Speaker 1: Broadcasting live to New York, Bloomberg eleventh LEO to Washington,
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Speaker 1: This is Taking Stock. Coming up on Taking Stock research,
Speaker 1: science and technology and politics. How will a new occupant
Speaker 1: of the White House influence US technology policy, for example
Speaker 1: net neutrality. We'll have more coming up, but right now,
Speaker 1: let's go to Charlie Pellett in the Bloomberg newsroom for
Speaker 1: Bloomberg Business Flash, and I thank you pim Fox. We've
Speaker 1: got the DAL, the SMP NEZ DAC all declining on
Speaker 1: this Friday, and we're brought to you by Sector Spider
Speaker 1: e t F S. Why buy a single stock when
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Speaker 1: d r S dot com or call one eight six
Speaker 1: six Sector et F stock slipping and light trading falling
Speaker 1: for the first time in six days. Stocks are on
Speaker 1: track for all winning week. Investors are weighing the potential
Speaker 1: for further games, with shares near records and corporate earnings
Speaker 1: projected to drop for a fifth quarter. City Groups said
Speaker 1: second quarter profit fell seventeen percent on lower revenue from
Speaker 1: consumer banking, beating analysts estimates as fixed income trading rebounded
Speaker 1: and the firm dedicated less money to soured loans. City
Speaker 1: Group shares lower today by six tenths of one percent.
Speaker 1: Jim Senegal is senior equity strategist at morning Star. He
Speaker 1: was interviewed this morning on Bloomberg Television. City navigated the
Speaker 1: quarter very well on the trading side of things, although
Speaker 1: investment banking fee type revenue was down. Consumer credit performed
Speaker 1: very well around the world, in the US, in Asia,
Speaker 1: in Latin America, credit quality is actually improving to some extent,
Speaker 1: and for City at least, the rate environment has not
Speaker 1: been as big of a headwind as we might have expected.
Speaker 1: Also reporting today, Wells Fargo IT said second quarter profit
Speaker 1: fell two point eight percent as more energy loans soured.
Speaker 1: Wells Fargo down two point nine percent. A US Bankorp,
Speaker 1: which is the nation's largest regional lender, posted records second
Speaker 1: quarter profit. The beat analyss estimates his shares up now
Speaker 1: by one point two percent. The now little change down
Speaker 1: a point, SMP down four a drop there of two
Speaker 1: tents of one percent, and as stack down seven a
Speaker 1: drop of two tenths of one percent, gold down four dollars,
Speaker 1: the ounce, the thirty eight a drop of three tenths
Speaker 1: of one percent, and crude oil West Texas Intermediate up
Speaker 1: twenty two cents a barrel up five tenths of one
Speaker 1: percent to thirty two on Wall Street Now will look
Speaker 1: at other stories making news. Thank you Charlie from the
Speaker 1: Bloomberg News Room. I'm June Grosso. At least eighty four
Speaker 1: people are dead on a French riviera in Nice after
Speaker 1: an attack or in a truck drove into crowd celebrating
Speaker 1: Bastile Day. Matt Olson, former director of the National counter
Speaker 1: Terrorism Center, says it's not clear if the attack or
Speaker 1: had help from accomplices. We can expect perhaps that the
Speaker 1: pace of these types of attacks, whether they're lone wolf
Speaker 1: attacks or or small numbers of people carrying off these
Speaker 1: attacks in the West, may well increase, and they're very
Speaker 1: difficult to defend against. Secretary of State John Kerry met
Speaker 1: with his Russian counterpart in Moscow. Today carries in Russia
Speaker 1: to discuss Syria another hot spots. Now he's joining the
Speaker 1: rest of the world and reacting to the devastating truck massacre.
Speaker 1: Last night. Speaking to Russian foreign ministers, Sergei Lavrov carry
Speaker 1: addresses the recent responses to terrorism. The problem is that
Speaker 1: if you and I and other foreign ministers and leaders
Speaker 1: of countries are now doing this almost on a weekly basis.
Speaker 1: President Obama will speak about the nice attacks at three
Speaker 1: ten Eastern time. You can hear it live on Bloomberg Radio.
Speaker 1: The White House predicted today that the government's budget deficit
Speaker 1: for the soon to end fiscal year will hit six
Speaker 1: hundred billion dollars. That's an increase of one hundred sixty
Speaker 1: two billion dollars over last year's tally. It reverses a
Speaker 1: steady trend of large but improving deficits on President Barack
Speaker 1: Obama's watch. It's cost New Jersey taxpayers eight point two
Speaker 1: million dollars for Governor Chris Christie's private attorneys who are
Speaker 1: handling the fallout from the George Washington Bridge lane closing case.
Speaker 1: Global News twenty four hours a day, powered by more
Speaker 1: than twenty six hundred journalists and analysts and more than
Speaker 1: one hundred twenty countries. I'm June Glosso. This is Bloomberg Charlie,
Speaker 1: and we thank you what again recapping equities lower SMP
Speaker 1: down four to nine, a drop of two tenths of
Speaker 1: one percent. I'm Charlie Pellet and dance a Bloomberg business flash.
Speaker 1: This is taking stock with Kathleen Hayes and Pim Fox
Speaker 1: on Bloomberg Radio. It used to be a chicken in
Speaker 1: every pot and a car in every garage. Now it
Speaker 1: is high speed internet in every home. Technology policy courtesy
Speaker 1: of the candidates running for president of the United States.
Speaker 1: Ev Erlick is the former under Secretary of Commerce and
Speaker 1: the Clinton administration. Is currently the president of E s
Speaker 1: C Company, and he joins us from Washington, d C.
Speaker 1: Home to Bloomberg one and one oh five point seven
Speaker 1: h D two. Thank you very much for being with us.
Speaker 1: Tell us about the policies that are being put forth
Speaker 1: by the candidates. Let's begin with the Hillary Clinton and
Speaker 1: how important it is to put together a technology policy
Speaker 1: for the United States. Well, first, that's the zero's order
Speaker 1: point that there has to be a technology policy. That
Speaker 1: this isn't something that just happens and springs out of
Speaker 1: the brow of zeus. Uh. The high tech sector is
Speaker 1: one in which the public and private sectors have played
Speaker 1: defined roles that have inter related throughout their history, and
Speaker 1: I think that the sector is entitled to a vision
Speaker 1: from any leading candidate as to how they imagine that.
Speaker 1: Proceeding from from Hillary Clinton, we've seen a fairly detailed one,
Speaker 1: uh and UH that's admirable in the sense that it
Speaker 1: understands what all the inter relationships are that it covers,
Speaker 1: not just incentives for expanding internet and internet infrastructure, such
Speaker 1: support for R and D, support for STEM and other
Speaker 1: types of education, action against patent trolls. It understands these
Speaker 1: inter relationships. On the other side of the fence, we
Speaker 1: really haven't heard anything, uh from Donald Trump, and I
Speaker 1: think that speaks to basic worldviews about how the economy
Speaker 1: works that are also of great concern to the tech sector.
Speaker 1: Let's focus on some of the details of Hillary Clinton's plan,
Speaker 1: for example, expansion of five G mobile data and also
Speaker 1: making inexpensive WiFi available at airports and train stations. That's
Speaker 1: that's so important. Uh. Consumers have demonstrated at every turn
Speaker 1: in modern economic history that they value mobility and flexibility,
Speaker 1: and the future of broadband Internet is going to be
Speaker 1: mobile and not just the Internet of Things. But much
Speaker 1: much as people were willing to accept some modest sacrifice
Speaker 1: of quality to get a mobile as supposed to a
Speaker 1: landline phone. Uh, they're going to do that for connectivity
Speaker 1: without the need to accept in the long term any
Speaker 1: diminished capabilities. Uh. So America is the global leader, unrivaled
Speaker 1: in mobile telephony and in mobile signal carriage. UH. And
Speaker 1: the five V program that's just come out of the FCC,
Speaker 1: and that Mrs Clinton appears to endorse and be on
Speaker 1: the same page with, is very important. Now have you
Speaker 1: You mentioned just a moment ago the issues related to education,
Speaker 1: and one of the Hillary Clinton's proposals is to attach
Speaker 1: a green card to the diplomas of foreign born students
Speaker 1: who earn STEM degrees. Tell us about that. Uh, that's
Speaker 1: a very interesting piece of thinking. Uh. And I think
Speaker 1: it speaks to two things. One is the importance of
Speaker 1: STEM education and the other is the recognition that the
Speaker 1: US is a magnet for the world's finest minds. I
Speaker 1: read in a letter published by tech secutar executives yesterday
Speaker 1: that of the startups that occur in the United States
Speaker 1: are either first or second generation immigrant families. And if
Speaker 1: you can continue that slow of talent to the US,
Speaker 1: then you're taking very important steps to sustain the innovation
Speaker 1: at the American economy is known for now. Based on
Speaker 1: your experience in Washington as a former under secretary for
Speaker 1: the Commerce at the Clinton administration, can you speak to
Speaker 1: whether Congress will support any of these proposals would actually
Speaker 1: other legislation and money. Uh. The situation in tech has
Speaker 1: historically been less partisan than in many other areas. The
Speaker 1: the big banks of the modern Internet was Telecom Act,
Speaker 1: which was really a bipartisan piece of legislation. UH. And
Speaker 1: in some ways uh one uh, one side of the
Speaker 1: debate or the other might make headway, like for example,
Speaker 1: Title Too. But the world is going to try to
Speaker 1: move on past that so long as it's not implemented
Speaker 1: in a brutally heavy handed way. So I think there
Speaker 1: is the prospect there is some partisan divide about whether
Speaker 1: or not we should have anchor institutions and lifeline and
Speaker 1: e erate UH. And what strikes me as remarkable is
Speaker 1: that the members of Congress who opposed those programs have
Speaker 1: districts that were probably electrified by t V A and
Speaker 1: that received telephony because of efforts to promote rural telephones.
Speaker 1: I want to thank you very much for spending time
Speaker 1: with us and illuminating this issue. Ev Erlick is a
Speaker 1: former Undersecretary of Commerce for the Clinton administration, currently the
Speaker 1: president of E s C. Company there based in Washington,
Speaker 1: d C. Of course, home to Bloomberg and one oh
Speaker 1: five point seven h D two. You're listening to taking Stock.
Speaker 1: I'm pim Fox coming up real. Were taking a look
Speaker 1: at studies in violent extremism, how people obtain videos that
Speaker 1: suggest various ways of attack, including running people over a
Speaker 1: king to yesterday's Bastill Day tragedy in Niece, France, which
Speaker 1: four people are confirmed dead. You're listening to taking Stock.
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