1
00:00:02,160 --> 00:00:05,560
Speaker 1: Global business news twenty four hours a day. If Bloomberg

2
00:00:05,640 --> 00:00:08,680
Speaker 1: dot Com the radio plus mobile lap and on your radio,

3
00:00:08,960 --> 00:00:13,440
Speaker 1: This is a Bloomberg Business flash from Bloomberg World. Hank Waters,

4
00:00:13,480 --> 00:00:18,239
Speaker 1: I'm Charlie Pelotadal. The SMP nestack all lower on this Wednesday.

5
00:00:18,360 --> 00:00:22,880
Speaker 1: Folks from Line Brokerage ringing that closing bell stocks declined

6
00:00:22,880 --> 00:00:26,079
Speaker 1: in light volume amid fragile sentiment as traders way the

7
00:00:26,120 --> 00:00:29,320
Speaker 1: probability of the UK voting to remain in the European

8
00:00:29,400 --> 00:00:32,199
Speaker 1: Union a day ahead of the referendum and early climb

9
00:00:32,200 --> 00:00:37,560
Speaker 1: for equities lost momentum after brexit. Polls released today quelled optimism.

10
00:00:38,080 --> 00:00:40,800
Speaker 1: SMP five hundred index down three at the close to

11
00:00:40,840 --> 00:00:43,159
Speaker 1: two thousand eighty five, a drop of two tenths of

12
00:00:43,240 --> 00:00:46,519
Speaker 1: one percent down. Industrials down forty nine, a drop of

13
00:00:46,640 --> 00:00:50,160
Speaker 1: three tenths of one percent. The nastack composited indecks down

14
00:00:50,200 --> 00:00:53,920
Speaker 1: ten to thirty three, a drop there of two tenths

15
00:00:53,960 --> 00:00:56,680
Speaker 1: of one percent. Ten you up six thirty seconds, the

16
00:00:56,760 --> 00:01:00,000
Speaker 1: yield one point six eight percent. Gold lower by three

17
00:01:00,160 --> 00:01:03,040
Speaker 1: tenths of one percent, down three eight anounce to twelve

18
00:01:03,160 --> 00:01:08,120
Speaker 1: sixty eight. Crude oil down one sent fourteen barrel West

19
00:01:08,160 --> 00:01:11,840
Speaker 1: Texas Intermedia dropping by one point four percent. Now, what

20
00:01:11,920 --> 00:01:15,560
Speaker 1: about opportunities in US stocks? John Manley is chief equity

21
00:01:15,600 --> 00:01:18,720
Speaker 1: strategist at Wells Fargo Funds. He was our guest right

22
00:01:18,720 --> 00:01:21,120
Speaker 1: here on taking Stock. One are the things that's happened

23
00:01:21,160 --> 00:01:22,920
Speaker 1: for the last two years that's so amazing to me

24
00:01:23,000 --> 00:01:26,160
Speaker 1: is that neither stocks nor earnings expectations have gone anywhere

25
00:01:26,440 --> 00:01:27,880
Speaker 1: in the U S. And I think that's helped the

26
00:01:27,880 --> 00:01:30,240
Speaker 1: big companies as well as the yield play. I think

27
00:01:30,240 --> 00:01:32,040
Speaker 1: earnings are starting to lift off a little bit, and

28
00:01:32,080 --> 00:01:34,480
Speaker 1: if that happens, I think you could see more outperformance

29
00:01:34,520 --> 00:01:37,440
Speaker 1: in the MidCap sector. So I'm sort of agnostic when

30
00:01:37,440 --> 00:01:39,399
Speaker 1: it comes to this sort of thing. I still think

31
00:01:39,400 --> 00:01:41,640
Speaker 1: for myself being an aging baby, when where you know,

32
00:01:41,720 --> 00:01:43,560
Speaker 1: large caps are not a bad place to be. The

33
00:01:43,720 --> 00:01:47,680
Speaker 1: National Association of Realtors says sales have previously owned homes

34
00:01:47,720 --> 00:01:50,280
Speaker 1: climbed in May to the highest in more than nine years,

35
00:01:50,640 --> 00:01:54,720
Speaker 1: indicating the demand for resident for real estate remains robust.

36
00:01:55,400 --> 00:01:58,360
Speaker 1: SMP five hundred index fell three points today to two

37
00:01:58,440 --> 00:02:00,520
Speaker 1: thousand and eighty five and dropped there of two tenths

38
00:02:00,560 --> 00:02:03,600
Speaker 1: of one percent again recapping it out down forty nine

39
00:02:03,640 --> 00:02:06,560
Speaker 1: at the close to seventeen thousand, seven hundred eighty, a

40
00:02:06,640 --> 00:02:09,639
Speaker 1: drop of three tenths of one percent, and Nastak lower

41
00:02:09,720 --> 00:02:13,440
Speaker 1: by two tenths of one percent to three four o

42
00:02:13,639 --> 00:02:16,240
Speaker 1: two on Wall Street. Now, let's take a look at

43
00:02:16,280 --> 00:02:20,560
Speaker 1: other news from around the world. On Bloomberg Radio Charlie,

44
00:02:20,680 --> 00:02:23,160
Speaker 1: Thank you from the Bloomberg news Room by Mark Crumpton.

45
00:02:23,560 --> 00:02:26,360
Speaker 1: On Thursday, voters in the UK go to the polls

46
00:02:26,400 --> 00:02:29,680
Speaker 1: to decide whether to remain in the European Union. At

47
00:02:29,680 --> 00:02:33,040
Speaker 1: a rally today, Prime Minister David Cameron said staying in

48
00:02:33,080 --> 00:02:36,960
Speaker 1: the EU makes Britain, in his words, stronger, safer and

49
00:02:37,080 --> 00:02:39,920
Speaker 1: better off. Go out and vote Remain. Go out and

50
00:02:40,000 --> 00:02:44,600
Speaker 1: vote Remain for a big beta Britain inside reform European Union.

51
00:02:44,760 --> 00:02:49,400
Speaker 1: UK Independence Party leader and Leave campaigner Nigel far says

52
00:02:49,480 --> 00:02:53,959
Speaker 1: EU leaders are unable to lower unemployment and economic stagnation,

53
00:02:54,440 --> 00:02:57,799
Speaker 1: or to deal with the migrant crisis. Tomorrow people will

54
00:02:57,800 --> 00:03:01,919
Speaker 1: bring the opportunity to have a to say this must,

55
00:03:02,120 --> 00:03:05,920
Speaker 1: and polls have consistently shown voters split, with the outcome

56
00:03:06,000 --> 00:03:08,840
Speaker 1: too close to call. Hillary Clinton has picked up the

57
00:03:08,919 --> 00:03:12,240
Speaker 1: endorsement of Brent Scotcroft. He's a retired U. S. Air

58
00:03:12,280 --> 00:03:15,880
Speaker 1: Force Lieutenant general and was the National Security Advisor under

59
00:03:15,919 --> 00:03:20,200
Speaker 1: President's Gerald Ford and George H. W. Bush. Scocroft says

60
00:03:20,280 --> 00:03:24,200
Speaker 1: Secretary Clinton would bring quote unique experience to the presidency.

61
00:03:24,680 --> 00:03:27,600
Speaker 1: Former House Speaker Dennis Hastert has reported to a federal

62
00:03:27,639 --> 00:03:31,160
Speaker 1: prison facility in southeastern Minnesota. That's where he will begin

63
00:03:31,200 --> 00:03:34,120
Speaker 1: a fifteen month sentence after he admitted guilt in a

64
00:03:34,200 --> 00:03:38,040
Speaker 1: hush money case in an effort to conceal past child molestation.

65
00:03:38,480 --> 00:03:41,440
Speaker 1: Governor Cuomo wants to know who allowed police officers to

66
00:03:41,480 --> 00:03:44,240
Speaker 1: shut down a lane of the Lincoln Tunnel to provide

67
00:03:44,240 --> 00:03:48,000
Speaker 1: a private escort for a businessman. The businessman and two

68
00:03:48,080 --> 00:03:52,040
Speaker 1: high ranking NYPD officers were arrested earlier this week as

69
00:03:52,040 --> 00:03:56,320
Speaker 1: part of an ongoing federal corruption investigation. Global News twenty

70
00:03:56,320 --> 00:03:59,480
Speaker 1: four hours a day, powered by more than twenty journalists

71
00:03:59,480 --> 00:04:03,480
Speaker 1: and analyst in more than one countries. I'm more Crumpton,

72
00:04:03,640 --> 00:04:07,000
Speaker 1: this is Bloomberg, Charlie, and we thank you and again

73
00:04:07,040 --> 00:04:10,360
Speaker 1: recapping all move law for stocks today, SMP five hundred

74
00:04:10,360 --> 00:04:13,040
Speaker 1: index down three to two thou eighty five, a drop

75
00:04:13,080 --> 00:04:16,799
Speaker 1: of two tenths of one. I'm Charlie Pellett, and that's

76
00:04:16,839 --> 00:04:21,000
Speaker 1: a Bloomberg business flash. Move around most great promotion at

77
00:04:21,080 --> 00:04:26,080
Speaker 1: the elite move you move like they do. I've never

78
00:04:26,080 --> 00:04:32,240
Speaker 1: seen anyone move that fast. Five people. Let's dove like

79
00:04:32,279 --> 00:04:39,680
Speaker 1: to treat a purpose that was called movers and shakers.

80
00:04:40,040 --> 00:04:42,440
Speaker 1: They cost a little more and that name cracked me up.

81
00:04:48,320 --> 00:04:52,560
Speaker 1: Bloomberg taking stock movers and shakers with Pim Fox and

82
00:04:52,680 --> 00:04:57,320
Speaker 1: Kathleen Hay's on Bloomberg Radio, a little more tilt to

83
00:04:57,360 --> 00:04:59,960
Speaker 1: the downside to day in this and P. Five hundred one,

84
00:05:00,040 --> 00:05:02,880
Speaker 1: you look at the winners and losers. In fact, two

85
00:05:03,640 --> 00:05:07,120
Speaker 1: four companies saw their share prices close lower to our

86
00:05:07,120 --> 00:05:11,280
Speaker 1: thirteen higher, eight unchanged our stocks that are divals and

87
00:05:11,440 --> 00:05:14,720
Speaker 1: his back to kick off movers and shakers. Well, given

88
00:05:14,720 --> 00:05:17,640
Speaker 1: that it was a down day, it's probably is good

89
00:05:17,640 --> 00:05:20,680
Speaker 1: a reason as any to start with the worst performer

90
00:05:20,680 --> 00:05:23,159
Speaker 1: in the SMP five D and that would be uh

91
00:05:23,279 --> 00:05:28,480
Speaker 1: the graphics software maker Adobe Systems. Their fiscal second quarter

92
00:05:28,760 --> 00:05:31,720
Speaker 1: sales came up just short of analysts avage estimate in

93
00:05:31,720 --> 00:05:36,640
Speaker 1: the Bloomberg survey, and Adobe's third quarter revenue forecast was

94
00:05:36,760 --> 00:05:39,960
Speaker 1: also lower than projections. They're one of these companies that

95
00:05:40,080 --> 00:05:43,480
Speaker 1: have been affected by this whole shift towards Internet based

96
00:05:43,480 --> 00:05:48,360
Speaker 1: software cloud computing as approsed to programs installed on desktops.

97
00:05:48,360 --> 00:05:52,359
Speaker 1: They've countered that with something called the Creative Cloud, a

98
00:05:52,440 --> 00:05:56,479
Speaker 1: subscription service. Nonetheless, the idea that revenue coming up short

99
00:05:56,600 --> 00:05:59,599
Speaker 1: not going over well with investors. Adobe Systems down five

100
00:05:59,680 --> 00:06:02,880
Speaker 1: point seven percent on the day. I'll tell you about

101
00:06:02,920 --> 00:06:05,840
Speaker 1: the shares of McDonald's down more than one and a

102
00:06:05,920 --> 00:06:09,799
Speaker 1: half percent to a hundred and twenty dollars sixty two cents.

103
00:06:09,800 --> 00:06:13,320
Speaker 1: That's declined of more than two dollars a share. Rbc

104
00:06:13,520 --> 00:06:16,680
Speaker 1: A restaurant analyst David Palmer, in a note to clients,

105
00:06:16,880 --> 00:06:19,520
Speaker 1: says that traffic is still negative at McDonald's as the

106
00:06:19,600 --> 00:06:24,080
Speaker 1: chain continues to wrestle with its dollar menu hangover. You

107
00:06:24,120 --> 00:06:27,960
Speaker 1: may recall that McDonald's eliminated the popular dollar menu earlier

108
00:06:28,000 --> 00:06:31,680
Speaker 1: this year when it was no longer profitable for franchises. Indeed,

109
00:06:31,720 --> 00:06:35,960
Speaker 1: he says that there is perhaps too much it's that

110
00:06:36,000 --> 00:06:39,080
Speaker 1: the stock is too expensive compared to the relative chains

111
00:06:39,080 --> 00:06:42,280
Speaker 1: such as Chicka fill Or in an out burger. He

112
00:06:42,360 --> 00:06:45,040
Speaker 1: says that second quarter sales growth estimates for McDonald's is

113
00:06:45,080 --> 00:06:46,920
Speaker 1: two and a half percent, down from three and a

114
00:06:46,960 --> 00:06:51,560
Speaker 1: half percent. McDonald shares down one and a half percent today. Well,

115
00:06:51,600 --> 00:06:55,160
Speaker 1: I'd like to look at fed X. It dropped four

116
00:06:55,200 --> 00:06:58,000
Speaker 1: and a half percent today. That's quite a chunk of

117
00:06:58,080 --> 00:07:00,760
Speaker 1: change if you own that stocks the list in five months.

118
00:07:00,760 --> 00:07:04,360
Speaker 1: In fact, it disappointed investors by not providing more specifics

119
00:07:04,440 --> 00:07:07,359
Speaker 1: on how the four point eight billion dollar acquisition of

120
00:07:07,440 --> 00:07:11,880
Speaker 1: Dutch shipping company t n T Express will affect earnings.

121
00:07:11,880 --> 00:07:16,040
Speaker 1: In fact, FedEx excluded the impact of the May acquisition

122
00:07:16,080 --> 00:07:18,000
Speaker 1: of t n T. Maybe it's just so soon they

123
00:07:18,000 --> 00:07:21,120
Speaker 1: couldn't figure it out. Dave Wilson from their profit forecast

124
00:07:21,160 --> 00:07:24,640
Speaker 1: for the current fiscal year, which runs through May seventeen,

125
00:07:24,680 --> 00:07:28,360
Speaker 1: they said the deal with boost earnings in fiscal eighteen.

126
00:07:29,280 --> 00:07:33,480
Speaker 1: Helen Becker, very well known Cohen and Company analyst, said

127
00:07:33,560 --> 00:07:36,440
Speaker 1: in a report today quote, we find it frustrating that

128
00:07:36,520 --> 00:07:39,280
Speaker 1: management did not give better metrics regarding the merger, as

129
00:07:39,320 --> 00:07:42,520
Speaker 1: it will be a large driver of growth into the future.

130
00:07:42,880 --> 00:07:45,520
Speaker 1: This acquisition of t n T gives FedEx an extensive

131
00:07:45,560 --> 00:07:49,240
Speaker 1: ground delivery network in Europe, making a stronger competitor to

132
00:07:49,280 --> 00:07:53,920
Speaker 1: market leaders including a United Parcel Service and Deutsche post A,

133
00:07:54,040 --> 00:07:57,440
Speaker 1: g S, D h L Dave. We're talking about stocks

134
00:07:57,480 --> 00:08:00,800
Speaker 1: with Anna Day and if you look at those that

135
00:08:00,840 --> 00:08:03,920
Speaker 1: were up in the SMP, you see a lot of

136
00:08:04,040 --> 00:08:07,600
Speaker 1: drug and biotechnology companies on the list. This all has

137
00:08:07,640 --> 00:08:11,160
Speaker 1: to do with the Independent Payment Advisory Board. It was

138
00:08:11,240 --> 00:08:14,360
Speaker 1: created under the Affordable Care Act and it's a group

139
00:08:14,400 --> 00:08:20,480
Speaker 1: that will be able to cut expenses under the Medicare program. Now,

140
00:08:20,600 --> 00:08:23,320
Speaker 1: as it turns out, there was some speculation that this

141
00:08:23,720 --> 00:08:26,560
Speaker 1: Advisory Board would go into effect this year, while we've

142
00:08:26,560 --> 00:08:29,600
Speaker 1: now found out from the government that this cost cutting

143
00:08:29,600 --> 00:08:33,320
Speaker 1: panel will probably take effect next year instead. So it's

144
00:08:33,360 --> 00:08:35,440
Speaker 1: a matter of timing, and it's the sort of thing

145
00:08:35,480 --> 00:08:38,480
Speaker 1: that went over well with investors in the companies that

146
00:08:38,520 --> 00:08:42,439
Speaker 1: would be affected by this new committee. Uh, you've got

147
00:08:42,440 --> 00:08:44,839
Speaker 1: Bristol Myers squib up one and a half percent today,

148
00:08:44,920 --> 00:08:48,360
Speaker 1: Abbott Labs of two point seven percent, sell Gene if

149
00:08:48,360 --> 00:08:50,520
Speaker 1: you're looking at biotechnology of two and a half percent,

150
00:08:50,679 --> 00:08:53,680
Speaker 1: for general and pharmaceuticals with a gain of two percent,

151
00:08:54,320 --> 00:08:56,760
Speaker 1: and I also stay with healthcare for a second. Anthem

152
00:08:57,240 --> 00:09:01,480
Speaker 1: down more than two percent today. Anthem, of course, in

153
00:09:01,600 --> 00:09:05,440
Speaker 1: July of last year, announcing an agreement to acquire Signal Corp.

154
00:09:05,520 --> 00:09:08,520
Speaker 1: The price tag then was fifty billion dollars. Currently the

155
00:09:08,520 --> 00:09:12,560
Speaker 1: transaction values forty five billion dollars. UH Anthem and Signa

156
00:09:12,600 --> 00:09:15,880
Speaker 1: they are, of course preparing for a showdown. Senior Justice

157
00:09:15,880 --> 00:09:19,840
Speaker 1: Department officials looking to review the deal and insurers are

158
00:09:19,920 --> 00:09:22,839
Speaker 1: perhaps set to meet on Friday with the department's number

159
00:09:22,880 --> 00:09:26,000
Speaker 1: three official, a critical moment as the government makes its

160
00:09:26,040 --> 00:09:30,120
Speaker 1: decision about whether to approve or block the deal. Anthem

161
00:09:30,160 --> 00:09:34,320
Speaker 1: shares down two. Well, just a quick word. Priceline got

162
00:09:34,320 --> 00:09:37,480
Speaker 1: an upgrade from Barklay's and the share price is up.

163
00:09:37,600 --> 00:09:40,240
Speaker 1: Let me see it was right here on my screen.

164
00:09:41,000 --> 00:09:43,280
Speaker 1: It's up one at a quarter percent PIM All right.

165
00:09:43,400 --> 00:09:45,199
Speaker 1: Let me tell you now it is time for the

166
00:09:46,080 --> 00:09:48,720
Speaker 1: Volatility Index report. It has brought to you by cbo

167
00:09:48,800 --> 00:09:51,840
Speaker 1: E VIX Options and Futures. Volatility can be harnessed with

168
00:09:51,840 --> 00:09:55,240
Speaker 1: cbo ViXS options and futures see disclosures. Learn more at

169
00:09:55,280 --> 00:09:59,000
Speaker 1: cboa dot com, Slash Powerful Outcomes VIX. The VIX up

170
00:09:59,040 --> 00:10:02,840
Speaker 1: today up two point one nine to twenty point sixty seven.

171
00:10:02,840 --> 00:10:06,280
Speaker 1: That's an increase of more than eleven percent. Unusual movement

172
00:10:06,280 --> 00:10:09,160
Speaker 1: because the idea is that you need actual price volatility

173
00:10:09,200 --> 00:10:12,120
Speaker 1: before the options market actually pays up in the form

174
00:10:12,160 --> 00:10:16,520
Speaker 1: of higher implied volatility, which is what the VIX measures.

175
00:10:16,559 --> 00:10:23,080
Speaker 1: All right, Dave here, my name is Dave. Just what

176
00:10:23,120 --> 00:10:25,360
Speaker 1: do you think you're doing today? We're going for a

177
00:10:25,440 --> 00:10:34,760
Speaker 1: price on will Dave who doesn't like walking through Restoration Hardware?

178
00:10:34,880 --> 00:10:37,040
Speaker 1: What's going on there, Dave Wilson, Well, I'll tell you

179
00:10:37,040 --> 00:10:40,080
Speaker 1: a Restoration Hardware has gone through quite a reversal of

180
00:10:40,200 --> 00:10:44,560
Speaker 1: fortune in the stock market. The home version's retailer restet

181
00:10:44,600 --> 00:10:47,040
Speaker 1: a record last November after surging more than four or

182
00:10:47,040 --> 00:10:51,079
Speaker 1: fold from its initial price back in November. Then the

183
00:10:51,160 --> 00:10:55,320
Speaker 1: stock tumbles as much as seventies seven percent and almost

184
00:10:55,360 --> 00:10:59,880
Speaker 1: gave back the entire gain. Now Restoration Hardware trades under

185
00:10:59,880 --> 00:11:03,880
Speaker 1: the ticker our H. The stocks plunge stem from disappointed results.

186
00:11:03,960 --> 00:11:07,040
Speaker 1: Just two weeks ago, company reported an unexpected loss for

187
00:11:07,080 --> 00:11:09,520
Speaker 1: the fiscal first quarter and cut its fo YOUR profit

188
00:11:09,600 --> 00:11:14,600
Speaker 1: forecast by thirty eight percent. Restoration Hardware's fall lad BB

189
00:11:14,679 --> 00:11:17,760
Speaker 1: and T Capital Markets to revive an idea that the

190
00:11:17,760 --> 00:11:21,760
Speaker 1: firm proposed two years ago, a takeover by the cookware

191
00:11:21,840 --> 00:11:26,840
Speaker 1: and home accessories retailer Williams Sonoma Alice Anthony Chakomba wrote

192
00:11:26,840 --> 00:11:29,280
Speaker 1: in a report that the deal makes even more sense

193
00:11:29,360 --> 00:11:33,000
Speaker 1: now than it did then. In his view, Restoration Hardware

194
00:11:33,040 --> 00:11:35,840
Speaker 1: would fit in well with Williams Sonoma's West Elm and

195
00:11:35,960 --> 00:11:39,400
Speaker 1: Pottery barn Jays and a deal with lift earnings right away,

196
00:11:39,520 --> 00:11:43,839
Speaker 1: and that prospect of a transaction lifted Restoration Hardware shares

197
00:11:43,880 --> 00:11:47,240
Speaker 1: by seven point two percent, their biggest gains in February,

198
00:11:47,480 --> 00:11:50,760
Speaker 1: and Williams Senoma also rose that stock, adding two point

199
00:11:50,880 --> 00:11:55,320
Speaker 1: seven percent. Thank you very much, Dave Wilson, Bloomberg Stocks columnist.

200
00:11:55,720 --> 00:12:06,800
Speaker 1: They're listening to taking stock on Bloomberg Radio. Blumber. Taking

201
00:12:06,800 --> 00:12:09,000
Speaker 1: Stock is brought to you by Bentley University. What to

202
00:12:09,120 --> 00:12:11,640
Speaker 1: rebooting America's oldest ski shop and crunching numbers at this

203
00:12:11,720 --> 00:12:14,280
Speaker 1: to print have in common an MBA from Bentley University

204
00:12:14,280 --> 00:12:17,840
Speaker 1: that prepares graduates to innovate and lead because businesses everywhere

205
00:12:17,840 --> 00:12:18,520
Speaker 1: prepare here