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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile app, and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Howett. Stocks continue to trade at records, with

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Speaker 1: the SMP five hundred index advancing eleven points now to

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Speaker 1: sixty three, a gain there of six tenths of one percent.

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Speaker 1: We've got the down Jones Industrial Average up one hundred

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Speaker 1: thirty six points, up by seven tenths of one percent.

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Speaker 1: Nastack up twenty seven points to five thousand thirty three.

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Speaker 1: That is a gain of six tenths of one percent.

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Speaker 1: Crude oil up at forty five fifty three a barrel

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Speaker 1: up seventy six cents now, that's a gain of one

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Speaker 1: point seven percent, and gold down ten ninety an ounce.

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Speaker 1: The thirteen thirty two dropped there of point eight percent,

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Speaker 1: the tenure down sixteen thirty seconds. The yield on the

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Speaker 1: tenure is one point five two percent. So again, recapping

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Speaker 1: US equities are higher. SMP five hundred index now up

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Speaker 1: by five tenths of one percent. I'm Charlie Pellett. That's

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Speaker 1: a Bloomberg Business slash. Thank you, you're listening to Taking

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Speaker 1: Stock with Pim Box and Kathleen Hayes on Bloomberg Radio Agriculture. Well,

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Speaker 1: it uses a lot of chemicals, and buyer has raised

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Speaker 1: its offer from on Santo. The shares him on Santo

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Speaker 1: up about two and a half percent. Here to tell

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Speaker 1: us more about this bid, it's worth about fifty four

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Speaker 1: point seven billion dollars. Is Lydia mulvaney. She is Agriculture

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Speaker 1: America's reporter for Bloomberg News and joins us from Chicago. Lydia,

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Speaker 1: thank you very much for being with us. Tell us

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Speaker 1: about this new offer on the part of buyer foremon Santo. Sure,

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Speaker 1: just a little bit of history. Um So, Buyer, the

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Speaker 1: German chemical company made an original offer to buy mon

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Speaker 1: Santo in May for one dollars to share, and that

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Speaker 1: valued the company around fifty three point four billion dollars.

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Speaker 1: And Monsanto, who basically rejected that because they said it

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Speaker 1: was too low, um undervalued them. Um So now they've come,

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Speaker 1: you know, come back with a higher offer today of

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Speaker 1: one share. Um that's the valuation by a little more

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Speaker 1: than a billion dollars um and it also um include

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Speaker 1: the breakup fee of one point five billion if the

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Speaker 1: deal doesn't pass um regulatory regulatory scrutiny. Um that was

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Speaker 1: the sticking point in earlier negotiations. What can what can

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Speaker 1: observers or investors take away from the fact that Monsanto

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Speaker 1: stock is currently trading at a hundred and three dollars

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Speaker 1: and eight cents. But the offer by Buyer, as you

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Speaker 1: just described as a hundred and twenty five dollars, why

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Speaker 1: is it so much lower than the offer? Um, Well,

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Speaker 1: there might be a little bit of um uh skepticism. Basically,

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Speaker 1: people thought, uh, you know, a lot of analysts were saying, well,

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Speaker 1: they need to really uh be offering you five one

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Speaker 1: forty to really um you know, make some headway. So uh,

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Speaker 1: there might be some feelings out there that it's a

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Speaker 1: little bit less uh than what's needed. All right, So

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Speaker 1: is it possible that this party could get a little

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Speaker 1: bit crowded? Could there be someone else, such as be

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Speaker 1: a SF that would come in and perhaps make a

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Speaker 1: bid from Montsanto? Well, people actually uh think that you know,

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Speaker 1: Buyer came back with this announcement today because mont Santo

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Speaker 1: has been talking uh to be a s s on.

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Speaker 1: Bloomberg News reported yesterday that um the two companies have

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Speaker 1: been reviving talks about um, you know combining uh there

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Speaker 1: uh you know there um agriculture so BSF has a

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Speaker 1: chemicals unit UM and so basically mont Santo uh is

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Speaker 1: a is a seed giant. UM. Their their biggest business

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Speaker 1: to seeds and UM. You know, if the if Montanto

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Speaker 1: and BSS combined, uh, that would make it the biggest

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Speaker 1: company in both seeds and chemicals. And it seems as

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Speaker 1: though there are a lot of chemical mergers, particularly the

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Speaker 1: merger between a Dow Chemical and DuPont that seems to

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Speaker 1: be progressing. But the takeover the Cegenta takeover by China

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Speaker 1: National Chemical Corps that's attracted a lot of regulatory and

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Speaker 1: political scrutiny. Is that going to happen with any bid

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Speaker 1: from Montsanto? Um the bear in mont Santo uh combination,

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Speaker 1: it's been said that uh you know that might have

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Speaker 1: some uh difficulty with regulators, and that's why, um, you

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Speaker 1: know mont Santa wanted the breakup. See in there, um

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Speaker 1: they both do seeds, so UM there might be there's

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Speaker 1: more crossover UM. But actually you know, from people I've

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Speaker 1: been talking today, it sounds like, um, there might be

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Speaker 1: less of that with b a s F combination as

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Speaker 1: they don't do any seeds, so the only worry there

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Speaker 1: would be um uh you know mont Santo makes round

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Speaker 1: up that's its main uh crop protection um product, we'd

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Speaker 1: killer so um they would have to look at that,

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Speaker 1: but um, it's not like a big part, all right.

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Speaker 1: Thank business, Yeah, thank you very much for joining us.

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Speaker 1: Lydia Mulveny, Agriculture America's reporter for Bloomberg News, joining us

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Speaker 1: from Chicago. Let's turn our attention now to politics with

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Speaker 1: Mark Halprin. He is, of course the host of with

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Speaker 1: all due respect, co managing editor for Bloomberg and Politics

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Speaker 1: weeknights with all due respect weeknights at five pm Wall

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Speaker 1: Street Time on Bloomberg Television and Bloomberg in Washington, d C.

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Speaker 1: Mark Halprin, I guess the news topic of the day

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Speaker 1: is Donald Trump and his selection for vice presidential candidate.

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Speaker 1: Tell us more. Well, it's uh, it's being reported by

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Speaker 1: several organizations, and Mike Pence, the governor of Indiana, is

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Speaker 1: the choice. We've still woken to a couple of Republicans

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Speaker 1: who have been like to believe by the Trump campaign

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Speaker 1: that attended in that direction. Uh, and that Trump can

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Speaker 1: be expected to peer side by side of Pence in

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Speaker 1: New York City tomorrow. On the record, campaign officials are cautioning,

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Speaker 1: no decision has been made, but we want to try

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Speaker 1: to keep the surprised as long as they can. But

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Speaker 1: my understanding from all my sources is this is up

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Speaker 1: set in motion now and Trump would have to stop

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Speaker 1: it and change his mind if it's going to be

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Speaker 1: anyone but Pence. Can you tell our listeners a little

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Speaker 1: bit about Mike Pence? Who is he? What does he

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Speaker 1: bring to the ticket? Nowhere near as well known as

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Speaker 1: the other two believed to be finalist New Gangbridge Chris Christie.

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Speaker 1: This is not a guy who's been on the cover

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Speaker 1: of Time magazine, but he is well known in certain

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Speaker 1: circles that are important to Donald Trump. He's important, well

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Speaker 1: known in the Capitol Hill. He was before governor of Indiana.

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Speaker 1: He was a meeting member of the House of Representatives,

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Speaker 1: a conservative social conservative, also kind of an economic populist.

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Speaker 1: Vote against the Bank Bay Latin some other big, big

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Speaker 1: items that a lot of Americans and Republicans in particularly

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Speaker 1: have turned on very popular with the donor community. The

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Speaker 1: Koch Brothers and other leading big donors within the Republican

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Speaker 1: Party of a big fan of Mike Pence, and uh

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Speaker 1: well known among social conservatives as well. So Mike Pence

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Speaker 1: is kind of an inside pick, you know. People. I

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Speaker 1: think we'll find him to be a pleasant man, a conservative,

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Speaker 1: and someone who can maybe build bridges to that part

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Speaker 1: of the electorate that Donald Trump still needs. Mark Halprin,

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Speaker 1: are you already packing your bags for the Republican National

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Speaker 1: Convention in Cleveland? Give us a preview. Well, I'm in

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Speaker 1: Cleveland now. I was in Indianapolis yesterday chasing around Donald

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Speaker 1: Trump and Mike Pence. But this convention is going to

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Speaker 1: be different than ones we've seen. First of all, there's

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Speaker 1: a big fight going on today over the rules and

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Speaker 1: whether there'll be any rules changes, So I will see

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Speaker 1: how that plays out. Could affect future elections, to be sure,

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Speaker 1: but perhaps also this election and whether the delegates will

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Speaker 1: be unbound or they'll be at least a debate about

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Speaker 1: the question of whether the delegates undoubted from the results

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Speaker 1: of the primaries and caucuses in their state. The speaker

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Speaker 1: list was released today and there's some familiar political names

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Speaker 1: on there, some people from other walks of life, but

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Speaker 1: I think the Trump family and the vice presidential pick

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Speaker 1: will probably dominate this convention in a pretty big way.

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Speaker 1: Tell us about Donald Trump announcing the creation of an

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Speaker 1: Israel Advisory Committee. Why is he doing that? Well, this

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Speaker 1: is an issue that is important to a lot of Americans,

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Speaker 1: not just the Jewish Americans, but a lot of evangelical

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Speaker 1: voters care a lot about the issue. And this is

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Speaker 1: one where Donald Trump hopes to go on the offense.

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Speaker 1: It's an issue where President Obama's record on Israel, although

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Speaker 1: he's quite proud of it, is one that has critics.

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Speaker 1: And this is an issue where UH donors and voters

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Speaker 1: and some states can be activated. And so Donald Trump

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Speaker 1: is I think trying to leverage the focus on that

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Speaker 1: issue with intendment with intensity on the part of some voters.

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Speaker 1: Now at the Republican National Convention, they're going to be

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Speaker 1: many non politicians speaking, such as Silicon Valley millionaire Peter Thiel,

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Speaker 1: as well as the oil billionaire Harold Ham and UFC

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Speaker 1: president Dana White. Tell us about why what is this?

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Speaker 1: What does this tell you about the tone of the convention.

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Speaker 1: We've seen business leaders speak at past conventions, but they

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Speaker 1: take on a special significance. Of course, Trump is a

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Speaker 1: businessman and not a politician, and so we'll hear from

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Speaker 1: these leaders, and obviously the economy's front center. These will

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Speaker 1: be validators for Donald Trump to say that he understands

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Speaker 1: how markets work. There's been a lot of debate about

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Speaker 1: Trump's business record. Has successful Lizzy, has he been successful

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Speaker 1: at the expense of others who are less fortunate and

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Speaker 1: less successful? And I think these speakers are meant to

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Speaker 1: kind of validate Trump's record of success as business name,

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Speaker 1: but all of the last five presidential nominees for the

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Speaker 1: Republican Party, Mitt Romney, John McCain, George W. Bush, Bob Dole,

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Speaker 1: and George Herbert Walker Bush they're absent from this, uh

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Speaker 1: this convention. What does that also say, Well that Trump

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Speaker 1: hasn't unified the party, and he's been clear that he's

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Speaker 1: been he can win without unifying the party. Uh, they'll

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Speaker 1: be they'll probably be probably be more signs of unity

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Speaker 1: here than disunity. But the absence of those past nominees

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Speaker 1: is some It says quite a bit. And the fact

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Speaker 1: that two Republican presidents aren't going to be here does

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Speaker 1: say quite a bit about Trump's failure to broaden now

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Speaker 1: keeping his existence orders and broaden and bring in certain

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Speaker 1: segments of the country and of the party, including some

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Speaker 1: of the biggest figures in the establishment. Thank you very

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Speaker 1: much for spending time with us. Mark Halprin is the

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Speaker 1: host of With all due respect a weeknights at five

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Speaker 1: pm Wall Street Time on Bloomberg Television and on Bloomberg

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Speaker 1: One in Washington, d C. You're listening to Taking Stockheim

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Speaker 1: pim Fox. Coming up, we're gonna take stock of bank earnings.

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Speaker 1: JP Morgan shares higher by more than two percent. We'll

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Speaker 1: be speaking with Fred Kennon. He is the global director

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Speaker 1: of research at k b W. Find out our bank

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Speaker 1: stocks something you ought to be buying. Also, we'll take

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Speaker 1: a look at Israel the high technology shares. Why are

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Speaker 1: they leading a tech rally. We've got Stephen Schoenfeld, the

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Speaker 1: chief investment officer of Blue Star Indexes. This is Bloomberg