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tv   Bloomberg Markets Balance of Power  Bloomberg  May 3, 2019 12:00pm-1:00pm EDT

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david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. a special jobs day and markets are up across the board on strong numbers, exceeding expectations for the number of jobs created as well as the unemployment record going down to the lowest in 49 years. hassett, thevin chair of the council of economic advisors. welcome. it is good to have you. the000 jobs as opposed to 190,000 predicted. what is going on? kevin: if we could go back to reportckbuster gq -- gdp and say the economy is not slowing down but is accelerating
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because of the capital spending boom causing people to turn on the factories they built and increase output. quarter.ut first it was lower by our estimate 5.3% because of the government -- by .3% because of the government shutdown. it is typical for the first quarter to be 1% below the rest of the year. if that were to apply to this year you would have a 4% of this year. i'm not saying we will have a 4% year, but that is a lot of momentum. naysayers about president trump's policies have been surprised. for us it is what we thought would happen. beid: the market seem to recovering. manufacturing jobs do not seem to be going anywhere. kevin: manufacturing was one of the weak points. they are still up by 500,000 jobs since the president was elected. the manufacturing trend is
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something we expect to see in the rest of the year. that will bounce back. the real story so far as we have this blockbuster growth, this blowout first quarter and we are doing it without consumers going crazy. that consumption has been tame. incomes are running way ahead of consumption which means in the rest of the year, if consumption catches up there is a lot of upside risk. we start of the year, our forecast was 3.2%, which is exactly what q1 was. given all of these factors, i would go a few tenths more. the fact that you have real wage growth is helping the consumer situation. we talk about the unemployment rate, the lowest since 1969. extraordinary. that was in part because the participation rate came down. should we be concerned that fewer people are looking for jobs? kevin: we have a career guy that
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follows these numbers. ever since i got here he has counseled me not to talk about the month-to-month move is. we would be happier if the participation rate had been steady and we still got down to 3.6, but i still had my baby teeth the last time the unemployment rate was this low. if you look at the unemployment rate for females, you have to go back to 1953. we have yet to land on the move the last on the unemployment rate was this low. we have to take it for what it is. it is a historically strong economy that is historically strong because we have a slow recovery that turned into this accelerating boom because of the tax cuts and deregulation they gave the recovery a second wind. david: you mentioned the acceleration. you said consumers were coming on board. in that environment, as a trained economist, doesn't make sense to cut the interest rate by 1%? kevin: president trump,
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everybody wants to know what he thinks about every policy issue. that is why they support him. my job is to respect the independence of the fed. if you look around the world, there are deflationary pressures building because of slow growth in europe and inflation in the u.s.. the latest numbers are closer to one than two. right now we have a sweet spot of high growth and alone nation and something that is historically unprecedented to economist that we are able to get here. then you say how that happened. it is normal supply and demand. we have a shop because we cut the cost of capital and when you shift the supply curve, you go down the demand curve. that is what we are seeing. we forecasted that inflation would drop from 2% to 1.5%. that is about what happened.
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you referred to the slow down, not the same growth for the rest of the world, especially in europe. we have seen deep glacier this country from europe. can united states support rest of the world? kevin: not forever. there are special factors around the world. china had sharp slowing because of the uncertainty about our trade negotiations, which we are continuing. the we will reach a resolution soon. the negative effect on age and the uncertainty over trade policy was bigger last year than this year. maybe they are starting to turn around. in europe we are problems like fundamental structural problems with high levels of regulation and the uncertainty over brexit, which is everybody putting capital spending plans on hold. i'm concerned europe could be heading into a recession and there is -- i do not see an end in sight until brexit starts to be resolved. that is the number one concern.
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i think the u.s. did push the ball forward last year. the developing world and the asian part of the world is starting to do better. i do not think it is the u.s. david: you're not responsible for trade negotiations, but as you take a look at it. if we did get a satisfactory deal with china, what do you advise the president that would do to the us economy and global? kevin: we would have to see the details of the deal, i think if you consider that we are moving towards a place where the market is open or money for u.s. exports, you could be talking a few tenths per year growth of increased exports in china. i would check of the forecast and also the itt came out with a report on the usmca that was positive about the growth
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prospects if that is past. for trade, a lot of upside risks. if the usmca is past and we close a deal with china, you could be looking at a number closer to 4% than 3%. david: one of the things we've talked about his productivity growth. the theory is that tax cuts would develop more capital investment. where are we in capital investment right now? kevin: we said it would go up about 9% relative to trend and that is almost exactly what it did. that should lead to higher productivity growth and that is what we saw. had2.4% we most recently looking back over the year, that is even above the long run average between the productivity boom between 1953 in 2007, when it averaged 2.2%. we are looking at historically high productivity which is what proponents of the tax cuts it would happen. economists tell me productivity is a function of
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two things. one is capital investment and the other is the number of workers. who should be running the country? is that one of the things that is on the policy playbook to increase the number of growth? kevin: it is one of the things we've been working hard on, thinking about bipartisan immigration reform. ared kushner has been leading team thinking about ways to make our immigration system better and there is a lot of room for improvement in immigration if we could move more towards this, the president has talked about skills-based rather than family-based immigration. we want to protect the nuclear family, but moving immigration policy toward more skill space would give you a big gdp boost, if you are at higher skilled people, then you could go beyond that. guy: there has been -- david: there has been a lot in the news about the federal reserve. i'm not going to ask if you are
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eligible. kevin: i will tell you i've the best job in my life. alan greenspan, when he heard i was nominated he said the ca chair was the best job he ever had and the one here the most fun at and i would have to are great. -- i would have to agree. david: let me ask you what kind of person the president is looking for. we had sherrod brown yesterday from ohio. it sounds like the president of the united states once the kind of person who understands the worker. >> i want to see these members of the fed spend some time on shop floors, construction sites, hospital rooms so they can see the kind of work most of america does outside of washington. does that make sense to you? kevin: i think the world of senator brown. i know we disagree on policy,
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person.ill be a crucial i know after yesterday when stephen moore withdrew we needed to think about the next set of folks. we're moving forward and i think senator brown is right. it is probably good for any organization to have a diversity of opinion and experience and racial diversity. absolutely we're looking at all of those things. david: there is a satisfied kevin hassett coming to us from the white house. thank you so much. always good to have you. kevin: great to be here. david: he is the chairman of the council of economic advisers. time for a check on markets with emma chandra. is risk on in the u.s. thanks to the better-than-expected jobs report. the real catalyst is the major indexes. the dow jones up .7. the s&p 500 .8% and the nasdaq over 1%.
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we are looking at the russell 2000. that is rising over 1%. it is that jobs report that is the catalyst. let's take a look at the s&p 500 more closely. trading close to its last closing high, that was the high on tuesday of this week. every single sector in the s&p 500 trading in the green today. we are led by energy and consumer discretion. what is consumer discretionary -- it is amazon the big leader there. rising 3% after warren buffett said he was building a stake in amazon after saying he was an idiot for being late to the party there. the adage better late than never seems to be ringing true. up through get an stock offerings. it helps with liquidity
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questions. i wanted to mention monster the best share%, move since march 2017. first-quarter sales came in much better than expected and wall street analysts applauding that. one quick look at other asset classes. the jobs report had something for everyone. we are seeing the dollar falling as well. one final point. oil rising close to 1%. that is rallying after yesterday. david: thank you so much to emma chandra. coming up, we will get the on the jobsake numbers from former obama official austan goolsbee. that is next. this is bloomberg. ♪
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david: this is "balance of power " on bloomberg television. we turn to mark crumpton. mark: maryland governor gary -- larry hogan is calling the allegations against catherine pugh deeply disturbing. the baltimore mayor is resigning immediately. she faces multiple investigations around the sale of the self published children's book series. numerous federal agents raided her office to see if she used book sales to disguise kickbacks. she is the second mayor of baltimore to step down in less than a decade. the last few days of freedom for president trump's former lawyer. michael cohen is due to report to a federal prison north of new york city. he has been sentenced for tax evasion, lying to congress, and campaign finance climbs. forbes once ranked the facility as one of america's 10 cu
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shiest prisons. fedex -- spacex hasbro's bone the launch of a rocket -- spacex has postponed the launch of a rocket. elon musk's cited technical reasons for the delay. the falcon nine was scheduled to launch from cape canaveral in florida. the company will try again saturday. india is looking to put a man on the moon. this is the country's second lunar mission. the indian space organization says it will likely launch a rover in july. they expect to land on the moon in early september, three years ahead of schedule. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? david: united states jobs numbers surprised just about everyone to the upside in april with the number of jobs added, the unemployment, and the strong
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but moderate wage increases. goolsbee, austan former chair of the council of economic advisors under president obama coming to us from chicago. thank you for being here. these were the jobs graded in the month of march. the data surprised everyone and it came on the heels of surprising upside productivity on monday.gdp growth are there causes for concern? austan: you have to love it. we have a good growth gdp number, a good productivity number and now have another good jobs number. everything is nice about that. question marks, i would not say there concerning, the? marks, thequestion job numbers come from different surveys. the good job numbers come from a
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survey of his this is an they asked the establishment about how many jobs they created. the unemployment rate comes from a survey of individuals and that individual survey shows the unemployment rate went down only because the number of people left the labor force and it actually showed the jobs for the month of april were not good. hopefully that is because it is a blip. it is a noisier series. we are keeping an eye on that. the second question mark is about can we continue this kind of high gdp growth? a lot of the forecast two were saying there would be a slowdown in the first quarter, and when we did not get it set those factors we thought would lead to slowdowns did not go way, they are still sitting there. the tax-cut impact will face down, a series of things will face down.
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if we started to slow in q2, that would be a negative. overall, this is a pretty close to universally positive. david: the president tweeted out he thinks we should be cutting interest rate. percentage meant a point. i just talked to kevin hassett about that and he said that is up to the fed. that is not our job. what would happen if we were to , theand this economy interest rate by 100 basis points? austan: i think he would have a high danger of overheating the economy. light -- whatmake chairman hassett said is what you're supposed to say when you're in the administration. the fed is supposed to be independent. you are not supposed to be weighing in. it is inappropriate and unprecedented that you have the
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president of the united states fed, nowharanguing the literally saying i want you to cut the rate by 100 basis points. bonkersville. to the become inured fact that they are trying to interfere with the independence. it looks like with this gdp number and this jobs number saying strong growth plus the president's two fed nominees he was going to put in without monetary policy or inflation we got the sense they would just be trump's hand in the fed to try to stretch it more loosely, that fear is a loss for the president, that plan is not going to work. david: we have an election coming up. if the economy were to keep going the way it is going, is there any chance of a democrat taking back the white house?
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isn't that an awfully big factor as a practical matter? austan: maybe. historically, the better the economy does, the better for the incumbent. we have had a weird dynamic with donald trump as the president, which is he seems to have a very stable, no variant base of support, which is not that high, but which is not that low. whether the economy goes up or down or slows or goes fast does not move. whether it is the jobs report for the robert mueller report, it is always the same. i do not know. it seems like, historically, it would make a difference but i do not know if it will. david: we have something like 22 candidates running for president. done this job before, advised candidates running for president on economic policy. if you are devising those candidates today, what would you
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advise them to say when it comes to the economy? about ifhese issues there is prosperity, is that prosperity being taken by everybody or is it focused on a small group of people? i would put some focus on we just cut taxes $2 trillion for big corporations and high income and we have some increase in the growth rate, modestly. plottingcreation is along at the same pace it was before. did we get our money's worth and what is happening to wages of ordinary workers. that is a key issue that you probably hear a lot about as well as infrastructure and health care. david: we have a long way to go before the election. goolsbee, former chairman
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of the white house council of economic advisors. great to talk to you from the white house. live from new york, this is bloomberg. ♪
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david: our stock of the hour is beyond meat, which is up over 180%. emma chandra is here. this is even better than jobs number. emma: over 180%. they went public at $25 a share. it is the most successful ipo since 2008. the company has a market cap of $4 billion. you have a chart showing it is challenging some of its more traditional meat rivals. it shows the market cap as of the close yesterday. the ceo is saying it once to be in the category with other meat providers. he says that beyond meat customer is not holy vegan -- is
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not wholly vegan. >> if you look at the consumers in the largest conventional grocery, 93 percent of those consumers are putting animal protein in their parts. they are putting in salmon and poultry and beyond. emma: they are saying they want aisle withn the meat most traditional grocers, not just a vegan food. they know customers are trying to reduce the amount of meat they are using and that is why they are seeing the great opportunity to the plant-based market. investors agreeing with them. david: i hope it is not icarus. coming up next, we will talk more about jobs. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. for bloomberg first word news, we go to mark crumpton. house press
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secretary confirmed president trump and russian president vladimir putin spoke on the phone this morning. the two leaders reportedly discussed a wide range of issues including nuclear agreements, north korea, and trade. sanders says the two also briefly discussed special counsel robert mueller's report. mike pompeo will meet with russian foreign minister sergey lavrov next week. a senior russian diplomat says the two will meet on the sidelines of the arctic council in finland. it is a time of high tension between washington and moscow over the crisis in venezuela. united states views nicolas last year asection illegitimate and has recognize juan guaido as interim president of venezuela. russia is backing maduro. the european union is not through with big tech just yet. the eu's competition says the commission is definitely not done investigating technology firms such as amazon and google.
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in an exclusive interview with bloomberg in brussels today, she also said she hopes the next eu commission president will be a woman. i think the most important point is to say, we need a gender balanced commission. if you look at the portraits of all the commission presidents, it would illustrate the obvious, that it's about time you have a woman heading the commission. down her last google case in march with a $1.7 billion fine that pulled down owner alphabet's earnings. google risks more fines if it does not make changes that trigger more competition. a deadly escalation in syria is threatening to collapse a seven-month truce. say dozens of airstrikes by government forces the last rebel held enclave have killed several civilians. the u.n. said this week it is deeply concerned by the increased fighting which has killed more than 300 civilians,
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and displaced hundreds of thousands. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. so much, mark. president trump was elected in november of 2016, and since then the economic and financial news has been consistently good, but polls have not always moved up in the same way. the man responsible for strategic communications in the 2020 campaign, market water. welcome. good to have you with us. i will put up a chart on my bloomberg that compares the approval rating, taken from real clear politics, for the president compared with what is going on with the s&p. the s&p has gone up and down for an overall upward trend. the approval rating for the president has ranged from 43% to 44%.
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is the president getting credit with the people you think he deserves for the economy? >> as we have seen over the course of history, public sentiment trails indicators because people need to feel confident in their own personal finances. i think we are starting to see that. if you go back to 1983, president ronald reagan was about nine or 10 points lower in approval than president trump is currently. of course, he went on to win 49 of 50 states a couple years later. it takes people little time to feel that economic confidence. likeyou have job reports today when growing wages, historic low unemployment, people are starting to feel that . i think the president approval ratings will reflect it here in the near two midterm. david: how long does it take? the president got the tax cuts through with the republicans on capitol hill in plenty of time for the midterms and there was a
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theory that the republicans would prevail in the midterms because of that. did not seem to work that way, so how long does it take, more than two years? mark: it varies. and slowad a low recovery from the great recession. that is why president trump was elected in 2016. the longer the language, the longer it will take for the recovery. the one thing i would point out with 2016 is the bulk of the tax cuts, while in effect, you had not filed taxes until a few weeks back, the deadline for the first full year under the tax cuts and jobs at. more money in their paychecks, but the big bulk of the changes were not noticed until they file their returns earlier this year. , including 22dy candidates for the democrats, seem to be positioning ourselves for 2020. give sap into the strategic and
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strategic medications on these campaigns. timesesident retweeted 60 in one hour about vice president biden. is that part of the strategy, to go after biden a lot on twitter? marc: i don't think it is targeted to any one person. in this case, joe biden out and mistakenly claimed he was about the middle class, blue-collar. he received an endorsement from a national labor union. what the president was highlighting was that the rhetoric does not match the results. under obama and biden, we lost manufacturing jobs. under president trump, we have added half a million. you saw the president retreating firefighters, families of firefighters saying regardless of what the national union does, the rank-and-file, the people doing the hard work, support this president. that was true in 2016, and i think it is true again. david: by all accounts, really important to president trump's
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base, those blue-collar workers across the country he has appealed to consistently. are you anxious about your continued appeal in parts of the rust belt? reports now that you are perhaps more vulnerable in ohio, michigan. marc: it is too early to tell anything about that. we look forward to talk about the president's result in those states. the headlines in pennsylvania were historic low unemployment. the jobs report today talks about wages growing at the fastest rate in 10 years. it is because of the president's leadership. the manufacturing jobs i mentioned, those are the kinds of messages that resonate with voters. labor union leadership will do what they always do, support democrats, it is the rank-and-file people out there that supported the president in 2016, he said they would bring their jobs back, while the obama administration talk about
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needing a magic wand and they were gone forever. this president is delivering on that promise. we will have that discussion and look forward to talking about the president's results. david: i think it is fair to say that the president campaigned and continues to talk about the economy and jobs, immigration, trade, some basic principles like that. at the same time, we are spending an awful lot of time right now on things like federal reserve nominations. he is now 0-4 in those. why is the president spending so much political capital on a nomination that historically has not had any press coverage? demonstrates the president commitment to draining the swamp and looking for new voices outside of the mainstream of washington elite thinking. in this case, he is bringing people and names to the forefront who might not fall into that so-called new york rdc elite, but believes those voices
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need to be heard. there will be national push back. the small is not going to go away willingly. they will fight back. just one of those reoccur narratives where the president will bring new blood, new ideas, and new voices to the table and washington, d.c. david: i assume you are not referring to senator shelby or joni ernst, because the resistance came from republican senators. you think they are part of the problem? you had specific senators who have specific issues with things that were written about or discussed in the past. but i think it does reinforce -- and we have seen where the republican leadership in the senate has done a great job confirming the president's nominees, setting a record number of judges through the confirmation process. 100th judge was confirmed this week. many are young conservatives new to the washington scene.
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there is always going to be some where they do not make it through, that is true of any administration. by and large, the president will be looking outside of the expected norm to bring new voices to the table. david: there interesting, appreciate you being on to share with us. i hope you come back often. go until long way to 2020. marc lotter, the trump 2020 gigi can medications director. the u.s. by most accounts is thriving, so what does that mean for democrats chance to take back the white house in 2020? that is coming up next. this is bloomberg. ♪
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david: you are watching "balance of power" on bloomberg television. i'm david westin.
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jobs numbers out today point to a stronger u.s. economy as the gdp numbers for monday and productivity numbers yesterday. as we look forward to a presidential election next year, how large will be economy weigh on the american voter? tanden,us now is neera president of the center for american progress. she comes to us from washington. thank you for being with us. there is a central question, if the economy continues the way it is, and there is a long way to go until the election, but how can any of the 22 democrats take the white house away from president trump? few issuese are a happening here. obviously, this economy has been strong in many ways. the question is how much people are feeling it. the job numbers today were good, you recited a few statistics, all positive. one of the issues we have had for several years is how much people are feeling it.
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there was a poll this week that showed a majority of americans actually don't feel the economy is helping them. they feel it is a strong economy for wealthy people, companies, but the middle class don't feel like it is really benefiting their pocketbook. the latter years of the obama years as well. when we also had a good economy. we had midterm elections in which the economy was pretty strong. yet, we saw democrats really gain across the board because it is not just the economy that people are voting on. people are voting on donald trump himself and a check on this administration. i think democratic presidential candidates have to have an answer as to why they will be strong stewards of the economy. even this week, you see joe biden talking about the trump tax cut, policies, asking people if they really felt them. people said that they have not felt those policies. that: referring to
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are right, a lot of americans do not feel that in their pocketbook, but republicans would say it takes time. the gains in wages are actually among the lower and middle income people, not at the upper level. we have a long way to go until 2020. are you concerned by that point may be feeling it in their pocketbook? importanthink it's for a strong economy to help everyone. i'm definitely not going to pooh-pooh any job gains, we'd gains for people. the center for american progress, we had a forum in las vegas with a lot of the presidential candidates. there, heard from people and situates, people living in nevada, people at the lower end of the wage gale are still struggling. we still have factors in the
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economy that are tough for those people. people can say, it is going to happen down the road, but people are not feeling it right now. donald trump passed a massive tax cut and said everyone would benefit from it. still a majority of americans feel like it did not help them, and helped other people. one set of messages and the policy. another question is who will bear that message at the end of the day. 22 candidates on the democratic side right now. there seems to be some infighting already going on, including with the center for american progress when bernie and his campaign. forbody who used to work bernie sanders has gone over to joe biden. do the democrats have any chance if they cannot get together and have a unified front? thea: i think one of central issues in the democratic party is to have unity among the
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nominees. candidates, to ensure the nominee is a strong as possible. while there has been some fighting, i think most voters want a united front. not all the candidates are engaging in those fights. joe biden is very much looking toward donald trump, not really looking at other democrats, really looking at the fight with donald trump. i think a lot of people want that debate to happen. how will you be the best candidate to take on trump? that is where the majority of the party is. david: this came up in the last elections on the republican side, can you support the nominee, even if it is donald trump, would you support him or not? putting that forward to 2020, would you support bernie sanders if he became the nominee of the party? my personal capacity,
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i will work for whoever the nominee is, because i think the differences between democrats to the comparison differences between whoever the nominee is an donald trump. this is an important issue. people are looking for candidates who will fight less amongst each other and more take the fight to trump. david: let's talk about what they will fight for, and against for that matter. what the issues might be, and elements of industry will be in a democratic party. seemech industry at times to be close to the democratic party. to put it simply, will the democrats run for tech or against tech? there are a lot of questions about facebook, for example. neera: i don't think it will be such a simplistic formulation.
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there are real questions particularly about facebook and its power vis-a-vis the election. senator warren has raised important questions about the power of tech companies that are acting in monopolistic or near monopolistic ways. lots of democrats have concerns about the level of regulation or lack thereof of these platforms that have a lot of power, not just in the economy, but in our society writ large. this will be a robust debate among democrats. democrats have not gone as far as senator warren but a lot of people within the country, not just democrats, have concern about the power of these platforms, how facebook operated in 2016, questions about their power vis-a-vis information. also just those core issues around our election. the mueller report itself found that the russians really used social media platforms to divide americans against each other,
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really undermining democracy itself. i don't think people want to see that happen again. david: a moment on health care. you fought hard for health care working under kathleen sebelius. it was a significant issue in the off year election in 2018. how will it play in 2020? which way will it cut? neera: health care continues to be a critical issue for voters. the fact that the trump administration continues its efforts to destroy, undermine, could not get -- it through congress, and now they are trying it in the courts. the debate between the parties will be whether to destroy the aca, get rid of health for 20 million people, or different visions, building on the aca, expanding coverage to millions of people, expanding to universal coverage. this will be a debate in the
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democratic party. onry candidate will expand the aca in one way or another on the democratic side. david: thank you so much, neera tanden, center for american progress president and ceo. coming up, grab your mid juleps. the kentucky derby is tomorrow. we take in inside look at how to handicap the race like an expert. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. the 140 fifth kentucky derby, american horse racing's biggest event is tomorrow. the run for the roses brings together the top horses along with the top gamblers and breeders. sat down with david papadopoulos to handicap the race.
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♪ it is kentucky derby time, the first of the three triple crown horse races are coming up. millions of dollars at stake. i've always wanted to know how does an expert handicapper decide what a good value horse to bet on is? i've been looking through all the papers of past races. the truth is, i cannot make heads or tails of it. the good news is, there is somebody at bloomberg knows a lot about this stuff. i am here with david papadopoulos, a bloomberg editor, but more importantly, an expert horse better. he is walking me through how he analyzes to prepare for betting on the big race. we have all seen these racing forms. what are we actually looking at? >> when we look at my top pick in the derby, roadster, i will point out a few things that i hope will resonate. the speed number in both numbers is usually a great place to start.
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you also want to see in the past performance lines where they finished. his most recent race, he came in first, won by half a length. anytime you see an asterisk x to a horses, that means he was the favorite. he is trained by bob baffert, who knows a little bit about winning kentucky derby races. he is a royally bred horse. why the horse is likely to be one of the favorites, but how do you know if you're getting value? >> let's go back to his main race in july. from the moment he hit the track, he was a super exciting horse. ♪ >> watching the hands of the jockey mike smith, and how quiet they are on the back of the horse. ofch the hands and the whips all the other riders and how they are driving on their horses. mike smith is real confident and quiet.
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when a horse can travel like , in thehin the bridal jockey's hands, you have a talented horse. in the santa anita derby and finds himself he hide a wall of horses in the race. at this point, mike smith does something which i have not seen since the movie "seabiscuit" where the jockey actually pulls the horse back. who does that? mike smith does that here, and pulls the horse farther out of contention. he will drop a little bit and let this other horse go by here. now he is totally out of it, has no chance at all. not much time left in the race, but all of a sudden, the horse picks it up and explodes. >> roadster so confidently handles. and roadster gets up to win the santa anita derby. >> a made up a ton of ground in a quarter-mile. he will run a big one.
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he will win the kentucky derby. ready for this? >> take my money to the track. here is two dollars. >> you are going to be a rich man. david: joe weisenthal, the big spender. sign up for the balance of power newsletter on and get the latest on global politics in your inbox every day. coming up, cleveland fed president loretta mester will be ,oining bloomberg markets joined by michael mckee at 3:00. bloomberg users can interact with the charts showing today by going to g tv on your terminal. this is bloomberg. ♪ so with xfinity mobile
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jonathan: from new york city for our audience worldwide, i'm jonathan ferro. "real yield" starts right now. coming up, another jobs report delivering solid gains, taking the jobless rate to 849-year low. not enough to put rate cut bets to bed as they remains uncertainty. treasuries looking resilient. we begin with a big issue. one more goldilocks jobs report. >> kind of feels a little bit goldilocks. >> goldilocks is the


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