1 00:00:03,279 --> 00:00:06,640 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,720 --> 00:00:09,800 Speaker 1: dot com, So radio plus mobile, lapt and on your radio. 3 00:00:10,520 --> 00:00:14,360 Speaker 1: He's a Bloomberg Business block from Bloomberg World Headquarters. I'm 4 00:00:14,440 --> 00:00:18,040 Speaker 1: Katherine mccotarian AzaC closing bell sounds of down. Industrial average 5 00:00:18,079 --> 00:00:21,040 Speaker 1: up two hundred sixty eight points one point six percent 6 00:00:21,079 --> 00:00:24,160 Speaker 1: at seventeen thousand, four hundred seven. SMP five foundered up 7 00:00:24,200 --> 00:00:26,720 Speaker 1: thirty five points one point eight percent to two thousand 8 00:00:26,760 --> 00:00:30,280 Speaker 1: thirty five. NASAC hired by ninety seven two point one percent, 9 00:00:30,320 --> 00:00:33,080 Speaker 1: trading at forty six and ninety one, while stocks gained 10 00:00:33,320 --> 00:00:35,519 Speaker 1: for the first time since Britain voted to leave the 11 00:00:35,560 --> 00:00:39,120 Speaker 1: European Union. The SMP five fundred up the most since March. 12 00:00:39,200 --> 00:00:42,760 Speaker 1: There's optimism that policymakers are committed to limit the fallout 13 00:00:42,760 --> 00:00:45,919 Speaker 1: from the UK's exit. Hank Smith's chief investment officer at 14 00:00:45,920 --> 00:00:50,000 Speaker 1: Haverford trusses stocks have come back for from bigger losses. 15 00:00:50,760 --> 00:00:53,440 Speaker 1: The markets were off after the first five weeks about 16 00:00:53,600 --> 00:00:57,600 Speaker 1: thirteen fourteen percent, and that was reversed in a mere 17 00:00:57,960 --> 00:01:00,680 Speaker 1: two or three weeks. I'm not suggested seeing that it's 18 00:01:00,680 --> 00:01:03,680 Speaker 1: going to happen exactly like this, but I am suggesting 19 00:01:03,840 --> 00:01:08,440 Speaker 1: that these pullbacks are buying opportunities. Today's recovery is bolstered 20 00:01:08,480 --> 00:01:10,520 Speaker 1: by equities that were among the biggest drags during the 21 00:01:10,600 --> 00:01:13,080 Speaker 1: seal off. City Group in Bank of America up atly 22 00:01:13,200 --> 00:01:15,800 Speaker 1: three point eight percent, with lenders recovering from the worst 23 00:01:15,800 --> 00:01:19,120 Speaker 1: two days in almost five years. West Texas intermediate crude 24 00:01:19,120 --> 00:01:21,360 Speaker 1: oil up a dollar fifty nine barrel three point four 25 00:01:21,400 --> 00:01:24,880 Speaker 1: percent at forty seven ninety three spot gold down ten 26 00:01:24,880 --> 00:01:27,520 Speaker 1: dollars an ounce at thirteen fourteen seventy and a ten 27 00:01:27,600 --> 00:01:30,840 Speaker 1: year treasury down five thirty seconds yield one point four 28 00:01:30,959 --> 00:01:35,240 Speaker 1: five percent. Among today's top business stories. The economy expanded 29 00:01:35,240 --> 00:01:38,319 Speaker 1: more than previously estimated in the first quarter, as improved 30 00:01:38,319 --> 00:01:41,080 Speaker 1: performance in trade and business investment more than made up 31 00:01:41,120 --> 00:01:44,680 Speaker 1: for weaker consumer spending. The Commerce Department reported that gross 32 00:01:44,680 --> 00:01:47,760 Speaker 1: domestic product rose at a one point one percent annual rate, 33 00:01:48,200 --> 00:01:51,600 Speaker 1: and consumer confidence roses month of the highest levels in October. 34 00:01:51,840 --> 00:01:54,800 Speaker 1: The Conference Ford reported its index increased to ninety eight 35 00:01:54,800 --> 00:01:57,120 Speaker 1: in June from ninety two point four in May. The 36 00:01:57,200 --> 00:02:01,080 Speaker 1: survey was conducted before the brexit. Volte Volkswagen has agreed 37 00:02:01,080 --> 00:02:03,800 Speaker 1: to spend more than fifteen billion dollars to get hundreds 38 00:02:03,800 --> 00:02:07,520 Speaker 1: of thousands of emissions cheating diesel vehicles off US roads 39 00:02:07,560 --> 00:02:10,360 Speaker 1: and to play kate regulators. The settlements at an auto 40 00:02:10,360 --> 00:02:12,919 Speaker 1: industry record in the US, and still the VW facing 41 00:02:12,960 --> 00:02:16,200 Speaker 1: criminal and civil complaints on a free continents. And now 42 00:02:16,240 --> 00:02:20,679 Speaker 1: an update on some of the other stories we're following today. Catherine, 43 00:02:20,680 --> 00:02:23,240 Speaker 1: Thank you from the Bloomberg news Room by Mark Crumpton. 44 00:02:23,520 --> 00:02:26,880 Speaker 1: The Associated Press cites a Turkish official who says two 45 00:02:26,919 --> 00:02:32,280 Speaker 1: explosions have rocked Istanbul's editor airport, leaving multiple people injured. 46 00:02:32,520 --> 00:02:36,120 Speaker 1: The official also telling the AP it's unclear whether the 47 00:02:36,200 --> 00:02:40,600 Speaker 1: explosions were caused by bombs or suicide attack. The White 48 00:02:40,600 --> 00:02:43,800 Speaker 1: House is dismissing today's report from the House Select Committee 49 00:02:43,800 --> 00:02:48,040 Speaker 1: on Benghazi, calling the investigation of partisan maneuver aimed at 50 00:02:48,120 --> 00:02:51,680 Speaker 1: taking down former Secretary of State Hillary Clinton, now the 51 00:02:51,760 --> 00:02:56,120 Speaker 1: likely Democratic presidential nominee. White House French Secretary johsn earnist 52 00:02:56,200 --> 00:03:00,000 Speaker 1: it is a seven million dollar effort funded by taxpayers 53 00:03:00,760 --> 00:03:03,839 Speaker 1: to do what they would be speak of. Their House 54 00:03:03,880 --> 00:03:07,640 Speaker 1: says was their goal, which is to tear down sectory 55 00:03:07,680 --> 00:03:11,959 Speaker 1: Clinton's poll numbers. Mrs Clinton campaigning in Denver Colorado Today 56 00:03:12,080 --> 00:03:15,120 Speaker 1: said it's clear that it's time to move on. In 57 00:03:15,200 --> 00:03:18,480 Speaker 1: an interview with National Public Radio, President Obama said he 58 00:03:18,560 --> 00:03:22,200 Speaker 1: doesn't think the UK's decision to leave the European Union 59 00:03:22,400 --> 00:03:25,359 Speaker 1: will cause quote cataclysmic changes. That's the way to think 60 00:03:25,360 --> 00:03:28,320 Speaker 1: about this is a pause button has been pressed on 61 00:03:28,480 --> 00:03:34,760 Speaker 1: the project of full European integration. I would not overstate it. Um, 62 00:03:34,800 --> 00:03:37,720 Speaker 1: there's been a little bit of hysteria post Brexit vote, 63 00:03:37,840 --> 00:03:43,920 Speaker 1: as if somehow NATO's gone at the Transatlantic Alliance is dissolving, 64 00:03:44,240 --> 00:03:48,440 Speaker 1: and uh, every country is rushing off to its own quarter, 65 00:03:48,640 --> 00:03:51,680 Speaker 1: and that's not what's happening. The President had opposed the 66 00:03:51,680 --> 00:03:55,520 Speaker 1: Brexit vote. Global News twenty four hours a day, powered 67 00:03:55,520 --> 00:04:00,480 Speaker 1: by more than journalists and analysts in more than one countries. 68 00:04:00,880 --> 00:04:07,160 Speaker 1: I'm Mark Crumpton, this is Bloomberg. Catherine, thank you. When 69 00:04:07,200 --> 00:04:09,520 Speaker 1: we have an update on that story. Out of Turkey, 70 00:04:09,960 --> 00:04:13,000 Speaker 1: a Turkish official says two attackers have blown themselves up 71 00:04:13,000 --> 00:04:16,159 Speaker 1: at Istanbul's at a Turkey airport after police fired at them, 72 00:04:16,160 --> 00:04:18,920 Speaker 1: and Turkish media are quoting a justice minister as saying 73 00:04:18,960 --> 00:04:22,919 Speaker 1: that ten people were killed in that attack today and 74 00:04:23,080 --> 00:04:27,160 Speaker 1: as those benchmark settle, let's get an update. Dow Industrial 75 00:04:27,200 --> 00:04:29,599 Speaker 1: leverage up two hundred sixty nine points to seventeen thousand, 76 00:04:29,640 --> 00:04:32,240 Speaker 1: four hundred nine, smp F I funded up thirty five 77 00:04:32,279 --> 00:04:35,320 Speaker 1: points to two thousand, thirty six. Nasdack hire by ninety 78 00:04:35,360 --> 00:04:37,760 Speaker 1: seven at forty six and ninety one. And that's a 79 00:04:37,760 --> 00:04:42,480 Speaker 1: Bloomberg Business flash move most grade promotion. I feel Earth 80 00:04:43,240 --> 00:04:46,960 Speaker 1: moved on. You moved like they do. I've never seen 81 00:04:47,000 --> 00:04:53,080 Speaker 1: anyone move that fast. Tired people have moved like You've 82 00:04:53,080 --> 00:05:00,360 Speaker 1: got a purpose. That was called movements in shape because 83 00:05:00,720 --> 00:05:03,120 Speaker 1: it costs a little more. That name cracked me up. 84 00:05:09,000 --> 00:05:13,240 Speaker 1: Bloomberg taking stock movers and shakers with Pim Fox and 85 00:05:13,320 --> 00:05:17,680 Speaker 1: Kathleen As on Bloomberg Radio. Interesting, when you look at 86 00:05:17,680 --> 00:05:21,880 Speaker 1: the SMP five hundred, how many shares closed up, down, 87 00:05:22,000 --> 00:05:27,599 Speaker 1: or unchanged. It's just about flipped exactly from yesterday. Uh 88 00:05:27,680 --> 00:05:31,240 Speaker 1: today we have for a seventy two share prices closing higher, 89 00:05:31,720 --> 00:05:35,320 Speaker 1: thirty one closing lower, two closing unchanged. And of course 90 00:05:35,360 --> 00:05:39,039 Speaker 1: all those stocks closing higher were behind the SMP five 91 00:05:39,160 --> 00:05:42,680 Speaker 1: hundred closing. If you run it off nearly two today, 92 00:05:43,279 --> 00:05:46,520 Speaker 1: Da Wilson's back our stocks editor. He's kicking off movers 93 00:05:46,520 --> 00:05:49,080 Speaker 1: and shakers. What's catching your eye, Mr Wilson, Well, I 94 00:05:49,120 --> 00:05:51,320 Speaker 1: want to talk about Gilead Science. Is this is a 95 00:05:51,320 --> 00:05:55,440 Speaker 1: company that's really made its name by developing treatments for 96 00:05:55,520 --> 00:06:01,039 Speaker 1: hepatitis see their savalvy and harbony. And now there's another 97 00:06:01,080 --> 00:06:04,880 Speaker 1: one called at Clusa, just received US approval and it's 98 00:06:04,920 --> 00:06:07,880 Speaker 1: the first drug that can be used to fight all 99 00:06:08,040 --> 00:06:12,039 Speaker 1: forms of the viral disease. Now, at Clusa is going 100 00:06:12,080 --> 00:06:15,680 Speaker 1: to have a lower list price than Sabaldi and harvony. 101 00:06:15,760 --> 00:06:19,000 Speaker 1: And that's a big deal because Gillyad came under pressure 102 00:06:19,080 --> 00:06:22,960 Speaker 1: from Congress and others uh in the last year or 103 00:06:22,960 --> 00:06:27,120 Speaker 1: two because of the relatively high prices for their Hepatitis 104 00:06:27,160 --> 00:06:30,560 Speaker 1: C treatments. Will you put that all together? Gillyad Sciences 105 00:06:30,600 --> 00:06:33,320 Speaker 1: with a gain of five point two percent, biggest advance 106 00:06:33,360 --> 00:06:36,800 Speaker 1: in the stocks in October. Well, Dave, I want to 107 00:06:36,839 --> 00:06:40,000 Speaker 1: take a look at Dow Chemical. Interesting that it is 108 00:06:40,080 --> 00:06:45,919 Speaker 1: down some two point nine percent today, planning to eliminate jobs, 109 00:06:46,160 --> 00:06:50,080 Speaker 1: shut plans in North Carolina and Japan. As it continues 110 00:06:50,200 --> 00:06:54,120 Speaker 1: to slim down after taking full control of its Dow 111 00:06:54,320 --> 00:06:58,000 Speaker 1: Corning Corporation silicon venture. It's going to take a charge 112 00:06:58,000 --> 00:06:59,799 Speaker 1: of about four or ten million to four and sixty 113 00:06:59,800 --> 00:07:03,000 Speaker 1: million in the second quarter of her asset impairments, employees, 114 00:07:03,040 --> 00:07:08,719 Speaker 1: severance and more. Um. It's interesting that this is happening 115 00:07:08,720 --> 00:07:11,920 Speaker 1: at a time when it was not certainly unexpected, Dave. 116 00:07:12,040 --> 00:07:15,200 Speaker 1: There's a terriffic piece, a Bloomberg gadfly piece that you 117 00:07:15,200 --> 00:07:19,280 Speaker 1: can find on your Bloomberg or even on our Bloomberg website, 118 00:07:19,520 --> 00:07:22,960 Speaker 1: written by Brooke Sutherland, and UH, I like what I 119 00:07:23,000 --> 00:07:25,200 Speaker 1: like what she says here. This isn't a story about 120 00:07:25,200 --> 00:07:28,720 Speaker 1: how corporations like UH, Dow and even DuPont are evil 121 00:07:28,760 --> 00:07:32,120 Speaker 1: for putting profits above the welfare of employees. Although let's 122 00:07:32,120 --> 00:07:34,880 Speaker 1: face it, there's a human cost of these mega mersureds 123 00:07:34,880 --> 00:07:37,880 Speaker 1: that clinical clinical world like word like synergy canna RaSE. 124 00:07:37,960 --> 00:07:40,440 Speaker 1: But she points out, Dave, the job cuts aren't happening 125 00:07:40,440 --> 00:07:44,480 Speaker 1: in a vacuum. Times are tough for chemical corporations right now, 126 00:07:44,520 --> 00:07:49,080 Speaker 1: as global growth plods along and commodity prices flounder. And 127 00:07:49,120 --> 00:07:51,840 Speaker 1: certainly JP Morgan noted that when they cut their ratings 128 00:07:51,880 --> 00:07:54,920 Speaker 1: on Dow Chemical and DuPont today we should point out 129 00:07:55,080 --> 00:08:00,440 Speaker 1: DuPont shares fell as well. UH. In today's trading, Let's 130 00:08:00,440 --> 00:08:03,680 Speaker 1: take a look at Endo Pharmaceuticals, or in the international 131 00:08:03,760 --> 00:08:06,120 Speaker 1: to be more precise. This is a company that has 132 00:08:06,120 --> 00:08:09,720 Speaker 1: grown through takeovers over the last few years. Uh. They've 133 00:08:09,760 --> 00:08:12,080 Speaker 1: piled up more than eight billion dollars of debt in 134 00:08:12,120 --> 00:08:15,040 Speaker 1: the process. And there was a report out of Routers 135 00:08:15,400 --> 00:08:18,840 Speaker 1: UH citing people familiar with the matter saying that Endo 136 00:08:19,240 --> 00:08:22,880 Speaker 1: was looking at assets sales to reduce its debt burden 137 00:08:23,160 --> 00:08:27,360 Speaker 1: and had actually spoken to private equity firms about possible deals. Well, 138 00:08:27,400 --> 00:08:31,000 Speaker 1: that prospect went over well with investors, because Endo shares 139 00:08:31,240 --> 00:08:37,839 Speaker 1: jumped more than eighteen percent in today's trading biggest advances November. Well, 140 00:08:37,920 --> 00:08:40,079 Speaker 1: let's take a look at Marathon. I like stories that 141 00:08:40,120 --> 00:08:43,679 Speaker 1: are really simple to understand. Dave Wilson, UH, with my 142 00:08:43,840 --> 00:08:47,719 Speaker 1: next crewed up about three point six percent today at 143 00:08:47,720 --> 00:08:52,360 Speaker 1: forty seven dollars and nine cents of barrel. Marathon stock 144 00:08:52,600 --> 00:08:55,000 Speaker 1: up sharply. In fact, that the close up eight point 145 00:08:55,200 --> 00:08:58,640 Speaker 1: two per cent not just the oil price rebound, but 146 00:08:59,000 --> 00:09:05,000 Speaker 1: also potential worker uh strike in parts of Norway, and 147 00:09:05,040 --> 00:09:08,040 Speaker 1: of course of strike maybe less output. So UH the 148 00:09:08,120 --> 00:09:10,600 Speaker 1: quote in this story, oil is recovering on some bargain 149 00:09:10,679 --> 00:09:13,240 Speaker 1: hunting after the drop below forty seven dollars a barrel 150 00:09:13,360 --> 00:09:16,760 Speaker 1: proved unsustainable and on news of this possible strike in 151 00:09:16,760 --> 00:09:20,240 Speaker 1: the Norwegian oil and gas industry. Yeah, I'd also like 152 00:09:20,320 --> 00:09:23,680 Speaker 1: to point out what end though, there's more to the story. Uh, 153 00:09:24,000 --> 00:09:28,360 Speaker 1: their partformed sceutical unit got a new patent on a 154 00:09:28,480 --> 00:09:31,839 Speaker 1: treatment called vaso strict and it's it's been someone has 155 00:09:31,840 --> 00:09:35,520 Speaker 1: been sold for a while but hasn't had patent protection. 156 00:09:35,760 --> 00:09:39,480 Speaker 1: Interestingly enough, it's all about uh, increasing blood pet pressure 157 00:09:39,520 --> 00:09:43,280 Speaker 1: in patients with sepsis other diseases. So you know, definitely 158 00:09:43,280 --> 00:09:46,240 Speaker 1: more to the end of story than just the possibility 159 00:09:46,240 --> 00:09:48,719 Speaker 1: of asset sales. What I gotta tell you, the VIX 160 00:09:48,800 --> 00:09:50,760 Speaker 1: is a more interesting story than every these days, isn't 161 00:09:50,800 --> 00:09:53,040 Speaker 1: With all the volatility of the stock market. The Volatility 162 00:09:53,080 --> 00:09:55,680 Speaker 1: Index Report brought to you by CBOE VIX Options and 163 00:09:55,720 --> 00:09:59,800 Speaker 1: Futures volatility can be harnessed with CBOE VIX Options in Futures. 164 00:09:59,800 --> 00:10:02,240 Speaker 1: So the disclosures and learn more at cbo E dot 165 00:10:02,320 --> 00:10:06,000 Speaker 1: com Slash Powerful Outcomes VIX. Look at that the VIX 166 00:10:06,080 --> 00:10:11,840 Speaker 1: down five points to eighteen point eight today, second day 167 00:10:11,840 --> 00:10:15,000 Speaker 1: of a slide. Uh. In fact, it's it's on its 168 00:10:15,120 --> 00:10:18,880 Speaker 1: it's on track for its biggest slide since September, although 169 00:10:19,640 --> 00:10:22,679 Speaker 1: depending on how this goes, it could reverse that and 170 00:10:23,000 --> 00:10:25,600 Speaker 1: end up with a monthly climb. But Dave a lot 171 00:10:25,640 --> 00:10:29,440 Speaker 1: of volatility in the VIX. All right, Dave, you're up. 172 00:10:30,040 --> 00:10:35,160 Speaker 1: H Hi, my name is Dave. Just what do you 173 00:10:35,240 --> 00:10:37,680 Speaker 1: think you're doing today? We're going for a price found 174 00:10:37,720 --> 00:10:45,480 Speaker 1: will Dave. Hey, Mr Wilson, let's take a look at 175 00:10:45,720 --> 00:10:51,199 Speaker 1: BABCX Babcock and Wilcox Enterprises. Absolutely, I should point out 176 00:10:51,200 --> 00:10:52,840 Speaker 1: that you were just mentioning the VIX. That was my 177 00:10:52,920 --> 00:10:54,760 Speaker 1: chart of the day, and if you haven't seen that, folks, 178 00:10:54,800 --> 00:10:56,840 Speaker 1: send me an email, get it to you with the 179 00:10:56,880 --> 00:10:59,280 Speaker 1: explanation that goes with it everything I do going forward. 180 00:10:59,480 --> 00:11:03,120 Speaker 1: The email addresses d Wilson at Bloomberg dot net. That's 181 00:11:03,200 --> 00:11:06,360 Speaker 1: d Wilson at Bloomberg dot net. Now. As for Babcock 182 00:11:06,440 --> 00:11:10,640 Speaker 1: and will Cox Enterprises is a company that was separated 183 00:11:10,640 --> 00:11:14,040 Speaker 1: out of Babcock and Wilcox last year to spinoff. Shares 184 00:11:14,040 --> 00:11:18,160 Speaker 1: have been in high in April. They fell Friday and 185 00:11:18,240 --> 00:11:20,640 Speaker 1: Monday as a results of all the market turmoil from 186 00:11:20,840 --> 00:11:23,720 Speaker 1: the UK's decision to leave the European Union. But while 187 00:11:23,800 --> 00:11:27,760 Speaker 1: stocks rebanded today Babcock and Wilcox's loss is worse than 188 00:11:27,800 --> 00:11:31,080 Speaker 1: The company lowered his twenty sixteen earnings forecast by about 189 00:11:31,120 --> 00:11:34,959 Speaker 1: forty six percent because of a business overhaul and costs 190 00:11:34,960 --> 00:11:38,800 Speaker 1: associated with that, along with lower coal related revenue. This 191 00:11:38,880 --> 00:11:41,880 Speaker 1: company is a power equipment makers, so that's why they 192 00:11:41,920 --> 00:11:45,920 Speaker 1: get affected. Babcock and Wilcox had its UH biggest one 193 00:11:46,000 --> 00:11:49,400 Speaker 1: day loss since the spin off. The stock tumbled twenty 194 00:11:49,520 --> 00:11:52,720 Speaker 1: one percent and traded at a new low during the day. 195 00:11:53,320 --> 00:11:56,800 Speaker 1: David Wilson getting it done as always our stock sedator. 196 00:11:57,040 --> 00:12:07,120 Speaker 1: This is taking stock on Bloomberg Radio. The bond market 197 00:12:07,200 --> 00:12:09,520 Speaker 1: rally will continue. While he had a great call on 198 00:12:09,600 --> 00:12:12,800 Speaker 1: the bondmarket in March, we're gonna be speaking to Matt 199 00:12:12,840 --> 00:12:15,680 Speaker 1: hornback from work and Stanley about why he's still bullish 200 00:12:15,720 --> 00:12:17,360 Speaker 1: on bonds. This is Bloomberg Radio.