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Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Rio to Washington,

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Speaker 1: d C, Bloomber to Boston, Bloomberg twelve, d to San Francisco,

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Speaker 1: Bloomberg nine to the country's Channel one nine and around

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Speaker 1: the globe the Bloomberg Radio plus DA and Bloomberg dot Com.

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Speaker 1: This is taking Stock, coming off on taking Stock. Airline

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Speaker 1: executives are meeting in Dublin. They'll be talking about oil prices, terrorism,

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Speaker 1: international travel. And it was supposed to be a happy meeting,

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Speaker 1: a celebratory meeting, is it. Well, we'll find out more

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Speaker 1: about the future of the airline industry with Helene Becker,

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Speaker 1: senior analyst at Cowen and Company. We'll find out if

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Speaker 1: she thinks this ebbing demand trend will last or not.

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Speaker 1: Let's get to Charlie Pellett now in the Bloomberg newsroom.

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Speaker 1: He's got a Bloomberg business lass and I thank you

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Speaker 1: very much, Kathleen, thank you him. The dowin SMP trading

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Speaker 1: lower nezdaka just we're versing. It is now higher, barely

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Speaker 1: up by half a point, little change their forty nine

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Speaker 1: thirty four right now and then as that compositive index

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Speaker 1: SMP five hundred index down five, a drop of three

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Speaker 1: tenths of one percent, and with twenty nine minutes to

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Speaker 1: go ahead of the close, the Dow is down one

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Speaker 1: oh eight, a drop of six tenths of one percent,

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Speaker 1: So stocks are slipping. Stronger spending data bolstering the case

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Speaker 1: for higher interest rates as early as this summer. Plenty

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Speaker 1: of economic data for investors to sort through today, consumer

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Speaker 1: spending climbing in April by the most in almost seven years,

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Speaker 1: up one percent on Bloomberg Intelligence, Chief US Economists car

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Speaker 1: Rickadono was interviewed about the spending report. The data right

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Speaker 1: here on taking stock so not quite so strong when

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Speaker 1: you start to look beneath the surface, because what we

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Speaker 1: saw was a big increasing gasoline prices, uh, and so

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Speaker 1: that led to a rise in spending on non durable goods.

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Speaker 1: So if you adjust that away, it's not quite so strong. Also,

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Speaker 1: a big increase in spending on utilities as we had

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Speaker 1: more normal weather conditions last month after a warm ut

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Speaker 1: start to the year, so that led to some bounce back.

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Speaker 1: So I wouldn't characterize this as great, but I put

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Speaker 1: it in the good category as some PK. Schiller says,

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Speaker 1: home prices in twenty cities rose faster than projected in

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Speaker 1: March from a year earlier, adding to signs of healthy

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Speaker 1: demand at the onset of the industry's busy selling season.

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Speaker 1: On the conference Board said consumer confidence unexpectedly fell in

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Speaker 1: May to the lowest level in six months. Down industrials

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Speaker 1: down one oh three, a drop of six tenths of

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Speaker 1: one percent, Gold off a dollar little change to twelve fourteen,

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Speaker 1: up point one percent, and a three thirty two on

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Speaker 1: Wall Street. Now, let's look at other news from around

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Speaker 1: the world. Thank you, Charlie from the Bloomberg Newsroom. I'm

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Speaker 1: rainy in essentio. This news update is brought to you

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Speaker 1: by the Jeep Grand Cherokee, the most awarded suv ever.

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Speaker 1: The Grand Cherokee continues to raise the bar with its

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Speaker 1: luxurious interior and legendary four by four capability. Drive one

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Speaker 1: at your local Jeet dealer. To a setback for Donald Trump,

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Speaker 1: a federal court today is releasing documents pertaining to Trump

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Speaker 1: University that Trump's attorney tried to keep private. New York

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Speaker 1: State Attorney General Eric Schneiderman talked about the so called playbooks,

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Speaker 1: which details scripts for enrolling prospective students in real estate

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Speaker 1: investing classes. You are not allowed to protect the trade

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Speaker 1: secrets of a three card Monty game. You're not allowed

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Speaker 1: to protect the trade secrets of conducting a fraud, which

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Speaker 1: is all the playbooks are. We have the playbooks. Sections

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Speaker 1: of the playbooks have been laid out in our papers

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Speaker 1: that we've submitted in the New York Court. A grim

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Speaker 1: economic outlook for Puerto Rico. The island territory is waiting

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Speaker 1: for action on Capitol Hill. As we learned from Amy

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Speaker 1: Morris in the Bloomberg newsroom in Washington. Puerto Rico's budget

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Speaker 1: director says they can't pay off their debt and provide

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Speaker 1: essential services at the same time. Louise Cruz Battista Warren's

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Speaker 1: nearly thirty undred public employees would have to be laid

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Speaker 1: off if the island must meet all its debt obligations.

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Speaker 1: US House lawmakers have agreed to a bill to establish

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Speaker 1: a financial control board and to oversee the island's government

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Speaker 1: while helping restructure its debt, but they're on a break

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Speaker 1: for the rest of this week. The first two billion

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Speaker 1: dollar debt payment is due July one, Amy Morris, Bloomberg

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Speaker 1: Radio Washington, and a New York Marine whose remains were

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Speaker 1: discovered more than seventy years after he died in a

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Speaker 1: Pacific battle. Is being buried at Arlington National Cemetery. Private

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Speaker 1: First Class James Johnson of Poughkeepsie was killed in November

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Speaker 1: ninety three at the age of nineteen. Global News twenty

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Speaker 1: four hours a day, powered by our journalists in more

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Speaker 1: than one fifty news bureaus around the world. From the

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Speaker 1: Bloomberg News Room, I'm Rainy in essentio Charlie, and we

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Speaker 1: thank you, and we are brought to you by Pershing

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Speaker 1: Insides twenty sixteen, the must attend event for advisers less

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Speaker 1: That's I N S I T E twenty sixteen dot Com.

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Speaker 1: I'm Charlie pad That's a Bloomberg business flash you're listening

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Speaker 1: to taking start with Kathleen Hayes and Pimpbox on Bloomberg Radio.

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Speaker 1: The International Air Transport Association reported a four point six

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Speaker 1: percent increase in global air passenger demand in April. That

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Speaker 1: sounds good, but it was the slowest growth since January

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Speaker 1: of twenty fifteen. Let's find out more about the industry

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Speaker 1: with Helene Becker, senior analyst at Count and Company. Helene,

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Speaker 1: always a pleasure, Thank you for being with us. What

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Speaker 1: do you make of this uh four point six percent

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Speaker 1: rise in global air passenger demand in April. Is that

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Speaker 1: something that is set to continue this decline? No? Oh good, Okay,

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Speaker 1: we can all go back now. Thanks for having me

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Speaker 1: um on the show again. And no, I don't think so.

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Speaker 1: I think April was very specific. You had, um, you

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Speaker 1: had some strikes over in Europe by some of the

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Speaker 1: European airlines. You also had, you know, a m Easter

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Speaker 1: shift into March, so you had a little bit of

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Speaker 1: a tough year over year calm. So it made the

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Speaker 1: numbers look um knock hit as good as they are.

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Speaker 1: We think May it's a better month normally May it's

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Speaker 1: worst in April, and June's better than May, you know,

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Speaker 1: kind of on par with April. And this time we

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Speaker 1: should have April be the worst month of the quarter

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Speaker 1: and mana June sequentially better. So Delta reports traffic Thursday

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Speaker 1: morning before the open, that will be the first May

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Speaker 1: number we got and we're expecting it to sequentially be

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Speaker 1: better than it was in April. Of course, as we

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Speaker 1: just said it was, April was the slowest pace since

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Speaker 1: you know, over a year ago. January. In our Bloomberg

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Speaker 1: story quotes the CEO of the I A t A,

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Speaker 1: the International Air Transport Association, saying the stimulus from lower

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Speaker 1: oil prices appears to be tapering off global economics with

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Speaker 1: situations subdued, demand growing. But maybe we're shifting down a gear.

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Speaker 1: What are prices doing? Could prices have anything to do

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Speaker 1: with bb people not being quite as eager to buy

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Speaker 1: a plane? Take well, prices are still you know, down

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Speaker 1: quite a lot year every year, and oil prisses are

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Speaker 1: back up, I guess about off their January lows. So

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Speaker 1: as the year goes on, we expect to see less

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Speaker 1: capacity growth from the airlines and higher air fares. But

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Speaker 1: right now, especially coming into the summer months, fares have

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Speaker 1: been relatively low and demand has been very strong. I mean,

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Speaker 1: you know, you guys reported on stories over the last

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Speaker 1: few weeks about lines at at T s A, at security,

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Speaker 1: and you know, the airlines are working very hard to

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Speaker 1: keep people moving. We're expecting two two hundred and thirty

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Speaker 1: million people to travel over the next three months, and

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Speaker 1: you know, that should be a record for UM for

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Speaker 1: US carriers. Now, Helene, I know you you you follow

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Speaker 1: the carriers as opposed to let's say, air Bus and Boeing.

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Speaker 1: But because of the stories having to do with competition

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Speaker 1: between the two aircraft makers, I'm wondering if the current

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Speaker 1: concern is a result of just outsized ordering buy airlines

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Speaker 1: that met the demand and now the demand is maybe stabilizing,

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Speaker 1: so they're not ordering as many planes. Is that accurate? Yes, yes,

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Speaker 1: Actually that's a very good observation because the you know,

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Speaker 1: most of the world's airlines ordered aircraft over the past

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Speaker 1: four or five years, and the US carriers only just

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Speaker 1: started ordering over the last day year, with the exception

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Speaker 1: of American which placed that big order back in August

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Speaker 1: of two thousand eleven. But on balance, most of the

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Speaker 1: rest of the US airlines have only just ordered recently,

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Speaker 1: and even there they've been very judicious about the aircraft

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Speaker 1: orders they placed because they don't want to get into

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Speaker 1: an overcapacity situation. So a lot of what they've ordered

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Speaker 1: is designated for replacement actually are not for growth. Um.

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Speaker 1: You know, using the one and a half to two

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Speaker 1: x GDP multiplier, we're only expecting in a two percent

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Speaker 1: GDP growth environment, traffic to grow three to four percent,

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Speaker 1: and that's the peak, you know, off peak times, first quarter,

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Speaker 1: fourth quarter, you know, except for Christmas, UM probably is

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Speaker 1: going to grow, you know, one percent. So I got

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Speaker 1: to balance that out. And the airlines certainly don't need

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Speaker 1: a lot of new equipment. Helen. I don't want to

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Speaker 1: jinx myself, but I've been had a several flights in

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Speaker 1: the last few weeks and I have not encountered hashtag

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Speaker 1: line gate. That's use the d S as a mess,

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Speaker 1: hashtag line gate. These these growing long lines cross the US.

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Speaker 1: What have you experienced in more broadly, how big of

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Speaker 1: an issue is this? What is it? Is it a

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Speaker 1: big problem for the airlines or not? So fair question.

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Speaker 1: I think it's at the busiest airports. I think the

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Speaker 1: worst of the lines was probably in Chicago. I like you,

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Speaker 1: I had a bunch of flights over the last few

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Speaker 1: weeks and I didn't experience long waits at all. And

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Speaker 1: in three of the four cases, you know, over the

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Speaker 1: last ten days, my flights were I I just walked

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Speaker 1: through security in less than five minutes, and my daughter

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Speaker 1: had one coming out of Baltimore. UM A week ago

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Speaker 1: and her flight was I think she had a twenty

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Speaker 1: minute wait. UM and one of my associates how to

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Speaker 1: wait over the weekend of nothing. So, you know, I

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Speaker 1: think it's it's been dissipated. The UM T s A

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Speaker 1: has has worked very hard to improve the way at times,

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Speaker 1: and the airlines have sent UM what we call, you know,

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Speaker 1: helping people out to the airports to help UM infrequent

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Speaker 1: travelers getting through the line. You know, this is the

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Speaker 1: line you wait on. Take off your shoes, don't take

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Speaker 1: off your shoes, take your bag out, take your laptop out, whatever,

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Speaker 1: don't do it, do it UM. And I think that

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Speaker 1: it's helped speed those lines. So I think, you know,

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Speaker 1: lots of news, but I think it's beyond us now. Alrighty,

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Speaker 1: Helene Becker, thank you so very much for joining a

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Speaker 1: senior analyst at Cowen and Company. She says, don't be

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Speaker 1: put off by some slower growth in demand for airline

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Speaker 1: tickets in April. Me and JR. Gonna looks just fine.

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Speaker 1: I'm Cathine Hayesel on pim Fox. This is taking Stock

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Speaker 1: on Blomberg Radio. Coming up on taking Stock, will be

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Speaker 1: speaking with Scott Clement's chief investment strategist private wealth management

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Speaker 1: for Brown Brothers Harriman. He'll tell us what are his

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Speaker 1: clients doing with their money next