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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 Act and on your radio.

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

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Speaker 1: I'm Charlie Pelic. We begin with an update on the

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Speaker 1: shooting at u c l A. Two people shot on

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Speaker 1: the u c l A campus. Conditions of the victims

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Speaker 1: not yet known. The campus on the city's west side

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Speaker 1: is lockdown. University and l A police officers moving around

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Speaker 1: with weapons drawn. Shooting occurred a week before final exams

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Speaker 1: at the school, which is the flagship of the University

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Speaker 1: of California system with about forty three thousand students. Stocks

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Speaker 1: are fluctuating. SMP, the down, naz DAK all trading higher.

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Speaker 1: Right now. We've got the SMP five hundred index up

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Speaker 1: a point at two thousand ninety eight, a gain there

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Speaker 1: of point one percent. Nastack up nine to forty nine

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Speaker 1: fifty seven, again there of two tenths of one percent down.

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Speaker 1: Industrials up by less than point one percent, Gold down

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Speaker 1: four or forty the alms to twelve thirteen, a drop

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Speaker 1: of four tenths of one percent. Crude oil lower little change,

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Speaker 1: down five tenths of one percent now falling twenty four

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Speaker 1: cents to eight seven for barrel of West Texas Intermediate

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Speaker 1: and just getting word from the l A p D.

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Speaker 1: It is confirming two fatalities. Now at you see l A.

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Speaker 1: I'm Charlie Pellet. That's a Bloomberg business flash. The FED

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Speaker 1: our on taking stock. That's what we're doing now and

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Speaker 1: it's brought to you by Commonwealth Financial Network. When it's

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Speaker 1: time to change the conversation, talk with a broker dealer

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Speaker 1: r I A. That's ready to listen called eight six

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Speaker 1: six four six two three six eight or visit Commonwealth

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Speaker 1: dot com to learn more Bloomberg taking stock in fotus,

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Speaker 1: the interest rates start to row. For where the economy

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Speaker 1: is going, the question is how much higher should it be.

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Speaker 1: FED has increased to fast, yes, and in doing so

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Speaker 1: it has increased its liability. Keeping interest rates at neural

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Speaker 1: for a long time is not going to cause inflation

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Speaker 1: to go up. It's a very controversial. I think what

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Speaker 1: we need to do is find a way for the

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Speaker 1: FED to integrate its policy and think more about its

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Speaker 1: impact on the world. The FED in Focus on Roombord

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Speaker 1: Radio FED Reserve meets on June fifteen, well, it raised

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Speaker 1: its key rate again for the first time since December.

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Speaker 1: Manufacturing the health of factories in the United States will

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Speaker 1: certainly be a factor to that point to Daily got

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Speaker 1: News that manufacturing unexpectedly expanded at a faster pace in May,

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Speaker 1: helped by other by an increase in orders. That signals

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Speaker 1: factories rebounding from an early slump. Let's bring in now

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Speaker 1: the man who puts together this survey for the Institute

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Speaker 1: for Supply and Management, and that is Brad Holcomb. He's

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Speaker 1: chairman of the Business Survey Committee. So Brad, the number

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Speaker 1: looking better at fifte three, up from fifty point eight

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Speaker 1: in April. Anything above fifty signals expansion. You gotta like

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Speaker 1: at one three growing for three consecutive months after five

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Speaker 1: months of contraction, so hopefully we're setting up a new

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Speaker 1: positive trend. And as you mentioned, that's led by a

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Speaker 1: good quality number in new orders fifty five point seven,

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Speaker 1: down just a tenth of a point from a strong

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Speaker 1: fifty five point eight last month, growing for five consecutive months,

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Speaker 1: so good things for this month's report. The production UH

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Speaker 1: series still positive at fifty two point six in me

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Speaker 1: not quite as strong as April fifty four point two.

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Speaker 1: So it's growing, but it's growing more slowly, growing more slowly,

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Speaker 1: but growing five consecutive months, and production will vary according

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Speaker 1: to employment levels, asset levels, shutdowns, etcetera. But it did

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Speaker 1: eat into the backlog of orders as well as work

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Speaker 1: off some new orders and jumping down to the backlog

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Speaker 1: ads off off three and a half points to forty seven,

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Speaker 1: contracting again normal very nations supplier deliveries. Explain to our

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Speaker 1: listeners what that is and why it's so important that

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Speaker 1: it jumped to fifty four point one in May from

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Speaker 1: forty nine point one in April. Yes, so there's delving

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Speaker 1: into because it's up five percentage points to fifty four

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Speaker 1: point one, meaning that supplier deliveries are slower from suppliers

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Speaker 1: to our factories, and that indicates a tightness in the

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Speaker 1: supply chain and also lower supplies inventories, which we generally

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Speaker 1: feel that its supplier deliveries above fifty we feel is

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Speaker 1: a good thing in a growing environment because it represents

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Speaker 1: the suppliers are having a bit of a hard time

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Speaker 1: sort of catching up and keeping up. Now, your survey

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Speaker 1: covers eighteen manufacturing industries, from wood products to fabricated metal

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Speaker 1: to plastic and rubber in or twelve report of growth

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Speaker 1: in MAZE. That means six did not. Which are the

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Speaker 1: six ones that are lagging? Number one, the one that's

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Speaker 1: lagging the most in our list is apparel, leather and

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Speaker 1: allied products. And then comes to no surprise, petroleum and

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Speaker 1: coal products. Transportation equipment is on that list. Let's remember

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Speaker 1: that that contains autos, rail equipment, airplanes, etcetera. So while

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Speaker 1: autos is doing well, transportation equipment overall is a bit soft.

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Speaker 1: Non metallic mineral products, chemical products is one of the

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Speaker 1: largest ones that that we followed death on the list,

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Speaker 1: and then furniture and related products. Purchasing managers are the

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Speaker 1: people who are surveyed for this report. How many companies

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Speaker 1: at this point do you have in your universe three

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Speaker 1: D and fifty scattered throughout our eighteen different industries cross

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Speaker 1: the u s. What are some of the comments you've

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Speaker 1: got that stood out to you, because you always includes

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Speaker 1: some of the comments that people make in addition to

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Speaker 1: just saying if things are growing faster, the same or slower.

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Speaker 1: And that's what this is. It's a rather subjective survey

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Speaker 1: of the purchasing managers who do have their finger on

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Speaker 1: the pulse of their own companies right, and these comments

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Speaker 1: give us insights more into the future time frame, whereas

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Speaker 1: the numbers are specific to last month. Here's some of

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Speaker 1: the comments from wood products market is improving steadily in

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Speaker 1: both orders and pricing. From the machinery industry, steady to

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Speaker 1: slightly up production rates versus prior months. On the negative side, however,

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Speaker 1: slow down in Chinese economy is causing low orders. That's

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Speaker 1: from the computer and electronic products industry. Brad, would it

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Speaker 1: matter much to manufacturers if the FED raised the key

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Speaker 1: rate next month? No, it wouldn't. We'd go right through it. Well,

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Speaker 1: that's good, as we did, as we did. Okay, Well

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Speaker 1: that's well then, FEDER reserve. I hope you're listening. I

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Speaker 1: know the FED watches this report very closely. The Institute

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Speaker 1: for Supply Management's monthly Survey of Manufacturing Activity. We want

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Speaker 1: to thank Brad Holcum for joining us. Brad is the

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Speaker 1: chairman of the Business Survey Committee at the i s M.

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Speaker 1: Says it's a good report. Doesn't matter FED raises rates.

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Speaker 1: Manufacturer is going to keep on moving ahead. Got a

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Speaker 1: reserve in focus, continues up next professor who says the

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Speaker 1: head of the Bank of England. In fact, the Bank

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Speaker 1: of England itself should not be proclaiming on the damages

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Speaker 1: that Brexit could cause the US UK economy. Find out why.

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Speaker 1: On taking Stock Bloomberg Radio, We're gonna be speaking with

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Speaker 1: Lonnie Chen as we follow the political races, the California primary,

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