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tv   Bloomberg Markets  Bloomberg  April 22, 2016 12:00pm-2:01pm EDT

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president obama, who is in the country, part of one of his trips there. the president earlier having lunch with queen elizabeth. the president then going from windsor castle to london. iscollie, svenja o'donnell there with more. -- my colleague, svenja o'donnell, is there with more. can we expect more about brexit? svenja: absolutely. central theme here. it is a coup for cameron to get president obama over to defend his government's case, which is he wants to stay in the eu. there has been quite a lot of criticism from those on the other camp, who say obama is interfering in a british matter. but it has caused a bit of a stir. of a stir, there
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were comments made by the mayor of london, boris johnson -- we will have to interrupt you. president obama and british prime minister david cameron -- david cameron live from london. >> barack has been president more than seven years. i have been prime minister nearly 60 years. our countries have been working together through some of the most troubled global times. we faced the aftermath of the banking crisis, they need to create jobs and our economies, new threats to our security from russia to the rise of islamist terrorists. and huge global challenges like climate change. through it all, the partnership between the nations has never been more important. when 70 years ago last month winston churchill first described the special relationship, it was not merely
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an expression of friendship, it was a way of working together. it was about kindred spirits who share the same values and so often the same approaches to the many issues we face. ist as our predecessors, it true for barak and me, whether working to deliver on national security or new merging challenges. weeconomic security, succeeded in getting our economies growing and creating jobs for our people. the global economy still faces serious challenges. but written and the united states where the fastest-growing major economies in the world last year. and we know how important trade deals are in driving global growth. in ouremain determined vision of a u.s.-eu trade deal. pushing this forward would create billions for our
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economies and create the standard for the world to follow. on national security, with our partners in the eu, we used our economic muscle to avoid the nuclear of any iranian weapon. we delivered sanctions to russia in response to its aggression against ukraine. we secure the first ever legally on climate change, being signed by over 150 governments at the united nations. and we transform the way we used our aid, diplomacy, and military to make progress on some of the most difficult issues of our time. in east africa, we helped turn around the prospects for somalia. thanks to an eu operation led by america,nd aided by its waters are no longer a haven for pirates. and we help the people in the region defeat the outbreak of , liberia,ierra leone
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and ginny. but there are -- and guinea. there is no doubt the situation in libya is challenging. but we finally have a government of national accord with whom we can work. in syria and iraq, we are continuing efforts to defeat daesh. fighters have been killed in the last month alone, with the level of their fighters of the lowest in the next two years. security forces are pushing them out of their territory, almost entirely putting them out of a town. and in syria, partners have liberated kurdish. we also discussed the migration crisis. affectes not directly
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the united states, and in the u k, we have maintained our borders. but we know the challenges this poses to our friends, allies, and to the continent of europe. this is the sort of challenge that can only be tackled through corporation. nato is hoping to reduce the number of migrants. and we have discussed how nato may help in the central mediterranean. and we have to break of the -- we have to break the business model of people smugglers. we will look at whether there is more we can do to strengthen the libyan coast guard. we will discuss this further when we need with the leaders of france, germany, and italy monday. this will be another opportunity to show how working together collectively we can better collect ourselves -- protect ourselves from the threat we face. we also covered emerging challenges, where it will be more important than ever that we
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work together with international partners to deal with problems rapidly. we now need the same as national corporation we had with ebola on the zika virus. on cyber security. and tackling corruption. britain is holding a big anticorruption summit next month . and we talked about some of the things we wanted to achieve. one of the biggest problems is if you are a country that wants to take action against corruption, you have to go around the globe to lobby for help. we would like to see an international center to help agencies work together across jurisdictions. if we get international agreement on this, both britain and america will help to set it up. all of his work we have done together, at the same time, we have gotten to know each other well. as ahonored to have barack
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friend. he taught me the rules of basketball. beaten me at table tennis. barackalways found someone who gives sage advice. he is a man with a very good heart, and he has been and always will be a good friend to the united kingdom. let me finish by saying this -- and all of the areas we have discussed today, our collective power and reach is amplified by membership to the european union. when it comes to the special relationship between our two countries, there is no greater enthusiast than me. i am proud to be prime minister and stand outside the white mane, listening to this saying that the special relationship between our countries has never been stronger. i have never felt constrained in
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strengthen this relationship by the fact that we are in the european union. we deliver for people through all of the international groups we are part of. we enhance security through nato. we further posterity through the g7 and the g20. and like those organizations, britain's membership in the eu gives us a tool to deliver on the prosperity are people means and to stand up for the values our country's share. now is a time to stay true to those values and stick together with our friends and allies in europe and around the world. thank you very much. thank you, david. as always, it is wonderful to be here in london and to meet with my great friend, david cameron. i confess i have also come to ash her majesty the queen
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happy birthday. michelle and i joined the queen and the duke of edinburgh and their guests at windsor castle. i have to say i have never been driven by a duke of edinburgh before. [laughter] i can report it was very smooth driving. as for her majesty, the queen has been a source of inspiration for me, like so many around the world. she is truly one of my favorite people. reach we be fortunate to 90, may we be as vibrant as she is. she is an astonishing person. jewel to the world and not just the united kingdom. the alliance between the united states and in the oldest and one of the strongest that the world
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has ever known. standhe u.s. and the u.k. together, we make our country's more secure, make our peoples more prosperous and make the world safer and better. that is one of the reasons why my first overseas visit as president more than 70 years ago was here to london. in a time -- more than seven years ago was here to london. in a time of global crisis. was thereing i knew was a file of the united states and the united kingdom, working together in an international forum, tackle the challenges that lie ahead, our success depended on our ability to coordinate and to be able to leverage our relationship to have an impact on other countries. visitwith david on that here he was not yet climate
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minister. shareust as our nation's a special relationship, david and i have shared an extraordinary partnership. he has proven to be a great friend and is one of my closest and most trusted partners. over the six years or so our terms have overlapped, we have than ispoken more times can count. beersred our countries' with each other. i vouch for mine, he vouches for his. you should recall, we were partners in that ping pong game, and we lost to some schoolchildren. [laughter] i cannot remember whether they were eight or 10, but they were decidedly shorter than we were, and they whooped us. samantha and michelle, our better halves, have the, friends as well. it is the depth and breadth of
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that special relationship that has helped us tackle the daunting challenges of our time. around the world, we have stopped -- help stop the stopped theebola, run from obtaining a nuclear weapon, forged a time an agreement which will hopefully protect our planet for future generations. and today, on earth day, our governments and more than 100 others, are there to sign that agreement. the u.s. will formally joined this year, which should help it take effect years earlier than anyone expected. we also discussed the full array of challenges to our share of security. we remain resolute in our efforts to prevent terrorist attacks against our people and to continue the progress we have made in rolling back and defeating isil. our forces are systematically finances andl's
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removing its leaders from the battlefield. we have to improve information sharing across europe and stem the flow of foreign fighters into when out of syria. we discussed our efforts to resolve political conflicts in in order toast increase prospects for stability. in libya, we have the opportunity to support a new government and help the libyans root out extremist elements. in syria, we still need to see ane progress towards enduring cease-fire. we continue to push for greater humanitarian access to the people who need it most. to continue to invest in nato so we can meet our overseas commitments. we have to resolve the conflict of the ukraine. all nato allies should aim for the nato target of spending 2%
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of their gdp on defense, something david has made sure happens here in the u.k., to meet that standard. we discussed new actions we can the refugee in crisis, including with our nato allies. and because a strong defense relies on more than just military spending but helping to unleash the ability of others to live more prosperous lives, i want to thank the people of the united kingdom as one of the foremost donors of humanitarian aid. we talked about jobs and that ourgrowth so young people can achieve greater opportunity and prosperity. and yes, the prime minister and i discussed the upcoming referendum here on whether or not the u.k. should remain part of the european union. let me be clear -- ultimately, this is something that the british voters have to decide for themselves. but as part of our special
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relationship, part of being and to is to be honest let you know what i think. and speaking honestly, the outcome of that decision is a matter of deep interest to the united states, because it affects our prospects as well. the united states wants a strong united kingdom as a partner. and the united kingdom is at its best when it is helping to lead a strong europe. power, to beu.k. part of the european union. as i wrote in the op-ed today, i do not believe the eu moderates in the world.nce it magnifies it. it helps spread british values and practices across the continent. the single market rings extraordinairy benefits to the united kingdom. that ends up that for america, because we are more prosperous
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when one of our closest allies has a strong, stable, growing economy. americans want britain's influence to grow, including within europe. the fact is, in today's world, no nation is immune to the challenges david and i discussed . in today's world, solving them requires collective action. sovereignty.res the u.s. recognizes we strengthen our security through our membership in nato. we strengthen posterity in organizations like the g7 and the g20. the u.k. strengthens our collective prosperity throughout the eu. the nations that make their presence felt on the world stage in the 20th century are not the nations that go away alone but the nations that team up to aggregate their power and
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multiply their influence. and precisely because britain's values and institutions are so strong and sound, we want to make sure that that influence is heard. is felt. influences how other countries think about critical issues. we have confidence that when the u.k. is involved in a problem, they will help solve it in the right way. that is why the united states cares about this. for centuries, europe was mark war.r -- marked by the architecture of our countries helped build with the eu has provided the foundation for decades of relative peace and prosperity on that continent.
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what a remarkable legacy. part by borne out in what happened in this building. before i walked out, i saw enigma on display. of thes a reminder incredible innovation and collaboration of the allies in world war ii, and the fact that neither of us could have won that alone. way, after world war ii, we built out the international institutions that, yes, occasionally constrain us. we willingly allow those constraints, because we understood that by doing so, we are able to institutionalize and internationalize the basic values of rule of law and freedom and democracy that would
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benefit our citizens as well as people around the world. i think there is a british coat who once said "no man is an island," even an island as beautiful as this. we are stronger together. if we continue to tackle our challenges together, future generations will look back on ours, just as we look back on oft previous generation english and american citizens, who worked so hard to make this world safer and more secure and prosperous. and they will say we did our part. and that is important. here,s important not just that is important in the united states as well. thanks. p.m. cameron: thank you. we have questions.
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we start with questions from the british press. you, prime minister. itv news. to president, u.n. knowledge the controversial timing of your comments on the eu referendum and the spirited debate we are having here. in the weeks before your arrival here, believe campaign has said you wore acting hypocritically. america would not accept the loss of sovereignty that we would have to accept as part of the eu. america were not accept the levels of immigration from mexico that we have to accept from the eu. and in various degrees of politeness, they have said to you that you should keep your views to yourself. mind, do you still think it was the right decision to intervene in this debate, and what happens if the u.k. does the side, in june, to leave the
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european union? pres. obama: first, let me repeat. this is a decision for the people of the united kingdom to make. any not coming here to fix votes. i am not casting a vote myself. i am offering my opinion. democracies, everybody should want more information, not less. you should not be afraid to hear an argument being made. that is not a threat. that should enhance the debate. particularly because my understanding is that some of the folks on the other side has been prescribing, to the united states, certain actions we will take if the u.k. does leave the eu. that we, for example, will just cut our own trade deals with the united states.
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voicing an opinion about what the united states is going to do. i figured you might want to hear from the president of the united states what i think the united states is going to do. on that matter, i think it is fair to say that may be some point down the line, there might a u.k.-u.s. trade agreement, but it will not happen soon. because our focus is negotiating with a big block of the european union to get a trade agreement down. the u.k. will be in the back of e, not because we do not have a special relationship, but onause, given the heavy lift any trade agreement, us having access to a big market with a lot of countries rather than trying to do piecemeal trade agreements is usually inefficient.
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now, to the subject at hand, obviously, the united states is in a different hemisphere, different circumstances, has different sets of relationships with its neighbors than the u.k. does. but i can tell you this -- if -- accessi have axis where isive market sell 44% of my exports, and now i am thinking about leaving the organization that gives me access to that market and that is responsible for millions of jobs in my country and responsible for an enormous amount of commerce and upon which a lot of businesses depend , that is not something i would probably do.
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and what i am trying to describe is a broader principle which is, and our own ways -- we do not have a common market in the -- but in all sorts of ways, the united states constrains itself in order to bind everyone under a common set of norms and rules that makes everybody more prosperous. that is what we built after will work to -- after world war ii. the united states and the u.k. designed a set of institutions, whether it was the united nations or the imf, world bank. nato. across the board.
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to some degree, constrained our freedom to operate. it meant that occasionally, we had to deal with bureaucracy. it meant that, on occasion, we ,ad to persuade other countries and we do not get 100% of what we want in each case. doing so,w that by everybody would be better off, partly because the norms and rules put in place were reflective of what we believe. were more free markets around the world and an ordinary -- and an orderly financial system, we knew we could operate that. if we had collective defense treaties through nato, we understood that we could formalize an architecture that would deter aggression rather than us having, piecemeal, to
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put together alliances to defeat aggression after a hearty it had alreadyr started. that principle is at stake. -- last point i will make until the next question, i suspect -- is that, as david said, this magnifies the power of the u.k. it does not diminish it. on just about every issue, what happens in europe will have an impact here. and what happens in europe will have an impact in the head and states. we just discussed the refugee and migration crisis. i told my team, who is sitting here, so they will vouch for me, that we consider it a major national security issue that you have uncontrolled migration into europe.
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not because of folks are coming into the united states, but because if it destabilizes europe, our largest trading bloc, trading partner, it will be bad for our economy. if you start seeing divisions in europe, that weakens nato. that will have an impact on our collective security. fact, i want somebody who is smart and common sense and tossed and is -- and tough about how migration will be handled, someone who has a sense of compassion and recognizes that immigration can enhance, when done properly, the assets of a country and not just diminish them, i want david cameron in
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the conversation. just as i want him in the conversation when we are having his questions about -- having discussions about information sharing. precisely because i have confidence in the u.k., and i workingt if we are not effectively with paris or brussels, those attacks will migrate to the united states and london. i want one of my strongest partners in that conversation. so it enhances the special relationship, not diminish it. >> let me make one point in response. this is our choice. no one else's. the sovereign choice of the british people. as we make that choice, it surely make sense to listen to what our friends think. to listen to their opinions and views. it is also worth remembering, as
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we make this choice, it is a about the british membership of the european union. we are not being asked to make a choice over whether we support the german style or italian style of membership. britain has a special status in the european union. we are not part of their currency. we are able to travel and live and work in other european countries, but we have maintained our borders because we are not in the schengen zone. and we should remember why we are currently negotiating this biggest trade deal in the herbal historye whole world's in britain and the united states. because the u.k. push for those talks in the g8 in ireland. we set the agenda for what could
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be a game changing trade deal for jobs for investment because we were part of this organization. i wanted to add those important points. i think we have a u.s. question now. >> following on that, do you think tween brexit and the immigration issue, european unity is at a crisis point? what do you think can be done about it? do you think those countries would support, with possibly ground troops, the situation in libya? may be good talk about whether you plan to go to hiroshima when you plan to go to japan. man. obama: come on, [laughter] >> this one is short. the prime minister comes here to that the u.k. should stay in
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the eu. speaking honestly, what do you think the u.s. should do about donald trump? [laughter] obama: i would not describe european unity as in a crisis. i would say it is under strength. withof that just has to do the aftermath of the financial crisis and the strains that we are all aware of with the eurozone. i think it is important to emphasize, as david points out, the u.k. is not part of the eurozone. the blowback to the british economy has been different than it is on the continent. we have seen some divisions and difficulties between the southern and northern parts of
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europe. i think the migration crisis amplifies a debate that is taking place not just in europe, but the united dates as well. globalization, at a time when a lot of the arelenges that we face transnational, as opposed to focus on one country, there is a temptation to want to pull up the drawbridge, literally or figuratively. we have seen that play out in some of the debates in the u.s. presidential race. that debate is, i think, accelerated in europe. that the ties that bind europe together are
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ultimately much stronger than the forces trying to pull them apart. has undergone an extraordinary stretch of prosperity -- maybe unmatched in the history of the world. if you think about the 20th century, and you think about the 21st century, the 21st century an awful lot better. i think the majority of europeans recognize that. unity and peace have delivered sustained economic growth, reduced conflicts, reduced violence, ofanced the quality of life people. i'm confident that that can continue.
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i do believe it is important to watch out for the faultlines that are developing. in that sense, i do believe that i amrexit vote, which, if a citizen of the u.k., i'm thinking about solely in terms of how is it helping me, how is economy, create jobs here in the u.k. that is the right way to think about it. i do think that this will will send a signal that is relevant whether the kind of prosperity that we built together is going to continue. or, whether the forces of division and of being more prominent. that is part of the reason why it is relevant to the united states. temerityi have had the to weigh in on it.
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what were your four other questions? [laughter] obama: i have to figure i knocked out two with that answer. with respect to libya, both will do our best to assist this government. it is a challenge. there are those who are genuine genuinelyitted -- committed to building back up the state. that is something we want because both the united states and the united kingdom, but also a number of our other allies are more than prepared to invest in helping create border security in libya, and drive out terrorists in libya, and make sure that what could be a thriving society, a relatively
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small population with limited resources, is not an issue where we have to subsidize libya. they are much better positioned than some other countries we have been helping. if they can just get there held together -- and we want to provide that technical assistance to get that done. there is no plans for ground troops in libya. i don't think that would be necessary. i don't think that would be welcomed by this new government. what we can do is provide them our expertise. provide them is training. but we can do is provide them a roadmap for how they can get basic services to their citizens and buildup legitimacy. the one area where david and i are committed is, as this isgresses, we cannot wait isil -- if isil is starting to provide them
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training. there.can do is provide foothod we are working with the libyan government and our international partners to make sure that we are getting the intelligence we need, and in some cases, taking actions to prevent isil from having another stronghold from which to launch attacks on .urope or the united states i think you have to wait until i get to asia to start asking me asia questions. the question you asked me, this is not a general election, this is a referendum. it is a referendum that affects the people of the united kingdom , affectsly, but also people in there and european union,- in the european america, australia. looking around the world, so far
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i have not found one country wishing britain well there. we are working, hoping we leave the european union. again, it is our case. .e will listen people want to know the consequences. i will try to lay those out as clearly as i can. for the american elections, i have made some comments in recent weeks and months. i do not think that now is the time to add to them or subtract to them. as a prime minister who has been through two general elections, you always look onto the u.s. elections in awe of the scale of the process and length of the process. i marvel at anyone who is standing at the end of it.
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pres. obama: fortune julie, we have term limits, so i to -- fortunately we have term limits, so i too can look on with awe. >> in the interest of good friend always being honest, are you also saying that are decades old special relationship that has been through so much would be fundamentally changed by our exit? if so, how? do you have any sympathy with people who think this is none of your business? prime minister, to you, some of your colleagues think it is wrong that we have drawn our the campaign?nto is it wrong to have brought a president obama's kenyan thistry in the context of
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debate? first of all, questions for boris are questions for boris. i do not have some special power over the president of the united states. barack feels strongly about this, and has said what he has said. it is the choice of our people. listen to is good to and consider the advice of your friends. just to amplify one of the point of barack, we have a shared interest making sure that europe takes a robust approach to russian aggression. thatu take the sanctions we put in place against the european union, i think i can put my hand on my heart and say, britain played an important role, and continues to play an important role to make sure that the sanctions were put in place
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and kept in place. for europer interest to be strong against aggression. how can it be in our interest not to be at that table, and potentially to see those sanctions not take place? i think it has been that working between britain and the united states over this issue that has helped to make a big difference. i would just say, about the special relationship, and i am passionate about this, and believe it very deeply -- the truth is this, the stronger britain is, and the stronger america is, the stronger that relationship will be. i want written to be as strong as possible. we drive strength from also at the things -- all sorts of things. a brilliant security and .ntelligence forces
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incredibly telling to people. brilliant universities. the fact that we are members of g7, thee g-20, the commonwealth, but we also and value, andh maker people wealthier by being in the european union. i want britain to be as strong as possible. the stronger britain is in the special relationship is, and the more we can get done together, to make sure we have a world that promotes peace, democracy, and human rights, and development we want to see across the world. to me, it is simple. .tronger relationship that is in our interest. pres. obama: let me start with winston churchill. [laughter] i do not know if people are aware of this, but in the residence, on the second office, my private
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office is called the treating .oom -- treaty room right outside of the treaty room , so that i see it every day, including on weekends, when i'm going in the office to watch a , the primaryme a bust ofee is winston churchill. it is there voluntarily because i can do anything on the second floor. [laughter] obama: i love winston churchill, i love the guy. now, when i was elected president of the united states, my predecessor had kept a churchill bust in the oval
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office. there only summary tables where you can put busts, otherwise it starts looking a little cluttered. i thought it was appropriate, and i suspect that most people here in the united kingdom my agreed that, as the first african-american president, it might be appropriate to have a bust of dr. martin luther king in my office to remind me of all peopled work of a lot of who would somehow allow me to have the privilege of holding this office. that is just on winston churchill. i think people should know that, know myhinking -- thinking there. with respect to m the special relationship, i have a staff member, who will not be
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named because it could embarrass her a little bit, who generally on foreign trips does not leave the hotel room or staff room because she is constantly doing work making this happen. she has had one request the entire time i was president, and that was, could she accompany me to windsor, on the off chance her she might get a peek at majesty, the queen. gracious as she is, her majesty actually had this person, along with a couple of others, lined from that as we emerged lunch, they could say hello. is asaff person, who tough as they come almost fainted, which, i'm glad she didn't because it would have caused an incident.
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relationshippecial . we are so bound together that nothing is going to impact the emotional and cultural and betweentual affinities our two countries. i do not come here suggesting in any way that that is impacted by the decision that the people of the united kingdom might make around whether they are members european union. and, the cooperation and all sorts of ways through nato, g7, g-20, all those things will continue. said, if one of our best friends is in an
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organization that enhances their influence, their power, and them economy, then i want to stay in, or at least be able to tell them, i think this makes you guys bigger players, i think it helps your economy, it helps create jobs. ultimately, it is your decision, but precisely because we are bound at the hip, i want you to know that. margaret brennan. margaret: thank you very much, sir. mr. president, vladimir putin lednot stopped assad, as he you to believe he would. the cease-fire in syria seems to be falling apart. will you continue to bet on what looks to be a losing strategy?
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mr. prime minister, the european advised europeans today of traveling to south carolina lawsississippi of affecting transgender people. and, mr. obama, would you indulge all of us, prince passed away. you are invited him to perform at the white house. what made you a fan? obama: i'm trying to figure out in what order to do this. maybe i will start with south carolina and mrs. -- north carolina and mississippi. the people of north carolina and mississippi are hospitable people, and you are welcome, you should come and enjoy yourself.
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i also think that the laws that have been passed there are wrong , and should be overturned. they are in response to politics, in part. in part, some strong emotions that are generated by people, some of whom are good people, but i just disagree with, when it comes to respecting the equal rights of all people, regardless of sexual orientation, whether they are transgender, gay, lesbian. although i respect their different viewpoints, i think it is very important for us to not send signals that anyone is treated differently. i think it is fair to say that we are not unique among countries where, particularly , in whichderal system
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powers are dispersed, there will be some localities or the officials that put forward laws that are not necessarily reflective of a national consensus. if you come to north carolina or mississippi, you will be treated well. the second question with respect to syria, i am deeply concerned hostilities, and whether it is sustainable. keep in mind that i have always been skeptical about mr. putin's actions and motives inside syria . he is, along with iran, the preeminent backer of a murderous regime that i do not believe can legitimacy- regain because he has murdered a lot of
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people. having said that, i also believe end the crisis in syria without political negotiations, and getting all people around the table to draft a transition plan. that means there will be some ,eople on one side of the table who are deeply disagree with, and whose actions, i deeply i'll abhor. the cessation of hostilities has held longer than i expected. for seven weeks, we have seen significant reduction in violence inside the country. that gave some relief to people.
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i talked to putin on monday ask him to put more pressure on assad, indicating to him that we would try to get the moderate opposition to the negotiating table in geneva. this has always been hard. it will keep being hard. what david and i discussed is we will continue to prosecute the isis.gainst daesh -- we will continue to make progress, but we will not solve the overall problem unless we can get this moving. i can assure you that we have looked at all options.
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none of them are great. , ifill play this option out in fact, the cessation falls apart, we will put it back together again as we continue to go after isil. it is my belief that ultimately russia will recognize that, just solved bynnot be military victory on the part of those we support, russia may be able to keep the lid on ,longside iran for a long time but if you don't have a legitimate government, they will bled as well. with respect to prince, i love
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prince because he put out great great performer. i did not know him well. he came to perform at the white house last year, and was , and creative, and original. and, full of energy. it is a remarkable loss. it so happens that our ambassador has a turntable, so this morning, we played "purple " to getd "delirious warmed up before we left the house for important bilateral meetings like this. n: great talent.
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i have been to north carolina. i have not yet been to mississippi, but one day hope to. the guidance that are foreign travel triesout on partially, and it is very important to do so. our view is that we should be trying to use laws to end discrimination. that is something we are coachable to saying to countries world.ends around the we make our own views about trying to end discrimination, and we have made some important steps forward in our own country on that front. with that, thank you very much. pres. obama: thank you very much. [applause]
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mark c.: the president of the united states and prime minister david cameron speaking in london today. among the high points, much of juneiscussion on the decision, on bret. president obama said ultimately, this is something that the british people have to decide themselves, and ultimately, the outcome affects the united states. one of the questions that the president was asked directly, why is he getting in the middle of the discussion. some people suggesting that the united states and the president should mind their own business. >> absolutely. what you have to bear in mind is the main argument is one of sovereignty, keeping control of the borders.
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it is an emotional argument. therefore, having a foreign power, even that of the u.s., very heartoes to the of that. ,his is more than just the eu this is about leadership. cameron has staked everything on keeping the u.k. in the eu. it will be very hard for him to stay on as prime minister if britain leaves the eu. prime minister cameron said it is important to listen to our friends, their opinions. is that something that the majority of britons feel is the right thing to do at this time ?ekyll > >> present obama focused on the economy, the trade relationship that the u.s. has with the u.k.,
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and it being hard to maintain in its current form. security. point being if you are an undecided voter, and you go into the polling booth on the 23rd of june, this will weigh in the back of your off,-- will i be worse will the terrorists be greater if we exit? mark c.: one thing that president obama was asked to see u.s.-british relationship be harmed if britain leaves the eu? is there any sense that it would be harmed. beyes, trade deals can negotiated. it took canada eight years to negotiate equivalent deals.
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there still will be a relationship, but the idea of a seamless transition between the status quo, the relationship we have, while in the eu, and the relationship in the event of an exit, has been made very clear by the prime minister, it would be very difficult, tough going, this is a long-term bet there will be short-term instability. mark c.: thank you so much. this has been special coverage press obama-cameron conference in london. let's return to bloomberg markets with scarlet fu and tracy. ♪ tracy: it's 1 p.m. in new york, 6 p.m. in london welcome to
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bloomberg markets. scarlet: good afternoon. tracy: here is what we are watching this hour -- stocks are lower this hour with investors pulling back and enthusiasm amidst disappointing earnings. google and microsoft are dragging down the tech service. scarlet: mcdonald's is coming down for supersized earnings but how long can that happen? tracy: americans are getting it kick out of english soccer. let's go over to the markets desk with julie hyman. japan. story was julie: there is a lot going on today at the macro and micro level. it is equaling a negative stock market. we started off with early gains and they melted away led by the declines in technology and
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nasdaq listed stocks because we had big earnings disappointments. the dow and the s&p are also turning lower. 500 was swinging from a gain at the open to a loss. we are bouncing around near the lows of the day. looking at the groups on the move, energy is up most today. financials are gaining some steam but on the downside, technology is inescapable. thanindexes down by more 2%. when it's down that much, it has a big effect overall. individually, we are watching microsoft which cannot with earnings that missed estimates because of a change in its tax rate and forecasting numbers below it analysts anticipated. it is held back by its legacy business. alphabet also known as google
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came in below estimates and that's because of increased for the use of mobile phones. facebook is down along with alphabet. one of our options traders pointed out yesterday that following google earnings, we tend to see facebook move with it and that's happening today and amazon is lower with concern about increased mobile usage. it's not just about technology or earnings today, let's give you a break, what else is going on? julie: oil is on the move higher. it's coming off the highs of the day but still up better than 1%. that is fueling the gains in energy stocks. today as it'sable having its biggest one-day drop versus the dollar in 17. gain for the dollar versus
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the yen after the bank of japan is considering extending its negative rate regime to lending to banks, not just the reserve rate. we are seeing this have a bit of an effect throughout the rate market. the 10 year yield continues to move higher, it's the fifth straight session we see that kind of movement. the japanese government 10 year is not moving but you can see that negative yield in japan. that bears watching. scarlet: thank you so much. the yen rally is hitting a speed. it is weakening the most against the dollar after 1.5 years after the bank of japan may help ranks lend by making negative rates on some loans. tracy: the currency has appreciated more than 8% this year. the gains are prompting calls for japanese officials to act in curbing the yen rally and we will find out more when the boj meets next week but let's talk to the president of merk
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investments from mountain view, it california. rnia. is this something significant for the yen? when theer, this is bank of japan instituted negative rates, the market was disappointed. the yen rallied. achieved isjapan they destroyed liquidity. now they have been looking to what mr. mario draghi has been doing. he is intellectually a genius but maybe too smart for his own good. eurozone divides a scheme that cut the funding cost of corporations in half with the negative lending rate. he has to put it into a rigid intellectual framework to pass scrutiny. in the eurozone, the euro did
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there was because focus on the currency but in japan, this is providing liquidity to the market or the hope of it. this is the first action that will actually help the banks to lend. it's in the context of many speculators trying to push up a yen and they are running for the hills. we don't know anything yet but these are rumors. it's a hope for the bank of japan that they can influence the yen. scarlet: it would be an experiment europe as japan. what would work in europe work in japan? >> it doesn't work either place. it just the markets are happy about it. in the euro zone you need help the banks. it's good to shift away from weakening the euro which helps german exports but you need structural reform and the same thing in japan, deep structural
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reform and that does not happen by printing money. it will be interesting how the japanese will structure this and whether they will be willing to suffer losses are come up with a's team like mario draghi did. they are studying what he put in place. japan is really in a corner. the worst thing that can happen to the japanese is that the policies are working. if they worked, the bond would sell off. whatever they do is bad. for the time being, the currency weakens. in the medium-term, i don't think the bank of japan -- they will have difficulty for now with the rise of the yen. in the long run, the yen cannot survive this. what is the prospect of japan embarking on structural reforms anytime soon? >> they try all kinds of things. you throw everything at the
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problem but my view is always been the best short-term policy is a long-term policy. it's just difficult. difficult to have change in the u.s. in japan, you have a strong leader. he is a populist leader, the symptom of the leadership coming up in the world. when they get cornered and the policy is not working, they double down. i expect fiscal spending to be ramped up and that is the sort of thing they will try. i don't suggest that is the cure but i think that is their path. scarlet: how much of this do either of the central angst greg reference to next week. ? hasn the u.s., janet yellen been asked about negative rates i don't think will happen in the u.s. our credit markets are too dependent on the short-term commercial paper market and money markets. it is tuesday disrupted. qe works in the u.s. and everyone is happy. the ecb just met and they are
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happy that financial conditions have eased. i don't think it's all mario draghi. has backpedaled from her tougher stance. everybody is noodling around and the bank of japan is happy that this is supportive. now that the trial balloon has worked, they will probably implement it. tracy: give us your outlook for the fomc meeting next week. >> the dollar has been rising relentlessly until a few months ago and then people realize that may be we are near the top of the cycle in the u.s. will only rise as inflation goes up. real inflation may not go up and mario draghi says we are at the bottom of the interest rate cycle. he tried to tell the market that the rate differential is increasing.
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i don't buy that and i don't think the market rise it. when you look at longer-term moving averages, we are more than steve -- than two standard deviations on the high side on the dollar. we should be coming down and i think the dollar has to come back down. thank you so much. we will be right back. ♪
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scarlet: you are watching bloomberg. tracy: this is your global business report. scarlet: last year's easel in missions scandal is costing
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volkswagen more than a thought. the latest tally puts the $.2ncial impact at 18 billion. tracy: the bank of japan may consider a negative rate loan program and it could come aside from more stimulus measures. isrlet: the risk of a brexit weighing on many companies including hsbc which has a khadija and debt contingency plan which may shake up its u.k. operations. let's are in germany were volkswagen has more than doubled the amount of money set aside to pay for the u.s. emissions cheating scandal. it has also cut its annual dividend to the lowest since 2000 and the process. the ceo says operations are strong. operations are healthy and remain healthy and the group's sound. the unique portfolio in this industry consisting of 12 strong brands carries us through this difficult phase. tracy: the japanese central bank
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help mental institutions by offering a negative interest rate on some loans. that may happen along with the decision to make a deeper cut to the current negative rate unreserved. this move may raise questions about giving subsidies to commercial japanese lenders. scarlet: sony is delaying the release of its annual forecast in the wake of the recent earthquake and they are due out next week. sony says the forecast will be pushed back until may. it says damage from the earthquake may hurt the operating results. tocy: hsbc say it may have restructure some of its british units of the u.k. gets out of the european union. at their annual shareholder meeting, the chairman says hsbc has the option to move some staff to paris of needed. it will not donate money to either side of the debate. scarlet: it is time for our quick take where we provide context and that ground on issues of interest. tracy: for today's topic, we are
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diving into the heroin epidemic are you . >> america's heroin epidemic has become impossible to ignore. the numbers are staggering coming nearly half a million americans a they use heroine in the past 30 days. heroin overdoses have tripled between 2010-2014 from all opioids including heroin and they are now approaching the number of deaths from car crashes. how did we get here? is the situation -- there is a grim connection between opioid painkiller addiction and heroin addiction in this country. in the 90's, doctors turn to drugs to remedy what was seen as widespread undertreatment of chronic pain. the number of opioid prescriptions filled in 1992 was 79 million. lot,12, that number rose a 217 million. as the numbers skyrocketed, the federal government enforced drugmakers to make description
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painkillers harder to abuse and heroin from afghanistan and mexico became cheaper and more available. the result is four or five new heroin users in the u.s. have said they previously misused prescription pain levers -- pain relievers. >> this is really a gateway drug. >> this is the argument -- her when an opioid addiction are leaking into the political election. donald trump and ted cruz are proposing [indiscernible] >> we've got to close up the borders, the drugs are pouring in. >> mexican cartels are smuggling vast amount of heroin into this country. >> we need to understand that addiction is a disease, not a criminal activity. >> instead, move it to where belongs, as a health issue. >> for now, obama is seeking $1.1 billion in new money to reduce heroin deaths in ordering state and medicaid programs to cover drug treatment. that leaves the medical community to figure out how to
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limit abuse and addiction and effectively treat those in real pain. scarlet: that is your global business report. metaltime for the bulletin with julie hyman. julie: silver is having a big week. it's having its best in all most one year and has had a big rally this year. this is the weekly movement. it's up by 4% and is now enable market, up 22% year to date which is the best year to date performance of any of the metals we track. if you look at the five-year performance, just as we have seen for some of the other metals including gold, it's down over the past five years before that optic this year. the 20% increase looks less impressive when you look at what's come before. we have had a rebound.
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we have seen a lot of investors getting involved as silver had the uptick in their old is of silver and near a record level. the uptick we have seen coming in the past couple of months for silver. when we talk about silver, when we discuss gold, we talk about it being a hedge against inflation and we talk about it being i haven for investors in times of perceived turmoil. industrial metal as well so if you look at the things it's used for, 50% of it goes to industrial uses and 20% to jewelry in 19% two coins and medals and 4% other. there is a speculative aspect to trading in silver. you also have these various uses and fundamental reasons in some cases why silver is on the move. it's impressive if you look at year to date at
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performance, silver stands out in what has been a big year already for some of the other metals. scarlet: thank you so much. next, verizon meets its profit target but how will the largest u.s. wireless terrier fend off pricing pressure from its rivals? -- ♪
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tracy: you are watching bloomberg markets. scarlet: the verizon first quarter results came in line with analysts.
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they are contending with seasonally low-volume in a price war and next year does not look so hot as the earnings growth is expected to be flat. on verizon and the telecom sector, we turn it over to our radio colleagues. i am here with cory johnson and welcome everybody on bloomberg tv. we want to talk about verizon because of earnings and their interest in the yahoo! assets. craig moffett is with us. nice to have you here with us. i love reading your research. let's talk about verizon's quarter. what were the highlights and low lights? >> there was a conspiracy theory yesterday that because they did not report average revenue per subscriber that there must be a real problem. when we finally got the number today, it's doing reasonably well.
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that may seem like a funny place to start but that's the most important place when you see a telecom report. you want to see what's happening in terms of pricing and price wars. it's a fixed cost industry in price words matter more than anything else. there is maybe some sign that the price wars that started in 2014 are slacking a little bit. the results were mixed at verizon yesterday and there is a lot of noise going into the strike that's going on. these were not heroic earnings but if you're looking for the possibility of an inflection in pricing, maybe you saw a glimmer of hope yesterday. cory: pricing in what? >> pricing in wireless. go back to early 2014 and at&t started preemptively repricing a lot of its subscriber base. they did it partly because there was some accounting issues that
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would otherwise significantly inflate their profitability. it gave them but covered to get more aggressive on pricing. by industry responded cutting their prices and it had become a real price war. 2014 and 2015 were rough years for wireless. what we were looking for is -- cory: the probability of market share? >> the market share shift is going on at t-mobile. the industry is going through really profound changes in the accounting treatment of new subscribers. that may sound like it's an arcane issue. we are talking big distortions. cory: what's the difference? >> when you use to walk into a store, you would buy a phone for $200 up run in the carrier would subsidize the rest for you. the accounting match the the cash flows. they had $200 of revenue and books the full cost so if the
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device is $680, there is a negative $480 up front and you earn it back over time. about three years ago, the industry started switching to selling your phone. as a customer, there is no difference. from an accounting perspective, it is much more favorable for the carriers to sell it rather than subsidize it. it's the same cash flow. it got $200 worth because customers subsidize the whole thing but accounting policy says you recognize all the revenue upfront. it may not something a big difference but it's a huge difference. soared.bility sword - it gradually phase is in. s in. sprint has done is an even bigger distortion because that takes all the cost of the phone and moose it over to the balance sheet and it only
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comes back to the income statement as appreciation. you recognize it as depreciation and that does not count in ibitah. it doubles the lifetime value of a customer purely by accounting. there is no improvement whatsoever to the carrier. let's talk about yahoo! and verizon. you are neutral on verizon. if they get the yahoo! assets, does it change your outlook on the company? >> not really. strategy.like the verizon is saying that we have been pushing this for a long time and trying to extract or money from customers for what they pay for wireless. income is not growing in the u.s. and it's probably a dead-end street. if we are going to get money from each subscription, will not come from customers. it will come from advertisers see you try to sell the one thing you've got which is information about your customer
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base like location information and you need a platform to do that and that's what this is about. whether that is enough to move the needle, probably not. we downgraded the stock a couple of weeks ago because it got too rich. carol: great to talk to you, thank you so much. thank you so much. tracy: still ahead, mcdonald's gets a big reckless boost. its new all-day breakfast menu brought up strong earnings and we will break down the numbers when we come back. ♪
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tracy: from bloomberg world had occurs at -- world headquarters in new york, you're watching bloomberg markets. president obama says
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whether to remain in the european union is something for british voters to decide for themselves. at a joint news conference in london today with prime minister david cameron, mr. obama said the vote will ultimately reverberate across the atlantic. the outcome of that decision is a matter of deep interest to the united states because it affects our prospects as well. mark: the president discussed syria saying more progress is needed tour in enduring cease-fire. more than 150 countries signed the paris climate accord at the united nations. the agreement is aimed at reducing pollution and slow rising temperatures linked to floods, heat waves, and droughts in countries have agreed to reduce fossil fuel emissions by changing the way they generate electricity, power factories, and fuel their cars. a bully the lyrical endorsement from the business world -- the ceo of continental resources is endorsing donald trump for
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president according to the wall street journal. sayingil quotes him as donald trump is on stoppable and called the gip -- the gop to unify behind him. he won a majority of primaries. an autopsy is underway for pop superstar prince who was found dead yesterday at his studio compound in suburban minneapolis. is that spark an outpouring of grief from fans with hundreds gathering outside his studio and in downtown minneapolis and many more posting memories on social networks. authorities say good take weeks or months to find out if the public learns the cost -- the cause of his death. he was 57 years old. scarlet: mcdonald's turnaround is gaining steam and the ceo is
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getting a big assist from the all-day breakfast value deals and cheaper ingredients. this is our chart of the hour. falling beef prices is the white line. comehelpful for mcdonald's a leading the company get more aggressive with discounts and promotions and leading to a rising stock price. tracy: for more on their momentum, let's bring in a ubs analyst. what do you make of these results? >> this is a momentum business and i think what you are seeing is a global effort taking hold. you saw same-store sales upside in every region. --y put up a six in the u.s. 5.4 and that's a strong estimate. this is a large business. franchisees and operators and corporate are all behind this. the marketingd and messaging and better quality ingredients and its all-day breakfast value, it's the combination of all this is
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having a flywheel effect. scarlet: if you look at same-store sales, it has been doing much better with a huge improvement since steve easterbrook took the helm. all-day breakfast is to thank for that but will it start to cannibalize sales? >> we get this question a lot. where do we go from here? i think there is a lot to go from here. i don't think all-day breakfast is done. 2 platform could expand to have request items on it. there are new products they can add to it. there is a lot they can do with this. that does not get into all the other product upgrades and enhancements to keep this momentum going. some noises were
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about the idea of all-you-can-eat french fries. i gather that is off the table? >> you could end up in a situation but that is more for the press than for fun. these little test keep you in the media and keep the attention high. i think they are good to do whether you plan on launching it or not. it's fun and the brand should have fun with themselves. scarlet: you also cover starbucks. what can mcdonald's learn from starbucks? >> the key from starbucks is institutionalized innovation. take risks, be relevant, be irreverent to some extent, don't be stodgy and stuck in inertia. what you see from this leadership team is all of this combined, a willingness to take more chances and have fun with the brand again. i think that is the lesson you learned. institutionalized innovation or you get left behind. scarlet: does mcdonald's need to do something like offer a loyalty program like starbucks?
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>> 100%, you cannot be a breakfast powerhouse whether it's breakfast all day or just in the morning. they need one and we had michael andreas at our conference in march and he said they will have one to rival anything in the marketplace by the end of this year or early next year.it is coming. they: give us some color on mcdonald's chinese sales. china was you for had a very public chicken supply chain incident of last year and trust had to be restored and it seems to be coming back to we got results from other chinese players that seem to be getting better. if they stick to the game plan and use value and use product news, if they put the digital presence into you can engage the way people want to, it will be great business.
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is a massiveere opportunity and they are looking for a new partner to sign up. there is good things to come. tracy: thank you so much. i have a feeling we are both holding out for those french fries. scarlet: i was disappointed when they did not have all you can eat fries. in canada, inflation has come in stronger-than-expected by even the most optimistic economist's. tracy: prices are rising and retail sales are growing. pamela richie joins us now from canada. what does this data tell us? >> it is confirming that households are leading this rebound in growth we are seeing in canada. it's taking some of the national pain away from the oil path which is had a rough time. are surprised as well as everyone but it's an important piece of the recovery in canada.
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low interest rates in canada are supporting and many canadians are buying houses. we have a very robust housing market and many like to think it might fall but low rates are helping people locked in and use mortgages and get into the housing market if they can afford it. automobile sales and travel services are being bought and on the retail side of things, no economists expected growth in retail sales for the month of february. and the growth of .4% estimate was for a decline of .8%. the inflation number was a separate report but headline inflation was higher than expected. if you look at it on an annualized basis, 2.1%. this is all leading to this overall thought that the first 3% ifr gdp is going to be
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not higher. that's incredible. isn't the bank of candidate trying to dampen enthusiasm? are and if you take a look at the loony after these reports, you can see why. the tone of the bank of 10 it has been cautious and pointing to a burst of growth through the first quarter. they don't think it will last. one analyst says weaker than expected global growth as well as falling investment in the oil sandwiches happening and a willger canadian dollar serve to make the second quarter and third quarter through this year more difficult. u.s., then the mandate is for inflation to be about 2%. if you look at the months of -- if you look at the month of march, we are a little over that.
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they are trying to talk down the dollar. tracy: how are investors in canada reacting to all these changes? >> a number of investors for example greg quinn of bloomberg , they areimco and ags taking a close look at what we call linkers. these are the inflation linked government ons in canada and there has been a fair amount of growth, 2.7%. there is room to grow further. they are looking at having inflation linked bonds because they flee inflation coming. this report confirms that and they are making note that they are trying to buy on the dip. that would be tough today but that's what they are looking at. scarlet: thank you so much. next, joiningup
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the soccer club. scarlet: we will discuss why more american investors are invading the european soccer league next. ♪
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scarlet: this is bloomberg markets. tracy: it's time for the bloomberg is nice flash. the u.s. government may be getting inside help to build currency minute relation cases. the justice department is working with matt gardner who was a currency trader from the so-called cartel chat room. u.s. officials say they are confident they will be able to charge others involving currency
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rate manipulation as soon as the summer. scarlet: sun edison is pressing forward with plans to build solar projects in india. they filed for bankruptcy protection last week after a 3.1 alien dollar acquisition spree that left them in debt. have 16 billion dollars of that in u.s. bankruptcy. tracy: general motors boosted 26pensation for their ceo to million dollars. most of her pay is in stock and options in gm met three of four $12 million ing stock options for her and a one-time grant of 11.2 million dollars in options. that's the bloomberg business flash. let's go over to julie hyman. you are checking out some airlines? julie: they are having another rough day today after we got the latest numbers from several.
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let's start with hawaiian airways where revenue is up 2%. it's a smaller increase then was estimated. couldailable seat miles rise over 1.5%. expenses may be up higher than that and investors are finding these numbers disappointing. airlines is becoming another airline to talk about passenger revenue for each seat flown one-mile following on the heels of united and continental saying that and margate will continue falling all year long. sales is down 4% in the first quarter as there has been more fair competition in the united states and economic wheat makes -- weakness in latin america. i'm looking at the measure, the passenger revenue for available seat miles.
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four american it's in white and united in orange. it has been on a downward trajectory. some of the airlines are saying they may be willing to cut to get that profitability up. the promises, the willingness is not been enough to salvage these shares with these negative numbers. i want to check on alaska hair. the company is suffering from a downgrade. the analyst is looking at modestly higher fuel and nonfuel costs as well as a reduced buyback program. the shares are down 3.6%. if you look at the airlines in general, we are seeing a downturn but not as large for some of the other airlines. there is a concern about profitability weighing on the sector. scarlet: thank you so much. tracy: turning now to the world of sports come a there is about to be another american owner in the english premier league.
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part owner of major league soccer's d.c. united and steve kaplan, the founder of oaktree capital, are leading a group that is close to taking a controlling interest in swansea city. scarlet: why are american investors so interested in european soccer clubs? has there been a change in conditions that has made it more favorable for u.s. ownership groups to take a look at these kind of clubs? called -- will we call this european football or soccer? tracy: i will go with football. i will take soccer to standardize. >> the media value is what has been driving the growth of soccer overseas. we have seen that over the last 10 years. it's driving forward. the new tv renewal contract in england will drive about $8
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billion in media revenue to the english premier league clubs. we are seeing investors from the u.s. looking at that in seeing that growth area tracy: why don't u.s. investors search in the realm of u.s. soccer? a they have and we built competitive system here with major league soccer that is growing in the u.s. there is a lot of existing that aream owners taking their expertise here and applying it to europe because of worlds biggest sport and more developed in europe and the u.s.. scarlet: what kind of initiatives will they take? the traditions will stay the same. it's the singing, the fan experience, the general kind of fan game day experience. what will change his improvements to stadiums. we worked to help them by
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crystal palace. we worked with the boston red sox to buy liverpool. they have done a stand redevelopment. the fan experience and amenities in the game day experience is what we will see change. tracy: i want to talk about swansea city. close,e ago, it was very one game away from dropping out of the football league. it was in a stadium right next door to a prison. then we had the fans come in and we had a successful fan controlled and driven ownership structure. the team has performed really well. illustrationa good of why some people in the u.k. are a bit reticent about american ownership. what do u.s. owners have to offer on that basis and what is the best case scenario? >> they are working with supporters trust in each of the
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different club so we saw a volatile situation with manchester united. they were not working really well with the supporter trust so that's a key piece to working with the fans and working with a local communities. the fans one that are on-field performance of a want to win trophies. if the american owners can provide resources and work within the communities, i think they will be accepted. isrlet: a final question -- there a bubble in u.s. franchises? now movingnancers abroad to find value? >> there is less opportunity here because the franchises are doing well. the valuations have grown but it's tied to the media. media values have grown tremendously in the u.s.. they are looking for more opportunities overseas. scarlet: thank you so much. tracy has some serious knowledge. tracy: i am all about swansea
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city. what will it take to bolster the european economy, next. ♪
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tracy: this is bloomberg markets. made no major policy movements but mario draghi said he would use all the tools at his disposal to make sure the interest rates -- the inflation rate returns to their goals. scarlet: we talked yesterday about whether it will be enough to get credit flowing and growth accelerating the eurozone. >> i think it's helping at the margins. i think it will help the economy continue to grow above trend. it's only 1.5% which is not a lot of the on employment rate is coming down one percentage point
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over the past year. -- it willwilson is help sustain that. away and thefar unemployment rate is still above 7%. we think that is tolerably a couple of percentage points away from normal. it will take a lot of time of this kind of above trend growth to get back to normal. as we wait, mario draghi is fielding criticism for -- from german politicians to connect the dots between negative interest rates and populist parties. can this have on the efficacy of monetary policy? i don't know that they will have a lot of effect. the thing that will make people more a lot than to do more in the future, you can still make a solid case given how far you are out from the target on inflation and also from normal
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unemployment that you should be doing more. is that that will be harder in the near term. i think it's unrealistic in the near term to expect or in much. you can make a case that more would be progress. scarlet: they have inflated their balance sheet as a percentage of gdp. said these attacks will perhaps require more further easing measures, do you agree? >> there is a case for potentially doing more. to, closeto get back to 2%. they are almost one percentage point away from that. that is the argument, basically. alix: they are still far away from the inflation target and he talked about the target turning
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negative in the latter half of this year. will they be under extra pressure to finally get this up after all of the stimulus measures? i am more focused on the core inflation number than the headline inflation number. headline numbers are very the patternven by of oil prices. the headline inflation rate does not concern me that much. what concerns me is core inflation is only 1%. that is still really low relative to a target of 1.9%. tracy: that was the chief economist for goldman sachs and now joe weisenthal is joining us. i believe you have something different. we are going to be talking about bitcoin which we have not talked about. no one has been talking about it. it's up 92% of the last year.
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you can see the surge lately with all these other markets exploding around. have a currency that swings up and down by that much and we have seen the focus recently shift to the technology underpinning that coin. -- bit coin. joe: maybe it will survive so that's what we will talk about today. joe will be back with --on 00 what did you miss" on "what did you miss." ♪
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david: it is 2:00 p.m. in new york, 2:00 a.m. in hong kong, and 11:00 a.m. in san francisco.
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>> welcome to "bloomberg markets ." lisa: welcome to bloomberg world headquarters here in new york. i am lisa abramowicz. and i am david gura. it is time for massive change in brazil and the president is on the verge of impeachment. david: and countries are going accord ine climate paris. we look at the impact of climate change. julie hyman has the latest. julie? julie: we get closer to the close on this friday. investors are still weighing

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