1 00:00:02,320 --> 00:00:05,720 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:05,720 --> 00:00:08,800 Speaker 1: dot Com, the radio plus Globo Last and on your radio. 3 00:00:09,080 --> 00:00:13,120 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters. 4 00:00:13,160 --> 00:00:15,880 Speaker 1: I'm Katherine Cowdery And as that closing vow sounds a 5 00:00:15,920 --> 00:00:19,079 Speaker 1: don industrial leverage is up seventy six points, a gain 6 00:00:19,120 --> 00:00:21,439 Speaker 1: of four tenths of a percent, trading at seventeen thousand, 7 00:00:21,480 --> 00:00:24,959 Speaker 1: nine hundred eighteen. SMP five funded up eleven points half 8 00:00:24,960 --> 00:00:27,440 Speaker 1: a percent at two thousand ninety nine. Then as I 9 00:00:27,600 --> 00:00:29,680 Speaker 1: is hired by thirty six points three quarters of a 10 00:00:29,720 --> 00:00:32,960 Speaker 1: percent at forty eight fifty nine, will gains in drug 11 00:00:33,000 --> 00:00:36,360 Speaker 1: companies help fuel today's market advance. Cautious sentiment ease in 12 00:00:36,440 --> 00:00:40,159 Speaker 1: mid speculation that the American economy can weather the impact 13 00:00:40,159 --> 00:00:43,280 Speaker 1: of the UK's decision to leave the European Union. There 14 00:00:43,280 --> 00:00:47,320 Speaker 1: have been some casualties of Brexit. Henderson Global Investors, Columbia, Thread, 15 00:00:47,360 --> 00:00:50,680 Speaker 1: Nagle Investments and Canada Life suspended trading at least seven 16 00:00:50,680 --> 00:00:53,680 Speaker 1: point four billion dollars of property funds. That takes a 17 00:00:53,760 --> 00:00:56,600 Speaker 1: number of UK firms curbing redemptions to six in the 18 00:00:56,680 --> 00:00:59,959 Speaker 1: wake of Brexit. Bill gross found manager of Jenna's Calf 19 00:01:00,200 --> 00:01:05,080 Speaker 1: Management says news about those UK property funds should clause concern. 20 00:01:05,120 --> 00:01:08,640 Speaker 1: This is an indication of illiquidity in the system. You know, 21 00:01:08,720 --> 00:01:12,280 Speaker 1: central banks would counter and say all equality that you want, 22 00:01:12,400 --> 00:01:16,479 Speaker 1: but the system basically doesn't allow liquidity to flow into 23 00:01:16,560 --> 00:01:20,160 Speaker 1: the proper places, and certainly here in terms of these 24 00:01:20,200 --> 00:01:23,520 Speaker 1: property funds. If if they're just one indication, then you know, 25 00:01:23,640 --> 00:01:26,200 Speaker 1: perhaps there'll be others to follow. I I think it's 26 00:01:26,240 --> 00:01:29,919 Speaker 1: something to worry about. Grow spoke on Bloomberg Radio and Television, 27 00:01:30,200 --> 00:01:32,479 Speaker 1: and stocks held their games as minutes from the feder 28 00:01:32,520 --> 00:01:36,160 Speaker 1: reserves last policy meaning indicated that May's weak jobs report 29 00:01:36,200 --> 00:01:40,280 Speaker 1: fueled uncertainty about the economy. Data since, including report on 30 00:01:40,319 --> 00:01:44,440 Speaker 1: the service industry today has helped rekindle investor optimism. Ten 31 00:01:44,520 --> 00:01:46,959 Speaker 1: Your Tragedy up one thirty second with a yield of 32 00:01:47,200 --> 00:01:50,360 Speaker 1: one point three seven percent. West Texas intermediate crude oil 33 00:01:50,480 --> 00:01:52,720 Speaker 1: up seventy three cents of barrel one point six percent 34 00:01:52,800 --> 00:01:55,840 Speaker 1: to forty seven thirty three. Spout gold up seven dollars 35 00:01:55,880 --> 00:01:59,920 Speaker 1: twenty cents and OUs to thirteen sixty six Among to 36 00:02:00,040 --> 00:02:03,120 Speaker 1: days top business stories at US airline stocks move closer 37 00:02:03,160 --> 00:02:06,440 Speaker 1: to their biggest annual decline in five years after Credit 38 00:02:06,440 --> 00:02:09,640 Speaker 1: Suis Group said a critical financial measure will not turn 39 00:02:09,720 --> 00:02:13,480 Speaker 1: positive until the end of next year. It's four oh 40 00:02:13,480 --> 00:02:15,600 Speaker 1: two on Wall Street. Let's get an update now if 41 00:02:15,639 --> 00:02:18,239 Speaker 1: some of the other stories were following on Bloomberg Radio. 42 00:02:20,080 --> 00:02:22,440 Speaker 1: Thank you Catherine from the Bloomberg News Room. I'm Ramie 43 00:02:22,440 --> 00:02:25,680 Speaker 1: in essentio. The State Department says it will quote follow 44 00:02:25,800 --> 00:02:28,880 Speaker 1: the appropriate next steps after the Justice Department makes its 45 00:02:28,960 --> 00:02:32,440 Speaker 1: decision about whether Hillary Clinton should face charges over the 46 00:02:32,480 --> 00:02:36,520 Speaker 1: handling over State Department emails. Here's spokesman John Kirby, Well, 47 00:02:36,639 --> 00:02:40,560 Speaker 1: let the Justice Department uh consider the findings of the 48 00:02:40,560 --> 00:02:44,079 Speaker 1: FBI investigation and make whatever decisions they're going to make. 49 00:02:44,400 --> 00:02:47,640 Speaker 1: Two white police officers in Baton Rouge, Louisiana, are on 50 00:02:47,760 --> 00:02:52,040 Speaker 1: administrative leave as the Justice Department investigates the fatal shooting 51 00:02:52,040 --> 00:02:54,200 Speaker 1: of a black man. The police chief says the man 52 00:02:54,200 --> 00:02:56,640 Speaker 1: who was fatally shot by police was armed, but that 53 00:02:56,720 --> 00:02:59,960 Speaker 1: there are still questions about what happened. Attorney Edmund joy 54 00:03:00,200 --> 00:03:04,040 Speaker 1: And represents Alton Sterling's family. What we're asking for, and 55 00:03:04,040 --> 00:03:06,120 Speaker 1: we have other leaders who have asked for the same thing, 56 00:03:06,760 --> 00:03:10,040 Speaker 1: is for this investigation to be taken out of the 57 00:03:10,080 --> 00:03:12,920 Speaker 1: hands of the Baton Rouge Police Department and handed over 58 00:03:13,200 --> 00:03:17,280 Speaker 1: to Louisiana State Police. Former Fox News anchor Gretgen Carlson 59 00:03:17,480 --> 00:03:21,320 Speaker 1: is suing Fox News Channel chairman Roger Ales over her 60 00:03:21,400 --> 00:03:25,680 Speaker 1: firing last month. Carlson alleges that Ales retaliated against her 61 00:03:25,919 --> 00:03:30,680 Speaker 1: because she refused his sexual advances and complained about the harrassment. 62 00:03:31,080 --> 00:03:34,600 Speaker 1: Carlson also accuses former morning show co host Steve Doocy 63 00:03:34,720 --> 00:03:37,880 Speaker 1: of harassing her and The Manhattan Street corner will be 64 00:03:37,960 --> 00:03:42,280 Speaker 1: temporarily named for longtime fashion photographer Bill Cunningham, who died 65 00:03:42,400 --> 00:03:45,720 Speaker 1: last month. Cunningham, who took pictures of everyday people on 66 00:03:45,720 --> 00:03:47,920 Speaker 1: the streets of New York for The Times, died June. 67 00:03:48,840 --> 00:03:51,080 Speaker 1: The New York Times reports at the northeast corner of 68 00:03:51,160 --> 00:03:54,400 Speaker 1: fifty Street and Fifth Avenue will be known as Bill 69 00:03:54,480 --> 00:03:57,520 Speaker 1: Cunningham Corner. Globe News twenty four hours a day, powered 70 00:03:57,520 --> 00:04:00,680 Speaker 1: by more than journalists and analysts in more than one 71 00:04:01,040 --> 00:04:05,119 Speaker 1: twenty countries. From the Bloomberg News Room. I'm rainy innescent Cio, Catherine, 72 00:04:06,320 --> 00:04:08,200 Speaker 1: thank you. Now, let's get a quick update of the 73 00:04:08,280 --> 00:04:11,560 Speaker 1: equity benchmarks as they begin to settle down. Industrial leverage 74 00:04:11,600 --> 00:04:14,720 Speaker 1: up seventy eight points to seventeen thousand, nine hundred eighteen. 75 00:04:15,120 --> 00:04:17,479 Speaker 1: Smp F I founded up eleven points to two thousand 76 00:04:17,600 --> 00:04:20,160 Speaker 1: ninety nine. Then a ZAC up thirty six points to 77 00:04:20,240 --> 00:04:23,320 Speaker 1: forty eight fifty nine. And that's a Bloomberg business flash 78 00:04:23,760 --> 00:04:30,320 Speaker 1: move around, motion grade motion felter move. You moved like 79 00:04:30,400 --> 00:04:36,920 Speaker 1: they do. I've never seen anyone live that fast. Fired people. 80 00:04:36,960 --> 00:04:43,760 Speaker 1: Let's move like you've got a purpose. That was called 81 00:04:43,800 --> 00:04:46,960 Speaker 1: movers and shakers. It costs a little more. That name 82 00:04:47,000 --> 00:04:56,960 Speaker 1: cracked me up. Bloomberg taking stock movers and shakers with 83 00:04:57,080 --> 00:05:02,480 Speaker 1: pim Fox and Kathleen Hay's on Bloomberg Radio. A modest 84 00:05:02,640 --> 00:05:06,560 Speaker 1: but definitive move higher today for the US stock market. 85 00:05:06,560 --> 00:05:09,040 Speaker 1: Looking inside the S and P five hundred, we see 86 00:05:09,040 --> 00:05:12,520 Speaker 1: that three hundred and eighty companies saw their share prices 87 00:05:12,600 --> 00:05:16,599 Speaker 1: and higher, one hundred twenty one their share prices closing lower, 88 00:05:16,720 --> 00:05:19,280 Speaker 1: just four unchanged joining us. Now our stocks that are 89 00:05:19,320 --> 00:05:21,440 Speaker 1: Dave Wilson to kick off the movers and shakers, I 90 00:05:21,480 --> 00:05:24,640 Speaker 1: want to mention Walgreen's Boots alliance really fast. The pharmacy 91 00:05:24,720 --> 00:05:27,080 Speaker 1: chain came out with results for the fiscal third quarter. 92 00:05:27,400 --> 00:05:30,560 Speaker 1: They trail analyst average estimate in the Bloomberg survey when 93 00:05:30,560 --> 00:05:33,960 Speaker 1: it came to sales, though ernies be projections. Walgreen's boots 94 00:05:33,960 --> 00:05:36,200 Speaker 1: down two point four percent in today's trading. But there 95 00:05:36,200 --> 00:05:39,400 Speaker 1: are two other stocks that Walgreens talked about, at least 96 00:05:39,440 --> 00:05:42,600 Speaker 1: the companies whose shares fared better. One of them is 97 00:05:42,720 --> 00:05:45,159 Speaker 1: right A, which Walgreen's plans to buy for nine point 98 00:05:45,240 --> 00:05:49,680 Speaker 1: four billion dollars. They said the deal is progressing as planned, 99 00:05:50,160 --> 00:05:52,359 Speaker 1: and right A with a gate of one a half percent. 100 00:05:52,400 --> 00:05:55,880 Speaker 1: And then there's Value of Pharmaceuticals, which has a partnership 101 00:05:56,240 --> 00:06:00,920 Speaker 1: with Walgreens and the company. Walgreen said it's satisfied and 102 00:06:01,080 --> 00:06:06,880 Speaker 1: pleased with that arrangement. Valiant shares up fifteen point six percent, 103 00:06:06,960 --> 00:06:10,200 Speaker 1: biggest game for that stock in three months. Let's talk 104 00:06:10,240 --> 00:06:12,920 Speaker 1: a look at the shares of Netflix down more than 105 00:06:12,960 --> 00:06:15,200 Speaker 1: three and a quarter of a percent today, is coming 106 00:06:15,200 --> 00:06:20,040 Speaker 1: after analyst downgrade. The shares of a Netflix. Uh, this 107 00:06:20,120 --> 00:06:23,000 Speaker 1: of course rising, I beg your pardon. This comes after 108 00:06:23,080 --> 00:06:25,479 Speaker 1: a day in which there was a tie up with 109 00:06:25,560 --> 00:06:28,480 Speaker 1: Comcast announced with moved to stock higher. So today the 110 00:06:28,520 --> 00:06:31,080 Speaker 1: stock moves lower by more than three and a quarter percent, 111 00:06:31,320 --> 00:06:34,719 Speaker 1: and they say that there's a concern about Netflix slowing 112 00:06:34,760 --> 00:06:37,840 Speaker 1: growth in the United States and that it's going to 113 00:06:37,920 --> 00:06:40,120 Speaker 1: take longer for the company to meet it's a long 114 00:06:40,240 --> 00:06:43,200 Speaker 1: term targets in the US for its streaming business. It 115 00:06:43,240 --> 00:06:46,200 Speaker 1: was downgraded to a hole. Uh too, I beg your 116 00:06:46,200 --> 00:06:49,680 Speaker 1: pardon from a hole to an underperformed at the Jeffreys 117 00:06:49,680 --> 00:06:52,280 Speaker 1: and once again, Netflix down three and a quarter percent. Well, 118 00:06:52,279 --> 00:06:55,480 Speaker 1: there are so many reasons to buy gold mining companies 119 00:06:55,520 --> 00:06:58,440 Speaker 1: like Barrick Gold up three point four percent today, New 120 00:06:58,440 --> 00:07:00,520 Speaker 1: mort Mining up more than two and a half percent. 121 00:07:00,880 --> 00:07:05,080 Speaker 1: Rising gold prices improve their margins and cash flow breaksit. 122 00:07:05,200 --> 00:07:08,159 Speaker 1: Keeping interest rates low another plus. Maybe the Fed's even 123 00:07:08,160 --> 00:07:11,720 Speaker 1: looking at negative interest rates today though. Gold spot gold 124 00:07:11,760 --> 00:07:14,640 Speaker 1: hitting one thousand, three and sixty three dollars of the ounds, 125 00:07:14,680 --> 00:07:18,760 Speaker 1: a two year high, as Joni Tavis, and analyst at 126 00:07:18,800 --> 00:07:21,760 Speaker 1: UBS in London says, gold has likely entered the early 127 00:07:21,840 --> 00:07:24,880 Speaker 1: stages of the next bull run. This trend should now deepen, 128 00:07:25,120 --> 00:07:28,480 Speaker 1: attracting more participants and encouraging those who have been hesitating 129 00:07:28,520 --> 00:07:30,920 Speaker 1: to get more involved. Well, that's certainly how people get 130 00:07:30,960 --> 00:07:33,760 Speaker 1: involved today. Dave Wilson, I'll mention one more gold producer 131 00:07:33,800 --> 00:07:37,000 Speaker 1: whose rating was raised at Deutsche Bank to hold from selling. 132 00:07:37,080 --> 00:07:39,440 Speaker 1: That would be ken Ross Gold and that stock up 133 00:07:39,480 --> 00:07:41,720 Speaker 1: one per cent today was one of three medals and 134 00:07:41,760 --> 00:07:44,920 Speaker 1: mining companies that Deutsche Bank upgraded. The other tour in 135 00:07:44,960 --> 00:07:48,200 Speaker 1: the steel industry, one of them being new Core shares 136 00:07:48,240 --> 00:07:51,320 Speaker 1: a four point three percent on today. That stock was 137 00:07:51,520 --> 00:07:56,160 Speaker 1: raised to the to buy from hold, and US Steel 138 00:07:56,160 --> 00:07:58,800 Speaker 1: which moved up to hold from cell uh Those shares 139 00:07:59,120 --> 00:08:01,960 Speaker 1: up one pot that just like can Ross, I'll tell 140 00:08:01,960 --> 00:08:04,640 Speaker 1: you about the shares of DuPont who mentioned them all day. 141 00:08:05,040 --> 00:08:07,280 Speaker 1: Stock is down about one and three quarters of her 142 00:08:07,280 --> 00:08:09,840 Speaker 1: percent on the close. DuPont was found liable for a 143 00:08:09,880 --> 00:08:14,600 Speaker 1: man's testicular cancer in the third test case in lawsuits 144 00:08:14,640 --> 00:08:19,040 Speaker 1: over a toxic teflon chemical that was found in Ohio 145 00:08:19,160 --> 00:08:25,480 Speaker 1: and West Virginia waters. The spinoff of DuPont Kemos Company 146 00:08:25,600 --> 00:08:27,960 Speaker 1: will have to bear the cost, but once again, shares 147 00:08:28,160 --> 00:08:32,360 Speaker 1: of DuPont down one and three quarters of her percent. Well, 148 00:08:32,400 --> 00:08:35,640 Speaker 1: airlines taking a bit of a hit today. We have 149 00:08:35,800 --> 00:08:39,320 Speaker 1: American air down two percent, United two and a half percent, 150 00:08:39,880 --> 00:08:45,360 Speaker 1: and it's largely because American and United were downgraded. As 151 00:08:45,640 --> 00:08:50,120 Speaker 1: disillusion with airlines will persist among investors. According to a 152 00:08:50,440 --> 00:08:54,599 Speaker 1: credit SWEEE analyst Julie Yates she down grade American to 153 00:08:54,800 --> 00:08:58,839 Speaker 1: underperformed from outperformed, down graded United to neutral from outperformed, 154 00:08:59,160 --> 00:09:03,400 Speaker 1: and she says, uh, there are negative factors. Corporate demand 155 00:09:03,440 --> 00:09:07,040 Speaker 1: trends aren't good, incremental risk of currency exchange headwinds and 156 00:09:07,080 --> 00:09:10,760 Speaker 1: lower trans Atlantic gields post Brexit. And she's also watching 157 00:09:10,800 --> 00:09:13,679 Speaker 1: the price per seat that they're getting, saying the performances 158 00:09:13,720 --> 00:09:17,400 Speaker 1: by American and United will likely underwhelmed for sustained rally 159 00:09:17,440 --> 00:09:20,040 Speaker 1: in the sector. We think investors need more and we'll 160 00:09:20,080 --> 00:09:22,920 Speaker 1: want to hear capacity is being cut him to drive 161 00:09:23,000 --> 00:09:25,800 Speaker 1: improvement in unit revenues. Alright, is time now for the 162 00:09:25,840 --> 00:09:28,120 Speaker 1: Volatility Index Report. It is brought to you by cbo 163 00:09:28,320 --> 00:09:31,840 Speaker 1: VIX Options and Futures. Volatility can be harnessed with CBOE 164 00:09:32,160 --> 00:09:35,800 Speaker 1: VIX options and future c disclosures. Learn more at cbo 165 00:09:35,960 --> 00:09:40,400 Speaker 1: e dot com Slash Powerful Outcomes VIX. The VIX down 166 00:09:40,440 --> 00:09:44,920 Speaker 1: today down nearly two per cent, down point three oh 167 00:09:45,120 --> 00:09:49,000 Speaker 1: settling at fifteen point to eight. And while the VIX 168 00:09:49,080 --> 00:09:53,720 Speaker 1: usually tracks a recent volatility, something interesting happened last week. 169 00:09:54,480 --> 00:09:58,000 Speaker 1: Actual volatility increased the amount of volatility implied by option 170 00:09:58,120 --> 00:10:01,560 Speaker 1: prices actually the line. That's as if people were looking 171 00:10:01,600 --> 00:10:05,559 Speaker 1: in the market's rear view mirror. All right, Dave here, 172 00:10:07,400 --> 00:10:12,400 Speaker 1: my name is Dave. Just what do you think you're doing. 173 00:10:12,880 --> 00:10:19,880 Speaker 1: We're going for the prankdown, Will Dave Hey Mr Wilvium, 174 00:10:20,240 --> 00:10:25,000 Speaker 1: Cavium and Qualcom on m and a marriage potentially and 175 00:10:25,000 --> 00:10:29,559 Speaker 1: in calviums a maker semiconductors using server computers, wireless networking equipment, 176 00:10:29,559 --> 00:10:32,360 Speaker 1: and other devices. Company shares listed under the ticker c 177 00:10:32,679 --> 00:10:36,560 Speaker 1: a VM. Cavians timing over the years has been less 178 00:10:36,559 --> 00:10:39,400 Speaker 1: than ideal. The company was founded in two thousand one 179 00:10:39,480 --> 00:10:42,600 Speaker 1: while a bubble and technology shares was bursting, and went 180 00:10:42,640 --> 00:10:44,720 Speaker 1: public and made two thousand seven near the end of 181 00:10:44,720 --> 00:10:46,960 Speaker 1: a bowl market in US stocks, and as the ball 182 00:10:47,000 --> 00:10:49,360 Speaker 1: gave way to the worst bear markets since the Great Depression, 183 00:10:49,559 --> 00:10:52,440 Speaker 1: shares of Cavyum fella as much as forty seven percent 184 00:10:52,520 --> 00:10:55,480 Speaker 1: from their initial price. Then U s stocks started another 185 00:10:55,520 --> 00:10:58,119 Speaker 1: ball market, and the company shares runs as much as tenfold. 186 00:10:58,480 --> 00:11:00,440 Speaker 1: That brings us to June of last year when the 187 00:11:00,480 --> 00:11:06,400 Speaker 1: stock peaked. After that, Cavium retreated as much as fifty Today, 188 00:11:06,559 --> 00:11:09,120 Speaker 1: the stock recrups some of that loss. After c ls 189 00:11:09,160 --> 00:11:13,240 Speaker 1: A described the company as the best tagover opportunity for 190 00:11:13,280 --> 00:11:17,360 Speaker 1: the mobile phone chipmaker. Qualcom analyst Christopher Caso wrote in 191 00:11:17,360 --> 00:11:21,560 Speaker 1: a report that Cavium may be particularly attractive after the 192 00:11:21,600 --> 00:11:26,000 Speaker 1: stock slide. Cavium rose today by seven point two percent. 193 00:11:26,080 --> 00:11:27,520 Speaker 1: That was one of the day's biggest gains in the 194 00:11:27,559 --> 00:11:29,240 Speaker 1: Russell two thousand in decks. And I just want to 195 00:11:29,280 --> 00:11:31,840 Speaker 1: follow up on something you said, Pim talking about this 196 00:11:31,920 --> 00:11:36,200 Speaker 1: tafflon case. Camors, which actually has to pay, was the 197 00:11:36,360 --> 00:11:39,880 Speaker 1: worst performer in the Russell two thousand by far, stock 198 00:11:39,960 --> 00:11:43,120 Speaker 1: down twenty two and a half percent, biggest one day 199 00:11:43,160 --> 00:11:45,439 Speaker 1: law since the company was spun off about a year 200 00:11:45,480 --> 00:11:48,840 Speaker 1: ago from DuPont. Thank you very much. Dave Wilson, Bloomberg 201 00:11:48,880 --> 00:11:51,280 Speaker 1: Stocks comm Is. Send an email at d Wilson at 202 00:11:51,280 --> 00:11:55,200 Speaker 1: Bloomberg dot net and become a smarter investor. Sign up 203 00:11:55,200 --> 00:11:58,959 Speaker 1: for his daily free email newsletter. You're listening to taking 204 00:11:59,000 --> 00:12:06,720 Speaker 1: stock is Bloomberg does. The end of Hillary Clinton's email 205 00:12:06,720 --> 00:12:09,480 Speaker 1: investigation represents the beginning of something that has eluded the 206 00:12:09,559 --> 00:12:13,840 Speaker 1: publican party for months, unification behind its presumptive presidential nominee. 207 00:12:14,120 --> 00:12:18,480 Speaker 1: Up next, Bloomberg's Washington Bureau chief Megan Murphy