same deal that michael mckee has, too.ederal government highway trust fund funnels $35 billion per year to states for road construction but not collecting enough revenue from the gasoline tax and could run dry this summer. officials warning the u.s. is approaching a transportation fiscal cliff. phil mattingly reports. >> what you have is four sets of columns back here, all of which have varying degrees of damage. >> delaware discover the columns of the i-94 bridge work building fast. immediately shut down a road used by 95 million vehicles per day. >> the bottom line is, we have to -- we got it closed in time and no one was injured and now have to get it back open. needed tolion more finish the job. the federal department of transportation is footing the bill. people all over the states that depend on this. >> this is a real risk confronting delaware and the 49 other states. the nation's primary source for public road projects had shrunk from $8 billion. one reason for the shortfall stack of the federal gas tax accounts fo

joining me here in studio, michael mckee, our economics editor. joining us from our the fed, he will go inside. a news conference is coming up in about 20 minutes. thank you. we will continue our discussion on the fed after a quick rate. just a reminder, janet yellen, the federal reserve chair, in her press events coming up at the bottom of the hour. we will -- back.at. ♪ >> tom keene, thank you for staying with us. you and i were talking before we came on the air. >> i will go to the meeting on the 29th. you have got to know where you are now. we really do not know that now after the murders of the first quarter. where were you, three-point something? >> we are on the low end. the reason is, not only is first quarter growth slower, but we are projecting that that doubts. >> there is a raging debate over the first quarter, the data around the october 29 meeting. then they will be able to really fine-tune their strategy. includes having a plan as opposed to just responding to the data. means it would be a true and valuable communications strategy.

michael mckee details a rare correction by the institute for supply management. housecook interviews intelligence committee chairman mike rogers. we begin with phil mattingly and president obama's lands to cut powerplant emissions by nearly a third -- plans to cut powerplant emissions by nearly a third over the next 10 years. there is more than just the headline? >> that is right. it is all about the details. in this case, it is the power given to the states to work regime,his regulatory including an extended timeline for certain states who have, if they work together, mark, until 2018 to put in place regulations that would lead to the reduction in carbon emissions to that 30% level the obama administration is putting out for them. this is a significant step forward for the administration, the largest unilaterally they could possibly take and one that

economics editor, michael mckee with the real deal.with bloomberg for reaction and chairman yellen's conference wednesday. michael mckee will help with the coverage and the news conference :30t begins at 2 washington time. coming up, how the world cup may have helped columbia's president get reelected. the latin america report on this monday. stay tuned. ♪ >> it is time for today's latin america report. colombian president won a inond four year term elections held sunday. the bureau chief joins us on the phone with the details. he won the election yesterday with a much bigger margin than polls predicted. how did he do it? >> that is right. there were no big differences economicmic -- in policy. both in favor of free trade. both had a warm attitude toward mining. very pro-us. it became about the conflict going on for 50 years. santos campaigns on the peace talks with the guerrillas. he cause of this, he was able to build a very large alliance with political groups that do not agree with his other policies. >> you recently traveled to an

michael mckee has the strange twists.nd michael, the terms of this market data -- turns of this market that it -- market data. >> i've never seen anything like this before. it came out and was weaker than expected. the forecast was for 55.5. wrongne thought what went with the economy? nothing went wrong with the economy. it was the ism's data. they normally seasonally adjust for the month. unfortunately they applied april's seasonals and came out with the weak figure. when they applied the correct data, everything went up. unfortunately they applied it wrong again and had to issue a second correction. here is where we are at the end of the day. the headline number -- 55.4. about where it was expected to be at. better than where it was last month. it is an improvement. the underlying data, much better than originally reported. new orders were at 53.3. 56.9.om up at evenne bad part of this, though they revise this, the broader market does not come in as strong as you would like it to be. it comes in at 52.8. an expansion, b

thank you, michael mckee. 10,000 small businesses program, was set up for small businesses and to teach entrepreneurs the complexities of running the company. obergblankfein and mike spoke to stephanie ruhle -- mike spoke to stephanie ruhle about the program and how entrepreneurs can help everyone out. >> the job creation that comes out of this around the world -- without this kind of financing people could not have started companies. we always want to whip ourselves, but a lot fewer people go to bed hungry, have to sleep outside today. life expectancy keeps going up. it is not just one thing, but all of this -- the ability to move capital around, and to use it to create jobs, build schools, cure cancer -- those kinds of things, it all comes together. >> well, stephanie ruhle joins us now with more from her interview. great interview. what was your take away? >> talking to lloyd blankfein, think about this, goldman sachs does not have a retail brand. the bankers will not be the investment bankers for small bus

e repeated across the country >> michael mckee keeping our focus on the economy and jobs. the u.s. ence of mayors began their annual meeting in dallas today. they are focused on economic output and the job market. mayor michael coleman of ofumbus ohio is the chair the conference of economy for the u.s. conference of mayors. thank you for joining me today. >> before we get started on the report, you just heard about charlotte,ng on in north carolina. is that the something columbus is considering? there are two schools of thought, that you need to get people off unemployment because encourage them to find work but others say that there is a morale eddie issue at play. >> where was the program? >> in charlotte. >> they are attempting to take unemployment benefits from people, and they say that is pushing the unemployment rate down, but at some point, you have people leaving the area and trying to find work in other places. >> no, we have no intention of taking people's unemployment benefits from them. >> what is the unemployment rate in columbus right now? >> we are at about 4.2%. we a

is inr michael mckee washington. ael joined me yesterday, and we were discussing the argentinian bond issue. michael, i know that you and i are going to talk about the imf in just a moment, but i wanted to get your reaction to this breaking news and what it means for argentina. >> well, it had been telegraphed by the argentinians. they had said going into the court case that they did not want to comply. the court, one of the arguments before the court was whether or not they could bring a case in which they would not comply with the court ruling, and that may be one reason the supreme court declined to hear their appeal, so now they are following through on it. they do have weeks to come up with a $13 billion payment, and under the rules of the u.s. second court of appeals, whose , they have tonow pay the holdout bondholders at the same time. if they do not, in theory, they are in default. the question is then, what happens? most of the bondholders who are holding restructured paper may be willing to talk to them agai

here is michael mckee. >> hold onto your hat. we have a holy cow number out. the expectation was for a small increase, new home sales go up 18 .6%. this is in the month of may. this puts us at a 500-4000 annual sales pace. billed as a been telling us that they have been growing more confident about people coming into the market. this seems to support that view. much of the increase in the northeast and in the south, we saw it increase all across the nation. housing seems to be back after the big increase in existing home sales. these numbers will increase the amount of supply out there. the number of homes for sale is not changing. consumer confidence is up. there is a chance of those things go together. from 83er goes to 85.2 even. to 82.2.vised down that is three points and a better-than-expected. some really good economic news to start your show, stephanie. that while, for holy cow number, michael mckee. i want to take you to erik schatzker. he is standing by with hank paulson. they are speaking about climate change. >> i am here in midtown with the former

zerbostalking with david and michael mckee.is the dot plot. >> the fed is not expected to make any change in policy. the question is when they make a change and that's where the. plot comes in -- dot plot. they would release a chart that suggests when they think they will first raise rates and how far they will go during that year. was fromeal in march december until march, the dot plot moved into 2015 up in the 2016 numbers moved up. >> which says more members of the fmoc - >> if you look at 2015 and count dotsots - there is 16 there and 19 members of the fmo see and ben bernanke had resigned and there were two open seats. the fact that mode, you had different people in their roles and you had shortages of people so the numbers changed. do they meet anything? janet yellen says is a picture of what we think will look like at the end of the year. the markets took it as a forecast and bonds sold off and yields went up. that's part of the communication strategy problem they have. they will release a new dot chart on wednesday. wha

michael mckee explores this question. why has consumer spending fallen? begin with bill mattingly in washington as president obama asks congress for $500 million to arm and train rebels in syria. what is this all about? >> it's about moderate rebels. the bottom line is, they finally feel comfortable with the cia vetting process. that has allowed them to go to congress with this request. another important aspect that you really cannot ignore here. isis is coming from syria. they have made their place interior right now. at the administration looks at that and recognizes we have to do something. arming the rebels is the first and most important thing they can do. is just thesal first step. how long until opposition rebels see the weapons? we assume they are moderate. somebody can tell if they are moderate. how long until they are being trained to use those weapons? >> the process of being able to tell if they are moderate or not -- you hit on a key point. that is problematic. what the cia has struggled with is if they are having a difficult time separating

we will be hearing from michael mckee at the fed in just a few minutes.us this afternoon, the chief income strategist at jenny mungo murray scott, john king, -- tom keene, host of bloomberg surveillance, and on the markets today, jonathan ferro. mckee, you will be with us in just a full -- a few minutes. i want to start with guy. we had some economists surveyed here and most of them were talking about the change in the outlook in interest rates. it is inching toward that two percent threshold will stop we heard about that just the other day. what is the fed to make of this? >> the challenge right now is the federal reserve is covered to go either way with the policy bias. as you reference, both measures of gross ash most measures of growth are relatively -- most measures of growth are relatively subdued right now. but inflation is picking up. i think that gives holidaymakers a lot of leeway. we have heard some increasing talk that they are willing to go higher with inflation. >> tom, is there enough data right now -- >> absolutely not. we are nowhere near

michael mckee says this just does not add up. i am making more but not spending as much. what happened. school is out and we are making more money. incomes are up five .6%. -- 5.6%. ahead of inflation for the first time. dividend and interest income is up by 8% so far on an annualized basis. adjusted for inflation, disposable income is up 3%. spending is up 9/10 of 1%. it actually contracted. >> is that what is going on? >> or are people deleveraging or paying off the ugly death date accumulated during the financial crisis? >> deleveraging has been going on for quite a while. the you know how savings works. government subtracts what you spend and save the rest you saved. the we don't know if that is what they are doing. you look at home sales. it looks like we are going to start seeing people spending again. the question is is it just delayed? >> car sales have been pretty robust. they have been back to pre-crisis levels. were reallysales good. >> existing home sales were good. is it just a delayed reaction to the weather. >> durable goods are the ones that last no more t

michael mckee says there are still laces out there with opportunity.t-growing cities in the city have that "go west" song in my head. >> buy a lottery ticket. he did say, go west, young man. that is where we find the fastest growth. all of the fastest growing cities, are on the other side of the mississippi river, including four of the top five. led by midland, texas. h w bushhere george made his fortune. it will grow 8.4% next year. >> that is kind of unbelievable. >> also on the list, naples, florida. then st. george and provo, utah. all of these numbers come from a new study by ihs. iny just put it out connection with their latest meeting. among the big cities, texas leads the way. austin tops a top 10 that includes three cities in the native states. none of them are in the north or the northeast. driving the growth is construction, mining and fracking. the report does warned that low-paying administrative and support services jobs are expected to be the fastest-growing. you may go west but not make a fortune. it does quantify what the people in tex

michael mckee has been there twice. the united states of america, you see the beach in the distance -- it is remarkable. rick atkinson will join us in the next hour. we are thrilled to bring the great author to you to give scope and perspective in our next hour. >> i was there as a boy, and the pillboxes are still there. those steel pillboxes that have been swallowed up itunes now, and you go inside the pillboxes number which was an eerie experience. pointing americans coming on the beach, incredible. 70 years after d-day, what is the best way to pay tribute to our soldiers. let's move on to a data check. currencies, commodities come up. record highs. 1940. i am not thinking s&p 500 yet, but there it is. quickly to the second screen, showing those good market rates. there is the dow. we begin to look at the world stronger in the next couple of days. here is the euro over the last number of days. the drama yesterday, the market weekly getting it wrong with a weaker euro, then up we go, a bit of the surge. clearly the hea

michael mckee all set up with the match. we look forward to tuesday where the u.s.t do you make of this suarez bite? >> i have watched it a little bit. what i would say is immediately following the event, i was really taken aback by the experts at espn from europe and south america and they were visibly distraught over the event. this goes way beyond punishment or that. these people who are real pros within the culture of soccer were very, very upset by it. way beyond anything i have seen in america. >> apparently, it does not, such a huge surprise because so many that hehat that -- bet would take a bite. >> yes, scarlet fu once the money on that bet. >> looking forward to "surveillance" coming up in 25 minutes. >> i don't want to talk about football, so i will talk about tech. -- pickeds picked up the new york stock exchange for its ipo. it may be the largest ever an initial public listing in u.s. history. let's go to hong kong for more. >> this is a key victory for the new york stock exchange, the 222-year-old board. it is a key below for rival nasdaq. hastech hea

joining us for more on growth and forecast and his behavior is the bloomberg economic editor michael mckeeabout bill gross and this slow implosion not only of his fun but the firm itself. what do you make of this? >> i talked to bill quite often and i think he has had a tough time with the fund. it has been down and they have had a lot of redemptions and along comes the split with mohamed el-erian. we will never know what happened between the two. the press reports have been that bill gross was the bad guy and mohamed el-erian was the good guy. the combination of the two things has bill gross trying to mend his image and public, lighten up a little bit and get people to smile and laugh at the same time deliver the message that pimco is still in good hands and it still making money. they haveast month been making money but it has been rough for them. >> the only way to ring back their reputation and their image is to perform well, right? >> that's the bottom line what they are doing is placing their bets on this new neutral where markets will be calmer and they will not make a lot of money

i run michael mckee. >> now to our top story. carl icahn, pro golfer phil mickelson, and a prominent las vegas gambler are being investigated by u.s. authorities over potential insider trading. julie hyman has more on this developing story. the trading at the center of this investigation is three years old. >> it is. >> do we have any idea why it is becoming public? >> there was a lot that we don't know. we should make that clear first off. the us is coming from "the wall street journal" and "the new york times." it is interesting that they came out with the news simultaneously three years down the line. the investigation has to do with clorox,hn's offer for and offer that never ended up coming to fruition. there was a lot of activity around it and in advance of it profiting handsomely. profiting in part for phil mickelson and billy walters. it has been three years now since that happened. nothing has come of the investigation, in terms of charges being brought. itself, it is not an unusual investigation. >> not necessarily. >> w

who better to break down the numbers then michael mckee. what is the word? whendon't know whether you shopping for good news, existing home sales up more than forecast. 4.9% for the month to a $4.89 million annual sales rate. that is the best so far this year. remember we were talking about how every buddy was buying condos and not single-family homes, that flip. single-family homes up 5.7%, condos and co-ops unchanged. maybe people coming back into the markets right now. numberting aspects, the of homes for sale, the mother supply falls in may. a little less supply and that has pushed the price of homes up to an all-time high, i have not ,000 is the $213 median price. more people buying houses. the lowest number of distressed sales since they started keeping that record in october 2008. we are no longer just throwing things out there underpriced and trying to get rid of it. this is actual increase and people buying houses because they want to move up. >> thank you so much for giving us the latest. erik? the packed schedule for supreme court. 11 cases to dec

michael mckee digs further into the report that gave few surprises.an ice cream parlor, the economy just walked in and ordered vanilla. it tastes good but nothing remarkable. we are just about on point with at number of jobs created 217,000. the consensus was 215,000. it is four months in a row over 200,000 jobs created. we have not seen that since 1999. maybe we are not getting huge increases we have seen in some recoveries but we are seeing strong steady job growth. the unemployment rate stays at 6.3% and fell that far last month because although one million people left the labor force, this time, people came back in. we stayed that way because more people were hired is the good spin for unemployment. as far as hours worked, unchanged. the fed wants to see wage prices rise a little bit. that isggestion is that what will indicate that we are really making pressure. there is not a whole lot for the markets to react to. >> given that there is not a lot to react to hear, does that mean something else will be more important? for signswill watch that the

mckie will be at the news conference -- michael mckee will be at the news conference.big as mak mexico and brazil in the world cup. here -- a firm and ferment here. yellenion between ms. and the market. that was the conclusion of the bloomberg poll. , mitsubishi,deal hitachi and siemens ng on the other. on one hand and ge on the other. will they do it or not? expected too unveil the first foray into the mobile phone market. 1:30 p.m. cory johnson will have live coverage of that. what is the price point? will you be able to make purchases more easily? >> i don't get the why. i have yet to hear a white this afternoon. >> put the amazon prime app on my iphone. i don't need hardware. >> why? what features would make you switch to an amazon smartphone? a 20% discount on everything on amazon. third i knowing amazon is the new evil empire and all, but everything i do involving them works. i will give the phone a look. nothing would cause me to shed my iphone. did you tweet that? >> i did not. your secondary twitter handle. what about you, david winters? than it's better every

economics editor, michael mckee. moving and shaking this hour, goldman sachs ceo lloyd blankfein. is hosting energy conference today and lloyd blankfein told charlie rose the geopolitics are going to change once america no longer has a ba in that fashion be a net importer of foreign oil and he talked about his personality quirks. >> i am sure i am paranoid. >> paranoid about what? everything. when the phone rings too late at night or too early in the morning, i am going all, my god, what happened? if it stops ringing, i call everyone i know to find out what i missed. >> i can identify with that. you can watch all of charlie rose's interview with lloyd blankfein at 8:00 p.m. and 10:00 p.m. i hear on bloomberg television. found ahkari has not tough job he did not want. he might have his toughest job yet, running for governor in california against a favored opponent in a well-entrenched democratic party. neel kashkari won his own primary last week against a tea party candidate. l, great to have you join us from california. first off, what you make of eric ?antor's loss >> great to se

michael mckee. she said, the punch bowl is never-ending. it is like the game of thrones. up we go. just amazing. >> and the fed continues with the taper as well, reducing its are kisses. -- it's purchases. we will address that and a little bit. we want to get to iraq, the tension there. the u.s. is just as then -- just distancing itself from maliki. his government is dominated by shiite muslims and u.s. is urging them to be more inclusive. >> it is a complex story. ?hat gets your attention most >> it is hard to figure out who the rebels are comprised of. we don't know the history and how much it affects other areas. >> their sunni extremist, but it is hard for us to appreciate what that means. >> we will do my morning must read later, talking about the debris of saddam hussein's sunni jihadistsg with the in some form. >> they have joined isil. >> i don't know if the word joint is the right word. >> aligned. >> they have aligned with the jihadists and it makes for confusion although to the white house. >> bp has begun withdrawing employees out of iraq as the lessons and more people

michael mckee, you have been digging into these numbers. what do you think? >> i think economists got it pretty good. they were pretty much right on the forecast. it all evens out. we are really in a range here, betty. we probably hit the bottom of where we can go for jobless claims. for a long time to 200,000 as000 the range where the economy is in pretty good shape for a labor market, and yet the size of the labor force keeps growing. this is an even better number than it would have been 10 or 20 years ago. this number matters because this was a week where they take the survey for the june payrolls report. if we are seeing a very low number, it adds to the feeling that in june will continue the process of 200,000 job gains we have seen the last couple months. >> mike, thank you. coming up, england's working-class heroes, there are to enough of them anymore, which may explain why the birth birthplacesoccer -- of soccer cannot dominate the sport anymore. attention, slackers. up against theck average american. >> for some u.s. investors the road to rio ends an

. >> michael mckee would help us as well. geeks. >> the app. >> you are so emotionally attached at this innovation and every technology company has to be a true innovator. they market those innovations to consumers. when you had a five-year issue investing -- the problem now is that when meg whitman says they are in the middle of a five-year turnaround, the question for any technology company, microsoft and hp, is, do you have that much time, because things are moving so quickly. >> you were a piÑata for 2 years. how do you send them a message right now? you are one person who has to get the troops motivated. how do you do that? >> i think any large company requires a very consistent communications process. i was a piÑata but we got the largest merger in tech history done and integrated in a way that people now say was the best merger in the industry. it was a necessary thing to do because we needed to consolidate our cost structure and innovate at the same time. >> would you give high marks to bringing delln private? >> i un

. >> michael mckee from "bloomb g "bloomberg" television and radio. i'd lask to ask you about your signaling mechanism going forward. you told people, don't pay attention to the dot plot. your two mandates are backward looking lagging indicators. so if something should surprise in the economy with only four press conferences a year, how do you signal to the markets what the fed is doing so you don't run the risk of an event like last september when people were surprised or some sort of credibility problem where people feel you're falling behind the economy? >> well, you know, again, we are very a tettentive to unfolding economic developments and understand that there can be surprises and twists and turns in the road so that the forecasts that we've made become no longer appropriate and we need to respond to unfolding developments. i'm personally committed to communicating with the public whenever communication is appropriate. we have four press conferences, but i would feel it appropriate for me to either have additional communications, meetings with

. >> michael mckee from bloomberg television and radio. i'd like to ask you about your signaling mechanism going forward. at this point, you haven't decided on reinvestments. you've told people don't pay any attention to the dot plot. and your mandates in inflation and unemployment are backward-looking, lagging indicators. so, if something should surprise in the economy, with only four steps and press coxsnferences a year, how do you signal to the markets what's happening so you don't risk an event like last september, when people were surprised, or some sort of credibility problem where people feel you're falling behind the economy? >> well, you know, again, we are very attentive to unfolding economic developments and understand that there can be surprises and twists and turns in the road so that the forecast that we've made become no longer appropriate and we need to respond to unfolding developments. i'm personally committed to communicating with the public whenever communication is appropriate. we have four press conferences, but i wou

mckee ede now, michael koch afforded kamsky -- katya p ortekanski. what does this mean? >> the judges hope was that they would use the 30 day grace. from today until the end of july in order to negotiate a settlement. argentina has said that they are willing to talk under the right conditions. the singer's group has said that they are willing to negotiate. according to, as you said, the singer people right now, there are no negotiations underway. >> michael used the phrase right conditions. what are the right conditions for argentina? >> they say they want to be able to do this under fair treatment and fair negotiations. they don't want to rake the right to future offer clause in the restructured debt, which says that they cannot make a extending thehout offer to everybody. if they are going to be going through these negotiations in a way that does not trigger a whole bunch of other litigations . >> is argentina trying to make its case in the papers here? yesterday they took out a full-page ad in the new york times. >> they are never at a loss for words. they took out ad