Transcripts For BLOOMBERG In The Loop With Betty Liu 2015050

Won reelection. The labour party not. They likely will have to form some sort of Coalition Government with the Scottish National party. There he is. Arriving at 10 downing street as i mentioned, with his wife. He will be making further remarks on the future of the u. K. We will be hearing you any of his comments bring you any of his comments as soon as they cross. In the meantime mcdonalds april Sales Numbers back in the u. S. , just crossing. I want to get straight to the breaking desk with julie hyman for details. Julie these number are not as bad as analysts estimated, but the beat is coming from outside the United States. The company has not yet seen progress here in the u. S. Overall, the global samestore sales number was down half what analysts estimated. A drop of zero point 6 . In the u. S. , the decline was deeper down 2. 3 , exactly in line with what analysts predicted. Looking at the beach, it is coming from outside beat it is coming outside. Exley rising 1 . The estimate was 2. 3 . In asia, sales fell 3. 8 . The estimate was for super drop of 5. 8 . Steeper drop of 5. 8 . Steve easterbrook saying in a statement as you know, he does some revamping recently. His turnaround plans he announced were not quite 80 what investors were hoping for. More sort of a restructuring than a revolution. Nonetheless, some analysts are optimistic that some of his efforts will start to bear fruit in the United States. It is not happening yet. Betty reflective of a premarket, not as bad as we expected here with mcdonalds. Thank you so much, julie hyman. Lets get to other top headlines. The Prime Minister of greece expressing confidence his country will avoid default. He told the Greek Parliament a deal with International Creditors is near. His finance minister says hicks said expects the bailout deal with it two weeks. Verify says greece will go down to the wire. It will it was a frank and from the meeting. We basically discussed about process and i encouraged the greek government to come out quickly with a consistent reform package that can be shared with the eurogroup and therefore can be approved and therefore solve this problem and allow greece to go on toward a longerterm issues and programs. Betty European Finance ministers are will discuss again on monday. On a role in the iran nuclear issue, a bill that would give congas a stay in his such deal passed in a 981 vote. Talks aimed at stopping iran from building atomic weapons are in the final stages. The Foreign Relations Committee Chairman calls it a milestone. It is a first time in eight years that ive served in the senate than i can remember congress asserting itself and taking power back that had already been granted to the president. Betty the only dissenting vote was by tom cotton of arkansas. The bill goes to the house. President obama says he will sign it. Uber reportedly was a better way to find its way around. The New York Times says the Writer Company bid 3 billion for mapping business. Three german automakers are also bidding. U. S. Look to the skies to mark the 70th anniversary of victory day. You can watch the flight streaming live i going to uv svets. Tv. And those are your top headlines this morning. Another top story, a top headline, the april jobs report due out in just half an hour. According to economists surveyed, likely adding 230,000 jobs are workers to payrolls last month following an increase of just 126,000 at the end in march. That was a the smallest in more than a year. Joining us with a preview. As you have written with your colleagues so well, this is sort of i will dont want to say do or die because it is not, but it is whether we are going up or down. It is a moment of truth for the labor market. A lot of was for customers got a shot across the bow forecasters got a shot across the bow. I think they may be missing the Bigger Picture that the factory sector is indeed slowing strong dollar part of the story. We saw a big regulation of inventories in the First Quarter. When inventories build and in factories tend to pull back further. That tells us that were off to a slow start in the early month of the current quarter. Jobs data, i believe, are likely to confirm that. And we will see march was not an anomaly. Betty you believe it will not be an anomaly. Right. We will be stronger than march, but i dont think a strong is the consensus is expecting. If we look back, and this was a big mess by the consensus in march, in the past, when we have seen the big misses the consensus doesnt learn a lesson right away and you tend to have another miss in the same direction the next month. I think the risk is here that we will fall shy of the 230000 the consensus anticipates. Betty you point out we may hear the fed thinking premuch after the numbers, because at 9 40 5 dudley speaks. He is speaking on community banking. He can reflect on the jobs data. We wont have long to wonder what the feds interpretation of labor force participation, Unemployment Rate, and the headline jobs betty if the numbers come in and there is a death or big does another big miss what do you think the feds thinking . Wondering if even moving in september or later this year is still in the courts. The feds china sell the notion of a one and done or two and done approach to rate hikes this year, but if we see more evidence the economy is really struggling against the headwinds, then another primary issue for the labor market, then they may have to start even talking down september. Betty maybe forget september and just look out to 2016. Karl, thank you so much, Carl Riccadonna chief economist for bloomberg intelligence. Her top story David Cameron arriving at 10 downing street. His conservative Party Winning a stunning majority, claimed the path for cameron to remain Prime Minister. Joining us with the latest is Caroline Hyde in london. A pretty big result. The labour party not going as big as we thought, not winning the day so what happened here . Caroline you said the word stunning. The poles got it wrong. Instead, we see before David Cameron. He will be taking to that lectern soon showing the campaign bringing the economy back to strength was vindicated. He is the winner. He is saying it is the sweetest victory of all. The markets are refork euphoric as well. This is the center right party. This is a party that promises lower Corporate Tax that also helps with other tax rates, and heard its tax laura, less regulation inheritance tax lower, less regulation. Clearly, a majority, just makes it that much easier to govern. While they will be raising their price of beer in the pubs, labor supporters will be drowning their sorrows. Three resignations. The resignation of the Opposition Leader party, also the resignation of nick clegg and of course, nigel for rush did not win his seat either. He also has stepped down as the leader of his party. Meanwhile, massive victory in scotland. The s p, nationalist party, winning that. Betty might they join together . No. But David Cameron has got to play to the snp and talk to them in a speech were about to hear. He has the outright majority. He doesnt need the snp undecided govern, but theyve won all but three seats in scotland. They have 56 out of 59 seats. Weve only just a month ago managed to keep scotland as part of the u. K. What does this mean for the United Kingdom . Will it remain united . Will they insist on a referendum of making scotland independent . In the big question for the markets going forward, weve already heard from the Rating Agency moodys saying this, their word about the Eu Referendum David Cameron has promised. This is how he came in with a campaign, how he fought off the United Kingdom independence party, by promising referendum by 2017. That now is the key uncertainty that businesses face. Could the u. S. Could be u. K. Exit the eu . He really has to woo the electorate and say, i will make changes with our relationship and make it better for the United Kingdom, but we will remain part of it. Many businesses are going to be looking at this. Today, euphoria and a majority. Laura Corporate Tax rates. Stocks are up. And so is the british pound. Betty the markets do seem to like this victory. Caroline, thank you so much will stop thank you so much. We are waiting for David Cameron to speak at any moment. He arrived at 10 downing street just moments ago. Still ahead, were getting closer to the monthly jobs report. We will hear from someone who has been optimistic about the state of the u. S. Economy and about jobs. Roger altman, the founder and chairman of ever gore. Plus, nike is a message for congress. When it comes to the trade deal just do it. Betty Prime Minister David Cameron speaking in london. Have seen that service cut short. Ed miliband wished me luck this morning with the new government. It was a typically generous gesture from someone who is clearly an Public Service for all the right reasons. The government i lead did important work. It laid foundations for a better future. And now we must build on them. I truly believe we are on the brink of Something Special in our country. We can make britain a place where a good life is in reach for everyone who is willing to work and do the right thing. Our manifesto is a manifesto for working people. And as a majority government, we will be able to deliver. Indeed it is the reason why the majority government is more accountable. 3 million apprenticeships, more help with childcare, helping 30 Million People cope with the cost of living by cutting their taxes, building homes that people are able to buy and own creating millions more jobs that give people the chance of a better future. And, yes, we will deliver that in a referendum on our future in europe. As we conduct this vital work, we must ensure that we bring our country together. As i said in the small hours of this morning, we will govern as a party of one nation one United Kingdom. That means ensuring this recovery reaches all parts of our country from north to south, from east to west. Indeed, it means rebalancing our economy, building that northern powerhouse. It means giving everyone in our country the chance so no matter where you are from, yet be opportunity to make the most of your life. It means that for children who dont get the best start in life, there must be the nursery education and good schooling that can transform their life chances. And of course, it means bringing together the different nations of our United Kingdom. I have always believed in governing with respect. That is why the last parliament we just all power to scotland and wales and give the people of scotland a referendum on whether to stay inside the United Kingdom. In this parliament, i will stay true to my word and implement as fast as i can the devolution that all parties agreed for wales, scotland, and northern ireland. Governing with respect means recognizing that the different nations of our United Kingdom have their own governments as well as the United Kingdom government. Both are important. And indeed, with our plans, the governments of these nations will become more powerful with wider responsibilities. In scotland, our plans are to create the strongest of all government anywhere in the world with important powers through taxation. And no constitutional settlement will be complete if it did not offer also fairness to england. When i stood here five years ago, our country was in the grip of an economic crisis. Five years on, britain is so much longer. But the real opportunities lie ahead. Everything ive seen over the last five years, and indeed during this election campaign, has proved once again that this is a country with unrivaled skills and creativeness. A country with such good humor at such great compassion. Im convinced if we draw on all of this then we can take these islands with our proud history and build and even prouder future. Together, we can make Great Britain greater still. Thank you. [applause] betty as you were just listening to, that was u. K. Prime minister David Cameron talking about creating a better improved u. K. It is euphoria with the conservative party victory. The markets have been reacting pop quite positively to the news. Those were his remarks. Lets take a look at some other top stories we have been following. Baltimore police facing a Justice Department investigation. The mayor asks federal officials to find out if the Police Department is committing civil rights violations. An announcement expected as soon as today. Rioting last week after the funeral of a black man who died in police custody. Nike is a message for congress when it comes to the big asian trading, just do it. President obama will push for the deal today when he visits nike headquarters in oregon. Nike says it will make more products in the u. S. Of congress oks the deal. The company says that would create up to 10,000 jobs directly and tens of thousands more for construction and supply companies. Much more on nike and the trade of coming up at 10 00 eastern time with nike president and ceo mark parker. We are than 15 minutes away from the aprils jobs report. Expected to show 230,000 payroll added for the month. Someone who has been more optimistic about the health of the us economy than its counterparts, roger altman, founder and chairman of evercore and the deputy treasury secretary under president bill clinton. Roger joins me now. How are you . We were just speaking with Carl Riccadonna who says he feels it is going to come in a little bit worse than the estimates. Maybe much worse than estimates. If that happens, are you going to reassess your outlook . I think it is an unusually important number for markets because of two things. One this big important debate about whether the slowdown was on the First Quarter is transitory or signaling a wider and longer slowdown. Markets seem divided on that. If the number comes in as expected, 230,000 or so, that would seem to confirm it was transitory. If it is weaker betty the all clear. Were seeing so much volatility in fixed income markets, currency markets, and oil markets. Remarkable volatility. A huge selloff in bonds until the last few days. Stronger prolonged dollar strength. In the dollar has retreated. Then the dollar has retreated in the last few days. Oil prices has risen further and faster than expectations. It will be more important than usual in terms of Market Reactions. I dont know with the number is going to be. Im hoping it is in line with expectations. Especially that we see continuation of the wage growth that has finally manifested itself. Betty for you just to optimistic gekko one always has to be willing to reassess. What the factors underlying were in slowdown. Or whether they suggest verizon aspects various aspects. We have to wait and see. Not just a number, but the reasons. Is the weakness concentrated in the Manufacturing Sector . Back to pertain to the stronger dollar weve seen for most of the year. Betty stay with me because we are much more to talk about. Not just jobs, but trade. David cameron. Betty roger altman from evercore staying with me. We have much i had as we count down, less than 10 minutes away from the jobs report. What do wages really tells about americas implement a picture . Alan krueger will join the conversation with roger and me. Wasnt that the name of a film . We will be back. Betty you are watching in the loop. Good morning, im betty liu. I want to welcome our global viewers joining for jobs day coverage here in the u. S. It is that important. Were less than five minutes away from these job numbers as president obama takes his trade policy push on the road to nikes headquarters. Many critics are calling trade a jobs killer, including for my senator Bernie Sanders who wrote a letter to the president still with us is roger allman, the founder and chairman of evercore who is in favor of the trade pact. In joining us now is alan krueger, professor of economics at princeton and the former chief economist at the department of labor and also the what else Council Economic advisers. White House Counsel economic and visors. I know you arent friends so i will stay out of the conversation. Youre also working on infrastructure. Lets talk trade. Bernie sanders is echoing much of the Manufacturing Sector in the u. S. Where they say free trade is going to kill jobs will stop what do you say to that . I think our manufacturers can compete with anyone. I think what will help them as a level playing field. I also think that trade agreements help by making our manufacturers more productive. We need fair trade. Acting manufacturing i think manufacturing would hurt competition with china, but