WEBVTT - Bloomberg BNA: A replacement for the ACA?

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<v Speaker 1>This is Bloomberg surveillance. Some we have it. We have

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<v Speaker 1>to ad direct what happened to do it the Brexit

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<v Speaker 1>and that is always the stelling, weakness and downside. And

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<v Speaker 1>it's not until I start raising rates that you're gonna

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<v Speaker 1>see the your dollar curve accepting more of the fifth rate.

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<v Speaker 1>Guidance of the Fed, I think has made clear that

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<v Speaker 1>we should expect a couple of interest rate increases this year,

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<v Speaker 1>and I don't think it's going to affect the real

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<v Speaker 1>economy very much at the stage. Bloomberg Surveillance your link

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<v Speaker 1>to the world of economics, finance, and investment on Bloomberg Radio.

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<v Speaker 1>Good burning everyone, Michael McKee and Tom Keeve Bloomberg Surveillance

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<v Speaker 1>Coast to coast, worldwide, soorldier with US no economics, finance, investment,

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<v Speaker 1>international relations, a touch of politics or excuse me, what

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<v Speaker 1>will be policy as we move forward with our politics soon?

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<v Speaker 1>Right now? The Forex Brief, let's look at for an

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<v Speaker 1>exchange with sterling really moving. The Forex Brief brought you

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<v Speaker 1>by Interactive Broker's winner of f X Weeks two thousand

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<v Speaker 1>fifteen award for the best Retail four X trading platform,

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<v Speaker 1>visit ib at I b k R dot com, Slash

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<v Speaker 1>four x zero six Sterling stronger off Carney comments on Bromain.

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<v Speaker 1>I'm Brexit hider, carbon currencies weaker with oil finally getting

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<v Speaker 1>a bit in the last hour ugly before then, Looney,

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<v Speaker 1>we say good morning to David Rosenberg and thank him

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<v Speaker 1>for his reason comments moments ago. I'm Bloomberg surveillant's look

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<v Speaker 1>for that on our podcasts out on iTunes. We'll do that,

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<v Speaker 1>get those out to you in an hour or two

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<v Speaker 1>hours or so. That's been hugely popular. Thank you for

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<v Speaker 1>listening to our podcasts, including with David Rosenberg and Mariannaicacha Lakota,

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<v Speaker 1>which is a good thing. The end one EU a

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<v Speaker 1>week or maybe the big country headline one eleven fifty

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<v Speaker 1>eight euros sinking. Michael, is there any talk of euro

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<v Speaker 1>to parody? I would say no, no. I only hear

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<v Speaker 1>people talking in a while weaker euros that that week.

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<v Speaker 1>I did not know David Wilson that best Buy has

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<v Speaker 1>a hundred and twenty five thousand employees, and never would

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<v Speaker 1>have guessed that. Well, now you know it's a big company.

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<v Speaker 1>It is, and they lead your they lead yours, they

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<v Speaker 1>do the largest US consumer electronics retailer, and trouble is

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<v Speaker 1>that they expect the fiscal second quarter earnings to be

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<v Speaker 1>lower than analysts average estimate in the Bloomberg servey. Beyond that,

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<v Speaker 1>chief financial officer and chief administrative officers Sharon McCollum's stepped

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<v Speaker 1>down effective next month. That she had come in not

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<v Speaker 1>long after chief executive who bear Jo Lee, who turned

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<v Speaker 1>around best Buy in the prospect of her leaving in

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<v Speaker 1>a short I haven't seen it yet. Stocks down four

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<v Speaker 1>and a half percent early trading, though I've seen that

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<v Speaker 1>another retailer. It's lower. Auto Zone down one percent. The

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<v Speaker 1>auto parts chains profit and revenue for the fiscal third

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<v Speaker 1>quarter trailed estimates, so analyst calls him Note Deers up

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<v Speaker 1>one percent. The Pharmer Evan maker was raised the equivalent

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<v Speaker 1>by from Hold of BMO Capital Markets. The firm increased

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<v Speaker 1>its twelve month pricess but to ninety six hours, the

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<v Speaker 1>highest among eighteen in a listen of Bloomberg Survey. Western

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<v Speaker 1>Digitals up two and a half percent. The disk drive

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<v Speaker 1>maker was raised the equivalent of buy from Hold accountant

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<v Speaker 1>Twitter down half a percent because of a call from

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<v Speaker 1>a couple of analysts that you just talked to recently,

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<v Speaker 1>Craig Moffatt and Michael Nathanson. Nipson actually covers Twitter for

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<v Speaker 1>Nathanson and cut the rating on the stock to sell

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<v Speaker 1>from neutral because he sees a takeover as less likely.

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<v Speaker 1>Back on the erniess Ron Tall Brothers up three and

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<v Speaker 1>a half percent. The biggest US builder of luxury homes

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<v Speaker 1>posted fiscal second quarter revenue and profit that beat projections.

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<v Speaker 1>The number of homes Told Brothers delivered in the quarter

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<v Speaker 1>rose nine percent and the average selling price climbed twenty percent.

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<v Speaker 1>Then you have ds W down ten percent. The discounts

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<v Speaker 1>shoe seller's fiscal first quarter arnies and sales trail estimates.

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<v Speaker 1>D s W cut full your forecast and now expects

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<v Speaker 1>sales to fall its stores open more than a year.

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<v Speaker 1>There is a retailer stock that's higher, though, problem is

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<v Speaker 1>it has nothing to do with their performance. I'm referring

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<v Speaker 1>to chicos f A s SO Women's apparel Change shares

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<v Speaker 1>are up five percent. The activist investor Barrington Capital began

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<v Speaker 1>a proxy fight for two board seats. Barrington disclosed it

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<v Speaker 1>owns a one point four percent steak, more than double

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<v Speaker 1>it's holding at the end of March are a couple

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<v Speaker 1>more for you. Share sales Booze Ammal Alan Hamilton down

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<v Speaker 1>three percent, the consultants selling three hundred and sixty seven

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<v Speaker 1>million dollars of stock on behalf of its largest shareholder,

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<v Speaker 1>private equity firm Carlisle Group. We're talking about thirteen million shares.

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<v Speaker 1>Are an eight point eight percent steak, and c Span

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<v Speaker 1>Downtown a half percent to say a container ship owner.

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<v Speaker 1>They're selling five million shares and that's equivalent to about

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<v Speaker 1>a five percent stick and you use the money to

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<v Speaker 1>redeem couple of birds stock. That's it. That's it. David Wilson,

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<v Speaker 1>thank you so much on bess By. Greatly appreciated. Mike.

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<v Speaker 1>As you know, once a week we need to speak

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<v Speaker 1>to someone who worked for the Worcester Telegram years ago.

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<v Speaker 1>It's always one of our mandates. Nathaniel Wexels with Bloomberg BNA,

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<v Speaker 1>the Bureau of National Affairs. I've read them for years,

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<v Speaker 1>like for decades, Nathaniel, you weren't even born and I

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<v Speaker 1>was reading b N. A material thrilled down. Nathaniel Wexel

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<v Speaker 1>with us on the Affordable Care Act and the idea

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<v Speaker 1>there could be a replacement Nathaniel, I've got a trenchant

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<v Speaker 1>question before Mike piles into this. What's a white paper?

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<v Speaker 1>A white paper is really just a set of ideas

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<v Speaker 1>that's put out, so it doesn't really mean anything. It's

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<v Speaker 1>sort of the thing that sink tanks would like to

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<v Speaker 1>play out. So if I'm at the Palm restaurant in

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<v Speaker 1>Washington and I come up with four ideas to make

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<v Speaker 1>the Washington Capitals winning hockey, I can write a white

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<v Speaker 1>paper on the Washington Washington Capitals and put it out,

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<v Speaker 1>and it appears you would have as much luck getting

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<v Speaker 1>the capital as a Stanley Cup as the Republicans have

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<v Speaker 1>of repealing the Affordable Care Act. Um this the legislation

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<v Speaker 1>you're writing about today. Uh, it appears to be a

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<v Speaker 1>case of trying to have your cake and eat it too.

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<v Speaker 1>To Republican lawmakers. Unveiling bill intended to be an alternative

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<v Speaker 1>to the Affordable Care Act, but in a difference in

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<v Speaker 1>strategy from what the Republicans have been up to for

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<v Speaker 1>the last couple of years, they don't want to repeal

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<v Speaker 1>the whole thing, right, They just want to tweet tweak it,

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<v Speaker 1>tweak it somewhat. Mainly what they have planned at least

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<v Speaker 1>in this legislation is almost sort of a parallel version

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<v Speaker 1>of it. So they're going to repeal the big issue.

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<v Speaker 1>They're going to repeal them mandates, the the issue that

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<v Speaker 1>you have to have insurance and that your employer has

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<v Speaker 1>to provide you with insurance. So those the two things

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<v Speaker 1>that they want to get rid of. But they seem

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<v Speaker 1>to want to keep everything that raises money, so that's

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<v Speaker 1>how they're going to pay for it. But the mandate

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<v Speaker 1>is considered the key to the whole thing. If you

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<v Speaker 1>don't have to buy insurance, then uh, you know, it

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<v Speaker 1>doesn't matter how you raise the money, it won't be there. Right,

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<v Speaker 1>So they call it the free market alternative to the

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<v Speaker 1>Affordable Care Act. So if you want to have insurance,

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<v Speaker 1>you can go onto what they call the world's greatest

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<v Speaker 1>health care plan. Or if you don't want to have insurance,

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<v Speaker 1>you don't have to have insurance, Or if you're previously

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<v Speaker 1>covered under the Affordable Care Act, you can keep that

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<v Speaker 1>insurance with all the associated penalties. What about the people

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<v Speaker 1>that the Act was really intended to cover, the poor,

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<v Speaker 1>people who can't afford or whose companies don't offer health insurance.

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<v Speaker 1>How do they get insurance onto this bill. So the

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<v Speaker 1>main part of this bill is a tax credit, and

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<v Speaker 1>that is coming to you if you decide to be

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<v Speaker 1>a part of this plan. So it's you can do

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<v Speaker 1>with that money whatever you want. So you get this,

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<v Speaker 1>you can put it into a health saving his account,

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<v Speaker 1>you can give it to your employer for to essentially

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<v Speaker 1>buy coverage from your employer. But unlike the Affordable Care Act,

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<v Speaker 1>where the tax credits are adjustable by in come, this

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<v Speaker 1>is not. So it's just flats. And then if you

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<v Speaker 1>have dependence, I think you can get a credit in

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<v Speaker 1>addition to that. But really it's just you get this

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<v Speaker 1>money and you can decide what to do with it.

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<v Speaker 1>What is the feasibility of this? I congratulate in Nathan

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<v Speaker 1>wexilon clarity within your report on the likelihood of this.

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<v Speaker 1>Usually we you know, nobody talks about the ability to

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<v Speaker 1>actually get something done. As they say, the stars have

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<v Speaker 1>to align for the various shades of Republicans, don't they

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<v Speaker 1>They have to align for Republicans, that have to align

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<v Speaker 1>even for some Democrats too, because in the Senate you're

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<v Speaker 1>not gonna be able to get anything done without some

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<v Speaker 1>democratic cooperation. So right now they have to have at

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<v Speaker 1>least sixty Republicans or some Democrats in the Senate who

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<v Speaker 1>wanted they need to keep the House and they need

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<v Speaker 1>a Republican president in order to completely repeal this law. Uh,

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<v Speaker 1>that's clearly not going to happen immediately. So this is

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<v Speaker 1>sort of aimed at stincase there's a Republican president. Pew

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<v Speaker 1>very quickly her Pew has a new survey out of

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<v Speaker 1>a month ago, three or four weeks ago, I should say,

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<v Speaker 1>showing more Americans disapprove than approve of the healthcare law.

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<v Speaker 1>Why did that occur? Why do people disapprove of that?

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<v Speaker 1>I can't speak to other people's polls, but I think

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<v Speaker 1>maybe it's just the political realities right now. What do

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<v Speaker 1>you suggest this will be for the campaign? I mean,

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<v Speaker 1>will this be front and center for the campaign or

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<v Speaker 1>I mean does it resonate now? Right now? Both Hillary

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<v Speaker 1>Clinton and Donald Trump, the presumptive front runners of either party,

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<v Speaker 1>haven't really done a whole lot of de deal on healthcare,

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<v Speaker 1>so it could be there, but you know, right now,

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<v Speaker 1>both have sort of gotten pretty far. Without being very specific.

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<v Speaker 1>We look forward to having you on again. This has

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<v Speaker 1>been very good. Nathan Wexwell, Thank you so much. He

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<v Speaker 1>is a Bloomberg b NA, which is basically um like

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<v Speaker 1>a hugely productive thinker group. They write terrific rep worts.

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<v Speaker 1>I read them word for word on text policy in

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<v Speaker 1>another life a few years ago be at a dot

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<v Speaker 1>com and uh, you can see being a Bloomberg being

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<v Speaker 1>a Nathan. That was very good. I don't, Mike, I

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<v Speaker 1>I don't hear any residents on a c A either way.

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<v Speaker 1>I just don't hear it being discussed. Maybe that will change.

0:10:22.480 --> 0:10:24.600
<v Speaker 1>It will be a big issue in the presidential campaign,

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<v Speaker 1>just because just because there it is, just because futures

0:10:28.960 --> 0:10:31.600
<v Speaker 1>up eleven death, futures up ninety four. Again, you're a weaker,

0:10:32.160 --> 0:10:36.120
<v Speaker 1>really now getting my attention. One eleven fifty nine, a

0:10:36.120 --> 0:10:38.360
<v Speaker 1>few days in a row of weakness, and of course

0:10:38.360 --> 0:10:41.840
<v Speaker 1>that pushes us dollar modestly higher. You're a more weak

0:10:42.320 --> 0:10:47.920
<v Speaker 1>than the dollar is strong. Gold twelve forty one the ounce.

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<v Speaker 1>Let's check out with like a bar and get the

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<v Speaker 1>latest world and national headlines. Mike, Mike, Tom, thank you

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<v Speaker 1>very much. Family members are the victims of Egypt Air

0:10:58.920 --> 0:11:01.880
<v Speaker 1>flight eight oh or have begun arriving at a more

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<v Speaker 1>forensics department in Cairo to give DNA samples that will

0:11:06.160 --> 0:11:09.880
<v Speaker 1>help identify their loved ones. Meanwhile, a senior Egyptian forensics

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<v Speaker 1>official is telling Associated Press human remains that have been

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<v Speaker 1>recovered from the crash site have burns on them and

0:11:16.840 --> 0:11:20.160
<v Speaker 1>are very tiny, suggesting that an explosion may have taken

0:11:20.160 --> 0:11:23.000
<v Speaker 1>place on board. A statement in Middle East News Agency

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<v Speaker 1>says though the report is not true. A senior Afghan

0:11:26.520 --> 0:11:29.800
<v Speaker 1>Taliban figure says the death of the group's leader mala

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<v Speaker 1>Aktar Mansour in the U s drone strike last week

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<v Speaker 1>could make the movement stronger and unify its ranks, and

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<v Speaker 1>Sir was killed Saturday in the strike in southwestern Pakistan.

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<v Speaker 1>Global News twenty four hours a day, powered by our

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<v Speaker 1>twenty four hundred journalists and more than a hundred fifty

0:11:45.960 --> 0:11:49.160
<v Speaker 1>news bureaus around the world. How Michael bar Mica Fishers

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<v Speaker 1>Up twelve, dug up nine fixed trading before the open.

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<v Speaker 1>The fix does better as you'd expect. A lower statistic

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<v Speaker 1>fifteen point four six in point three six points Michael

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<v Speaker 1>Key and Tom Keane Worldwide Bloomberg Surveillance Market Driver is

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<v Speaker 1>brought to you by S S and C more experienced,

0:12:08.440 --> 0:12:11.800
<v Speaker 1>superior technology, independence and expertise that's how SS and C

0:12:12.000 --> 0:12:14.640
<v Speaker 1>drives the future of fund administration. As SS and C,

0:12:14.880 --> 0:12:20.200
<v Speaker 1>they are the future of fund administration. Boom