker 1: twenty four hundred journalists more than a hundred fifty news

43
00:02:38,000 --> 00:02:41,720
Speaker 1: bureaus around the world. I am Michael Barr, Mike, Thank you, Michael.

44
00:02:41,880 --> 00:02:45,040
Speaker 1: Time now for the land over Parcipany Bloomberg. NBC Sports

45
00:02:45,160 --> 00:02:49,640
Speaker 1: Update with Rob Bushkin, Morning Mike. NBA Finals Game five

46
00:02:49,760 --> 00:02:52,480
Speaker 1: from the Bay Area saw the Cleveland Cavaliers pin a

47
00:02:52,600 --> 00:02:55,720
Speaker 1: rare home loss on the Golden State Warriors one twelve

48
00:02:56,000 --> 00:02:58,120
Speaker 1: ninety seven and one of the few nots on Lebron

49
00:02:58,200 --> 00:03:01,440
Speaker 1: James throughout his career is Eddie's to unselfish not sell.

50
00:03:01,480 --> 00:03:04,440
Speaker 1: In Game five is James finished with forty one points,

51
00:03:04,680 --> 00:03:07,840
Speaker 1: as did Kyrie Irving. Those two scored all but thirty

52
00:03:07,840 --> 00:03:11,040
Speaker 1: points for Cleveland. James passed Magic Johnson on the final

53
00:03:11,160 --> 00:03:13,600
Speaker 1: scoring leaderboard as well. Now he has over a thousand

54
00:03:13,600 --> 00:03:17,560
Speaker 1: points in the postseason. The Warriors. Clay Thompson had thirty

55
00:03:17,560 --> 00:03:20,320
Speaker 1: seven m v P. Steph Curry had twenty five and

56
00:03:20,360 --> 00:03:22,680
Speaker 1: the game high four turnovers. Golden State still leads a

57
00:03:22,680 --> 00:03:25,320
Speaker 1: series three to two. Game six of Thursday in Cleveland,

58
00:03:25,560 --> 00:03:27,840
Speaker 1: Yankees immense both enjoyed the day off. Yankees are in

59
00:03:27,840 --> 00:03:30,640
Speaker 1: Colorado tonight. Nathan Valdi meets Jorge de le Ross at

60
00:03:30,639 --> 00:03:33,960
Speaker 1: eight forty and they also signed like Davis, He's expected

61
00:03:34,000 --> 00:03:36,200
Speaker 1: to share first base while Mark the shares out with

62
00:03:36,240 --> 00:03:39,120
Speaker 1: his knee injury. Davis's father, Ron, played with the Yankees

63
00:03:39,120 --> 00:03:41,520
Speaker 1: from seventy to eighty one. Mets had the night off.

64
00:03:41,560 --> 00:03:44,640
Speaker 1: They will welcome in Pittsburgh tonight to a city field

65
00:03:44,640 --> 00:03:47,640
Speaker 1: and Copa America play. Uruguay beat Jamaica three nome while

66
00:03:47,640 --> 00:03:50,320
Speaker 1: Mexico and Venezuela played to a one one drop. That's

67
00:03:50,360 --> 00:03:54,280
Speaker 1: your NBC Bloomberg Sports update, Mike, thank you, rev Well.

68
00:03:54,320 --> 00:03:56,600
Speaker 1: As I mentioned, it is looking like a down day

69
00:03:56,640 --> 00:03:59,520
Speaker 1: in the markets. And an update. If you're buying bonds,

70
00:03:59,600 --> 00:04:01,880
Speaker 1: you may make some money to your note yield a

71
00:04:01,960 --> 00:04:05,200
Speaker 1: sixty nine basis points, the five year at one point

72
00:04:05,280 --> 00:04:09,160
Speaker 1: one a ten year one point five nine percent. This

73
00:04:09,320 --> 00:04:20,280
Speaker 1: is Bloomberg Surveillance. Listening to Bloomberg Radio worldwide. Good Surveillance morning,

74
00:04:20,360 --> 00:04:22,960
Speaker 1: and I'm Michael McKee along with Tom Keen and good

75
00:04:23,000 --> 00:04:25,800
Speaker 1: if you can overlook the fact that the SMP futures

76
00:04:25,839 --> 00:04:28,919
Speaker 1: are down four points and down futures are off seven

77
00:04:29,279 --> 00:04:31,760
Speaker 1: stock six hundred off four points, you don't want to

78
00:04:31,760 --> 00:04:34,080
Speaker 1: be in the foot seat today. Down seventy points. Right

79
00:04:34,120 --> 00:04:39,880
Speaker 1: now one point two poles showing Brexit getting ever closer.

80
00:04:40,000 --> 00:04:43,120
Speaker 1: It appears time now for the Bloomberg n j I

81
00:04:43,200 --> 00:04:45,440
Speaker 1: T STEM Report, brought to you by New Jersey Institute

82
00:04:45,440 --> 00:04:47,799
Speaker 1: of Technology, investing more than a hundred and ten million

83
00:04:47,839 --> 00:04:50,359
Speaker 1: dollars a year and applied research to solve problems and

84
00:04:50,400 --> 00:04:53,080
Speaker 1: improve life. Learn more at Stories of Innovation dot and

85
00:04:53,240 --> 00:04:57,400
Speaker 1: j I T dot E d U interesting story here. Um,

86
00:04:57,440 --> 00:04:59,680
Speaker 1: everything you thought you knew about Solar system maybe wrong

87
00:04:59,720 --> 00:05:03,000
Speaker 1: because we may have ten or eleven planets. In January,

88
00:05:03,080 --> 00:05:06,320
Speaker 1: astronomers predicted the existence of a ninth planet after discovering

89
00:05:06,520 --> 00:05:09,279
Speaker 1: thirteen objects in an area beyond Neptune. We're all moving

90
00:05:09,320 --> 00:05:11,520
Speaker 1: together as if they were lassoed by the gravity of

91
00:05:11,520 --> 00:05:13,800
Speaker 1: a huge object. It turns out the paths of the

92
00:05:13,880 --> 00:05:17,000
Speaker 1: dwarf planets are not as stable as they thought, meaning

93
00:05:17,360 --> 00:05:19,839
Speaker 1: they could be falling under the influence of more planets

94
00:05:20,040 --> 00:05:23,280
Speaker 1: further out. Meanwhile, astronomers say they have discovered the largest

95
00:05:23,279 --> 00:05:26,919
Speaker 1: planet outside the Solar System that orbits two sons. The

96
00:05:26,960 --> 00:05:29,920
Speaker 1: newfound world about the size of Jupiter, thirty seven light

97
00:05:29,960 --> 00:05:33,960
Speaker 1: years from Earth light years about six trillion miles. Although

98
00:05:34,000 --> 00:05:36,640
Speaker 1: the planets in inhabitable zone, where water that is crucial

99
00:05:36,680 --> 00:05:38,960
Speaker 1: to life can be liquid, it's not a good candidate

100
00:05:39,000 --> 00:05:41,919
Speaker 1: to support life because it's so big, the scientists say.

101
00:05:42,120 --> 00:05:45,040
Speaker 1: Planets that circle a pair of sons are nicknamed Tattooing,

102
00:05:45,440 --> 00:05:48,120
Speaker 1: after the fictional body in the Star Wars films that

103
00:05:48,320 --> 00:05:52,080
Speaker 1: boasted double sunset. And a group of Australian scientists claimed

104
00:05:52,120 --> 00:05:54,760
Speaker 1: they have pulled off a world first, reviving the yeast

105
00:05:54,839 --> 00:05:58,320
Speaker 1: of a two hundred and twenty year old beer salvaged

106
00:05:58,360 --> 00:06:02,000
Speaker 1: from a shipwreck. In seven the trading ship Sydney Cove

107
00:06:02,080 --> 00:06:04,960
Speaker 1: sprang a leak, ran aground off the Australian coast. Many

108
00:06:05,040 --> 00:06:07,440
Speaker 1: of the crew rescued by longboat, but some of the

109
00:06:07,440 --> 00:06:10,920
Speaker 1: cargo remained buried at sea in the sunken ship, including

110
00:06:10,960 --> 00:06:14,040
Speaker 1: some of Sydney's precious beer supply for almost two centuries.

111
00:06:14,080 --> 00:06:16,640
Speaker 1: The beers have forgotten sealed beneath a layer of sand

112
00:06:16,880 --> 00:06:21,360
Speaker 1: and seagrass, conditions that preserve the organic material unusually well

113
00:06:21,440 --> 00:06:26,280
Speaker 1: until it was salvaged in. That is the n J

114
00:06:26,400 --> 00:06:28,520
Speaker 1: I T STEM Report. Now we're going to take a

115
00:06:28,520 --> 00:06:31,120
Speaker 1: look at oil. The I e A out with a

116
00:06:31,160 --> 00:06:35,479
Speaker 1: new report today cutting its oil surplus estimates, saying global

117
00:06:35,480 --> 00:06:38,520
Speaker 1: oil will be almost balanced next year. Demand continues to

118
00:06:38,680 --> 00:06:44,359
Speaker 1: rise faster than production. Final Gate is the senior analyst

119
00:06:44,400 --> 00:06:48,480
Speaker 1: for energy at Oppenheimer and Company. Final Uh We're not seeing, though,

120
00:06:48,720 --> 00:06:51,800
Speaker 1: an impact on prices on this I e A report.

121
00:06:51,800 --> 00:06:56,839
Speaker 1: West Texas and Brent are lower this morning. Correct, because

122
00:06:56,880 --> 00:07:00,960
Speaker 1: if you call oil prices hit their lowest level in

123
00:07:01,080 --> 00:07:07,200
Speaker 1: thirteen years back in February, the increased by almost to

124
00:07:07,480 --> 00:07:11,640
Speaker 1: fifty one dollar and even higher only a week ago.

125
00:07:11,800 --> 00:07:15,600
Speaker 1: So it is a normal reaction here that we are

126
00:07:15,640 --> 00:07:18,160
Speaker 1: going to see from pull back on prices. But longer

127
00:07:18,280 --> 00:07:23,640
Speaker 1: term the outlook is much more constructive. Within old persons

128
00:07:23,680 --> 00:07:27,360
Speaker 1: will continue to rise, whether or not the globe of

129
00:07:27,400 --> 00:07:31,400
Speaker 1: supply demand will be imbalance in twins seventeen. The question

130
00:07:31,640 --> 00:07:35,240
Speaker 1: is is it early twins seventeen or late twenty seventeen.

131
00:07:35,720 --> 00:07:41,280
Speaker 1: But given the fact that we are seeing rapid decline

132
00:07:41,480 --> 00:07:46,520
Speaker 1: in US shield production, which basically this is the new

133
00:07:47,720 --> 00:07:52,520
Speaker 1: a swing producer if you will, It really replaced Saudi

134
00:07:52,560 --> 00:07:57,960
Speaker 1: Arabia as the world will swing producer. Um, we still

135
00:07:58,000 --> 00:08:00,880
Speaker 1: need much higher old prices for a production in the

136
00:08:01,000 --> 00:08:05,920
Speaker 1: US to stop declining and begin to increase, but also

137
00:08:06,000 --> 00:08:12,560
Speaker 1: seeing reaction or response to the loyal prices in the

138
00:08:12,680 --> 00:08:18,640
Speaker 1: form of stronger demand group. So a combination of factors

139
00:08:18,680 --> 00:08:22,640
Speaker 1: including the fire in Canada over the last few weeks,

140
00:08:22,760 --> 00:08:28,400
Speaker 1: as well as continuous civil unrest in Nigeria, Libya, am

141
00:08:28,520 --> 00:08:34,199
Speaker 1: And which really curtailed a lot of oil production coming

142
00:08:34,280 --> 00:08:39,520
Speaker 1: into the supply chain that was really brewed down. If

143
00:08:39,559 --> 00:08:42,520
Speaker 1: you will, supply and demand became closer in balanced than

144
00:08:42,559 --> 00:08:45,360
Speaker 1: they will say. A couple of months ago, the i e.

145
00:08:45,520 --> 00:08:48,400
Speaker 1: A said that surplus in the first half of this

146
00:08:48,520 --> 00:08:51,760
Speaker 1: year is about smaller than it estimated a month ago.

147
00:08:51,880 --> 00:08:54,960
Speaker 1: I know it's very hard to estimate oil production, but

148
00:08:55,040 --> 00:08:59,280
Speaker 1: how do you miss Well again, it is the delta

149
00:08:59,480 --> 00:09:02,160
Speaker 1: is the chain, just as the surplus itself is not

150
00:09:02,360 --> 00:09:06,160
Speaker 1: that the the you know, the whole amount the surface

151
00:09:06,360 --> 00:09:12,600
Speaker 1: is basically the difference between supply and demand or between

152
00:09:13,040 --> 00:09:19,960
Speaker 1: existing production pacity UH and what would be the incremental increase.

153
00:09:20,080 --> 00:09:23,959
Speaker 1: So you can see much more volatility in the day

154
00:09:24,040 --> 00:09:28,160
Speaker 1: to change than the volume itself. So it is not

155
00:09:28,280 --> 00:09:31,880
Speaker 1: surprising at all that we see the circles declining much

156
00:09:31,920 --> 00:09:35,080
Speaker 1: faster than many people think. It was a reaction this

157
00:09:35,160 --> 00:09:38,920
Speaker 1: week when we had a report that drilling rigs UH

158
00:09:39,120 --> 00:09:41,760
Speaker 1: numbers were a little bit higher, But is that a

159
00:09:42,400 --> 00:09:47,079
Speaker 1: false don Perhaps the US recount, which is a key

160
00:09:47,120 --> 00:09:50,920
Speaker 1: indicator for U S ship production, has increased for two

161
00:09:50,960 --> 00:09:54,760
Speaker 1: consecutive weeks. This is for the first time in in

162
00:09:55,040 --> 00:10:01,000
Speaker 1: over years. That is a very very significant, important new point.

163
00:10:01,040 --> 00:10:05,160
Speaker 1: This is really we have seen a bottom, if you will,

164
00:10:05,360 --> 00:10:08,280
Speaker 1: for the red count and it can only go higher

165
00:10:08,360 --> 00:10:13,440
Speaker 1: from here. That is a very positive signal. It doesn't

166
00:10:13,520 --> 00:10:17,080
Speaker 1: mean that we're out of the woods yet. It doesn't

167
00:10:17,120 --> 00:10:19,560
Speaker 1: mean that the US your production is going to come

168
00:10:19,600 --> 00:10:24,120
Speaker 1: back and full forth. It means that survival of the fittest,

169
00:10:24,520 --> 00:10:28,080
Speaker 1: the best companies will capitalized, will be able to solve

170
00:10:28,120 --> 00:10:31,920
Speaker 1: on the fifty oil is not sufficient enough to attract

171
00:10:32,080 --> 00:10:35,960
Speaker 1: enough capital to allow supply to meet global demand. Well

172
00:10:36,040 --> 00:10:38,800
Speaker 1: right now, if we've got West Texas in the media

173
00:10:40,120 --> 00:10:44,640
Speaker 1: down one point three, Brent Cruit at seven of one

174
00:10:44,720 --> 00:10:49,080
Speaker 1: point four. We're talking with Final Gate, senior energy analyst

175
00:10:49,120 --> 00:10:52,480
Speaker 1: at Oppenheimer and the company. I don't know if oil

176
00:10:52,600 --> 00:10:55,319
Speaker 1: is connected to stocks today, but the S and P

177
00:10:55,480 --> 00:11:01,840
Speaker 1: futures down six points. This is Bloomberg Radio. Bloomberg Surveillance

178
00:11:01,840 --> 00:11:03,720
Speaker 1: brought to you by New York Community Bank. Asked about

179
00:11:03,720 --> 00:11:06,400
Speaker 1: their my Community interest checking with free New York Community

180
00:11:06,440 --> 00:11:09,080
Speaker 1: Bank online and mobile banking. Earn more, get more. Visit

181
00:11:09,160 --> 00:11:11,400
Speaker 1: my NYCB dot com for details