1
00:00:03,200 --> 00:00:07,520
Speaker 1: Broadcasting live to New York Bloomberg even Rio to Washington,

2
00:00:07,640 --> 00:00:12,039
Speaker 1: d C Bloomberg, to Boston, Bloomberg, well Under to San

3
00:00:12,039 --> 00:00:17,160
Speaker 1: Francisco Bloomberg nine, to the countries Channel one ninet, and

4
00:00:17,320 --> 00:00:21,160
Speaker 1: around the globe the Bloomberg Radio Pluck dappen, Bloomberg got gone.

5
00:00:21,440 --> 00:00:26,400
Speaker 1: This is taking stock Um Kathleen Hayes along with pim Fox.

6
00:00:26,920 --> 00:00:31,000
Speaker 1: A merger Allied Barton Security Services Universal Services of America

7
00:00:31,120 --> 00:00:35,199
Speaker 1: finalized today, creating Allied Universal, the largest security company in

8
00:00:35,479 --> 00:00:39,600
Speaker 1: North America. Coming up, CEO, Steve Jones. Do you know

9
00:00:39,720 --> 00:00:44,159
Speaker 1: that the security services industry is over twenty five billion

10
00:00:44,280 --> 00:00:47,040
Speaker 1: dollars each year in the United States. We're gonna be

11
00:00:47,040 --> 00:00:52,040
Speaker 1: talking about the security industry with the chief executive Allied Universal.

12
00:00:52,479 --> 00:00:54,440
Speaker 1: Right now, Let's go to Charlie Palett to the Bloomberg

13
00:00:54,440 --> 00:00:57,200
Speaker 1: news room with the Bloomberg business And thank you Pam,

14
00:00:57,240 --> 00:00:59,680
Speaker 1: Thank you, Kathleen. We are brought to you by National

15
00:01:00,160 --> 00:01:04,720
Speaker 1: lt providers of one hundred percent satisfaction guaranteed New York

16
00:01:04,800 --> 00:01:07,600
Speaker 1: City Realty Investments see them at n r i A.

17
00:01:07,880 --> 00:01:11,959
Speaker 1: Dot net stocks are trading law retreating from a fresh

18
00:01:12,200 --> 00:01:16,160
Speaker 1: record intra day records, falling crude prices sparked a deepening

19
00:01:16,200 --> 00:01:19,720
Speaker 1: sell off in energy shares, weighing on investors confidence that

20
00:01:19,880 --> 00:01:23,680
Speaker 1: US growth and corporate profits will rebound. The SMP five

21
00:01:23,760 --> 00:01:27,560
Speaker 1: hundred indecks trading down five points now at sight, a

22
00:01:27,640 --> 00:01:30,480
Speaker 1: drop of three tenths of one percent. The TAO is

23
00:01:30,520 --> 00:01:33,040
Speaker 1: down forty nine points to drop there are three tenths

24
00:01:33,040 --> 00:01:36,199
Speaker 1: of one percent to eighteen thousand, three hundred eighty two

25
00:01:36,560 --> 00:01:39,600
Speaker 1: nastack of fifteen to fifty one seventy seven, a gain

26
00:01:39,680 --> 00:01:42,560
Speaker 1: of three tenths of one percent. We've got the tenure

27
00:01:42,560 --> 00:01:45,399
Speaker 1: down fourteen thirty seconds. The yield there one point five

28
00:01:45,640 --> 00:01:48,960
Speaker 1: percent gold up to ten the ounce the thirteen fifty five,

29
00:01:49,360 --> 00:01:52,480
Speaker 1: a gain there of two tenths of one percent. Elon

30
00:01:52,600 --> 00:01:55,600
Speaker 1: Musk's Tesla Motors has reached an agreement of Ice Solar

31
00:01:55,720 --> 00:01:58,360
Speaker 1: City for two point six billion, about three hundred million

32
00:01:58,440 --> 00:02:02,400
Speaker 1: less than an initial proposal, criticized as a bailout for

33
00:02:02,520 --> 00:02:05,080
Speaker 1: the solar company in which he is the largest shareholder.

34
00:02:05,280 --> 00:02:08,160
Speaker 1: So what's the thinking behind the deal? Kevin Tynan follows

35
00:02:08,160 --> 00:02:13,560
Speaker 1: the auto industry for Bloomberg views the idea of combining

36
00:02:14,120 --> 00:02:17,960
Speaker 1: your solar panel installed with your power wall install with

37
00:02:18,120 --> 00:02:21,880
Speaker 1: your plug in your garage for your Tesla car install

38
00:02:22,639 --> 00:02:25,120
Speaker 1: um and then doing that all at the same shop

39
00:02:25,120 --> 00:02:28,040
Speaker 1: where you're going to sign the papers for your Tesla

40
00:02:28,120 --> 00:02:31,200
Speaker 1: Electric vehicle. Whether it's just three and S or an

41
00:02:31,360 --> 00:02:35,399
Speaker 1: X makes sense. Tesla shares they are trading down two

42
00:02:35,400 --> 00:02:40,160
Speaker 1: point on Solar City, down seven point eight percent, and

43
00:02:40,280 --> 00:02:42,400
Speaker 1: the three two on Wall Street. Let's look at the

44
00:02:42,440 --> 00:02:46,960
Speaker 1: other stories making news. Thank you Charlie from the Bloomberg Newsroom.

45
00:02:47,000 --> 00:02:49,680
Speaker 1: I'm Jill Schneider. This news update is brought to you

46
00:02:49,720 --> 00:02:54,160
Speaker 1: by Blue Jeans Enterprise Video Cloud. See faces, emotions, energy,

47
00:02:54,280 --> 00:02:57,800
Speaker 1: see the people your team's video from any device. Start

48
00:02:57,800 --> 00:03:00,600
Speaker 1: a free thirty day trial at blue jeans dot com

49
00:03:00,680 --> 00:03:04,240
Speaker 1: and click the radio Mike. Blue Jeans Work Smarter, Connect Better.

50
00:03:04,760 --> 00:03:07,840
Speaker 1: Donald Trump and Hillary Clinton will start getting top secret

51
00:03:07,880 --> 00:03:12,120
Speaker 1: intelligence briefings as early as this week. National Intelligence Director

52
00:03:12,200 --> 00:03:14,840
Speaker 1: James Clapper says the briefers are ready and the top

53
00:03:14,880 --> 00:03:19,160
Speaker 1: three issues will likely be Islamic extremism, Russia, and cyber threats.

54
00:03:19,560 --> 00:03:22,840
Speaker 1: Federal health officials are advising pregnant women to avoid travel

55
00:03:22,880 --> 00:03:26,120
Speaker 1: to a small section of Miami now that fourteen cases

56
00:03:26,120 --> 00:03:30,160
Speaker 1: of zeka transmitted from local mosquitoes have been detected. CDC

57
00:03:30,360 --> 00:03:33,280
Speaker 1: director Dr Tom Frieden has more. We do expect that

58
00:03:33,320 --> 00:03:37,760
Speaker 1: additional individual infections will be reported. There are undoubtedly more

59
00:03:37,800 --> 00:03:42,000
Speaker 1: infections because most people infected with secret don't have symptoms.

60
00:03:42,280 --> 00:03:46,640
Speaker 1: Two people are dead after flash floods swept through Ellicott City, Maryland, Saturday.

61
00:03:46,800 --> 00:03:51,600
Speaker 1: Howard County Executive Alan Kittleman toward the damage. It looks

62
00:03:50,160 --> 00:03:54,880
Speaker 1: like a movie. More than six inches of rain fell

63
00:03:55,000 --> 00:03:58,680
Speaker 1: in just two hours. Protesters gathered in Lower Manhattan today

64
00:03:58,720 --> 00:04:01,760
Speaker 1: calling for an end to police sprutality and the firing

65
00:04:01,760 --> 00:04:05,240
Speaker 1: of nyp D Commissioner William Bratten. About one hundred members

66
00:04:05,280 --> 00:04:08,640
Speaker 1: of the group Millions March NYC went to City Hall

67
00:04:08,680 --> 00:04:12,080
Speaker 1: Park to push for greater police accountability. They're calling for

68
00:04:12,120 --> 00:04:15,400
Speaker 1: an end to Bratton's Broken Windows policy, which is aimed

69
00:04:15,400 --> 00:04:17,600
Speaker 1: at cracking down on low level crimes as a way

70
00:04:17,640 --> 00:04:21,360
Speaker 1: to prevent more serious crime in urban neighborhoods. Global News

71
00:04:21,400 --> 00:04:24,800
Speaker 1: twenty four hours a day, powered by more than journalists

72
00:04:24,800 --> 00:04:28,320
Speaker 1: and analysts in more than one twenty countries. I'm Jil Schneider,

73
00:04:28,400 --> 00:04:31,280
Speaker 1: and this is Bloomberg Charlie, and we thank you and

74
00:04:31,360 --> 00:04:37,040
Speaker 1: again recapping SMP five hundred index down five to a

75
00:04:37,120 --> 00:04:41,000
Speaker 1: drop there of three tenths of one percent. I'm Charlie Peloton,

76
00:04:41,120 --> 00:04:50,440
Speaker 1: that's of Lombard Business Flash. You're with Kathleen Blobd Radio security.

77
00:04:50,560 --> 00:04:55,240
Speaker 1: In an era of potential terror attacks, with cybersecurity and

78
00:04:55,360 --> 00:04:57,640
Speaker 1: so many issues like this on our minds. Certainly it

79
00:04:57,720 --> 00:05:02,280
Speaker 1: is a very very timely moment for Allied Barton Security

80
00:05:02,320 --> 00:05:06,240
Speaker 1: Services and Universal Services of America as they merged to

81
00:05:06,279 --> 00:05:10,560
Speaker 1: become Allied Universal. It's the largest security company in North America,

82
00:05:10,600 --> 00:05:13,520
Speaker 1: over a hundred forty security officers and the revenues of

83
00:05:13,560 --> 00:05:16,840
Speaker 1: four and a half billion dollars. Privately held company. Very

84
00:05:16,839 --> 00:05:19,280
Speaker 1: happy to welcome to the show now Steve Jones. He's

85
00:05:19,279 --> 00:05:24,520
Speaker 1: the new CEO of Allied Universal, joining us from Santa Ana, California. Steve, welcome,

86
00:05:25,040 --> 00:05:28,640
Speaker 1: thank you, thank you. So tell us about this merger

87
00:05:29,680 --> 00:05:34,480
Speaker 1: big company. Now, what brought it about? Well, the two companies, uh,

88
00:05:34,520 --> 00:05:36,920
Speaker 1: you have have known each other and compete against each

89
00:05:36,960 --> 00:05:39,880
Speaker 1: other for the last twenty years, and uh, you know,

90
00:05:39,880 --> 00:05:44,520
Speaker 1: we just the companies were so similar with our cultures

91
00:05:44,760 --> 00:05:48,280
Speaker 1: and so customer focused. And what brought it about was,

92
00:05:48,880 --> 00:05:50,440
Speaker 1: you know, for the last four or five years we

93
00:05:50,800 --> 00:05:54,040
Speaker 1: tried to get something like this done and we were

94
00:05:54,200 --> 00:05:57,719
Speaker 1: just you weren't able to do it, and now just

95
00:05:57,760 --> 00:05:59,760
Speaker 1: seemed to be at the right time. I think, you know,

96
00:05:59,800 --> 00:06:02,160
Speaker 1: with you know that you look at the major markets

97
00:06:02,160 --> 00:06:04,600
Speaker 1: across the US and the sub markets across the US,

98
00:06:04,680 --> 00:06:08,120
Speaker 1: the company is just they had a great overlap and

99
00:06:08,320 --> 00:06:12,200
Speaker 1: where in in certain certain vertical markets where we were strong,

100
00:06:12,960 --> 00:06:15,520
Speaker 1: Allied wasn't in another vertical markets where they were strong,

101
00:06:15,560 --> 00:06:18,560
Speaker 1: we weren't. So we just really complimented each other and

102
00:06:18,560 --> 00:06:20,800
Speaker 1: and we just felt like, you know this, you know,

103
00:06:20,880 --> 00:06:22,960
Speaker 1: one plus one in this in this situation was going

104
00:06:23,040 --> 00:06:24,960
Speaker 1: to equal three or four. You know. So it's just

105
00:06:25,480 --> 00:06:27,000
Speaker 1: it was just there's the right time and there's a

106
00:06:27,080 --> 00:06:30,720
Speaker 1: right opportunity, and it's it's the the two companies were

107
00:06:30,720 --> 00:06:33,599
Speaker 1: just were so similar in so many ways. Steve, I

108
00:06:33,600 --> 00:06:36,919
Speaker 1: wonder if you could describe for people the difference between

109
00:06:37,000 --> 00:06:40,680
Speaker 1: some of the security businesses that exist. Because there's the

110
00:06:40,760 --> 00:06:45,600
Speaker 1: security technology industry, there is the services market. Tell us

111
00:06:45,600 --> 00:06:48,279
Speaker 1: about how your company fits in and where you see

112
00:06:48,320 --> 00:06:52,800
Speaker 1: the growth. So there there there, Yeah, there's a variety

113
00:06:52,800 --> 00:06:57,239
Speaker 1: of different security companies. There's you know, security consulting, there's

114
00:06:57,320 --> 00:07:01,880
Speaker 1: risk assessments. There's bodyguard security. Then there's what we what

115
00:07:02,000 --> 00:07:05,240
Speaker 1: we really specialize in, which is the man guardings of

116
00:07:05,320 --> 00:07:09,279
Speaker 1: the security guards services that protect businesses and malls and

117
00:07:09,360 --> 00:07:13,480
Speaker 1: health care facilities and Fortune five companies and commercial real

118
00:07:13,560 --> 00:07:17,080
Speaker 1: estate facilities all across the country. UH. There's also electronic

119
00:07:17,160 --> 00:07:20,360
Speaker 1: security systems, which is also another space that we operate in.

120
00:07:20,440 --> 00:07:22,880
Speaker 1: So that's those are the type of businesses where we

121
00:07:23,080 --> 00:07:26,920
Speaker 1: provide security cameras and access control systems. So when you

122
00:07:27,280 --> 00:07:29,480
Speaker 1: go into a building and you swipe an access car,

123
00:07:29,600 --> 00:07:32,280
Speaker 1: those are systems that we would either we would sell

124
00:07:32,400 --> 00:07:37,040
Speaker 1: and service and install and maintain and manage for for customers.

125
00:07:37,480 --> 00:07:40,280
Speaker 1: And then there's UM And then there's the other side

126
00:07:40,920 --> 00:07:43,800
Speaker 1: of the industry, which is which is relatively new, which

127
00:07:43,840 --> 00:07:48,840
Speaker 1: is remote video monitoring where you're using technology now to

128
00:07:48,960 --> 00:07:53,120
Speaker 1: monitor video cameras and to tell uh, whether it's the

129
00:07:53,160 --> 00:07:56,920
Speaker 1: police departments or whether it's security companies, UH, to tell

130
00:07:56,960 --> 00:07:59,200
Speaker 1: them when when something is not right and when they

131
00:07:59,200 --> 00:08:01,640
Speaker 1: should respond. So we have a state of the art

132
00:08:01,640 --> 00:08:05,680
Speaker 1: remote video monitoring center in Dallas, Texas that that we're

133
00:08:05,840 --> 00:08:08,080
Speaker 1: we're also in that space. So we're in kind of

134
00:08:08,160 --> 00:08:11,320
Speaker 1: three of three spaces. And the security security side, which

135
00:08:11,360 --> 00:08:14,720
Speaker 1: is demand guarding systems and technology, and then the remote

136
00:08:14,760 --> 00:08:18,080
Speaker 1: video monitoring and of course remote video monitoring and drones

137
00:08:18,120 --> 00:08:20,080
Speaker 1: and all that kind of technology. I assume claid an

138
00:08:20,120 --> 00:08:22,600
Speaker 1: increasingly important role. But I have to ask you, because

139
00:08:23,280 --> 00:08:26,440
Speaker 1: all of your literature and promotion touts your employees, and

140
00:08:26,480 --> 00:08:28,920
Speaker 1: I'm sure they are top nuts. You don't They're paid

141
00:08:28,920 --> 00:08:32,280
Speaker 1: what a fi'clock glass door? Um, maybe about ten bucks

142
00:08:32,280 --> 00:08:34,440
Speaker 1: an hour for many positions. There's a big movement on

143
00:08:34,559 --> 00:08:37,760
Speaker 1: now in some parts of the country to get the

144
00:08:37,800 --> 00:08:40,600
Speaker 1: minimum wage to fifteen dollars an hour. Where do you

145
00:08:40,600 --> 00:08:42,400
Speaker 1: stand on paying your workers more? And would that hurt

146
00:08:42,440 --> 00:08:46,120
Speaker 1: your bottom line if that were passed through? So look,

147
00:08:46,280 --> 00:08:48,160
Speaker 1: you know it's you're you're absolutely right. I mean, the

148
00:08:48,400 --> 00:08:50,600
Speaker 1: pay rates are anywhere from ten to fifteen dollars an hour.

149
00:08:50,679 --> 00:08:53,680
Speaker 1: Kind of depends on the marketplace. Every market across the

150
00:08:53,720 --> 00:08:58,160
Speaker 1: country is different, as you you probably aware, So you know,

151
00:08:58,200 --> 00:09:00,760
Speaker 1: it's it's kind of market by market specific on what

152
00:09:00,840 --> 00:09:03,400
Speaker 1: the pay raids need to be. We uh, you know, look,

153
00:09:03,440 --> 00:09:06,920
Speaker 1: we we we want to pair our employees more. Uh.

154
00:09:07,120 --> 00:09:09,440
Speaker 1: You know, it's a function of how much you can

155
00:09:09,520 --> 00:09:13,200
Speaker 1: charge your your customers for your services. And so if

156
00:09:13,200 --> 00:09:16,719
Speaker 1: the entire market moves uh and you know the h

157
00:09:16,960 --> 00:09:20,000
Speaker 1: and they raise minimum age in a marketplace, then you know,

158
00:09:20,080 --> 00:09:22,200
Speaker 1: for us, that's just you know, it's an opportunity that

159
00:09:22,280 --> 00:09:24,680
Speaker 1: you know, we're gonna uh, you know, we're going to

160
00:09:24,760 --> 00:09:27,640
Speaker 1: pay all the employees more and uh and you know

161
00:09:27,640 --> 00:09:29,640
Speaker 1: we're gonna have to pass that on to the customers.

162
00:09:29,679 --> 00:09:32,760
Speaker 1: But you know, it's it's it's it's very difficult right now.

163
00:09:32,880 --> 00:09:35,599
Speaker 1: The economy and in certain certain certain cities across the

164
00:09:35,640 --> 00:09:39,120
Speaker 1: country is is very strong, and other others it's it's

165
00:09:39,160 --> 00:09:41,000
Speaker 1: not as strong. But in those in those markets that

166
00:09:41,040 --> 00:09:43,240
Speaker 1: are very very strong, you know, New York, San Francisco,

167
00:09:43,320 --> 00:09:47,199
Speaker 1: the Silicon Valley, Uh, some parts of Texas, it's hard

168
00:09:47,240 --> 00:09:49,400
Speaker 1: to find people. So you know, too, if we can

169
00:09:49,400 --> 00:09:51,640
Speaker 1: increase the pay raids to to to find people and

170
00:09:51,679 --> 00:09:54,680
Speaker 1: to get better people, that's what we need, Steve, just quickly.

171
00:09:55,040 --> 00:09:58,360
Speaker 1: Taser International shares are up more than sixty eight percent

172
00:09:58,520 --> 00:10:02,280
Speaker 1: so far this year. Is there one particular product that

173
00:10:02,400 --> 00:10:08,840
Speaker 1: you have seen gain even greater acceptance so far this year? Uh?

174
00:10:08,880 --> 00:10:11,440
Speaker 1: You know that, um, you really, you know, the remote

175
00:10:11,520 --> 00:10:14,440
Speaker 1: video monitoring and then you know there's several companies that

176
00:10:14,480 --> 00:10:17,640
Speaker 1: out there they're doing it is becoming more and more popular.

177
00:10:17,679 --> 00:10:19,760
Speaker 1: So if you if you if you think about it, uh,

178
00:10:19,800 --> 00:10:21,760
Speaker 1: you know, you used to have people that just would

179
00:10:21,800 --> 00:10:24,640
Speaker 1: sit in front of cameras and try to watch you ten, fifteen,

180
00:10:24,760 --> 00:10:27,000
Speaker 1: up to a hundred cameras, which you know, nobody can

181
00:10:27,040 --> 00:10:29,920
Speaker 1: watch a hunder cameras at one time, so you use uh,

182
00:10:29,960 --> 00:10:32,000
Speaker 1: you know, you have you watch several at one time

183
00:10:32,000 --> 00:10:34,440
Speaker 1: and you switch back and forth. Now with the with

184
00:10:34,520 --> 00:10:38,040
Speaker 1: the rollout of remote video monitoring and using video analytics

185
00:10:38,080 --> 00:10:40,720
Speaker 1: to watch those, that is a very very hot market.

186
00:10:40,760 --> 00:10:43,120
Speaker 1: I can tell you that business for us is you know,

187
00:10:43,320 --> 00:10:46,040
Speaker 1: is growing you know, to a year. So it's a

188
00:10:46,480 --> 00:10:49,520
Speaker 1: it's a it's a it's a huge, huge opportunity. And

189
00:10:49,840 --> 00:10:54,359
Speaker 1: thanks very much. As Steve Jones, chief executive Allied Universal

190
00:10:54,559 --> 00:10:57,960
Speaker 1: talking about the combination with Allied part and Security Services,

191
00:10:58,040 --> 00:11:03,080
Speaker 1: this is Bloomberg. Bloombertaking stock is brought to by land Rover.

192
00:11:03,160 --> 00:11:06,320
Speaker 1: When towers seem like trees and roads become rivers, the raindrower,

193
00:11:06,400 --> 00:11:08,319
Speaker 1: reloked as they are, to guide you through the twists

194
00:11:08,320 --> 00:11:10,720
Speaker 1: and turns of the urban jungle. Is that your Tristate

195
00:11:10,720 --> 00:11:13,840
Speaker 1: area Landrover retailer for special offers. Land Rover above, Beyond,