Transcripts For BLOOMBERG In The Loop With Betty Liu 2015032

BLOOMBERG In The Loop With Betty Liu March 24, 2015

She talked with the greece Prime Minister Perry Christie is not saying when or if greece will get the bailout money it needs. This liberation. To try to do their best to overcome the Greek Economy as soon as possible. Betty the president of afghanistan wants troops to stay in the country longer. He plans to meet with president obama today. An israeli official says today the country never spied on iran. He denied that the Prime Minister try to on a deal. The u. S. And other world pop other world powers want to keep iran from getting nuclear weapons. And says a deal with Security Card strategist at j. P. Morgan say there are more questions that may answer. It does not see a clear path on Interest Rates. It says a move is likely. I think this is an excellent move. I think the removal is a new error. Era. Betty back to our top story. The tragic plane crash in france. Int went down. The french president is garnering a Crisis Response to german chancellor Angela Merkel and says there are survivors among the 148 people on board. Greg, what is the latest we know . Greg it is in a mountainess terrain. A very rocky mountain. The interior minister and criminal investigators and aircraft investigators from paris are on the way. We should be getting more details from that. Betty what do you know that what brought the plane down . Greg we do not know. The weather nothing that would bring an airplane down. It does not seem to be the weather. The airline put out a stress signal before the crash. It is quite a mystery at this point. Betty greg, thank you so much. Meanwhile, turning to greece george soros warns there is a 50 chance greece could leave the euro. He made those comments in an exclusive interview. Francine joins us now from london. George soros does not seem that upbeat. He told me that is a lose lose situation. He was very worried about the situation. The west have made a mess of it. He says this was mishandled from the beginning. This performance has deteriorated. It pushes greece out of the euro and would hurt itself. Question is it a 5050 possibility . I would think so. Twice this is again crunch time. They have done enough basically a package of economic reforms, but we are nowhere near that yet, hence george sorosss. He was also very focal on the ukraine and wanting the u. S. To get more involved. He does and that was the reason for the interview. He is very vocal on the ukraine and worried about the ukraine. He says there needs to be a moment where the west comes together and we will do whatever it takes for the ukraine. A corrupt country, put in power by oligarchs. He says now is the time for the west to show some unity. He was not talking about militarily arming ukraine, but to politically have the will to stand by the ukraine more forcibly than it has so far. Betty thank you, francine. I want to get to scarlet was the breaking news desk. Scarlet . Scarlet it is unexpectedly reducing its dividends to and nicole from 31 and a quarter sense here this is for a record form a first and a broader effort to reduce capitals ventures. All of this is in response to the impact of lower commodity prices. Shares are following in the premarket by about 4 . Betty staying here in the u. S. Another stock the idea of spinning off mcdonalds real estate shares of the fast food giant saw its single biggest day gain yesterday after her Hedge Fund Manager said the company could unlock 20 million in value converting. Greg covers Consumer Retail for Bloomberg News and reported on the story craig, we have heard mcdonalds say this before that we have gotten this proposal from others as well. Why arent they doing it . Craig youre right. They have been noncommittal to her they do not want to do it. One analyst told me all things being equal, every country would want to but they cannot. Mcdonalds came up in the 1950s when it was cheaper. Throws off a ton of cash which is why they like to own it. Narrow, chipotle, those guys do not have the ability to own real estate. Betty mcdonalds is unique in that they only a lot of real estate. How much do they own . Craig 45 of the land and 75 of the building. They have 36,000 restaurants across the world. 14,000 in the u. S. It is a Gigantic Company that owns a lot of real estate. 5 billion in profit just from those rents in 2014. That gives you a sense of why it is so important to their bottom line. Internally for mcdonalds, they contacted the company and essentially pointed me to comments from earlier this month when a chief administrative officers head yeah, we have it. A noncommittal answer. They said we have seen the idea and it is not new and they are leaving it not one way or the other. Betty theyre struggling and they need to show investors the money, right . Craig new management, maybe theyre open and receptive to change, they are vulnerable right now. Betty thank you for joining us. Coming up Hillary Clinton is expected to announce her next step in early april for 2016. Before she does, we look at this upon how she will run her campaign. We will be back. Betty crews are rushing to the site for the airliner crash this morning. Airbus a320 was carrying 142 passengers in a crew of six. The president of france says it is not likely anyone survived. The jet was flying from barcelona to desultory. It is the to dusseldorf. Inflation slumped to zero in february. The slowdown in january was sharper than economists had forecast and marked the first zero readings since comparable records in 1989. Dragging down the annual rate, nonalcoholic drinks, furniture, and alcohol equipment. The british Prime Minister says two turns at the helm would be enough. David cameron says he would serve he would serve a full final term. The liberal coalition. Deutsche bank may reduce its trading business and boost profits according to a person familiar with the matter. The bank may cut down its interest trading until finance trading that caters to hedge funds. It weighed on the stock price. Angelina jolie is out. She went through a preventive double mastectomy. She has had her ovaries removed. The decision followed a blood test that showed her to have a gene putting her at high risk for breast and also ovarian cancer. Julie writes about it in todays jolie writes about in todayss New York Times. We will look at how heavily the u. S. Dollar is weighing on Company Earnings this quarter. It could be reminiscent of financial crisis era traffic. Hillary clinton waited back into the policy waters yesterday. The secretary of state at the center for American Progress event for any opportunity in urban areas. Hillary clinton a of our cities truly are divided a lot of inequality that has only gotten worse, some of the most dynamic, welleducated people in the world, and people trapped in generational poverty and whose skills are not keeping up with the jobs of today and tomorrow demand. Betty tonight these appearances mark some of her last public speeches before the expected launch of her president ial Campaign Next week there they coincide with senator ted cruz announcing he plans to run for president in 2016. For more on what hillary said and what we want to hear from her next, i want to bring in the Communications Director of the ready for Hillary Super pac urging Hillary Clinton to run for support for her potential candidate. He worked on her 2008 campaign. Lets start off with the elephant in the room. Should Hillary Clinton thank ted cruz for jumping into the ring . I do not know what to say that has not been said. They are all basically the same. They do not want to raise the minimum wage, they do not support equal pay 40 work here they support tax rates for the lovely. It is exactly the opposite of the promiddleclass agenda that hillary outlined yesterday with the center for American Progress. I hope she is a candidate and gets to outline that contrast. The contrast will be clear. Betty it will be clear and i say that tongueincheek about ted cruz, but there is a real reality with him jumping into the race, he is a pretty strong contender, that he will bring the republicans more to the right and that will galvanize not only will that create a big bottleneck within the gop side but it might galvanize the democratic side. Did use the any evidence of that . I think so. I think the agenda on the republican side, regardless of what youre talking about, is an extreme, tea party german agenda. It is exactly the opposite of what hillary and since then four. Stands for. I think it turns off the country by promoting test race for the wealthy and the middleclass and that galvanizes our side as well as turning off moderate voters. Turning off moderate voters, let me talk about turning off democratic voters. I want to point to a boston Globe Editorial oped that came out a few days ago. Talking about how Hillary Clinton needs challengers within the democratic party. Democrats would be making a big mistake if they let Hillary Clinton go to the president ial nomination without real opposition. Senator Elizabeth Warren can make sure that does not happen. What do you say to that . Anyone who wants to run for president should. Senator warren says she is not running. Hillary clinton is obviously moving in that direction. We hope millions of and millions of americans hope she will run and get into her there is no free ride to any nomination. Caucusgoers in iowa and the voters in New Hampshire and the national media, along with voters across the country, really weigh in and make sure candidates have to work hard and earn the support. I believe that is what Hillary Clinton will do regardless of who might get in on the democratic or republican side she will be out there working hard for every single vote in iowa and New Hampshire in every single country. Betty i mentioned you work on her 2008 campaign and many do not want a repeat of what happened in 2008. I want to bring in some poll numbers here from gallup that came out recently. They showed a favorable rating from Hillary Clinton and other democratic contenders here she has a huge favorable rating compared to biden and warn if she were to run. 79 . Lets scroll back to 2007 they showed clinton premuch of the same position, 80 . At that time, obama and edwards were riding higher in favorable ratings. Does it worry you Hillary Clinton is in the same spot . Is i believe she is much stronger than she was in 2008. She has broad support among women from senator obama then his early supporters and the amount of support she goes into in with his much higher. Betty all right. Thank you so much. We will be back. Betty wall street analysts to make a steepest cuts since prices. The currency up 14 since last year has caught many in the sea suite off guard. Were joined now either senior professor of freight cars trade policy and also the author of the dollar trap, which focuses on the dollars strengthening importance to the global market. It has been a bestseller. You have focused quite a bit on the dollar. Anything will stop it from advancing further. In the short time, it will have bumps on the road but the fundamentals are all pointing to the dollar strength. The u. S. Economy and in terms of its monetary policy, the diversion from the rest of the world especially from other economies. Geopolitical uncertainty around the world, which brings flows into the u. S. Dollar. It is hard to see with the configuration of economic circles dances it is a stash of shoot away from the coming months and is couple of years. Betty we have see in the dollar advance, like i said 14 since last summer. We know the fundamentals of the u. S. Have been supportive of the dollar. We know the fed was eventually going to start Interest Rates. What has caught everybody off guard . The fact that the u. S. Economy has continued to have the performance it has, and it seems hard to imagine the u. S. Economy will continue chugging along by itself. If anything, the economy seems to be getting more there are parts of the recovery that are certainly not very strong yet. Wage growth is still very weak. But you yes the u. S. Economy is generating 2000 plus jobs a month. That is a Strong Performance by any standard internationally. Betty should policy deciders, the treasury department, should they do anything about the dollarss advance at all . Should they try to stabilize it more . I frankly do not think any of that will work. The fundamentals are so strong right now. The question is whether this would have an effect on the world that would come back on the u. S. If the fed starts raising Interest Rates early in the second half of 2015, if it causes a big pullback and those start going into distress, the demand will get week, the dollar could strengthen further and that would start having an effect on the world economy. I think the fed will have to calibrate its response. If there will be a Strong Negative response and the rest of the world, it may have to take that into account is an Interest Rates. Betty what else could the u. S. Do about a stronger dollar . Not much. The u. S. Is not only about 15 of the economy is accounted for by experts that you have oil prices declining, wage pressers being muted here for corporations, it is a mixed bag. Many now have a lot of production bases overseas so they are hurting a little bit in terms of running especially with foreign demand being weak. I and basis for the u. S. Economy, it is a big negative. Betty bottom line, this is what to the u. S. Economy . It means the rest of the world is doing terribly. Given the interconnected world we live in, that will eventually not be great for the u. S. For the u. S. To be the sole growth, i do not think that is sustainable. The dollar will not help that situation very much. Betty we will get Inflation Numbers in a few seconds. Will the dollar have much impact on keeping a lid on inflation . The strong dollar is very good in terms of keeping Interest Rates down. Energy prices falling will certainly keep Energy Prices contained and a little more patient if they want to. Betty thank you so much eswar. Speaking about inflation, we are getting cpi numbers out right now. 2 , matching economists estimates. Scarlett has more from the breaking news desk. I say rebound from the prior month drop. We have a drop in january because of falling Energy Prices and the recovery because of rebounding gasoline prices. If you strip out the volatile energy price as well as food you have a gain of 2 10 of 1 . We continue to hold where we were in january because of a stronger dollar. Overall, core inflation had been decelerating since the Second Quarter of last year. We stabilize here just a little bit. The headline cpi number, no change when it was anticipated to drop. No change yearoveryear. Core inflation is 1. 7 , as anticipated. Fed policy members will probably focus on when you back out food and Energy Prices, and not pay much attention to the headline number. Stabilization and core cpi will determine what theyre looking for and feel better and more confident about rate lift off. The two year yield moves higher. Now 57 basis points from earlier on when it was at 56. The 10 year yield inching up a little bit, still lower. Above that 1. 9 level. The dollar preparing us declines just a little bit, still lower. U. S. Stock Index Futures taking a little bit of a leg lower. Still positive but not by much. Betty thank you so much, scarlet fu on the Economic News of inflation. Back to our top story come the deadly airbus crash in southern france, which may have claimed the lives of all the passengers and crew on board. The flight went down on his voyage from barcelona to desultory dusseldorf. In touch with the german chancellor Angela Merkel and other leaders on the incident. He just held a brief press conference on this and called it a tragedy on twitter. Great joining me now from paris with more on the plane crash. Greg, tell us a little bit more about the coordinated response to the plane crash. We just heard from the Prime Minister who said he is meeting with other leaders in france and in germany on this. Tell me about the courtney response. Greg if you have an accident like this where you have a German Airline leaving from spain and flying back to germany and crashing in france, all three countries are involved but the bulk of it will fall to the responses from the french and it is difficult to get to the crash site, because it is in rough terrain. It is a mountainous area with ski resorts in the winter and mountain hiking in the summer. It is a rough area and apparently, the site is not reachable by vehicle. We do not have images yet from the site which shows you just how inaccessible it is. French investigators are on their way and will be joined later by german and spanish investigators. Betty what has been said so far about this, german wings, tell us more about the corporate response from this. Greg nothing yet. There is also going to be a press conference sorting any moment now. Hopefully, we will get more information about that. The reports the plane had signaled distress before hand it has not been signaled by the company. They do not have the exact number of testers on board at this point. There should be a

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