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Speaker 1: Broadcasting live to New York, Bloomberg eleven blio to Washington,

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Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,

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Speaker 1: Bloomberg nine to the countries at dam down one and

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Speaker 1: around the globe the Bloomberg Radio Pluck dab and Bloomberg

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Speaker 1: got gone. This is taking stock. Coming up on taking stock,

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Speaker 1: We're going to take stock of make Calm Technology Solutions.

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Speaker 1: They're based in Lowell, mass and the shares are of

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Speaker 1: about three three and a half percent so far this year.

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Speaker 1: We're going to find out exactly what the company does

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Speaker 1: and give a little bit of detail about things such

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Speaker 1: as microwave, millimeter and wave applications, all the things that

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Speaker 1: serve many of the technology comes to customers throughout the

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Speaker 1: United States. That's all coming up right now. Let's go

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Speaker 1: to Charlie Pellett in the Bloomberg news room for Bloomberg

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Speaker 1: Business Flat and I thank you, pim Fox stocks bouncing

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Speaker 1: along the bottom. We're brought to you by nash No

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Speaker 1: Realty providers of one hundred percent satisfaction guaranteed New York

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Speaker 1: City realty investments. See them at n r i A.

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Speaker 1: Dot net stocks are falling as heightened political and security

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Speaker 1: risks rattle emerging markets, adding to the anxiety surrounding the

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Speaker 1: outlook for interest rates submid on even growth in the

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Speaker 1: US economy. Oil is tumbling West Texas Intermediate Crew down

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Speaker 1: two point nine percent, falling a dollar forty one or

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Speaker 1: barrel to forty six sixty nine. Dominic Constant as head

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Speaker 1: of Global rates research at Deutsche Bank Securities and on

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Speaker 1: Bloomberg Television this morning, he talked about the fet speech

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Speaker 1: coming up Friday, along with the interest rate environment and

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Speaker 1: definitely appro incess a mini shocks if you like, in

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Speaker 1: the sense whereby this hunts for yield and this h

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Speaker 1: financial oppression you're going through that pushes investments into certain

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Speaker 1: nasty classes. They every now and again may have to

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Speaker 1: sort of take a breather. And the way they take

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Speaker 1: a breather is the fact sort of wakes up and says, well,

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Speaker 1: maybe we should raise rates because this has got a

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Speaker 1: little bit too fat too quickly. For the ten year

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Speaker 1: down to thirty seconds that yield one point five. The

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Speaker 1: former CEO of Converse Technology, who hid in Africa for

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Speaker 1: a decade, has pleaded guilty in New York to fraud

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Speaker 1: for back dating stock options. Jacob Kobe Alexander returned to

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Speaker 1: New York yesterday from Namibia to face federal charges originally

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Speaker 1: filed in two thousand and six. While he had faced

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Speaker 1: thirty five counts related to the back dating of stock options.

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Speaker 1: Alexander pleaded guilty to one count of securities fraud and

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Speaker 1: asked the judge to be lenient in sentencing him. SMP

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Speaker 1: down eleven and drop a point five percent. Gold down

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Speaker 1: one point three percent now the other stories making news.

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Speaker 1: Thank you, Charlie from the Bloomberg Newsroom. I'm Jill Schneider.

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Speaker 1: This news update is brought to you by the Jeep

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Speaker 1: Grand Cherokee, the most awarded suv ever. The Grand Cherokee

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Speaker 1: legendary four by four capability. Drive one at your call

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Speaker 1: Jeep dealer. Today, an Italian firefighter says an eight year

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Speaker 1: old girl has been pulled alive from the rubble left

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Speaker 1: by an earthquake that destroyed three central Italian towns today.

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Speaker 1: At least one twenty people were killed. Donald Trump is

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Speaker 1: again urging African Americans and Hispanics living in inner cities

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Speaker 1: to give him a chance. Speaking in Tampa, Florida, today,

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Speaker 1: Trump said Democratic policies have only led to more poverty, crime,

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Speaker 1: and joblessness in cities like Chicago and Baltimore. I'm asking

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Speaker 1: for the honor of your vote so that I can

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Speaker 1: fight for you. That's African Americans, that's Hispanics, and that's

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Speaker 1: all Americans. The Clinton Foundation is under intense criticism from Republicans,

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Speaker 1: who accused it of being a non transparent and corrupt institution.

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Speaker 1: Libertarian presidential candidate Gary Johnson says it's within the law

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Speaker 1: to give contributions to gain access into an institution or organization,

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Speaker 1: but Johnson says he does see an element of pay

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Speaker 1: to play. None of this is illegal, it's just that

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Speaker 1: the implication and the fact that it is being paid,

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Speaker 1: and that it's unstated. Look, if you don't pay for

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Speaker 1: that access, you don't get the access. Police have arrested

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Speaker 1: to people who they say burglarized the Indonesian consulate in Manhattan.

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Speaker 1: Investigators say surveillance video shows eighteen year old David Rivera

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Speaker 1: and sixteen year old Tiana Nonez inside the consulate early

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Speaker 1: Monday morning. Global News twenty four hours a day, powered

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Speaker 1: by more than journalists and analysts in more than one

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Speaker 1: twenty countries. I'm Jill Schneider. This is Bloomberg, Charlie, and

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Speaker 1: we thank you, and again recapping the dal the SMP

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Speaker 1: NEZTAC are all declining twenty six minutes to go ahead

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Speaker 1: of the clothes on a Wednesday, SMP five hundred index

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Speaker 1: falling eleven points now to one, a drop of five

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Speaker 1: tenths of one percent. I'm Charlie Pelton. That's a Bloomberg

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Speaker 1: Business Flash. This is taking stock with Kathleen Hayes and

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Speaker 1: Pim Fox on Bloomberg Radio. May come partners from radio

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Speaker 1: Frequencies to light. Here to tell us more about it

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Speaker 1: is John Krato. He is the chief executive of may Com.

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Speaker 1: Their symbol on the NASDAC is M T s I

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Speaker 1: and he can tell us all about five G. John,

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Speaker 1: thanks very much for being with us. Oh, you're welcome.

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Speaker 1: Before we get into the world of five G, can

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Speaker 1: you just help me understand that a little bit about

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Speaker 1: the history of may coom Technology Solutions, because were you

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Speaker 1: at one point, uh, I guess you were supplying products

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Speaker 1: to the U. S. Army. Yeah. Actually, the company's roots

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Speaker 1: date back to just after the Second World War. UM

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Speaker 1: was actually founded with the folks out of M I

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Speaker 1: T doing the very first microwave components for the very

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Speaker 1: first radar systems. So it's been it's been a long road,

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Speaker 1: close to seven decades and you're based in Lower mass

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Speaker 1: Now tell us about the five G. What exactly is

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Speaker 1: five G? Well, five g's the next UH warriorless radio standard. UH.

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Speaker 1: It's higher frequencies for higher data rates, broader coverage, more

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Speaker 1: more dense coverage of for cell phones and smartphones and

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Speaker 1: data services. And john I, so I started covering text

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Speaker 1: three years ago and five G was being talked about

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Speaker 1: then and now we're still kind of waiting. I guess

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Speaker 1: at what point does this become a reality? Well, it

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Speaker 1: depends on what flavor of five G you're talking about.

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Speaker 1: It's you know, it is a whole collection of technologies

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Speaker 1: that are that comprise five G. So there are versions

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Speaker 1: which I would describe more like four and a half

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Speaker 1: G that are within the next few years, and then

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Speaker 1: depending on how extensive you think about it, it would

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Speaker 1: be as much as five years. And Johnny, what would

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Speaker 1: the role of make com teleco technology play in the

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Speaker 1: introduction of five G technology? So when you're talking about

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Speaker 1: the frequency bands for five g you're getting up to

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Speaker 1: what's called millimeter wave, which are several gigga hurts and

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Speaker 1: frequencies so well on radio frequency waves. And we've been

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Speaker 1: a leader in that very very high end performance of

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Speaker 1: wireless technology and optical technologies, UH for decades. So it's

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Speaker 1: really playing into our willhouse. So when I when I

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Speaker 1: look about and think about the semiconductor industry, UH, there's

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Speaker 1: a lot of M and A. It has been kind

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Speaker 1: of the key vein throughout these past for years. And

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Speaker 1: since you all went public back in in what it

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Speaker 1: seems like you've also acquired five companies. I guess, how

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Speaker 1: does that fit into may com strategy in terms of

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Speaker 1: buying rather than than building. I would say the impetus

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Speaker 1: behind the M and A. The last year's unquestionably been

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Speaker 1: a year of consolidation for the broader seming conductor industry.

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Speaker 1: We really operate within a more esoteric niche at the

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Speaker 1: very very high end of the performance spectrum. A lot

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Speaker 1: of the other consolidation is really consolidation of underperformers. UH.

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Speaker 1: There are a lot of companies that have failed to grow,

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Speaker 1: failed to return on an estments in research and development,

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Speaker 1: and that's what that's all about, delivering shareholder value in

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Speaker 1: the form of consolidation. Our M and A strategy is different.

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Speaker 1: We have built a portfolio through kind of inorganic assembly

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Speaker 1: of technologies, really targeting secular growth drivers in the industry.

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Speaker 1: Can you give us an example of some of your

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Speaker 1: customers and the products that you sell to them. Sure,

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Speaker 1: our biggest, our hottest part of the portfolio right now

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Speaker 1: is our optical business that's really being fueled by what

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Speaker 1: is essentially an insatiable demand in bandwidth. You know, there's

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Speaker 1: a cloud connected apps economy that we live in is

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Speaker 1: really driving a need of a whole new build out

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Speaker 1: of the long haul networks, metropolitan networks, data center, interconnects,

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Speaker 1: data centers, there's the whole Internet backbone as being rebuilt,

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Speaker 1: largely with technologies that we provide. As I was just

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Speaker 1: gonna say, as part as that that build out, I mean,

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Speaker 1: are you finding that the expansion of these networks are

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Speaker 1: they being delayed because I note, for example, that some

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Speaker 1: of the efforts by Google in several of their markets

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Speaker 1: to roll out high speed fiber have run into some roadblocks. Sure,

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Speaker 1: in the US, you know, there's been some delays there's

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Speaker 1: fits and starts, but I would say globally it's exploding.

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Speaker 1: Uh not the least of which is China. We have

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Speaker 1: a very strong position. A lot of our sales are

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Speaker 1: going into the rebuild out of the China Internet infrastructure,

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Speaker 1: everything from fiber to the home, uh the equivalent of

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Speaker 1: FiOS in the US through the long home networks metro networks.

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Speaker 1: As I mentioned, China is interesting because they tend to

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Speaker 1: prefer homegrown businesses for their technology back end providers. How

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Speaker 1: did you get into that market? Yeah? You know, there's

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Speaker 1: no question any any clime would point out any country,

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Speaker 1: any any company prefers homegrown, local technologies. We tend to

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Speaker 1: specialize in technology spaces that are so advanced and such

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Speaker 1: leading edge that uh, they tend not to play to

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Speaker 1: the merits of a cost based economy. UH. So it's

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Speaker 1: it's very much all about innovation and what we do

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Speaker 1: in the in the absolute leading edge technologies where we

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Speaker 1: really don't have much Asian competition. So, you know, the

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Speaker 1: guys building out that network in China, Blake Luwawe or

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Speaker 1: z t E uh come to us. You know, we're

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Speaker 1: the foremost provider of many of these technologies. Globally, so

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Speaker 1: a bet on the expansion of cloud is a bet

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Speaker 1: on Maycom. Thank you, President and CEO of Maycom, John

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Speaker 1: Krowtao for joining us today talking about the semiconductor industry.

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Speaker 1: I am Alex Brinka in for Kathleen Hayes here with

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Speaker 1: him Fox. You are listening to Bloomberg Radio. Coming up,

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Speaker 1: we have some talk about the market outlook from David

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Speaker 1: Deet's founder and chief investment strategists at Point View Wealth.

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Speaker 1: We hope you'll stay with us at Bloomberg Radio. Coming

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Speaker 1: up on taking stock? What about investing in banks, Bank

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Speaker 1: of America, JP, Morgan Chase, Wells Fargo, and Morgan Stanley,

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Speaker 1: plus an investment in energy. We've got details. That's next