WEBVTT - Disney Streams Higher; Ecuador Assassination

0:00:02.480 --> 0:00:03.000
<v Speaker 1>Good morning.

0:00:03.080 --> 0:00:06.040
<v Speaker 2>I'm Nathan Hager and I'm Amy Morris. Here are the

0:00:06.080 --> 0:00:07.680
<v Speaker 2>stories we're following today.

0:00:08.080 --> 0:00:11.120
<v Speaker 3>We begin this morning with earnings for an entertainment giant.

0:00:11.119 --> 0:00:13.480
<v Speaker 3>We're watching shares of Disney this morning. They're hired by

0:00:13.480 --> 0:00:16.959
<v Speaker 3>about one percent in early trading. Cost cuts and the

0:00:17.000 --> 0:00:20.440
<v Speaker 3>Hollywood strikes are boosting Disney's bottom line, and the company

0:00:20.480 --> 0:00:24.040
<v Speaker 3>expects content spending to be about three billion dollars less

0:00:24.079 --> 0:00:27.440
<v Speaker 3>than usual. Disney's also boosting the price of its premium

0:00:27.480 --> 0:00:32.479
<v Speaker 3>subscription for streaming by twenty seven percent. Geeta Ronganathan covers

0:00:32.520 --> 0:00:34.080
<v Speaker 3>Disney for Bloomberg Intelligence.

0:00:34.240 --> 0:00:37.080
<v Speaker 4>They have pricing power and they're going to exercise it.

0:00:37.479 --> 0:00:39.559
<v Speaker 4>And this is what it's really coming down to now

0:00:39.600 --> 0:00:43.240
<v Speaker 4>in the streaming wars, the subscriber hyper focus is over

0:00:43.320 --> 0:00:46.479
<v Speaker 4>and done with. Now it's all about our pool growing

0:00:46.600 --> 0:00:49.760
<v Speaker 4>revenue per user, and that's exactly what Disney is doing.

0:00:49.800 --> 0:00:52.280
<v Speaker 4>This should pad not only the top line, but also

0:00:52.320 --> 0:00:53.040
<v Speaker 4>the bottom line.

0:00:53.120 --> 0:00:56.600
<v Speaker 3>Geita Ronganathan with Bloomberg Intelligence notes it's the second price

0:00:56.720 --> 0:00:59.080
<v Speaker 3>increase for Disney plus in less than a year.

0:01:00.000 --> 0:01:02.800
<v Speaker 2>Well, we see Disney shares on the rise. Today's big

0:01:02.840 --> 0:01:06.400
<v Speaker 2>market moving event will likely be the latest reading on inflation,

0:01:06.800 --> 0:01:09.520
<v Speaker 2>We get the consumer price index for July at eight

0:01:09.600 --> 0:01:13.600
<v Speaker 2>thirty am Wall Street time, and economists anticipate a tame

0:01:13.800 --> 0:01:16.600
<v Speaker 2>reading and increase of just two tenths of a percent.

0:01:16.800 --> 0:01:19.600
<v Speaker 2>Bloomberg's Michael McKee has details.

0:01:19.440 --> 0:01:23.120
<v Speaker 5>This may be the least important, most important economic indicator

0:01:23.160 --> 0:01:25.840
<v Speaker 5>in a long time. It's important because, of course, the

0:01:25.920 --> 0:01:28.520
<v Speaker 5>level of interest rates going forward will depend on whether

0:01:28.560 --> 0:01:32.119
<v Speaker 5>inflation is coming down. FED officials have suggested one more

0:01:32.200 --> 0:01:34.920
<v Speaker 5>rate increase going forward, but they also say they are

0:01:35.000 --> 0:01:39.520
<v Speaker 5>data dependent. The data suggests a decent progress report. Slowing

0:01:39.560 --> 0:01:43.280
<v Speaker 5>housing inflation will be the main driver of that. Used car,

0:01:43.480 --> 0:01:46.759
<v Speaker 5>travel and apparel price gains have also slowed, while energy

0:01:46.760 --> 0:01:49.920
<v Speaker 5>prices are up. Will it matter not a lot. FED

0:01:49.960 --> 0:01:52.640
<v Speaker 5>officials have two more inflation reports to see before their

0:01:52.680 --> 0:01:56.320
<v Speaker 5>next meeting. These data will be interesting, but not definitive.

0:01:56.600 --> 0:01:58.200
<v Speaker 5>Michael McKee, Bloomberg Daybreak.

0:01:58.280 --> 0:02:00.680
<v Speaker 3>Okay, Mike, thanks, turning away from marks now, we have

0:02:00.760 --> 0:02:03.760
<v Speaker 3>breaking news out of South America. A state of emergency

0:02:03.800 --> 0:02:07.120
<v Speaker 3>has been declared in Ecuador after the assassination of a

0:02:07.200 --> 0:02:11.000
<v Speaker 3>presidential candidate. The country's current president is calling the killing

0:02:11.000 --> 0:02:15.200
<v Speaker 3>of Fernando Via Vissentsio an assault on democracy. Bloomberg Stefan

0:02:15.280 --> 0:02:17.440
<v Speaker 3>Kufner has more from Ecuador's capital, Quito.

0:02:17.720 --> 0:02:21.920
<v Speaker 6>He was someone who was known nationally kind of the

0:02:22.280 --> 0:02:25.640
<v Speaker 6>Navamni of Ecuador, who uncovered a lot of corruption in

0:02:25.680 --> 0:02:30.600
<v Speaker 6>previous administrations, and he who was threatened by alleged drug

0:02:30.639 --> 0:02:32.560
<v Speaker 6>traffickers during the campaign trail.

0:02:33.120 --> 0:02:36.320
<v Speaker 3>Bloomberg Stephan Kufner says Via Vesensio was running second in

0:02:36.360 --> 0:02:38.760
<v Speaker 3>the polls and could have qualified for a runoff election.

0:02:39.000 --> 0:02:42.000
<v Speaker 3>Ecuador is now under a sixty day state of emergency

0:02:42.040 --> 0:02:44.760
<v Speaker 3>and the country's presidential vote is still set for ten

0:02:44.840 --> 0:02:45.640
<v Speaker 3>days from now.

0:02:46.360 --> 0:02:49.840
<v Speaker 2>Another major story we're following this morning brings us to Hawaii,

0:02:50.200 --> 0:02:53.640
<v Speaker 2>devastating wildfires on the west side of Maui, claiming at

0:02:53.760 --> 0:02:56.600
<v Speaker 2>least three dozen lives so far. We get that story

0:02:56.639 --> 0:02:57.959
<v Speaker 2>from Bloomberg's Ed Baxter.

0:02:58.320 --> 0:03:01.520
<v Speaker 7>Lahaina Town was Hawaii's for first capital. It turned into

0:03:01.520 --> 0:03:05.079
<v Speaker 7>a place natives and tourists loved to visit. Helicopter pilot

0:03:05.200 --> 0:03:07.280
<v Speaker 7>Richard Olston says it has gone.

0:03:07.400 --> 0:03:07.960
<v Speaker 2>It looked like.

0:03:07.919 --> 0:03:09.880
<v Speaker 8>An area that had been bombed in a war.

0:03:10.160 --> 0:03:13.519
<v Speaker 7>Owners of businesses on Front Street shutting down their websites,

0:03:13.840 --> 0:03:17.080
<v Speaker 7>out of business power will be a problem for days.

0:03:17.160 --> 0:03:19.959
<v Speaker 7>Resorts are telling people the reservations up to two weeks

0:03:19.960 --> 0:03:24.000
<v Speaker 7>out to cancel. Lieutenant Governor Sylvia Lukes as a process

0:03:24.120 --> 0:03:25.959
<v Speaker 7>is going to take a long time.

0:03:26.080 --> 0:03:29.040
<v Speaker 4>It's going to take weeks and maybe months to assess

0:03:29.080 --> 0:03:30.200
<v Speaker 4>the food damage.

0:03:29.840 --> 0:03:32.679
<v Speaker 7>She says. Aloha is being shown though in relief efforts

0:03:32.680 --> 0:03:37.120
<v Speaker 7>of the island's Ohana family in San Francisco. I'm at

0:03:37.120 --> 0:03:38.800
<v Speaker 7>Baxter Bloomberg Daybreak.

0:03:38.440 --> 0:03:39.280
<v Speaker 1>All right, thanks for that.

0:03:39.520 --> 0:03:39.600
<v Speaker 6>ED.

0:03:39.960 --> 0:03:43.360
<v Speaker 3>Tensions between Washington and Beijing are also in focus this morning.

0:03:43.400 --> 0:03:46.600
<v Speaker 3>The White House has officially announced limits on US investments

0:03:46.600 --> 0:03:49.720
<v Speaker 3>in China. Dan Flatley has more from our Bloomberg ninety

0:03:49.760 --> 0:03:51.240
<v Speaker 3>nine one newsroom in Washington.

0:03:51.320 --> 0:03:54.760
<v Speaker 9>Biden signed an executive order which gives a year for

0:03:54.840 --> 0:03:58.600
<v Speaker 9>industry to weigh in on how these restrictions will actually work.

0:03:59.080 --> 0:04:01.880
<v Speaker 9>But the intent is to restrict the knowledge that comes

0:04:01.920 --> 0:04:05.760
<v Speaker 9>with venture capital and private equity investment into sensitive areas

0:04:05.760 --> 0:04:10.440
<v Speaker 9>of the Chinese economy, including advanced semiconductors, microelectronics, quantum computing

0:04:10.480 --> 0:04:13.760
<v Speaker 9>which think code breaking, and potentially artificial intelligence.

0:04:13.800 --> 0:04:16.760
<v Speaker 3>Bloomberg. Dan Flatley reports the order won't go into effect.

0:04:16.440 --> 0:04:20.479
<v Speaker 2>Until next year, and it won't be retroactive presidential politics.

0:04:20.520 --> 0:04:23.920
<v Speaker 2>Also in focus this morning, Donald Trump says he's still

0:04:24.000 --> 0:04:27.640
<v Speaker 2>unsure if he'll participate in the first GOP debate. The

0:04:27.680 --> 0:04:31.080
<v Speaker 2>former president also tells newsmax he will not sign a

0:04:31.160 --> 0:04:34.400
<v Speaker 2>required pledge to support the Republican nominee.

0:04:34.440 --> 0:04:36.400
<v Speaker 10>Why would I sign a pleasure of people on there

0:04:36.400 --> 0:04:39.279
<v Speaker 10>that I wouldn't have. I wouldn't have certain people, as

0:04:39.400 --> 0:04:42.200
<v Speaker 10>you know, somebody that I'd endorse. So they want you

0:04:42.240 --> 0:04:44.520
<v Speaker 10>to sign a pledge. But I can name three or

0:04:44.520 --> 0:04:47.880
<v Speaker 10>four people that I wouldn't support for president.

0:04:48.040 --> 0:04:50.840
<v Speaker 2>The former president currently enjoys a wide lead over the

0:04:50.880 --> 0:04:53.039
<v Speaker 2>rest of the field. The first GOP debate is set

0:04:53.040 --> 0:04:54.760
<v Speaker 2>for August twenty third in Milwaukee.

0:04:54.839 --> 0:04:57.880
<v Speaker 3>Turning for politics to space, we're learning Richard Branson's Virgin

0:04:57.920 --> 0:05:01.479
<v Speaker 3>Galactic is poised to launch its first private space tourists today.

0:05:01.880 --> 0:05:04.800
<v Speaker 3>The journey allows Virgin Galactic to begin clearing a backlog

0:05:04.839 --> 0:05:07.919
<v Speaker 3>of ticket holders waiting for rides to space. Virgin Galactic's

0:05:07.920 --> 0:05:11.160
<v Speaker 3>main competition comes from Blue Origin, the commercial space company

0:05:11.160 --> 0:05:12.479
<v Speaker 3>founded by Jeff Bezos.

0:05:13.200 --> 0:05:16.120
<v Speaker 2>New numbers this morning paint a bleak picture of diversity

0:05:16.160 --> 0:05:19.200
<v Speaker 2>in corporate America. The number of black people appointed as

0:05:19.240 --> 0:05:23.080
<v Speaker 2>company directors has fallen dramatically. Fifteen percent of board members

0:05:23.120 --> 0:05:25.520
<v Speaker 2>appointed this year at S and P five hundred companies

0:05:25.520 --> 0:05:28.880
<v Speaker 2>were black. That's down from twenty six percent the year before.

0:05:29.000 --> 0:05:32.640
<v Speaker 2>According to executive recruiter Spencer Stewart, the number of black

0:05:32.680 --> 0:05:35.520
<v Speaker 2>directors rose in the wake of the murder of George Floyd,

0:05:35.760 --> 0:05:38.720
<v Speaker 2>but now it's fallen back too roughly where it was

0:05:39.120 --> 0:05:45.800
<v Speaker 2>five years ago. Time now for a look at some

0:05:45.880 --> 0:05:48.359
<v Speaker 2>of the other stories making news around the world. For that,

0:05:48.400 --> 0:05:50.360
<v Speaker 2>we're joined by Bloomberg's John Tucker.

0:05:50.360 --> 0:05:51.360
<v Speaker 8>Good morning, John.

0:05:51.680 --> 0:05:54.479
<v Speaker 11>Hey, Good morning Amy. An armed Utah man accused of

0:05:54.520 --> 0:05:57.800
<v Speaker 11>making violent thrats again President Joe Biden was shot and

0:05:57.920 --> 0:06:01.480
<v Speaker 11>killed by FBI agents hours before the president landed in

0:06:01.520 --> 0:06:05.359
<v Speaker 11>that state. As Good Moore in this report from Bloomberg'sjeff Bellinger.

0:06:05.400 --> 0:06:08.000
<v Speaker 8>Special agents were trying to serve a warrant on the

0:06:08.000 --> 0:06:11.200
<v Speaker 8>home of Craig Robertson in Provo, south of Salt Lake

0:06:11.240 --> 0:06:15.000
<v Speaker 8>City when the shooting happened. Robertson posted online Monday that

0:06:15.120 --> 0:06:18.240
<v Speaker 8>he had heard President Biden was coming to Utah and

0:06:18.360 --> 0:06:20.960
<v Speaker 8>he was planning to dig out a camouflage suit and

0:06:21.120 --> 0:06:24.560
<v Speaker 8>begin cleaning the dust off the M twenty four sniper rifle.

0:06:25.080 --> 0:06:28.840
<v Speaker 8>Robertson referred to himself as a mega Trumper. He had

0:06:28.880 --> 0:06:33.080
<v Speaker 8>also posted threats against top law enforcement officials overseeing court

0:06:33.160 --> 0:06:37.240
<v Speaker 8>cases against Trump. The President flew to Utah yesterday ahead

0:06:37.240 --> 0:06:40.160
<v Speaker 8>of a visit to a veteran's affairs hospital in Salt

0:06:40.240 --> 0:06:43.200
<v Speaker 8>Lake City. Jeff Bellinger, Bloomberg Radio.

0:06:43.360 --> 0:06:46.440
<v Speaker 11>At a time of rising tensions, China has lifted a

0:06:46.440 --> 0:06:50.040
<v Speaker 11>ban on group tours to a slew of countries, including

0:06:50.080 --> 0:06:53.839
<v Speaker 11>the US. Group tours will start immediately. Theasing applies to

0:06:53.880 --> 0:06:57.680
<v Speaker 11>all travel agencies and online platforms across that country. The

0:06:57.760 --> 0:07:00.360
<v Speaker 11>relaxation may set the stage for an acceleration of the

0:07:00.400 --> 0:07:04.839
<v Speaker 11>global tourism industries rebound from COVID. The top state prosecutor

0:07:04.839 --> 0:07:07.800
<v Speaker 11>in Orlando, Florida, who was elected to her position, remains

0:07:07.800 --> 0:07:11.440
<v Speaker 11>defiant and to being suspended by Governor Ron De Santis.

0:07:11.480 --> 0:07:12.640
<v Speaker 2>This is an outrage.

0:07:14.520 --> 0:07:18.120
<v Speaker 11>DeSantis removed Monique Warrel for what he calls neglect of duty.

0:07:18.320 --> 0:07:21.360
<v Speaker 11>She faced criticism this week after two police officers were

0:07:21.400 --> 0:07:24.680
<v Speaker 11>shot allegedly by a man with a long criminal history

0:07:24.840 --> 0:07:28.280
<v Speaker 11>who've been released on bond. Guarrel is the second Democratic

0:07:28.320 --> 0:07:32.960
<v Speaker 11>state attorney removed by DeSantis and the US National Security

0:07:33.000 --> 0:07:37.320
<v Speaker 11>Council says Guatemala's lawlessness is fueling waves of desperate immigrants,

0:07:37.880 --> 0:07:40.600
<v Speaker 11>but many of the guns in Guatemala are being legally

0:07:40.640 --> 0:07:44.360
<v Speaker 11>imported from the US. American gun makers have been the

0:07:44.480 --> 0:07:48.360
<v Speaker 11>leading supplier firearms to Guatemala for years, but following a

0:07:48.400 --> 0:07:52.040
<v Speaker 11>regulatory change in twenty twenty, shipments at more than doubled.

0:07:52.720 --> 0:07:55.400
<v Speaker 11>And he helped shape the sound of the nineteen seventies

0:07:55.440 --> 0:08:04.480
<v Speaker 11>with a group simply known as The Band. Robbie Robertson,

0:08:04.600 --> 0:08:07.160
<v Speaker 11>the songwriter and lead guitarist to the band, has died.

0:08:07.560 --> 0:08:10.560
<v Speaker 11>He was eighty years old. Global News twenty four hours

0:08:10.560 --> 0:08:13.000
<v Speaker 11>a day, power by more than twenty seven hundred journalist

0:08:13.040 --> 0:08:15.520
<v Speaker 11>and analysts in more than one hundred and twenty countries.

0:08:15.600 --> 0:08:17.559
<v Speaker 11>I'm John Tucker. This is Bloomberg. Amy.

0:08:17.640 --> 0:08:24.160
<v Speaker 2>All right, thank you, John. Time now for our Bloomberg

0:08:24.240 --> 0:08:27.360
<v Speaker 2>Sports update. For that, we bring in John's Dash hour Amy.

0:08:27.400 --> 0:08:29.640
<v Speaker 12>The Phillies made a trade just before the deadline to

0:08:29.680 --> 0:08:32.960
<v Speaker 12>acquire thirty one year old pitcher Michael Lorenzen from Detroit.

0:08:33.000 --> 0:08:35.840
<v Speaker 12>He had been the Tigers All Star representative. Last night

0:08:35.960 --> 0:08:38.520
<v Speaker 12>in Philly, crowd of thirty thousand He made just his

0:08:38.600 --> 0:08:41.320
<v Speaker 12>second start with his new team, his first at home.

0:08:41.440 --> 0:08:44.800
<v Speaker 13>Three to two pitch, swinging a high fly ball center field,

0:08:44.880 --> 0:08:48.400
<v Speaker 13>coming in his Rojas, He's calling, he has got it.

0:08:50.720 --> 0:08:54.200
<v Speaker 13>Lorenzen leaps into the arms of real new two and

0:08:54.280 --> 0:08:57.240
<v Speaker 13>the Phillies pile out of the dugout in front of

0:08:57.280 --> 0:08:59.880
<v Speaker 13>the man. They celebrate a no hitter tonight by Mike

0:09:01.360 --> 0:09:03.560
<v Speaker 13>in his second start as a Philly.

0:09:03.640 --> 0:09:05.839
<v Speaker 12>If do Ipy had the call, it was seven nothing

0:09:05.880 --> 0:09:09.200
<v Speaker 12>over Washington, the fourth no hitter thrown in baseball this season,

0:09:09.280 --> 0:09:12.439
<v Speaker 12>the fourteenth in Phillies history, the first ins Cole handles

0:09:12.440 --> 0:09:15.760
<v Speaker 12>in twenty fifteen. Lorenzen wopped for struck out five one

0:09:15.880 --> 0:09:19.000
<v Speaker 12>hundred and twenty four pitches, which is the most thrown

0:09:19.360 --> 0:09:21.439
<v Speaker 12>in a Major League game this season. The Red Sox

0:09:21.440 --> 0:09:24.400
<v Speaker 12>at Fenway top the Royals four to three. The Orioles

0:09:24.400 --> 0:09:26.680
<v Speaker 12>at Camden Yards lost to the Astros eight to two,

0:09:27.040 --> 0:09:29.440
<v Speaker 12>a rare win for the Age to nothing over Texas,

0:09:29.440 --> 0:09:32.160
<v Speaker 12>and Shohey Otani pitched the Angels to a four to

0:09:32.240 --> 0:09:35.400
<v Speaker 12>one win over the Giants in Memphis. Today, they'll tee

0:09:35.400 --> 0:09:38.440
<v Speaker 12>off for the Saint June Classic, which starts the FedEx

0:09:38.480 --> 0:09:43.000
<v Speaker 12>Cup playoffs. Rory McElroy won those playoffs last year and

0:09:43.200 --> 0:09:45.920
<v Speaker 12>he's in third place going in this year. And McElroy

0:09:45.920 --> 0:09:47.320
<v Speaker 12>has finished in the top ten in each of his

0:09:47.400 --> 0:09:50.880
<v Speaker 12>last seven tournaments. John Rohm currently a top the standings.

0:09:50.880 --> 0:09:54.160
<v Speaker 12>The winner gets two thousand FedEx Cup points. Johns Stash

0:09:54.280 --> 0:09:55.800
<v Speaker 12>Edward Bloomberg Sports.

0:09:58.000 --> 0:10:02.880
<v Speaker 14>From coast to coast, from New York, Francisco, Boston to Washington, DC,

0:10:03.360 --> 0:10:08.120
<v Speaker 14>nationwide on Syria's exam the Bloomberg Business Appen Bloomberg dot Com.

0:10:08.200 --> 0:10:10.160
<v Speaker 14>This is Bloomberg Daybreak.

0:10:11.360 --> 0:10:12.680
<v Speaker 8>Good morning, I'm Nathan Hagar.

0:10:12.800 --> 0:10:15.520
<v Speaker 3>The South American nation of Ecuador is under a state

0:10:15.520 --> 0:10:19.160
<v Speaker 3>of emergency this morning. An upcoming presidential election has been

0:10:19.160 --> 0:10:21.600
<v Speaker 3>thrown into some doubt now with one of the leading

0:10:21.679 --> 0:10:26.240
<v Speaker 3>candidates in the race, Fernando via Vissentsio, assassinated following a

0:10:26.280 --> 0:10:29.280
<v Speaker 3>campaign rally last night. It is an act the outgoing

0:10:29.320 --> 0:10:32.679
<v Speaker 3>president of Ecuador, Giomo Lasso, is calling an assault on

0:10:32.720 --> 0:10:36.640
<v Speaker 3>his country's democracy. Bloomberg News Senior editor Bill Ferries is

0:10:36.880 --> 0:10:40.520
<v Speaker 3>following the latest developments out of Ecuador and joins me, now,

0:10:40.520 --> 0:10:42.640
<v Speaker 3>good to speak with you, Bill, Thanks for being with us.

0:10:42.679 --> 0:10:45.480
<v Speaker 3>Can you just give us an update on what happened

0:10:45.520 --> 0:10:48.959
<v Speaker 3>why Fernando via Vissensio may have been a target of

0:10:49.000 --> 0:10:51.200
<v Speaker 3>assassins here well.

0:10:51.360 --> 0:10:55.680
<v Speaker 15>Via Visensio has a long history as a journalist going

0:10:55.720 --> 0:10:59.400
<v Speaker 15>after corruption in Ecuador, particularly during the two thousand and

0:10:59.440 --> 0:11:03.200
<v Speaker 15>seven to sevenen era of President Raphael Coorea. He was

0:11:03.320 --> 0:11:07.440
<v Speaker 15>often on the run hiding at that time. More recently,

0:11:07.480 --> 0:11:10.760
<v Speaker 15>he was a member of the Congress and was now

0:11:10.840 --> 0:11:14.679
<v Speaker 15>running for president. Had been very outspoken in his criticism

0:11:14.880 --> 0:11:19.040
<v Speaker 15>of some of the big contracts awarded to natural resource companies,

0:11:19.280 --> 0:11:22.160
<v Speaker 15>but also in particular, like all the candidates in this

0:11:22.280 --> 0:11:26.280
<v Speaker 15>race in Ecuador, had been very focused on worsening crime

0:11:26.360 --> 0:11:29.199
<v Speaker 15>in the country and had been going after or saying

0:11:29.240 --> 0:11:31.960
<v Speaker 15>he would be going after some of the drug cartels

0:11:32.240 --> 0:11:37.280
<v Speaker 15>that have increasingly used Ecuador's ports to export cocaine to

0:11:37.320 --> 0:11:40.040
<v Speaker 15>the rest of the world. He said he had received

0:11:40.080 --> 0:11:43.760
<v Speaker 15>threats during the campaign. He did have a security detail,

0:11:44.720 --> 0:11:47.600
<v Speaker 15>but he had also refused to back down, saying that

0:11:47.679 --> 0:11:50.600
<v Speaker 15>he would never try to reach a deal reach a

0:11:50.640 --> 0:11:55.560
<v Speaker 15>deal with the cartels. We don't know who assassinated him.

0:11:56.000 --> 0:11:59.000
<v Speaker 15>The details we have from the government are that he

0:11:59.120 --> 0:12:02.000
<v Speaker 15>was shot and then a gun battle erupted between his

0:12:02.080 --> 0:12:07.000
<v Speaker 15>security detail and the assassins. Six people have been arrested.

0:12:07.160 --> 0:12:12.040
<v Speaker 15>One suspect died apparently from the wounds sustained, But we

0:12:12.160 --> 0:12:15.080
<v Speaker 15>don't know yet any of the names of these people.

0:12:15.160 --> 0:12:17.479
<v Speaker 15>We don't know who was behind it.

0:12:17.480 --> 0:12:20.760
<v Speaker 3>It sounds as though stability in Ecuador has been in

0:12:20.840 --> 0:12:25.480
<v Speaker 3>question for some time. Here emerging market investors might have

0:12:25.520 --> 0:12:28.400
<v Speaker 3>a better idea of just what the situation is like

0:12:28.520 --> 0:12:31.080
<v Speaker 3>in Ecuador right now. But can you describe for a

0:12:31.120 --> 0:12:35.439
<v Speaker 3>broader audience what things are like in Ecuador right now,

0:12:35.480 --> 0:12:37.480
<v Speaker 3>what the level of stability is in the country.

0:12:38.440 --> 0:12:42.520
<v Speaker 15>Well, you got to remember Ecuador's sandwich between Peru and Colombia,

0:12:42.559 --> 0:12:46.000
<v Speaker 15>and those are two countries that have historically had a

0:12:46.000 --> 0:12:49.800
<v Speaker 15>lot of issues with violent crime drug related crime. They're

0:12:49.840 --> 0:12:54.880
<v Speaker 15>the two biggest producers of cocaine in the world. Ecuador

0:12:55.200 --> 0:12:59.520
<v Speaker 15>had a history of being a more peaceful place, although

0:12:59.600 --> 0:13:02.440
<v Speaker 15>it has had its own share of political turmoil, that

0:13:02.520 --> 0:13:05.720
<v Speaker 15>hadn't spilled off over into violence quite as much. But

0:13:05.760 --> 0:13:09.960
<v Speaker 15>the last several years, violent crime has become increasingly endemic

0:13:10.800 --> 0:13:13.720
<v Speaker 15>as some of the cartels based in the neighboring countries

0:13:13.800 --> 0:13:18.080
<v Speaker 15>have moved to ship their products through Ecuador, and it's

0:13:18.160 --> 0:13:21.640
<v Speaker 15>become just a bigger issue for the society in this

0:13:21.760 --> 0:13:24.760
<v Speaker 15>presidential race. Of the eight candidates who were going into

0:13:24.760 --> 0:13:29.520
<v Speaker 15>the August twentieth election, all of them were basically focused

0:13:29.559 --> 0:13:32.840
<v Speaker 15>on the issue of how to deal with violence. And

0:13:32.880 --> 0:13:37.360
<v Speaker 15>the real question now will be where do voters turn.

0:13:38.400 --> 0:13:43.120
<v Speaker 15>With Via Vicencio no longer a part of this race,

0:13:43.520 --> 0:13:47.240
<v Speaker 15>do they look to a more hardline candidate. How does

0:13:47.280 --> 0:13:51.240
<v Speaker 15>the government in place try to address this. The president

0:13:51.240 --> 0:13:53.720
<v Speaker 15>has said he's going to deploy the military across the

0:13:53.760 --> 0:13:57.440
<v Speaker 15>country to try to ensure more safety, but it's not

0:13:57.559 --> 0:13:59.800
<v Speaker 15>clear whether that kind of measure will really have a

0:13:59.840 --> 0:14:00.880
<v Speaker 15>lot long term impact.

0:14:01.040 --> 0:14:01.199
<v Speaker 13>Yeah.

0:14:01.320 --> 0:14:03.960
<v Speaker 3>To say that something like this has an impact on

0:14:04.000 --> 0:14:08.920
<v Speaker 3>a presidential races extreme understatement here in our last minute bill,

0:14:09.360 --> 0:14:12.320
<v Speaker 3>How could a state of emergency, a sixty day state

0:14:12.320 --> 0:14:15.800
<v Speaker 3>of emergency affect a presidential election that, as far as

0:14:15.800 --> 0:14:18.120
<v Speaker 3>we know, is still scheduled for ten days from now.

0:14:19.320 --> 0:14:22.520
<v Speaker 15>Yeah, I think it's very much going to be seen

0:14:22.560 --> 0:14:27.880
<v Speaker 15>as a temporary measure. I think Ecuador is really quite

0:14:27.920 --> 0:14:31.400
<v Speaker 15>a turning point here in terms of whether the cartels

0:14:31.760 --> 0:14:35.240
<v Speaker 15>and organized crime gained the upper hand over the ability

0:14:35.280 --> 0:14:38.920
<v Speaker 15>of the government to provide any security for its people.

0:14:39.720 --> 0:14:42.160
<v Speaker 15>So I think the government's focus now is getting to

0:14:42.240 --> 0:14:46.280
<v Speaker 15>that August twentieth date without any more major episodes of violence.

0:14:46.600 --> 0:14:49.360
<v Speaker 15>This is not the first political attack even in recent

0:14:49.400 --> 0:14:52.080
<v Speaker 15>weeks in Ecuadora, a mayor of the southern port city

0:14:52.080 --> 0:14:54.680
<v Speaker 15>of Manta was recently killed. So the challenge is on

0:14:54.760 --> 0:14:56.720
<v Speaker 15>for the government to try to just get to that

0:14:56.760 --> 0:14:59.960
<v Speaker 15>August twentieth date, hand over to a new president and descent,

0:15:00.640 --> 0:15:04.280
<v Speaker 15>and see if that new leader can can improve the

0:15:04.280 --> 0:15:05.560
<v Speaker 15>country security situation.

0:15:07.680 --> 0:15:10.760
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

0:15:10.800 --> 0:15:14.240
<v Speaker 1>stories making news from Wall Street to Washington and beyond.

0:15:14.400 --> 0:15:17.400
<v Speaker 2>Look for us on your podcast feed by six am

0:15:17.560 --> 0:15:21.640
<v Speaker 2>Eastern each morning, on Apple, Spotify, and anywhere else you

0:15:21.720 --> 0:15:22.840
<v Speaker 2>get your podcasts.

0:15:23.000 --> 0:15:25.720
<v Speaker 1>You can also listen live each morning starting at five

0:15:25.760 --> 0:15:28.400
<v Speaker 1>am Wall Street time on Bloomberg eleven three to zero

0:15:28.400 --> 0:15:31.200
<v Speaker 1>in New York, Bloomberg ninety nine to one in Washington,

0:15:31.360 --> 0:15:34.240
<v Speaker 1>Bloomberg one oh six to one in Boston, and Bloomberg

0:15:34.280 --> 0:15:36.080
<v Speaker 1>ninety sixty in San Francisco.

0:15:36.320 --> 0:15:39.840
<v Speaker 2>Our flagship New York station is also available on your

0:15:39.960 --> 0:15:45.360
<v Speaker 2>Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

0:15:45.120 --> 0:15:47.960
<v Speaker 1>Plus listen coast to coast on the Bloomberg Business app,

0:15:48.040 --> 0:15:51.920
<v Speaker 1>serious XM Channel one nineteen, the iHeartRadio app, and on

0:15:52.000 --> 0:15:54.480
<v Speaker 1>Bloomberg dot Com. I'm Nathan Hager.

0:15:54.280 --> 0:15:57.880
<v Speaker 2>And I'm Abe Morris. Join us again tomorrow morning for

0:15:58.000 --> 0:16:00.680
<v Speaker 2>all the news you need to start your day right

0:16:00.720 --> 0:16:02.400
<v Speaker 2>here on Bloomberg Daybreak