1
00:00:02,960 --> 00:00:07,280
Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,

2
00:00:07,360 --> 00:00:12,400
Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,

3
00:00:12,520 --> 00:00:17,520
Speaker 1: Bloomberg nine to the Country six Channel one, and around

4
00:00:17,560 --> 00:00:20,800
Speaker 1: the globe the Bloomberg Radio, Fox and Bloomberg dot Com.

5
00:00:21,200 --> 00:00:24,880
Speaker 1: This is taking Stock. Coming up on taking Stock. He

6
00:00:24,960 --> 00:00:31,840
Speaker 1: has been described as having impeccable credentials as a telecom revolutionary.

7
00:00:32,000 --> 00:00:36,240
Speaker 1: Are you interested in starting your own media network? Well,

8
00:00:36,479 --> 00:00:39,479
Speaker 1: coming up, you're gonna be listening to David McCourt and

9
00:00:39,560 --> 00:00:41,680
Speaker 1: maybe he'll have an answer too. But right now, let's

10
00:00:41,680 --> 00:00:43,920
Speaker 1: get answers from Charlie Coulo in the Bloomberg newsroom for

11
00:00:43,960 --> 00:00:46,560
Speaker 1: the Bloomberg Business Flash, and I thank you pim Fox.

12
00:00:46,600 --> 00:00:49,319
Speaker 1: We've got the down Jones Industrial Average down thirty eight

13
00:00:49,360 --> 00:00:52,840
Speaker 1: points now declining two tenths of one percent, the SMP

14
00:00:53,000 --> 00:00:55,520
Speaker 1: five hundred index holding onto a gain of three points,

15
00:00:55,520 --> 00:00:58,960
Speaker 1: some two tenths of one percent. The SMP are struggling

16
00:00:59,000 --> 00:01:02,360
Speaker 1: to rebound after happing a second to straight weekly retreat.

17
00:01:02,840 --> 00:01:05,520
Speaker 1: Right now, Nestak is up twenty four points, a gain

18
00:01:05,560 --> 00:01:09,120
Speaker 1: of five tenths of one percent. Investors are awaiting a

19
00:01:09,160 --> 00:01:12,319
Speaker 1: final batch of earnings reports, along with further clues on

20
00:01:12,360 --> 00:01:15,000
Speaker 1: the health of the U S economy. Jim Paulson is

21
00:01:15,080 --> 00:01:18,640
Speaker 1: chief investment strategist at Wells Capital Management. I think there'll

22
00:01:18,680 --> 00:01:21,959
Speaker 1: be a couple of hikes yet this year. Um. Yeah,

23
00:01:22,040 --> 00:01:24,880
Speaker 1: that's really predicated on a belief that number one in

24
00:01:24,880 --> 00:01:28,160
Speaker 1: the US economy has probably been growing, continuing to grow

25
00:01:28,200 --> 00:01:31,560
Speaker 1: two to two and a half percenter out notwithstanding all

26
00:01:31,560 --> 00:01:34,560
Speaker 1: the vagarities of you know, up and down of the

27
00:01:34,640 --> 00:01:37,280
Speaker 1: various reports that come out, and on the view that

28
00:01:37,400 --> 00:01:41,640
Speaker 1: I think international data is picking up. Gold is moving,

29
00:01:41,680 --> 00:01:44,639
Speaker 1: Laura now by twenty seven dollars, the ounce to twelve

30
00:01:44,760 --> 00:01:47,520
Speaker 1: sixty six, the drop there of two point two percent.

31
00:01:48,160 --> 00:01:50,920
Speaker 1: And we are brought to you by Vanneck Vector's et

32
00:01:51,120 --> 00:01:55,000
Speaker 1: F S expects more from your munies target tax exempt

33
00:01:55,080 --> 00:01:58,320
Speaker 1: income by maturity and credit quality, all with low cost

34
00:01:58,400 --> 00:02:03,680
Speaker 1: ETFs does advanacked Calm Slash Muni Van Eck access the

35
00:02:03,880 --> 00:02:08,800
Speaker 1: opportunities Lending Club shares plunging today after an internal review

36
00:02:08,880 --> 00:02:11,079
Speaker 1: found of US is tied to the sale of a

37
00:02:11,360 --> 00:02:14,760
Speaker 1: loan and a failure to disclose a personal interest in

38
00:02:14,880 --> 00:02:17,720
Speaker 1: an investment fund, leading to the departure of founder and

39
00:02:17,800 --> 00:02:22,440
Speaker 1: CEO Renaudo Laplanche. Today lending club plunging twenty seven percent.

40
00:02:23,000 --> 00:02:25,400
Speaker 1: J C. Penny says it will start to sell major

41
00:02:25,440 --> 00:02:28,919
Speaker 1: appliances online and expand its rollout of the category to

42
00:02:29,040 --> 00:02:33,079
Speaker 1: nearly five hundred stores, or almost half its stores, this summer.

43
00:02:33,480 --> 00:02:36,600
Speaker 1: This after testing it out in a number of trial markets.

44
00:02:36,720 --> 00:02:39,639
Speaker 1: J C. Penny shares up two point eight percent to

45
00:02:39,880 --> 00:02:41,679
Speaker 1: thirty two on Wall Street. Now will look at some

46
00:02:41,800 --> 00:02:46,200
Speaker 1: of the other stories making news. Charlie, thank you from

47
00:02:46,240 --> 00:02:49,880
Speaker 1: the Bloomberg news roomin Mark Crompton. North Carolina is suing

48
00:02:49,960 --> 00:02:53,239
Speaker 1: the federal government over its so called bathroom Law, which

49
00:02:53,320 --> 00:02:58,239
Speaker 1: limits protections for LGBT citizens. Governor Pat mccruory. We believe

50
00:02:58,320 --> 00:03:01,240
Speaker 1: a court, rather than a fed rural agencies, should tell

51
00:03:01,280 --> 00:03:06,200
Speaker 1: our state, our nation, and employers across the country what

52
00:03:06,400 --> 00:03:10,120
Speaker 1: the law requires. The Justice Department had given North Carolina

53
00:03:10,200 --> 00:03:12,880
Speaker 1: until the end of today to scrap the law or

54
00:03:13,000 --> 00:03:17,640
Speaker 1: risk losing millions in federal funding. Presumptive Republican presidential nominee

55
00:03:17,680 --> 00:03:21,600
Speaker 1: Donald Trump is stepping up his attacks on rival Hillary Clinton.

56
00:03:21,919 --> 00:03:24,880
Speaker 1: Trump is taking aim at her husband's presidency and his

57
00:03:25,000 --> 00:03:27,920
Speaker 1: treatment of women. He was impeached and then he lied

58
00:03:27,960 --> 00:03:31,120
Speaker 1: about it. He said nothing happened with Bonnoica Lewinsky, and

59
00:03:31,160 --> 00:03:34,680
Speaker 1: then he said, uh sorry, folks had actually did happen

60
00:03:34,920 --> 00:03:37,920
Speaker 1: and the guy was impeached for Lyne. Speaking at a

61
00:03:38,040 --> 00:03:42,240
Speaker 1: rally in Atlantic City today, Democratic presidential candidate Bernie Sanders

62
00:03:42,480 --> 00:03:47,000
Speaker 1: criticized Trump. That is what we are seeing all over

63
00:03:47,120 --> 00:03:52,480
Speaker 1: this country. The billionaire class, the icons, the Trump's, all

64
00:03:52,680 --> 00:03:56,800
Speaker 1: of these people who want more and more. They're squeezing

65
00:03:57,160 --> 00:04:01,440
Speaker 1: working people Hotter and hottle. At this point, Sanders has

66
00:04:01,520 --> 00:04:04,760
Speaker 1: no mathematical path to the nomination without winning over many

67
00:04:04,880 --> 00:04:08,560
Speaker 1: super delegates already pledged to Hillary Clinton. An inmate who

68
00:04:08,680 --> 00:04:11,480
Speaker 1: escaped from a minimum security prison in New Jersey last

69
00:04:11,520 --> 00:04:14,720
Speaker 1: week was tracked down and taken into custody today. Lacey

70
00:04:14,800 --> 00:04:17,919
Speaker 1: Township police say Arthur Buckle was located near the Garden

71
00:04:18,040 --> 00:04:21,360
Speaker 1: State Parkway. Global News twenty four hours a day, powered

72
00:04:21,400 --> 00:04:24,920
Speaker 1: by our journalists in more than one hundred fifty news

73
00:04:25,000 --> 00:04:27,680
Speaker 1: bureaus around the world. From the Bloomberg News Room, I

74
00:04:27,800 --> 00:04:32,320
Speaker 1: Mark Crumpton, Charlie, and we thank you and again recapping.

75
00:04:32,520 --> 00:04:36,000
Speaker 1: The SMP five index is up three points again of

76
00:04:36,120 --> 00:04:39,600
Speaker 1: two tenths of one percent. I'm Charlie Peloton. That's a

77
00:04:39,720 --> 00:04:46,120
Speaker 1: Bloomberg business flash. You're listening to stock with Kathleen on

78
00:04:46,240 --> 00:04:52,160
Speaker 1: Bluebird Radio. The telecommunications industry, it is not mundane in

79
00:04:52,440 --> 00:04:55,720
Speaker 1: any sense of the word. With the combination of the

80
00:04:55,960 --> 00:05:01,440
Speaker 1: Internet and cable, you have a world wide network that

81
00:05:01,640 --> 00:05:04,640
Speaker 1: brings all of this information, whether it's on the satellite

82
00:05:04,800 --> 00:05:07,760
Speaker 1: or cable or in the air. And to help make

83
00:05:07,839 --> 00:05:10,240
Speaker 1: sense of all of this, we have David McCourt. He

84
00:05:10,360 --> 00:05:15,000
Speaker 1: is the chairman and the chief executive of Granahan McCourt Capital,

85
00:05:15,120 --> 00:05:17,320
Speaker 1: and I want to welcome him to the studio. David,

86
00:05:17,360 --> 00:05:18,960
Speaker 1: thank you very much for being here. Thank you for

87
00:05:19,040 --> 00:05:21,880
Speaker 1: having me him. Now, before you came on, I wanted

88
00:05:21,920 --> 00:05:24,440
Speaker 1: to alert you I was going to ask you about

89
00:05:24,560 --> 00:05:28,600
Speaker 1: your past because I bet most people would not believe

90
00:05:29,000 --> 00:05:31,720
Speaker 1: that you have a first, as I would call it

91
00:05:32,240 --> 00:05:34,520
Speaker 1: in American business, and I'm wondering if you could tell

92
00:05:34,560 --> 00:05:38,920
Speaker 1: people what this first was. Well, thanks him. I've been

93
00:05:39,160 --> 00:05:42,480
Speaker 1: I've been in a media, telcom and technology business for

94
00:05:42,520 --> 00:05:45,960
Speaker 1: a long long time and we have a couple first. Uh.

95
00:05:46,400 --> 00:05:49,360
Speaker 1: Luckily for us, we built the first competitive phone come

96
00:05:49,400 --> 00:05:52,400
Speaker 1: in America, a company called Corporate Communication Network back in

97
00:05:52,520 --> 00:05:58,840
Speaker 1: Boston that was in the eighties. I guess it in

98
00:05:59,040 --> 00:06:01,520
Speaker 1: mid eighties. This is when there was just one phone

99
00:06:01,560 --> 00:06:05,080
Speaker 1: company called A T and T. So there wasn't really um,

100
00:06:05,240 --> 00:06:07,680
Speaker 1: there wasn't the baby bells back then, you know, there

101
00:06:07,760 --> 00:06:10,880
Speaker 1: was just one phone company. So and we we came

102
00:06:10,920 --> 00:06:14,560
Speaker 1: about this because I started out the construction business. In

103
00:06:14,600 --> 00:06:17,680
Speaker 1: the construction business is a tough business because you first

104
00:06:17,720 --> 00:06:20,040
Speaker 1: bid to get the work, and by definition, if ten

105
00:06:20,080 --> 00:06:22,240
Speaker 1: different people are bidding and you have a little bit

106
00:06:22,320 --> 00:06:24,840
Speaker 1: of you, probably it wasn't probably nine people were wrong.

107
00:06:24,880 --> 00:06:26,880
Speaker 1: It was probably you were wrong, right. So you start

108
00:06:26,960 --> 00:06:28,960
Speaker 1: off probably with the wrong price. Then you have to

109
00:06:29,000 --> 00:06:30,360
Speaker 1: fight to do the work, and then you have to

110
00:06:30,440 --> 00:06:32,760
Speaker 1: fight to get paid, and then when it's all over,

111
00:06:32,960 --> 00:06:35,120
Speaker 1: get to startle. You have to start from scratch again.

112
00:06:35,240 --> 00:06:40,160
Speaker 1: So um, one time, UM, we didn't get paid on

113
00:06:40,240 --> 00:06:42,520
Speaker 1: a very very big job, and I told myself, if

114
00:06:42,560 --> 00:06:44,520
Speaker 1: I have to get out of this jam, I'm gonna

115
00:06:44,560 --> 00:06:47,240
Speaker 1: go build a business with the recurring revenue. So we

116
00:06:47,279 --> 00:06:49,440
Speaker 1: built the first competitive phone company in America. And it

117
00:06:49,520 --> 00:06:52,160
Speaker 1: was on a simple premise. Pim I observed that more

118
00:06:52,240 --> 00:06:54,560
Speaker 1: computers were talking to computers and people were talking to people,

119
00:06:54,960 --> 00:06:57,760
Speaker 1: So I said, why not build a purpose built network

120
00:06:57,839 --> 00:07:01,480
Speaker 1: around computers talking to each other rather than try to

121
00:07:01,520 --> 00:07:03,920
Speaker 1: retrofit a voice network. A T and T at that

122
00:07:04,040 --> 00:07:09,840
Speaker 1: time was trying to push data through an old voice network.

123
00:07:10,120 --> 00:07:12,720
Speaker 1: It was a network that Alexander Graham Bell would have recognized.

124
00:07:12,760 --> 00:07:16,160
Speaker 1: It was just twisted copper pier and their version of

125
00:07:16,240 --> 00:07:19,120
Speaker 1: an innovative solution was something called dial up Internet Access

126
00:07:19,160 --> 00:07:22,120
Speaker 1: if you remember that, and that's a data product through

127
00:07:22,120 --> 00:07:26,760
Speaker 1: a voice network. So we built a data product through

128
00:07:26,760 --> 00:07:29,360
Speaker 1: a data network. And luckily for us, you could ride

129
00:07:29,440 --> 00:07:32,920
Speaker 1: voice virtually free right through that network. So you could

130
00:07:32,960 --> 00:07:36,000
Speaker 1: put video virtually three free right through that network. Did

131
00:07:36,000 --> 00:07:37,760
Speaker 1: no matter what one is zero you wanted to put

132
00:07:37,840 --> 00:07:40,680
Speaker 1: through it was just a laser blinking right, so you

133
00:07:40,720 --> 00:07:43,320
Speaker 1: could put anything through it. So we built that company

134
00:07:43,360 --> 00:07:44,760
Speaker 1: and then we merge it to a little into a

135
00:07:44,800 --> 00:07:48,600
Speaker 1: little startup called MFS in Chicago that was owned by

136
00:07:48,640 --> 00:07:51,960
Speaker 1: the PD Keyword Company, and then we went public and

137
00:07:52,040 --> 00:07:55,240
Speaker 1: then we sold UM the whole thing for fourteen billion

138
00:07:55,280 --> 00:07:58,280
Speaker 1: dollars to to World Calm. And then, luckily for me,

139
00:07:59,040 --> 00:08:00,840
Speaker 1: I call it my World Calm stock. I bought a

140
00:08:00,880 --> 00:08:03,920
Speaker 1: putt and sold the call the same day. UM, which

141
00:08:03,960 --> 00:08:06,720
Speaker 1: at the time to find the Wall Street General called

142
00:08:06,800 --> 00:08:10,400
Speaker 1: a exotic financial transaction. It wasn't really that exotic, but

143
00:08:10,480 --> 00:08:13,720
Speaker 1: it seemed at the time. So yeah, that was a

144
00:08:13,760 --> 00:08:17,600
Speaker 1: long time ago. Tell us what you're doing today, because

145
00:08:17,600 --> 00:08:18,920
Speaker 1: I want to give you the time to do So

146
00:08:19,320 --> 00:08:21,680
Speaker 1: what what what are you doing today? What are you

147
00:08:21,720 --> 00:08:24,240
Speaker 1: working on? Well, the most recent thing is something that

148
00:08:24,360 --> 00:08:27,400
Speaker 1: we we just announced today. Actually, we just announced a

149
00:08:27,480 --> 00:08:32,200
Speaker 1: joint venture with King Abdullah Zaz Center for Science and Technology,

150
00:08:32,280 --> 00:08:34,480
Speaker 1: which is the biggest center for science and technology in

151
00:08:34,520 --> 00:08:37,640
Speaker 1: the world that's in READD in Saudi Arabia, and we're gonna,

152
00:08:38,240 --> 00:08:41,160
Speaker 1: uh we fall in the joint venture to design and

153
00:08:41,320 --> 00:08:46,240
Speaker 1: build very very sophisticated high to put satellite equipment UM

154
00:08:47,160 --> 00:08:49,480
Speaker 1: for the entire world. We're going to design to manufacturer

155
00:08:49,520 --> 00:08:52,960
Speaker 1: it in the region. I had bought three satellite companies

156
00:08:53,840 --> 00:08:56,960
Speaker 1: in the past and put them together, and I observed

157
00:08:57,000 --> 00:09:00,360
Speaker 1: a couple of things that one of my reduct was

158
00:09:00,400 --> 00:09:03,880
Speaker 1: going to the Middle East, so why not be where

159
00:09:04,120 --> 00:09:07,840
Speaker 1: where the product was going? And the number one costs

160
00:09:08,120 --> 00:09:11,880
Speaker 1: of running those factories was power and a fuel is

161
00:09:11,960 --> 00:09:15,080
Speaker 1: cheap over there. The number two costs was real estate.

162
00:09:15,200 --> 00:09:17,280
Speaker 1: Real estate is cheap over there. Number three costs was

163
00:09:17,360 --> 00:09:20,680
Speaker 1: something called SMC which the petroleum based product that's cheap

164
00:09:20,760 --> 00:09:23,760
Speaker 1: over there. And fourth was logistics that was my next

165
00:09:23,800 --> 00:09:26,800
Speaker 1: biggest cost. And six my product was going to the region.

166
00:09:27,559 --> 00:09:30,280
Speaker 1: I said, why not partner up with someone UM and

167
00:09:30,360 --> 00:09:34,080
Speaker 1: build something in the region and UM Saudi just recently

168
00:09:34,120 --> 00:09:38,360
Speaker 1: announced the vision, which is they want to be UM

169
00:09:39,240 --> 00:09:41,800
Speaker 1: less dependent on the rest of the world. That the

170
00:09:41,880 --> 00:09:45,040
Speaker 1: third largest purchasure of defense equipment in the world, they

171
00:09:45,080 --> 00:09:48,679
Speaker 1: don't have the defense industry. UM, We're gonna sell our

172
00:09:48,760 --> 00:09:52,079
Speaker 1: products to the defense industry. It's all high tech calms

173
00:09:52,160 --> 00:09:57,319
Speaker 1: equipment UM. So it fits in with their their initiative,

174
00:09:57,760 --> 00:10:00,199
Speaker 1: fits in with what we like to do. Pay him

175
00:10:00,800 --> 00:10:04,800
Speaker 1: everything we do. It has either we enter a market

176
00:10:04,840 --> 00:10:07,480
Speaker 1: where it's a technological change, a regulatory change, or consumer

177
00:10:07,520 --> 00:10:12,439
Speaker 1: behavioral change taking place, and we like that because UM

178
00:10:12,840 --> 00:10:16,960
Speaker 1: there's always people richer and smarter and better capitalized in US.

179
00:10:17,600 --> 00:10:21,400
Speaker 1: But we think that we we believe that we think

180
00:10:21,480 --> 00:10:23,839
Speaker 1: clearly when there's a lot of change. So if this

181
00:10:24,000 --> 00:10:28,000
Speaker 1: technological change or regulatory change or consumer behavioral change going on,

182
00:10:28,200 --> 00:10:29,719
Speaker 1: that's what we like to be. And with this big

183
00:10:29,840 --> 00:10:33,839
Speaker 1: Saddi twenty thirty initiative. That's a lot of change. Thank

184
00:10:33,880 --> 00:10:36,240
Speaker 1: you very much for spending time and sharing this with us.

185
00:10:36,480 --> 00:10:39,360
Speaker 1: David McCourt look forward to having you in the future

186
00:10:39,679 --> 00:10:42,120
Speaker 1: of taking Stock. David McCord is the chairman of the

187
00:10:42,160 --> 00:10:47,280
Speaker 1: chief executive of Granahan McCourt Capital. You're listening to taking Stock,

188
00:10:47,559 --> 00:10:51,560
Speaker 1: I'm pim Fox coming up a look at Crispy Cree,

189
00:11:00,800 --> 00:11:03,360
Speaker 1: Bloombertay king Stock is brought to by Benzel Busch Motorcar

190
00:11:03,400 --> 00:11:06,200
Speaker 1: in Anglewood, New Jersey, offering a commitment to service, luxury

191
00:11:06,240 --> 00:11:10,200
Speaker 1: and value with total transparency from America's premier automotive dealership.

192
00:11:10,440 --> 00:11:13,160
Speaker 1: Define the Way You Drive at benzel Busch dot com.