1 00:00:03,920 --> 00:00:06,920 Speaker 1: Global business News twenty four hours a day. If you 2 00:00:07,080 --> 00:00:11,319 Speaker 1: were done draws so Radio plus Global band on your radios, 3 00:00:11,360 --> 00:00:14,760 Speaker 1: a bloon word of business fla from Bloomberg World Headquarters. 4 00:00:14,800 --> 00:00:18,040 Speaker 1: I'm Catherine Cowtery and AzaC closing bell sounds. An Industrial 5 00:00:18,079 --> 00:00:20,639 Speaker 1: leverage is up twenty two points at tenth of a 6 00:00:20,680 --> 00:00:24,040 Speaker 1: percent at seventeen thousand nine number forty six, SMP five 7 00:00:24,040 --> 00:00:26,560 Speaker 1: founded up four points and Nathan a percent at one 8 00:00:26,600 --> 00:00:29,440 Speaker 1: O two. NAZAC higher by twenty points four tens of 9 00:00:29,440 --> 00:00:32,320 Speaker 1: a percent, trading at forty sixty two well. The smp 10 00:00:32,440 --> 00:00:34,319 Speaker 1: FI funder drowse for a fourth day and had its 11 00:00:34,320 --> 00:00:37,080 Speaker 1: biggest four day rally in at least nine months. There's 12 00:00:37,080 --> 00:00:40,280 Speaker 1: speculation that central banks will act to limit the fallout 13 00:00:40,280 --> 00:00:43,480 Speaker 1: from the UK's vote to leave the European Union. Equities 14 00:00:43,479 --> 00:00:45,680 Speaker 1: added to a rebound that's nearly wiped out losses from 15 00:00:45,680 --> 00:00:47,760 Speaker 1: the worst two day drop in ten months after the 16 00:00:47,840 --> 00:00:51,479 Speaker 1: surprise Brexit vote. Down Manley, chief Equity strateg as it 17 00:00:51,560 --> 00:00:54,960 Speaker 1: well as Fargo Funds Management, says investors are still assessing 18 00:00:55,000 --> 00:00:58,080 Speaker 1: the impact of Brexit. We still don't know exactly what 19 00:00:58,200 --> 00:01:01,000 Speaker 1: form this is going to take, but it's very premature 20 00:01:01,040 --> 00:01:03,440 Speaker 1: to get very negative or very positive on it. I 21 00:01:03,440 --> 00:01:07,280 Speaker 1: think what happens is, uh, the governments, the politicians sort 22 00:01:07,280 --> 00:01:10,080 Speaker 1: of feeled their way along the edge. Market provides ample 23 00:01:10,120 --> 00:01:12,280 Speaker 1: guidances to what we like and what we don't like. 24 00:01:12,840 --> 00:01:16,200 Speaker 1: And in other markets, the West Tessex, Texas intermediate crude 25 00:01:16,240 --> 00:01:18,240 Speaker 1: oil is up eighty five cents a barrel one point 26 00:01:18,280 --> 00:01:22,240 Speaker 1: eight percent at eighteen spockuled up twenty five dollars twenty cents, 27 00:01:22,280 --> 00:01:26,160 Speaker 1: and ounce at thirty seventy ten year treasury up seven 28 00:01:26,200 --> 00:01:28,720 Speaker 1: thirty seconds, with the yield of one point four four percent. 29 00:01:29,160 --> 00:01:32,080 Speaker 1: Among today's top business stories, Puerto Rico is skipping a 30 00:01:32,160 --> 00:01:35,520 Speaker 1: record nine hundred eleven eleven million dollars of bond payments 31 00:01:35,600 --> 00:01:38,200 Speaker 1: due today. It's a culmination of a more than year 32 00:01:38,240 --> 00:01:41,600 Speaker 1: long effort to force creditors into restructuring what island and 33 00:01:41,640 --> 00:01:45,000 Speaker 1: federal officials have characterized as a crushing debt burden. The 34 00:01:45,000 --> 00:01:47,920 Speaker 1: biggest misspayment is for seven hundred eighty million dollars of 35 00:01:47,960 --> 00:01:52,120 Speaker 1: general obligation bonds. Yesterday, Presidential Llamas signed a bill into 36 00:01:52,160 --> 00:01:55,200 Speaker 1: law that sets a debt restructuring in motion and shelters 37 00:01:55,200 --> 00:01:59,040 Speaker 1: the island from liability ETNA is apparently preparing to sell 38 00:01:59,080 --> 00:02:02,040 Speaker 1: assets where several billion dollars as it seeks to quell 39 00:02:02,120 --> 00:02:05,440 Speaker 1: regulatory concerns over its proposed thirty seven billion dollar take 40 00:02:05,480 --> 00:02:08,720 Speaker 1: over a smaller rival, Humana. People familiar with the matters 41 00:02:08,720 --> 00:02:11,519 Speaker 1: say the health insurer is working with advisers to identify 42 00:02:11,840 --> 00:02:14,839 Speaker 1: a portfolio of assets that could have invested, reduced any 43 00:02:14,960 --> 00:02:17,760 Speaker 1: significant overlap and now look at some of the other 44 00:02:17,760 --> 00:02:21,359 Speaker 1: stories were following on Bloomberg Radio. Catherine, thank you from 45 00:02:21,400 --> 00:02:25,760 Speaker 1: the Bloomberg Newsroom. I'm Mark Crumpton. In Bangladesh, local television 46 00:02:25,800 --> 00:02:29,560 Speaker 1: reports that two policemen are dead and over thirty people, 47 00:02:29,560 --> 00:02:33,680 Speaker 1: including twenty foreigners, are being held hostage after gunmen stormed 48 00:02:33,680 --> 00:02:37,079 Speaker 1: a restaurant in the capital's diplomatic zone. The gunman set 49 00:02:37,080 --> 00:02:41,160 Speaker 1: off explosives and exchange fire with security forces. The State 50 00:02:41,200 --> 00:02:45,080 Speaker 1: Department says the US Embassy in Dhaka has accounted for 51 00:02:45,120 --> 00:02:47,680 Speaker 1: all the U s citizens who are under the authority 52 00:02:47,880 --> 00:02:51,119 Speaker 1: of the Diplomatic Chief of Mission. There you want. Attorney 53 00:02:51,120 --> 00:02:54,400 Speaker 1: General Loretta Lynch has acknowledged that an impromptu meeting with 54 00:02:54,480 --> 00:02:57,840 Speaker 1: Bill Clinton at a Phoenix airport, in her words, cast 55 00:02:57,880 --> 00:03:01,400 Speaker 1: a shadow on the public perception of the email investigation 56 00:03:01,520 --> 00:03:05,680 Speaker 1: involving former Secretary of State Hillary Clinton. The Attorney General 57 00:03:05,680 --> 00:03:09,880 Speaker 1: addressed the controversy at the Aspen Ideas Festival in Colorado. 58 00:03:10,080 --> 00:03:13,240 Speaker 1: It's important to make it clear that that meeting with 59 00:03:13,280 --> 00:03:15,960 Speaker 1: President Clinton does not have a bearing on how this 60 00:03:16,040 --> 00:03:19,280 Speaker 1: matter is going to be reviewed, resolved, and accepted by me. 61 00:03:19,880 --> 00:03:23,040 Speaker 1: President Obama says that a vaccine for the zeke of 62 00:03:23,120 --> 00:03:26,919 Speaker 1: virus could be developed quote in fairly short order if 63 00:03:27,000 --> 00:03:29,680 Speaker 1: Congress acts quickly to pass a bill to prevent the 64 00:03:29,720 --> 00:03:32,919 Speaker 1: spread of the disease. The President says, with searchers are 65 00:03:32,960 --> 00:03:36,080 Speaker 1: beginning to develop and test a vaccine for the mosquito 66 00:03:36,160 --> 00:03:39,640 Speaker 1: born virus. He says that if the effort is well funded, 67 00:03:39,680 --> 00:03:43,640 Speaker 1: He's again quoting, fairly confident and effective vaccine could be 68 00:03:43,680 --> 00:03:48,040 Speaker 1: developed before the virus spreads to the continental US presidents 69 00:03:48,080 --> 00:03:51,160 Speaker 1: trying to pressure Congress to pass a Zeker prevention bill 70 00:03:51,280 --> 00:03:54,760 Speaker 1: that has been stalled for weeks. Global News twenty four 71 00:03:54,760 --> 00:03:58,920 Speaker 1: hours a day, powered by more than journalists and analysts 72 00:03:58,960 --> 00:04:02,400 Speaker 1: in more than one your twenty countries. I'm Mork Crumpton. 73 00:04:02,640 --> 00:04:07,200 Speaker 1: This is Bloomberg. Catherine. Thank you. Now let's get an 74 00:04:07,280 --> 00:04:10,280 Speaker 1: update of the equity benchmarks as they begin to settle. 75 00:04:10,520 --> 00:04:14,200 Speaker 1: Dell Industrial laverage of eighteen points to seventeen thousand, ninety eight, 76 00:04:14,520 --> 00:04:16,920 Speaker 1: smp F I founded up four points to one O two, 77 00:04:16,960 --> 00:04:20,479 Speaker 1: the nastacup twenty points at forty eight sixty two. And 78 00:04:20,600 --> 00:04:25,080 Speaker 1: that's a Bloomberg business flash. Move around, mortembray promotion up. 79 00:04:25,160 --> 00:04:30,440 Speaker 1: Feel move you moved like they do. I've never seen 80 00:04:30,440 --> 00:04:36,440 Speaker 1: anyone move that fast. Find people. Let's moved like to 81 00:04:36,480 --> 00:04:44,520 Speaker 1: get a purpose. Something's called movers and shakers. They cost 82 00:04:44,600 --> 00:04:53,520 Speaker 1: a little more. That name cracked me up. Bloomberg taking 83 00:04:53,560 --> 00:04:57,880 Speaker 1: stock movers and shakers with pim Box and Kathleen as 84 00:04:57,920 --> 00:05:01,640 Speaker 1: on Bloomberg Radio, a small we get to get another 85 00:05:01,760 --> 00:05:04,520 Speaker 1: gain in the stock market today, the S and P 86 00:05:04,680 --> 00:05:08,280 Speaker 1: five hundreds, Katherine just reported gaining about four percent. As 87 00:05:08,279 --> 00:05:11,360 Speaker 1: we look inside the SMP five hundred, we see that 88 00:05:11,440 --> 00:05:16,080 Speaker 1: today two companies can say, yes, how nice. Our share 89 00:05:16,080 --> 00:05:19,640 Speaker 1: price closed higher, two seven souther share prices closing lower, 90 00:05:19,720 --> 00:05:24,120 Speaker 1: four unchanged. Dave Wilson, our stock editor, joins me. Now 91 00:05:24,120 --> 00:05:26,440 Speaker 1: we're gonna take a look at what's moving and shaking 92 00:05:26,480 --> 00:05:28,840 Speaker 1: at the market closed. Dave, what do you want to 93 00:05:28,880 --> 00:05:32,640 Speaker 1: start with? I'll tell you shareholders are Harley Davidson had 94 00:05:32,680 --> 00:05:37,000 Speaker 1: an especially nice day in today's trading. Share in the 95 00:05:37,040 --> 00:05:40,560 Speaker 1: motorcycle maker rose on speculation that there may be a 96 00:05:40,640 --> 00:05:45,039 Speaker 1: takeover offer coming from the buyout firm k k R. Now. 97 00:05:45,080 --> 00:05:48,039 Speaker 1: This popped up in tweets from the likes of ben 98 00:05:48,160 --> 00:05:51,000 Speaker 1: Zinga dot Com, the Fly on the Wall, and open 99 00:05:51,040 --> 00:05:56,120 Speaker 1: out Crier. Harley declined comment. Now Raymond James Analysts wrote 100 00:05:56,120 --> 00:05:59,960 Speaker 1: that he was skeptical about the possibility of this deal. Nonetheless, 101 00:06:00,000 --> 00:06:03,800 Speaker 1: asked Harley Davidson's shares biggest gay in the SMP five 102 00:06:03,880 --> 00:06:08,000 Speaker 1: hundred by far, up almost twenty percent, and that was 103 00:06:08,040 --> 00:06:11,360 Speaker 1: the steepest advance for the shares since March two thousand nine. 104 00:06:11,560 --> 00:06:13,120 Speaker 1: So if I don't know, if you're familiar with the 105 00:06:13,240 --> 00:06:16,640 Speaker 1: ancient Chinese wisdom, the two wisdom of the Eaching, because 106 00:06:16,640 --> 00:06:18,560 Speaker 1: the idea is whoever is up is going to be down, 107 00:06:18,560 --> 00:06:21,040 Speaker 1: who vers down is going to be up. Well, Chippotle 108 00:06:21,120 --> 00:06:23,040 Speaker 1: won such a high flyer, they couldn't do anything wrong. 109 00:06:23,160 --> 00:06:25,120 Speaker 1: Right now they're down, and it seems like they're having 110 00:06:25,120 --> 00:06:28,840 Speaker 1: a tough time doing everything right from their E Coli 111 00:06:29,000 --> 00:06:32,400 Speaker 1: and neurovirus outbreaks over and over and over again to 112 00:06:32,560 --> 00:06:37,520 Speaker 1: now listen to this Chipotle Mexican Grills. Mark crump Packer, 113 00:06:37,600 --> 00:06:41,280 Speaker 1: one of the leaguer company's top four executives, was placed 114 00:06:41,279 --> 00:06:44,919 Speaker 1: on administrative leave after he was indicted for allegedly purchasing 115 00:06:44,960 --> 00:06:48,320 Speaker 1: cocaine from a drug ring in New York. Yes. Mr 116 00:06:48,520 --> 00:06:51,120 Speaker 1: krump Packer was named Marketing had in two thousand nine, 117 00:06:51,120 --> 00:06:54,560 Speaker 1: more recently of the title of Chief Creative and Development Officer, 118 00:06:54,839 --> 00:06:57,479 Speaker 1: among more than a dozen people facing charges linked to 119 00:06:57,520 --> 00:07:00,520 Speaker 1: alleged cocaine purchases over the last year. This is according 120 00:07:00,560 --> 00:07:04,280 Speaker 1: to a person familiar with the matter. The executive's duties 121 00:07:04,279 --> 00:07:07,680 Speaker 1: have been transferred to other senior managers. Chippotle said in 122 00:07:07,720 --> 00:07:10,720 Speaker 1: a statement Thursday, um taking a look at their share price, 123 00:07:10,800 --> 00:07:13,600 Speaker 1: actually all things consider to decline, not that bad, about 124 00:07:13,600 --> 00:07:17,760 Speaker 1: two point two percent three dollars in change. They didn't 125 00:07:17,800 --> 00:07:20,080 Speaker 1: fall as much as Williams did, which is saying something 126 00:07:20,120 --> 00:07:25,160 Speaker 1: because this is the gas pipeline company who's proposed takeover 127 00:07:25,280 --> 00:07:29,960 Speaker 1: by Energy Transfer Equity fell apart earlier this week and 128 00:07:30,000 --> 00:07:33,400 Speaker 1: today we got a sense of the fallout. Chairman Frank 129 00:07:33,480 --> 00:07:38,280 Speaker 1: McGinnis and five other directors resigned from Williams after that 130 00:07:38,360 --> 00:07:42,320 Speaker 1: failed attempt UH to sell the company, and also a 131 00:07:42,400 --> 00:07:46,600 Speaker 1: failed attempt to remove chief executive Alan Armstrong, who had 132 00:07:46,640 --> 00:07:50,920 Speaker 1: rebuffed energy transfers advances. You put that all together, Williams 133 00:07:50,920 --> 00:07:55,800 Speaker 1: shares down about five in today's straight Well, Netflix having 134 00:07:55,840 --> 00:07:58,480 Speaker 1: a pretty good day, up about and well only five 135 00:07:58,520 --> 00:08:02,560 Speaker 1: point seven percent at the close, and this is after 136 00:08:02,840 --> 00:08:08,760 Speaker 1: can Accord Genuity analyst Michael Graham rated Netflix a new 137 00:08:09,000 --> 00:08:13,400 Speaker 1: bye on the potential for international growth. In fact, he 138 00:08:13,480 --> 00:08:16,640 Speaker 1: said in his note it has a quote long runway 139 00:08:16,680 --> 00:08:20,200 Speaker 1: for growth and international subscribers in the fourth quarter and beyond. 140 00:08:20,440 --> 00:08:24,280 Speaker 1: His his by rating also includes a price target of 141 00:08:24,400 --> 00:08:28,480 Speaker 1: one D twenty dollars. In fact, he expects Netflix to 142 00:08:28,520 --> 00:08:32,360 Speaker 1: compete largely on the strength of its original content over time, 143 00:08:32,400 --> 00:08:34,960 Speaker 1: so it can not just domestically but internationally. So strong 144 00:08:35,000 --> 00:08:37,800 Speaker 1: signal for Netflix, tave exactly. And you know I mentioned 145 00:08:37,800 --> 00:08:41,079 Speaker 1: the possibility of a deal for Harley Davidson. Now there's 146 00:08:41,200 --> 00:08:44,360 Speaker 1: a relatively large deal that's been hanging in the balance 147 00:08:44,400 --> 00:08:50,000 Speaker 1: for months, talking about Etna's thirty four billion dollar takeover 148 00:08:50,120 --> 00:08:54,440 Speaker 1: bid for Humanity. Now the gap between Humanised share price 149 00:08:54,480 --> 00:08:58,679 Speaker 1: and the value of etna's offer neared a record, indicating 150 00:08:58,720 --> 00:09:02,360 Speaker 1: the companies may struggle to obtain US anti trust approval. Now. 151 00:09:02,400 --> 00:09:05,000 Speaker 1: People Filly over with the matter told us that ATA 152 00:09:05,080 --> 00:09:09,400 Speaker 1: is propellant preparing to sell several billion dollars of assets 153 00:09:09,440 --> 00:09:13,520 Speaker 1: in order to get the deal done. Nonetheless, Humanit shares 154 00:09:13,559 --> 00:09:16,880 Speaker 1: down three point three percent, and Etna falling as well 155 00:09:16,920 --> 00:09:20,319 Speaker 1: with a drop of one percent. Dave, let's take a 156 00:09:20,360 --> 00:09:23,040 Speaker 1: look now at the Volatility Index report, brought to you 157 00:09:23,080 --> 00:09:26,400 Speaker 1: by b CBOE VIS Options in futures. Volatility can be 158 00:09:26,440 --> 00:09:30,440 Speaker 1: harnessed with CBOE VIS options and Futures c disclosures. Learn 159 00:09:30,480 --> 00:09:35,000 Speaker 1: more at cbo e dot com. Slash Powerful Outcomes VIX. 160 00:09:35,440 --> 00:09:38,320 Speaker 1: The VIX down again today by nearly a point at 161 00:09:38,320 --> 00:09:42,160 Speaker 1: the closets at fourteen point eight to um. In fact, 162 00:09:42,200 --> 00:09:45,920 Speaker 1: it uh this it is poised for its biggest weekly 163 00:09:46,080 --> 00:09:50,080 Speaker 1: tumble ever, down forty three percent after a thirty three 164 00:09:50,080 --> 00:09:53,120 Speaker 1: percent jump last week. Something you were discussing earlier today 165 00:09:53,160 --> 00:10:00,520 Speaker 1: on taking stock. Alright, Hi, my name is Dave. Well, 166 00:10:01,040 --> 00:10:03,760 Speaker 1: just what do you think you're doing. We're going for 167 00:10:03,800 --> 00:10:12,520 Speaker 1: the Dave. Hey, Mr Wilson, you're taking a look at 168 00:10:12,960 --> 00:10:16,480 Speaker 1: Avery Dennison. It was going, yes post Brexit, a big 169 00:10:16,559 --> 00:10:19,719 Speaker 1: rally and Oops, something happened exactly. You know. It's been 170 00:10:19,720 --> 00:10:22,640 Speaker 1: more than a week now since the Brexit vote. US 171 00:10:22,679 --> 00:10:26,080 Speaker 1: stocks have pretty much recouped their initial losses. Yet UK 172 00:10:26,240 --> 00:10:28,880 Speaker 1: voters decision to leave the European Union is still having 173 00:10:28,920 --> 00:10:32,440 Speaker 1: effect on some companies, and full label and packaging material 174 00:10:32,520 --> 00:10:36,400 Speaker 1: maker Avery Dennison is among them. Now every shares listened 175 00:10:36,440 --> 00:10:39,240 Speaker 1: to the ticker symbol a v Y. They dropped about 176 00:10:39,280 --> 00:10:41,480 Speaker 1: eight percent in the first two days of trading after 177 00:10:41,520 --> 00:10:45,120 Speaker 1: the Brexit vote. The stock then stage the three day rally, 178 00:10:45,200 --> 00:10:48,640 Speaker 1: which made back more than half the loss. The thing is, 179 00:10:48,840 --> 00:10:52,560 Speaker 1: Avery's recovery was cut short today after Bank of America 180 00:10:52,600 --> 00:10:55,720 Speaker 1: Merrill Lynch lowered its rating to the equivalent of self 181 00:10:55,760 --> 00:10:59,559 Speaker 1: from neutral and it was George Staphos stited the potential 182 00:10:59,679 --> 00:11:03,400 Speaker 1: for a UK recession and a euroregion slowed down in 183 00:11:03,440 --> 00:11:07,040 Speaker 1: a report, and he lowered his forecast accordingly. Now, data 184 00:11:07,080 --> 00:11:10,720 Speaker 1: compolled by Bloomberg shows Staphos is the first analysts to 185 00:11:10,760 --> 00:11:15,240 Speaker 1: recommend selling Avery shares in eighteen months, and some traders 186 00:11:15,240 --> 00:11:17,960 Speaker 1: and investors took that advice to heart. It's not like 187 00:11:18,200 --> 00:11:22,280 Speaker 1: it was a huge move, uh. Nonetheless, Avery Dennison with 188 00:11:22,360 --> 00:11:25,400 Speaker 1: a loss of two point nine percent. That's the fourth 189 00:11:25,400 --> 00:11:27,960 Speaker 1: biggest decline in the S and P five on the day, 190 00:11:27,960 --> 00:11:31,080 Speaker 1: behind you Manna and Williams, which I've already mentioned, and 191 00:11:31,240 --> 00:11:36,920 Speaker 1: Micron Technology, which suffered in the wake of disappointing results, 192 00:11:37,720 --> 00:11:41,200 Speaker 1: discipplining results, analysts changing their mind. These are the kind 193 00:11:41,200 --> 00:11:44,199 Speaker 1: of things that the waters that investors have to navigate, 194 00:11:44,240 --> 00:11:46,600 Speaker 1: Dave Wilson are stocks that are thank you for helping 195 00:11:46,679 --> 00:11:50,000 Speaker 1: us navigate them today and understand them on taking Stock. 196 00:11:50,040 --> 00:11:53,800 Speaker 1: That's why you always be listening listening to taking Stock 197 00:11:53,800 --> 00:11:57,880 Speaker 1: on Kathleen Hayes pim Fox on vacation back on Tuesday, 198 00:11:57,960 --> 00:12:06,240 Speaker 1: right after three day weekend. This is Boomberg. 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