1 00:00:04,040 --> 00:00:08,600 Speaker 1: Broadcasting live to New York, Bloomberg eleven to Washington, d C, 2 00:00:08,840 --> 00:00:14,400 Speaker 1: bloom to Boston, Bloomberg twelve, to San Francisco, Bloomberg nine 3 00:00:14,440 --> 00:00:18,000 Speaker 1: six to the country sis XM Channel one nineteen, and 4 00:00:18,120 --> 00:00:22,040 Speaker 1: around the globe the Bloomberg Radio plus append Bloomberg dot Com. 5 00:00:22,239 --> 00:00:26,440 Speaker 1: This is taking stock. Do you know what the biggest 6 00:00:26,600 --> 00:00:31,120 Speaker 1: unknown for hotel reads here in the United States is now? 7 00:00:31,960 --> 00:00:35,240 Speaker 1: According to our guests coming up on taking Stock, it's 8 00:00:35,320 --> 00:00:40,720 Speaker 1: inbound international travel implications inbound into the US that is 9 00:00:41,000 --> 00:00:44,240 Speaker 1: following the Brexit vote. I'm Kathleen Hayes, my co host 10 00:00:44,280 --> 00:00:47,040 Speaker 1: Pim Fox on vacation this week, and I'm sure he 11 00:00:47,120 --> 00:00:49,280 Speaker 1: loves travel. He's very sorry. I'm sure that he's missing 12 00:00:49,360 --> 00:00:53,280 Speaker 1: David Loebs, senior hotel industry research channelist from Robert W. 13 00:00:53,479 --> 00:00:56,440 Speaker 1: Baird and Co. In Milwaukee. David was also going to 14 00:00:56,520 --> 00:00:58,920 Speaker 1: talk to us about summer travel what that means for 15 00:00:59,040 --> 00:01:01,600 Speaker 1: some of the big reads and hotel chains. Let's get 16 00:01:01,600 --> 00:01:04,319 Speaker 1: to Catherine Cowdrie now she's in the Bloomberg newsroom with 17 00:01:04,360 --> 00:01:07,640 Speaker 1: a Bloomberg business flash. Thank you, Kathleen and Bloomberg. Taking 18 00:01:07,720 --> 00:01:10,360 Speaker 1: Zoc is brought to you by National realty providers have 19 00:01:10,400 --> 00:01:15,000 Speaker 1: one satisfaction guaranteed New York City Realty Investments see them 20 00:01:15,000 --> 00:01:18,360 Speaker 1: at n r I a dot net. This stock market 21 00:01:18,400 --> 00:01:20,520 Speaker 1: is climbing for the first time since Britain voted to 22 00:01:20,560 --> 00:01:24,560 Speaker 1: withdraw from the European Union. There's speculation that policymakers will 23 00:01:24,600 --> 00:01:28,280 Speaker 1: take steps to limit any economic fallout. Investors are also 24 00:01:28,360 --> 00:01:32,080 Speaker 1: encouraged by some US data. Consumer confidence improved in June. 25 00:01:32,080 --> 00:01:35,679 Speaker 1: Bloomberg's Annydale Jude Ice has the details. The Conference Board's 26 00:01:35,720 --> 00:01:40,800 Speaker 1: Consumer Confidence INEX advanced to this month, the highest since October. 27 00:01:41,040 --> 00:01:44,960 Speaker 1: Americans were more confident about current economic conditions as well 28 00:01:45,000 --> 00:01:49,040 Speaker 1: as the months ahead. Separately, revised government data show GDP 29 00:01:49,200 --> 00:01:51,640 Speaker 1: expanded at a one point one percent annual rate in 30 00:01:51,680 --> 00:01:54,760 Speaker 1: the first quarter, the weakest showing in a year. April 31 00:01:54,760 --> 00:01:58,000 Speaker 1: home prices meantime rose five point four percent year over year. 32 00:01:58,160 --> 00:02:01,040 Speaker 1: According to S and P. K. Schiller at the Bloomberg 33 00:02:01,080 --> 00:02:05,040 Speaker 1: First Word Desk Judici Sploomberg Radio, we check the markets 34 00:02:05,080 --> 00:02:07,800 Speaker 1: every fifteen minutes throughout the trading day. Down industrial averages 35 00:02:07,840 --> 00:02:10,360 Speaker 1: up two hundred twenty points one point three percent. Trading 36 00:02:10,400 --> 00:02:13,920 Speaker 1: at seventeen thousand, three hundred sixty SMP five fundered up 37 00:02:13,960 --> 00:02:16,239 Speaker 1: thirty points one and a half percent, trading at two 38 00:02:16,240 --> 00:02:19,119 Speaker 1: thousand thirty Then as Zack is higher by eighty six 39 00:02:19,120 --> 00:02:22,200 Speaker 1: points one point nine percent, trading at forty six eighty less. 40 00:02:22,200 --> 00:02:24,639 Speaker 1: Texas intermediate crude oil of a dollar fifty five of 41 00:02:24,720 --> 00:02:27,400 Speaker 1: barrel three point three percent to forty seven eighty eight 42 00:02:27,680 --> 00:02:30,959 Speaker 1: spickled down six dollars ninety cents. Again's at thirteen seventeen 43 00:02:31,040 --> 00:02:33,799 Speaker 1: eighty ten year treasury down four thirty seconds with the 44 00:02:33,840 --> 00:02:37,840 Speaker 1: yield of one point four five percent. It's three thirty 45 00:02:37,880 --> 00:02:39,679 Speaker 1: two on Well Street. Let's get an update if some 46 00:02:39,760 --> 00:02:42,079 Speaker 1: of the other stories were following today right here on 47 00:02:42,200 --> 00:02:47,560 Speaker 1: Bloomberg Radio. Thank you, Catherine from the Bloomberg Newsroom. I'm 48 00:02:47,600 --> 00:02:50,080 Speaker 1: Jill Schneider. This news update is brought to you by 49 00:02:50,120 --> 00:02:53,600 Speaker 1: the Jeep Grand Cherokee, the most awarded suv ever. The 50 00:02:53,680 --> 00:02:56,799 Speaker 1: Grand Cherokee continues to raise the bar with its luxurious 51 00:02:56,880 --> 00:03:00,800 Speaker 1: interior and legendary four by four capability. Drive one at 52 00:03:00,800 --> 00:03:04,240 Speaker 1: your local Jeep dealer today. Speaking during a campaign stop 53 00:03:04,360 --> 00:03:09,119 Speaker 1: in Denver today, presumptive Democratic presidential nominee Hillary Clinton commented 54 00:03:09,200 --> 00:03:12,080 Speaker 1: on the House Republican's final report on the two thousand 55 00:03:12,120 --> 00:03:17,120 Speaker 1: twelve Benghazi attacks. No one has thought more about or 56 00:03:17,240 --> 00:03:21,760 Speaker 1: lost more sleep over the lives that we lost the 57 00:03:21,840 --> 00:03:25,720 Speaker 1: four Americans, which was devastating. Clinton also said it's clear 58 00:03:25,840 --> 00:03:28,840 Speaker 1: that it's time to move on. Giving an economic address 59 00:03:28,919 --> 00:03:33,320 Speaker 1: in Moness in Pennsylvania today, likely Republican presidential nominee Donald 60 00:03:33,360 --> 00:03:36,200 Speaker 1: Trump said the American dream will be possible for more 61 00:03:36,320 --> 00:03:41,240 Speaker 1: people once he is in the White House. You to 62 00:03:41,400 --> 00:03:45,840 Speaker 1: imagine a much better life and a life where you 63 00:03:46,000 --> 00:03:51,120 Speaker 1: can believe in the American dream again. Right now, you 64 00:03:51,360 --> 00:03:54,920 Speaker 1: can't do that. Trump also accused Hillary Clinton of killing 65 00:03:54,960 --> 00:03:57,800 Speaker 1: American jobs through deals she made during her time as 66 00:03:57,800 --> 00:04:00,560 Speaker 1: Secretary of State. People who want to apply for the 67 00:04:00,640 --> 00:04:03,200 Speaker 1: t s AS pre check program may soon have an 68 00:04:03,240 --> 00:04:06,480 Speaker 1: easier time of it. The agency is opening three temporary 69 00:04:06,640 --> 00:04:10,240 Speaker 1: enrollment centers at penn Station and at hotels near JFK 70 00:04:10,480 --> 00:04:13,720 Speaker 1: and Newark airports. The move follows increased demand for the 71 00:04:13,800 --> 00:04:17,880 Speaker 1: airport security program, which lets passengers get through checkpoints more quickly. 72 00:04:18,480 --> 00:04:21,080 Speaker 1: Global News twenty four hours a day, powered by more 73 00:04:21,120 --> 00:04:24,560 Speaker 1: than twenty d journalists and analysts in more than one 74 00:04:24,640 --> 00:04:28,200 Speaker 1: hundred twenty countries from the Bloomberg Newsroom I'm Jill Schneider 75 00:04:28,360 --> 00:04:31,960 Speaker 1: and this is Bloomberg. Catherine, thank you, and we're getting 76 00:04:32,000 --> 00:04:36,440 Speaker 1: news of two explosions taking place at Istanbul's International Auditurk Airport. 77 00:04:36,839 --> 00:04:40,160 Speaker 1: That's according to Turkey's Interior Ministry. The ministry says a 78 00:04:40,279 --> 00:04:43,040 Speaker 1: number of people were injured. They're still not sure what 79 00:04:43,200 --> 00:04:46,320 Speaker 1: cause the explosions. That's not immediately clear. And I witness 80 00:04:46,360 --> 00:04:49,240 Speaker 1: told CNN Turk Television that the blast took place shortly 81 00:04:49,320 --> 00:04:53,040 Speaker 1: after gunfire between police officers and unknown people near the 82 00:04:53,160 --> 00:04:56,080 Speaker 1: airports car park. And we will have more details as 83 00:04:56,160 --> 00:05:01,760 Speaker 1: they become available. That's a Bloomberg Business flash. This is 84 00:05:01,839 --> 00:05:06,320 Speaker 1: taking stock with pin Box and Katholeenks on Bloomberg Radio. 85 00:05:06,920 --> 00:05:10,680 Speaker 1: It's far too earlier, earlier to talk about the dust 86 00:05:10,960 --> 00:05:16,320 Speaker 1: settling after the political earthquake caused by the UK's vote 87 00:05:16,400 --> 00:05:20,239 Speaker 1: to leave the European Union, but already people are saying 88 00:05:20,320 --> 00:05:24,320 Speaker 1: that there are important industries and companies that will be affected. 89 00:05:24,839 --> 00:05:28,680 Speaker 1: David loebe joins US now. He's senior hotel industry research 90 00:05:28,760 --> 00:05:33,120 Speaker 1: analyst at Robert W. Baard and Co. In Milwaukee. He 91 00:05:33,680 --> 00:05:37,000 Speaker 1: covers hotel rates and he says there could be some 92 00:05:37,240 --> 00:05:42,640 Speaker 1: very powerful effects fallout on these rates after this big 93 00:05:42,880 --> 00:05:45,880 Speaker 1: Brexit vote. David, welcome to the show. Thank you glad 94 00:05:45,880 --> 00:05:49,520 Speaker 1: to be here. So hotel rates are going to suffer. 95 00:05:49,760 --> 00:05:53,640 Speaker 1: Why because there will be too many people working on 96 00:05:53,800 --> 00:05:56,680 Speaker 1: the Brexit and what it's going to mean. Because the 97 00:05:56,760 --> 00:05:58,440 Speaker 1: city of London will be hurt, and the kind of 98 00:05:58,520 --> 00:06:00,720 Speaker 1: people with the money in their could just hop in 99 00:06:00,800 --> 00:06:02,720 Speaker 1: a plane and go on a business trip or even 100 00:06:02,960 --> 00:06:05,720 Speaker 1: a vacation are not going to be doing it. I 101 00:06:05,800 --> 00:06:08,600 Speaker 1: think the biggest impact on the hotel industry, both on 102 00:06:08,640 --> 00:06:11,240 Speaker 1: the hotel brands and on the hotel roots, will be 103 00:06:11,360 --> 00:06:13,880 Speaker 1: because of the changes in the value of currency. So 104 00:06:14,000 --> 00:06:16,480 Speaker 1: if you look at the drop in the pound for 105 00:06:16,920 --> 00:06:21,080 Speaker 1: UK travelers looking to vacation in New York or come 106 00:06:21,120 --> 00:06:23,560 Speaker 1: on a business trip to anywhere in the US, it's 107 00:06:23,640 --> 00:06:27,200 Speaker 1: much more expensive today than it was last Thursday. That 108 00:06:27,360 --> 00:06:29,920 Speaker 1: I think is the biggest direct impact. I think we 109 00:06:30,000 --> 00:06:34,480 Speaker 1: will also see secondary impacts with businesses cutting back on 110 00:06:35,200 --> 00:06:38,280 Speaker 1: on what are essentially the easiest variable expense to cut, 111 00:06:38,360 --> 00:06:42,600 Speaker 1: which is business travel, until they understand the economic implications 112 00:06:42,680 --> 00:06:45,080 Speaker 1: of this boat, what the timeline is likely to be, 113 00:06:45,240 --> 00:06:48,720 Speaker 1: and how it may directly impact their business. So give 114 00:06:48,800 --> 00:06:51,200 Speaker 1: us give us even you know, hold that thumb up 115 00:06:51,240 --> 00:06:55,160 Speaker 1: screen your eye, just even some rough sense of how 116 00:06:55,720 --> 00:06:59,799 Speaker 1: much travel from Europe or even more broadly around the world. 117 00:07:00,000 --> 00:07:02,000 Speaker 1: Because again, if I'm a business I could have an 118 00:07:02,040 --> 00:07:04,720 Speaker 1: office in Shanghai, same thing. I could still feel like, 119 00:07:04,880 --> 00:07:06,880 Speaker 1: I gotta wonder what's going to happen with the Brexit, 120 00:07:07,080 --> 00:07:09,120 Speaker 1: what it's going to do in my company? How much? 121 00:07:09,240 --> 00:07:13,160 Speaker 1: How much is that a part of how the reds 122 00:07:13,320 --> 00:07:16,320 Speaker 1: and the hotels that are in those reds are are 123 00:07:16,560 --> 00:07:19,800 Speaker 1: doing business with these important parts of the world. Well, 124 00:07:20,480 --> 00:07:23,200 Speaker 1: I think you're you're absolutely onto something here. We live 125 00:07:23,240 --> 00:07:25,960 Speaker 1: in a global world, and there's a lot of travel 126 00:07:26,160 --> 00:07:28,520 Speaker 1: from all regions of the world to all other regions 127 00:07:28,560 --> 00:07:31,000 Speaker 1: of the world in the in the US, it's not 128 00:07:31,360 --> 00:07:33,920 Speaker 1: just inbound travel from the UK or from the EU. 129 00:07:34,360 --> 00:07:37,440 Speaker 1: It's traveled from everywhere and within the US. So I 130 00:07:37,480 --> 00:07:41,840 Speaker 1: think businesses that are are focused on global markets are 131 00:07:42,080 --> 00:07:45,680 Speaker 1: reassessing or pulling back, are stalling their decisions. That doesn't 132 00:07:45,720 --> 00:07:48,600 Speaker 1: mean I'm calling for a downturn in demand. We've already 133 00:07:48,640 --> 00:07:51,760 Speaker 1: seen a slowdown in demand for hotels, but I think 134 00:07:51,800 --> 00:07:53,480 Speaker 1: it will take a while before we see exactly how 135 00:07:53,600 --> 00:07:56,040 Speaker 1: this how this plays out. But I think there will 136 00:07:56,120 --> 00:07:59,880 Speaker 1: be there will be domestic implications as as companies look 137 00:08:00,120 --> 00:08:02,360 Speaker 1: what this means to their business, and as they slow 138 00:08:02,480 --> 00:08:05,840 Speaker 1: down and reassess, they will send fewer people on the road, 139 00:08:05,920 --> 00:08:10,360 Speaker 1: whether that's going from Cleveland to Washington, d C. Or 140 00:08:10,560 --> 00:08:13,840 Speaker 1: from Paris to New York, and those those cuts will 141 00:08:13,920 --> 00:08:17,200 Speaker 1: have some impact on the industry. I just have to 142 00:08:17,320 --> 00:08:21,640 Speaker 1: ask you slow down in demand. Uh the shutting down 143 00:08:21,720 --> 00:08:25,720 Speaker 1: the Waldorf Historia and I'll granted an older hotel, but uh, 144 00:08:26,480 --> 00:08:29,679 Speaker 1: you know, gosh, just one of those look at books, 145 00:08:29,720 --> 00:08:31,600 Speaker 1: look at movies. The Waldor is such a big part 146 00:08:31,720 --> 00:08:36,559 Speaker 1: of New York City, Manhattan a condo rebuild? Uh is this? 147 00:08:37,080 --> 00:08:38,959 Speaker 1: Are they a hotel that was out of step with 148 00:08:39,040 --> 00:08:43,079 Speaker 1: the times? Or why didn't somebody step up to say no, no, no, 149 00:08:43,200 --> 00:08:44,920 Speaker 1: I'll buy it. Maybe I get a better deal. I mean, 150 00:08:44,920 --> 00:08:46,760 Speaker 1: I get it a little bit cheap and and fix 151 00:08:46,800 --> 00:08:48,439 Speaker 1: it up and restore to its gloria and make a 152 00:08:48,480 --> 00:08:52,120 Speaker 1: lot of money. The Waldorf is an iconic hotel, There's 153 00:08:52,160 --> 00:08:55,600 Speaker 1: no question. It also sits on a full square block 154 00:08:56,120 --> 00:08:59,920 Speaker 1: on Park Avenue right near Grand Central Station, a fantastic location, 155 00:09:00,040 --> 00:09:03,760 Speaker 1: and I think the opportunity for the owner to put 156 00:09:03,840 --> 00:09:07,800 Speaker 1: condominiums into that building is just so much that it 157 00:09:08,000 --> 00:09:11,320 Speaker 1: offsets the fact that that it's such an iconic hotel. 158 00:09:11,480 --> 00:09:13,559 Speaker 1: It will come back as a hotel just as a 159 00:09:13,640 --> 00:09:16,680 Speaker 1: much smaller hotel, perhaps five or six hundred rooms, less 160 00:09:16,679 --> 00:09:20,600 Speaker 1: than half of what it was before. So uh, it's interesting. 161 00:09:20,679 --> 00:09:23,120 Speaker 1: That's that's the supply side of the equation, and New 162 00:09:23,200 --> 00:09:25,240 Speaker 1: York has seen a lot of new rooms and taking 163 00:09:25,320 --> 00:09:28,160 Speaker 1: some rooms out for three years and then permanently for 164 00:09:28,400 --> 00:09:30,959 Speaker 1: more than half of those rooms will certainly have a 165 00:09:31,080 --> 00:09:33,640 Speaker 1: slight positive impact on that market. But I think the 166 00:09:33,720 --> 00:09:37,600 Speaker 1: remaining rooms will be more representative of the iconic stature 167 00:09:38,200 --> 00:09:41,599 Speaker 1: of that hotel than a lot of the rooms that 168 00:09:41,679 --> 00:09:44,920 Speaker 1: are exist today in that building. Okay, in a nutshell, 169 00:09:45,280 --> 00:09:49,760 Speaker 1: final question, summer travel, what are you seeing? What's important 170 00:09:49,800 --> 00:09:51,560 Speaker 1: of you? Already seen a bit of a slowdown on demand. 171 00:09:51,600 --> 00:09:54,400 Speaker 1: What's gonna happen this summer? Well, leisure travel is a 172 00:09:54,480 --> 00:09:57,439 Speaker 1: real bright spot, and the second bright spot has been grouped, 173 00:09:57,480 --> 00:10:01,480 Speaker 1: although even group is showing some signs of of corporate cutback. 174 00:10:01,960 --> 00:10:05,600 Speaker 1: So I think your your news broadcast mentioned this crushed 175 00:10:05,640 --> 00:10:08,240 Speaker 1: to join the t s A pre check program. Airports 176 00:10:08,280 --> 00:10:11,559 Speaker 1: are busies, busy, airlines are busy. I think hotels that 177 00:10:11,760 --> 00:10:14,120 Speaker 1: cater to leisure travelers will be very busy this summer. 178 00:10:14,480 --> 00:10:17,400 Speaker 1: Group activity is looking actually very strong this summer. The 179 00:10:17,440 --> 00:10:20,880 Speaker 1: big wild card that on that is corporate transient travel, 180 00:10:20,920 --> 00:10:22,600 Speaker 1: and I think that will be a little bit slower. 181 00:10:22,679 --> 00:10:25,400 Speaker 1: So net and now we may be flatish or slightly 182 00:10:25,480 --> 00:10:28,000 Speaker 1: up this summer in terms of hotel occupancy, but I 183 00:10:28,080 --> 00:10:33,040 Speaker 1: think particularly at national parks and tourist sites. All right, 184 00:10:33,320 --> 00:10:36,840 Speaker 1: thanks so much to David Loeb, but senior hotel industry 185 00:10:36,880 --> 00:10:41,480 Speaker 1: research analyst at Robert W. Baird and Co. He's based 186 00:10:41,600 --> 00:10:45,920 Speaker 1: in Milwaukee. He says that there could be a reduction 187 00:10:46,040 --> 00:10:49,080 Speaker 1: in inbound foreign travel to the United States a lot, 188 00:10:49,200 --> 00:10:51,719 Speaker 1: because you know what your currency tanks. That makes it 189 00:10:51,760 --> 00:10:54,719 Speaker 1: a lot more expensive to buy a plane ticket. I'm 190 00:10:54,800 --> 00:10:57,920 Speaker 1: Caffeine Hayes, and this is taking Stock on Blum Radio. 191 00:11:01,360 --> 00:11:06,360 Speaker 1: Coming up on taking Stock Peter Cheer from Brain Capital. 192 00:11:07,120 --> 00:11:09,199 Speaker 1: He's going to tell us why he thinks maybe the 193 00:11:09,240 --> 00:11:11,760 Speaker 1: worst outcome from the Brexit vote is what could be 194 00:11:11,960 --> 00:11:13,160 Speaker 1: facing the stock market.