1 00:00:03,200 --> 00:00:07,080 Speaker 1: Global business news twenty four hours a day's Bloomberg dot Com, 2 00:00:07,320 --> 00:00:10,000 Speaker 1: the Radio plus mobile lap and on your radio. This 3 00:00:10,560 --> 00:00:14,400 Speaker 1: is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm 4 00:00:14,480 --> 00:00:17,200 Speaker 1: Katherine Caldery. We take the markets every fifteen minutes throughout 5 00:00:17,200 --> 00:00:19,560 Speaker 1: the trading day. Let's go over to the First Word 6 00:00:19,600 --> 00:00:23,760 Speaker 1: Breaking news desk for today's afternoon call with Bloomberg's Bill Maloney. Bill, 7 00:00:24,200 --> 00:00:27,479 Speaker 1: Good afternoon, Katherine. Stocks are under pressure today, with the 8 00:00:27,520 --> 00:00:29,760 Speaker 1: Dow currently down a hundred and eight points, says Bees 9 00:00:29,800 --> 00:00:33,320 Speaker 1: drop sixteen and NAZAC is lower by forty six. The 10 00:00:33,320 --> 00:00:36,080 Speaker 1: small cap six hundred drops nine points, and the US 11 00:00:36,120 --> 00:00:39,320 Speaker 1: ten yield at one point five percent. Nine out of 12 00:00:39,320 --> 00:00:42,760 Speaker 1: tennis be sectors are lower, led by losses in the consumer, discretionary, 13 00:00:42,840 --> 00:00:47,520 Speaker 1: financials and the industrials small gains for energy down, Transports 14 00:00:47,600 --> 00:00:51,560 Speaker 1: drop two percent, NASA by takes Outperform up thirteen points, 15 00:00:51,880 --> 00:00:55,360 Speaker 1: Utilities fall four and the vix is up by ten percent. 16 00:00:55,800 --> 00:00:58,760 Speaker 1: Down Leaders to the downside included Fiser, Goldman, Sacks, and 17 00:00:58,920 --> 00:01:02,840 Speaker 1: Apple Small for Procner, gamble X on mobile and Travelers. 18 00:01:03,240 --> 00:01:07,080 Speaker 1: Malan Cry jumped as much as sixteen percent after its earnings, 19 00:01:07,080 --> 00:01:09,680 Speaker 1: while Biogen surged surged as much as ten and a 20 00:01:09,680 --> 00:01:12,240 Speaker 1: half percent incher day after the water Jeneral reported that 21 00:01:12,280 --> 00:01:16,039 Speaker 1: Biogen has drawn takeover interest from Ourgon and mark It's 22 00:01:16,040 --> 00:01:17,680 Speaker 1: another busy night for earnings and some of the names 23 00:01:17,680 --> 00:01:21,320 Speaker 1: reporting acted the belt to night include Tableau Software, Electronic Arts, Fitbit, 24 00:01:21,680 --> 00:01:24,120 Speaker 1: and a I G. Live from the First Breaking News 25 00:01:24,120 --> 00:01:26,560 Speaker 1: Desk on Bill Maloney, Katherine, thank you Bill and to 26 00:01:26,600 --> 00:01:28,680 Speaker 1: hear a love breaking news over your Bloomberg Type A 27 00:01:28,720 --> 00:01:31,720 Speaker 1: s qu a K on your terminal West six is 28 00:01:31,720 --> 00:01:34,240 Speaker 1: senter Media. Crude oilis down forty nine cents a barrel 29 00:01:34,240 --> 00:01:36,279 Speaker 1: of one on a quarter percent to thirty nine fifty 30 00:01:36,319 --> 00:01:38,960 Speaker 1: six ten. Your treasury down four thirty seconds with the 31 00:01:39,000 --> 00:01:41,840 Speaker 1: yield of one point five three percent, and that's a 32 00:01:41,880 --> 00:01:48,000 Speaker 1: Bloomberg business slash. This is taking stock with Gableen Hayes 33 00:01:48,040 --> 00:01:52,040 Speaker 1: and Prim Fox on Bloomberg Radio. New York State has 34 00:01:52,440 --> 00:01:55,040 Speaker 1: proved a plan to generate half of the state's power 35 00:01:55,080 --> 00:01:59,280 Speaker 1: from renewable source sources by the year twenty thirty. They 36 00:01:59,360 --> 00:02:02,560 Speaker 1: joined California and setting one of the most ambitious clean 37 00:02:02,840 --> 00:02:06,520 Speaker 1: energy goals in the nation. And in addition, the plan 38 00:02:06,600 --> 00:02:10,040 Speaker 1: includes billions of dollars in subsidies to keep upstate nuclear 39 00:02:10,080 --> 00:02:13,080 Speaker 1: plants operational while the use of solar and wind energy 40 00:02:13,280 --> 00:02:16,600 Speaker 1: ramps up. Here to tell us more is Kit Connelledge. 41 00:02:16,680 --> 00:02:21,200 Speaker 1: He is senior Industrials and Utilities analysts for Bloomberg Intelligence, 42 00:02:21,560 --> 00:02:24,440 Speaker 1: providing unique in real time research and context on a 43 00:02:24,520 --> 00:02:28,119 Speaker 1: variety of industries as well as markets and government factors 44 00:02:28,120 --> 00:02:31,880 Speaker 1: that affect businesses. Our terminal customers can access this function 45 00:02:31,960 --> 00:02:35,280 Speaker 1: at b I go. Kit thanks very much for coming 46 00:02:35,280 --> 00:02:38,600 Speaker 1: into the studio. Tell us about this plan that has 47 00:02:38,680 --> 00:02:42,840 Speaker 1: passed the New York State Public Service Commission sure UM. 48 00:02:42,880 --> 00:02:48,840 Speaker 1: The idea is to subsidize three nuclear plants upstate. They're 49 00:02:48,960 --> 00:02:53,119 Speaker 1: along Lake Erie. UH, they've been losing money. Um. Nuclear 50 00:02:53,400 --> 00:02:58,840 Speaker 1: is a zero emissions source of power. UH. It also 51 00:02:58,919 --> 00:03:02,320 Speaker 1: provides a lot of jobs and a lot of tax 52 00:03:02,639 --> 00:03:05,919 Speaker 1: taxes for the local communities. So those are all important 53 00:03:05,960 --> 00:03:10,160 Speaker 1: factors and why Governor Cuomo UH and the members of 54 00:03:10,160 --> 00:03:14,519 Speaker 1: the Public Service Commission and unions in the area all 55 00:03:14,560 --> 00:03:19,440 Speaker 1: supported giving subsidies to the nuclear plants. So with zero missions, 56 00:03:20,360 --> 00:03:24,360 Speaker 1: with these very important link to communities and jobs, what 57 00:03:24,600 --> 00:03:28,639 Speaker 1: has been the problem for nuclear power and power plants 58 00:03:28,639 --> 00:03:30,760 Speaker 1: and upraim seems to me that a lot of government 59 00:03:30,800 --> 00:03:34,520 Speaker 1: policies have been against nuclear because they're worried about the 60 00:03:34,520 --> 00:03:37,960 Speaker 1: possibility of a meltdown. They're worried about in of course, 61 00:03:38,080 --> 00:03:41,080 Speaker 1: and that not in my backyard, etcetera. So it's nice 62 00:03:41,120 --> 00:03:43,840 Speaker 1: that York State is turning it around, But hasn't that 63 00:03:43,920 --> 00:03:46,880 Speaker 1: been the problem for nuclear? Yeah? Absolutely, it's Uh, it's 64 00:03:46,880 --> 00:03:50,360 Speaker 1: certainly the problem for building a new nuclear plant. That's 65 00:03:50,400 --> 00:03:52,760 Speaker 1: not going to happen in too many places, although it's 66 00:03:52,760 --> 00:03:56,280 Speaker 1: happening in Georgia and South Carolina. Um. Also, it's very 67 00:03:56,320 --> 00:03:59,080 Speaker 1: expensive to build a new one for the existing plants. 68 00:03:59,160 --> 00:04:03,240 Speaker 1: I think we still see a very significant anti nuclear 69 00:04:03,880 --> 00:04:07,080 Speaker 1: um presence out there, people who are just you know, 70 00:04:07,440 --> 00:04:11,160 Speaker 1: don't like the idea of nuclear plants. They have had 71 00:04:11,560 --> 00:04:16,320 Speaker 1: some problems, some issues. You can debate how serious they were, etcetera. 72 00:04:16,360 --> 00:04:20,960 Speaker 1: But clearly, for example, the state of California decided that, uh, 73 00:04:20,960 --> 00:04:23,559 Speaker 1: within the next eight years, they would close the last 74 00:04:23,600 --> 00:04:27,320 Speaker 1: remaining power plant in California and basically pay off the 75 00:04:27,360 --> 00:04:30,280 Speaker 1: shareholders of p G and E who owns that Diablo 76 00:04:30,320 --> 00:04:33,400 Speaker 1: Canyon plant, uh, and just say, Okay, that's the end 77 00:04:33,400 --> 00:04:37,360 Speaker 1: of nuclear in California. We're going all solar and wind. 78 00:04:38,360 --> 00:04:41,680 Speaker 1: How much is this gonna cost rape pairs? Uh? In 79 00:04:41,720 --> 00:04:45,560 Speaker 1: New York it looks like about two percent. Uh, it's 80 00:04:45,560 --> 00:04:50,159 Speaker 1: about five dred million dollars a year additional payments. That's 81 00:04:50,200 --> 00:04:53,440 Speaker 1: obviously spread out over a lot of electric bills, millions 82 00:04:53,440 --> 00:04:57,760 Speaker 1: of electric bills. UH. It didn't get highlighted because nobody 83 00:04:58,680 --> 00:05:01,360 Speaker 1: has an interest in highlight at the nuclear plant owners 84 00:05:01,360 --> 00:05:05,560 Speaker 1: are happy to have higher profit margins. UH. Governor Cuomo 85 00:05:05,720 --> 00:05:07,760 Speaker 1: and the Public Service Commission are happy to have a 86 00:05:07,839 --> 00:05:11,640 Speaker 1: zero emission source and happy to have the unions supporting them. 87 00:05:11,720 --> 00:05:15,240 Speaker 1: So nobody's going around saying this is really costing your money, 88 00:05:15,279 --> 00:05:18,320 Speaker 1: but it will raise bills by two percent. Some people 89 00:05:18,360 --> 00:05:21,760 Speaker 1: may say that's perfectly well worth it. Well, your excellent 90 00:05:22,400 --> 00:05:26,000 Speaker 1: work on the your North America Dashboard for bluebrig Intelligence 91 00:05:26,080 --> 00:05:30,000 Speaker 1: Electric Utilities. Looking at this whole there, there's a great 92 00:05:30,400 --> 00:05:33,840 Speaker 1: note of political melodrama in here, though, because you point 93 00:05:33,880 --> 00:05:37,000 Speaker 1: out that Excellent and Entergy will perhaps get the first 94 00:05:37,560 --> 00:05:40,839 Speaker 1: nuclear subsidies, but you also point out that Calpine and 95 00:05:40,960 --> 00:05:43,560 Speaker 1: dyning Gy aren't done finding this nuclear aid. Tell us 96 00:05:43,600 --> 00:05:46,120 Speaker 1: about that part of the now. Absolutely, I think there's 97 00:05:46,160 --> 00:05:49,359 Speaker 1: in in other states. When, for example, the state of 98 00:05:49,400 --> 00:05:53,360 Speaker 1: Ohio tried to subsidize h one nuclear plant and some 99 00:05:53,440 --> 00:05:56,640 Speaker 1: coal plants because they were losing money. UH, they were 100 00:05:56,680 --> 00:06:02,360 Speaker 1: overturned by the federal authorities who who ran the UH 101 00:06:02,560 --> 00:06:07,240 Speaker 1: merchant power grid UH the PGM grid. So I think 102 00:06:07,279 --> 00:06:12,160 Speaker 1: that we're gonna see the UH the merchant power gas 103 00:06:12,360 --> 00:06:14,520 Speaker 1: and they don't have metch Cole in New York, but 104 00:06:14,560 --> 00:06:17,760 Speaker 1: the gas plants in New York are gonna be fighting 105 00:06:17,760 --> 00:06:21,440 Speaker 1: against the subsidy because if if you didn't have the subsidy, 106 00:06:21,440 --> 00:06:23,839 Speaker 1: the gas plants would be operating in a market with 107 00:06:23,920 --> 00:06:28,279 Speaker 1: no nuclear plants upstate, and they expect to get higher prices. 108 00:06:28,400 --> 00:06:32,240 Speaker 1: So they're saying, hey, wait a minute. You know, since 109 00:06:32,279 --> 00:06:34,920 Speaker 1: when do they get subsidized and we don't get subsidized. 110 00:06:35,160 --> 00:06:37,240 Speaker 1: It was supposed to be an open market. This is 111 00:06:37,279 --> 00:06:41,360 Speaker 1: a new rule. Now I understand that the three upstate 112 00:06:41,440 --> 00:06:43,920 Speaker 1: plants that are going to participate, this is what Gina 113 00:06:44,120 --> 00:06:48,760 Speaker 1: near Rochester UH, plus the James A. Fitzpatrick and the 114 00:06:48,960 --> 00:06:52,920 Speaker 1: nine mile Point facilities. Those are all north of Syracuse. 115 00:06:53,240 --> 00:06:57,640 Speaker 1: Excellent wants to buy the fitz Fitzpatrick plant from Energy. Correct, Yeah, 116 00:06:57,640 --> 00:07:01,040 Speaker 1: that's correct. The Entergy wants to get out this merchant business. 117 00:07:01,080 --> 00:07:03,440 Speaker 1: They've had enough of it. It's a very volatile business 118 00:07:03,440 --> 00:07:07,440 Speaker 1: and utilities, as you know, are very risk averse company 119 00:07:07,520 --> 00:07:10,000 Speaker 1: owned Indian Point and that's not eligible for at least 120 00:07:10,000 --> 00:07:12,520 Speaker 1: like two years. Well, that's right. They they they're sort 121 00:07:12,560 --> 00:07:15,240 Speaker 1: of stuck with Indian Point. They'd rather not own it, 122 00:07:15,320 --> 00:07:17,560 Speaker 1: but they feel like it's worth a couple of billion dollars. 123 00:07:17,560 --> 00:07:20,520 Speaker 1: So until they get paid, they're they're not shutting it down. 124 00:07:20,960 --> 00:07:23,160 Speaker 1: But if Excellent wants to buy this from them, and 125 00:07:23,240 --> 00:07:27,320 Speaker 1: Excellent is very committed to the nuclear merchant business and 126 00:07:27,360 --> 00:07:31,040 Speaker 1: if they're getting higher margins, they're happy to buy it potentially. Well, 127 00:07:31,080 --> 00:07:33,040 Speaker 1: we're very happy it had you on the show today. 128 00:07:33,120 --> 00:07:38,640 Speaker 1: Kit Connellege, senior industry analysts for Bloomberg in Intelligence, Electric utilities, 129 00:07:38,720 --> 00:07:42,200 Speaker 1: Nuclear subsidies coming to New York State. This is Bloomberg. 130 00:07:45,400 --> 00:07:48,080 Speaker 1: Bloomberg taking his talk is brought to by land Over Manhattan, 131 00:07:48,120 --> 00:07:51,000 Speaker 1: where New York goes for in luxury, conveniently located at 132 00:07:51,000 --> 00:07:53,200 Speaker 1: fifty four and eleventh Avenue, went online and land over 133 00:07:53,280 --> 00:07:56,960 Speaker 1: Manhattan dot com. Landover Manhattan is at your service