Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,
Speaker 1: Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg
Speaker 1: nine to the country's general one and around the globe
Speaker 1: the Bloomberg Radio Plus Appen Bloomberg dot Com. This is
Speaker 1: taking Stock. Coming up on taking stock stagnation in Europe.
Speaker 1: Will the European Union allow bond holders to take a
Speaker 1: hit if banks go under? We'll find out more. Also,
Speaker 1: a look at the Federal Reserve and their interest rate policy.
Speaker 1: Coming up with Marvin Lowe, global market strategist for b
Speaker 1: n Y Melon. Right now, let's go to Charlie Pellett
Speaker 1: and the Bloomberg news room for a Bloomberg Business Flash,
Speaker 1: and I thank you, Pim Fox from Bloomberg World Headquarters.
Speaker 1: I'm Charlie Pellett. Stocks are advancing on this Wednesday, the DAL,
Speaker 1: the SMP NEZDAC all climbing right now, the SMP five
Speaker 1: hundred index up ten points, a gain there of five
Speaker 1: tenths of one percent. An Heeuser Busch InBev has won
Speaker 1: government anti trust approval for its takeover of s A. B.
Speaker 1: Miller after the maker of Budweiser agreed to give up
Speaker 1: ownership of the Miller brand and open the door to
Speaker 1: greater competition from craft beers. Stocks are advancing. We're seeing
Speaker 1: records as quarterly numbers out of Microsoft and Morgan Stanley
Speaker 1: spur optimism that corporate earnings can support further gains. Morgan
Speaker 1: Stanley posted profit that beat analysts estimates, as the firm
Speaker 1: report of a surprise gain in bond trading revenue and
Speaker 1: compensation costs that were lower than expected. David Campbell Bacon
Speaker 1: Campbell covers Banks for Bloomberg News Look year over year
Speaker 1: revenue at Morgan Stanley declined for the third out of
Speaker 1: the last four quarters. So the industry still has a
Speaker 1: revenue problem, there's no question about that. And obviously with
Speaker 1: the trading results, we always talk about how sustainable they
Speaker 1: are from one quarter to the next. Uh, this doesn't
Speaker 1: really give us any more insight into this. And right
Speaker 1: now we do have shares of Morgan Stanley trading higher
Speaker 1: by one point four percent. United Condental Holdings flying higher
Speaker 1: as well today, at the highest value in almost three months.
Speaker 1: After CEO Oscar Munio said he is reviewing all aspects
Speaker 1: of the airline's operations in an effort to boost profitability.
Speaker 1: Gold Is lawer by one point one percent, down fourteen
Speaker 1: fifty ounce. The thirteen seventeen crude oil West Texas Intermediate
Speaker 1: Crude up five tenths of one percent. Crude oil now
Speaker 1: up by twenty cents forty four eight five a barrel
Speaker 1: again recapping the SMP five index up ten to seventy four,
Speaker 1: a gain of point five percent to thirty two on
Speaker 1: Wall Street. Now, the other story is making news. Thank you,
Speaker 1: Charlie from the Bloomberg News room. I'm Rami in a
Speaker 1: cent cio. It's day three of the Republican National Convention.
Speaker 1: ABC News spoke with Eric Trump, who says it's been
Speaker 1: an incredible journey to watch his father become the numbinee
Speaker 1: for president. When he becomes passionate about something, he sets
Speaker 1: his mind to it and he does it. And you
Speaker 1: see that as you sit in this arena, I mean,
Speaker 1: this incredible arena, with this incredible passion, and I'm proud
Speaker 1: of him. I mean, I'm just proud of the man.
Speaker 1: He's done such an unbelievable job. Eric Trump will speak
Speaker 1: tonight at the convention along with Donald Trump's running mate
Speaker 1: Mike Pence and Texas Senator Ted Cruz. The people of
Speaker 1: Baton Rouge, Louisiana are remembering their three slain police officers.
Speaker 1: Residents turned out at makeshift memorials, churches and rallies, with
Speaker 1: some faith and community leaders gathering to discuss ways to
Speaker 1: improve police relations with black residents. The officers were fatally
Speaker 1: shot by a former marine on Sunday morning. Three others
Speaker 1: were wounded. The parents of the University of California student
Speaker 1: killed the niece France or speaking out, Conrad Leslie says
Speaker 1: at first he and his wife thought Nicholas survived the attack.
Speaker 1: As soon as we landed in Paris, we found our phones,
Speaker 1: thinking that we're going to get into good news, but
Speaker 1: instead we had a voicemail and it said we had
Speaker 1: some new fingers on and unfortunately, uh, they said it
Speaker 1: was bad news. Officials say five people remain in custody
Speaker 1: for possible links to the attack, and the search is
Speaker 1: underway for four suspects were fired shots at NYPD officers
Speaker 1: last night. Police say the four drove past the officers
Speaker 1: and shot them as they were walking in Brooklyn, and
Speaker 1: then fled the scene. Global News twenty four hours a day,
Speaker 1: powered by more than journalists and analysts in more than
Speaker 1: one under twenty countries. I'm Ramie in Essensio. This is Bloomberg, Charlie,
Speaker 1: and we thank you and again recapping stocks are advancing,
Speaker 1: the SMP five indecks climbing to a record up ten
Speaker 1: points now seventy three. That is a gain of five
Speaker 1: tenths of one percent. I'm Charlie Pellet and that's a
Speaker 1: Bloomberg business flash. This is taking stock the Fed in
Speaker 1: focus on Bloomberg Radio, the Fed in focus. The Federal Reserve?
Speaker 1: Is it on hold for rate hikes because of the
Speaker 1: political season? Let's find out more from Arevin Low, Global
Speaker 1: market strategist b n Y Melon and joining us now, Marvin,
Speaker 1: thank you very much for being with us. Well, thank
Speaker 1: you very much for having me again, Pim Marvin. Do
Speaker 1: you think that the Federal Reserve is going to do
Speaker 1: nothing because we are in the thick of the election cycle?
Speaker 1: You know what, I personally do think that they are
Speaker 1: on hold. I think in addition to the election cycle,
Speaker 1: we still have the potential fallout from Brexit, which, while
Speaker 1: you know everyone's being pretty sanguine about it, UM still
Speaker 1: has a lot of questions that need to be answered.
Speaker 1: So what would those questions be that would satisfy you? Well, um,
Speaker 1: you know, the process itself is so unique, um that
Speaker 1: we really don't have a lot of history to kind
Speaker 1: of base it on. Um. I guess I would lean
Speaker 1: towards the IMF report, the report that the IMF put
Speaker 1: out earlier this week which lowered global growth. So that's
Speaker 1: certainly a big question, and whether or not there's additional
Speaker 1: knock on effects with regard to either tightening credit conditions
Speaker 1: throughout Europe or um embolding potential other populous movements which
Speaker 1: you know certainly have a basis not only UH in
Speaker 1: the UK, but around Europe and possibly even here. Well,
Speaker 1: I'm going to play to your title as the global
Speaker 1: market strategies for just a minute, because you mentioned the
Speaker 1: International Monetary Fund, and they came out with report that
Speaker 1: suggests that Italy's economy will remain stagnant for the next
Speaker 1: get this, twenty years. It is the euro Zone's third
Speaker 1: largest economy. Will what happens in Italy affect the United States?
Speaker 1: You know, what happens in Italy certainly affects the Eurozone,
Speaker 1: and what happens in the Eurozone we've seen from either
Speaker 1: a reach perspective or a UM risk taking appetitles in
Speaker 1: the financial markets certainly has an impact here. Also, central
Speaker 1: banks have been successful in calming nerves in the past,
Speaker 1: and I think that's um the point in the cycle
Speaker 1: that we're at now. But without really addressing those problems yesterday.
Speaker 1: They will affect um, the US, they will affect the FED.
Speaker 1: Thought we are a citizen of the world. In that case,
Speaker 1: will we catch some of that helicopter money if Mario
Speaker 1: drag starts dropping it from the skies? Well, um, at
Speaker 1: this point, you know, helicopter money discussion really is more
Speaker 1: focused on Japan. I don't think the ECB has taken
Speaker 1: a a very strong stance in going that way. But
Speaker 1: the trend of lower yields amongst the other central banks
Speaker 1: will have their impact on the U S yield curve.
Speaker 1: And while we've seen yield rise over the last couple
Speaker 1: of weeks, you know, they still are significantly lower since Brexit,
Speaker 1: and expectations are that um, you know, the Bank of England, UH,
Speaker 1: the e c B and the Bank of Japan are
Speaker 1: possibly moving towards the next stage of monetary accommodation. If
Speaker 1: they do move to this next stage of monetary accommodation.
Speaker 1: What does that do to U S interest rates? UM.
Speaker 1: You know, it's it's an interesting time right now because
Speaker 1: at the same time that I'm having this conversation with you,
Speaker 1: there's certainly a lot of discussion about whether or not
Speaker 1: the FED is going to try to hype rates again
Speaker 1: this year. You know, we've seen the odds of a
Speaker 1: rate hike UM increase significantly over the past few weeks
Speaker 1: and never been some pretty high profile stories in the
Speaker 1: press about the FED ready to move again. UM. Kind
Speaker 1: of trying to put all of that together. While the
Speaker 1: FED UM, you know, certainly wants to increase rates to
Speaker 1: UM put additional bullets within within their arsenal, our yield
Speaker 1: curve is certainly influenced by a lot of these other
Speaker 1: yield curves. So the last time I was on your program,
Speaker 1: I really thought that we were in a period where
Speaker 1: should expect kind of this range bound or lower yield
Speaker 1: type environment. UM. Even though we have backed up, we
Speaker 1: still remain relatively low by historical standards, if not at
Speaker 1: all time low still around the world. And I'll stand
Speaker 1: by that thingment. I think that we need to deal
Speaker 1: and and get used to this lower yield environment. Well,
Speaker 1: I'll just give you the details. Right, the ten uere
Speaker 1: right now trades at one point five seven. It is
Speaker 1: down seven thirty seconds today. Also, the thirty year bond
Speaker 1: is selling off down seconds, a decline of a little
Speaker 1: bit more than half a percent, trading at two point
Speaker 1: to nine. All Right, As a global market strategist, what
Speaker 1: do you recommend people do with their money? Well, again, um,
Speaker 1: you know, it really is a function of tempering expectations.
Speaker 1: And we kind of had a little bit of this discussion,
Speaker 1: um the last time I was there. You know, really
Speaker 1: understanding that risk is part of the equation, That of
Speaker 1: volatility is probably something that we need to get used to.
Speaker 1: And finding the part of the market that makes sense
Speaker 1: for your risk tolerance. Generating the type of returns that
Speaker 1: you had from the fixed income market is going to
Speaker 1: be challenging. Uh. It certainly requires one to look at
Speaker 1: um non sovereign um types of fixed income investments if
Speaker 1: you're looking for that type of that type of return.
Speaker 1: You know, we've seen really strong returns within the high
Speaker 1: yield world. Uh, the investment grades space within the US
Speaker 1: and it's you know, for USD investors that kind of
Speaker 1: makes UM the currency aspect a little bit easier, continues
Speaker 1: to offer spread to to that treasury market, and it
Speaker 1: continues to post positive returns in there. So it's that
Speaker 1: type of thinking that I believe UM investors need to
Speaker 1: to do rather than just simply looking at the government
Speaker 1: bond market. So do people have to get used to
Speaker 1: relative returns as opposed to absolute returns to a certain extent,
Speaker 1: to a certain extent, to a certain extent, and you
Speaker 1: know that certainly comes into your retirement planning process and
Speaker 1: everything else that goes along with it. UM. When you
Speaker 1: do have these sovereign yields anchored at these either very
Speaker 1: low and or negative levels around the world, a relative
Speaker 1: return is something that UM you have to take into consideration.
Speaker 1: Thank you very much for spending time with us and
Speaker 1: giving us your thoughts. Marvin Lowe is global market strategist
Speaker 1: for b N Y Melan and they can be followed
Speaker 1: on Twitter at b N Y Melan. You're listening to
Speaker 1: taking Stockheim, pim Fox, and this is Bloomberg. The fed
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