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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile last and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Katherine Cowdery Bloomberg. Taking Stock is brought to you

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Speaker 1: by national realty providers of one satisfaction guaranteed New York

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Speaker 1: City realty investments. See them at m r i A

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Speaker 1: dot net. We check the markets every fifteen minutes throughout

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Speaker 1: the trading day. Now, let's go over to the First

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Speaker 1: Word Breaking news desk for today's afternoon call with Bill Maloney. Bill,

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Speaker 1: Good afternoon, Katherine. Modest gains for US stocks today, with

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Speaker 1: the Dow currently higher by thirty five points, sp S

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Speaker 1: gain five and AzaC rises twenty three. Over in Europe,

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Speaker 1: Spain rose one point three percent, the UK climbed one

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Speaker 1: point one percent back in the U s mall cap

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Speaker 1: six hundred is little changed, and the US tenure yield

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Speaker 1: at one point for four six out of tennis to

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Speaker 1: be sectors are highered by gains in consumer discretionary, telecom

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Speaker 1: and healthcare. Financial's, consumer staples and utilities led to the

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Speaker 1: down side down. Transports rise seventy three Nazarbotech's outperform climbing

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Speaker 1: fifty and the DAT and the vix is down by

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Speaker 1: five point eight percent. Down leaders included Home Depot, Fiser,

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Speaker 1: and Caterpillar, while JP Morgan and DuPont led to the

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Speaker 1: downside until news Edita is said to plan assets sales

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Speaker 1: to address anti trust concerned over its deal with Humana.

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Speaker 1: Micrimes dropped ten percent after its earnings, where Holly Davidson

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Speaker 1: served as much as seventeen percent. That's the most since

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Speaker 1: two thousand nine. Live from the first breaking news a

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Speaker 1: scone Bill Maloney, Katherine, thank you, Bill and to hear

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Speaker 1: live breaking news over your Bloomberg type s q U

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Speaker 1: a K on your terminal. West Texas Intermediate crude oil

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Speaker 1: is up eighty four cents of barrel one and three

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Speaker 1: quarters percent at seventeens. About gold up twenty three dollars

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Speaker 1: announced at thirteen sixty ten year treasury up seven thirty

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Speaker 1: seconds with the yield of one point four four percent.

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Speaker 1: And in a breaking story, a group of as money

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Speaker 1: is nine gunmen that have attacked a restaurant popular with

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Speaker 1: four warners in a diplomatic zone of the Bangladeshi capital

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Speaker 1: on Friday, night. Now authorities say they have taken hostages

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Speaker 1: and they've exchanged gunfire with security forces. Some foreigners are

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Speaker 1: believed to be the hostages. We'll have more details as

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Speaker 1: they become available. And that's a Bloomberg Business flash. This

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Speaker 1: is taking Stock with Kathleen Hayes and Prim Fox on

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Speaker 1: Bloomberg Radio. A mixed bag for US auto sales last

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Speaker 1: month raises the question more than ever after a very

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Speaker 1: hot year last year, have sales peaked in the United States.

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Speaker 1: General Motors, Toyota, Chrysler, Honda, all saying Friday that their

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Speaker 1: sales in June trailed analyst estimates, although Nissan and Ford

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Speaker 1: Motor beat projections. In fact, Nissan saw their sales pop

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Speaker 1: some thirteen percent to a June record. He's about to

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Speaker 1: tell us where the auto industry is, where it's heading next,

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Speaker 1: about a big drop in b W sales and some

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Speaker 1: is from Tesla that has people wondering about the future

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Speaker 1: of self driven cars. Alan Baum, principle at Baum and Associates.

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Speaker 1: He's joining us from the heart of the auto industry

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Speaker 1: in West Bloomfield, Michigan. Alan, good afternoon, and good afternoon

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Speaker 1: to you. So what do you know what can you

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Speaker 1: say from this report about the strength of demand for

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Speaker 1: US cars and trucks, Well, it is, uh, it's it's good,

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Speaker 1: it's not great. UH. The thing to be a little

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Speaker 1: concerned about. You know, we're still two percent ahead of

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Speaker 1: last year year to date. But what kind of flies

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Speaker 1: under the radar is that last fall we had annual

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Speaker 1: sales rates um in in uh as say, in the

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Speaker 1: fall at eighteen million rate uh in UH in those months,

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Speaker 1: and obviously that's gonna be a hard nut to crack

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Speaker 1: this year. So the fact that we're ahead a little

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Speaker 1: bit so far this year does not to me suggest

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Speaker 1: that that's going to continue. I think we're gonna be

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Speaker 1: by the end of the year. We're just gonna be

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Speaker 1: flat with last year. Now that's not horrible. That's seventeen

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Speaker 1: and a half billion units, and I think we'll go

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Speaker 1: down from there again, not horribly U. But what we're

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Speaker 1: seeing is one of the things I was looking for

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Speaker 1: today was the pickup story. UM. As you they remember,

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Speaker 1: Jim has been on the wolf pack a little bit

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Speaker 1: with respect to the strength of their pickup versus Ford UH.

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Speaker 1: And they actually came out on the short end of

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Speaker 1: it this month. UM. And they were down, Ford was

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Speaker 1: up uh and so was the ram UH brand. Now

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Speaker 1: what I don't know, and we'll see you the next

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Speaker 1: few days, is how incentives flew out there? What was

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Speaker 1: the uh the approach that that the automakers took. But

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Speaker 1: clearly GM is trying to dent UH that was in

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Speaker 1: fact their their strategy. And though that uh Ford in

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Speaker 1: n f C A at least in June, it didn't work.

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Speaker 1: Um So you know that matters a because of course

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Speaker 1: with the huge profitability exactly so in terms of the

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Speaker 1: Big three, what how does their profitability look to you

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Speaker 1: this year? Good for investors or maybe not so hot? No,

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Speaker 1: I think they're doing quite well. Like you know, when

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Speaker 1: I talk about incentives, we haven't had very uh. GM

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Speaker 1: has been restrained in their incentives. They're reducing their their

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Speaker 1: fleet sales. UH So from the profitability standpoint, they're good.

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Speaker 1: But so is Florid because Florida has a full year

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Speaker 1: of availability of the F series and this fall they'll

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Speaker 1: have the new Super Duty, which will increase transaction prices

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Speaker 1: yet again for a very popular model. Um GM has

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Speaker 1: also continued to do well with the large utilities, which

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Speaker 1: of course are incredibly profitable now on the car side,

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Speaker 1: the only glimmer of hope really from GM is the

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Speaker 1: new Malibu, which is a great car and it's selling well. Uh.

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Speaker 1: The Cruise, on the other hand, it is not and

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Speaker 1: it is a it's a new car as well and

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Speaker 1: not doing so well. Okay, Alan, two more questions. I

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Speaker 1: want to get in before we have to say goodbye.

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Speaker 1: VW sales down twenty two per cent? Is their eighth

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Speaker 1: straight drop? Can they turn this around? They can turn

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Speaker 1: it around, but not soon. And you know the problem is,

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Speaker 1: even with the announcement of the settlement, it says nothing

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Speaker 1: about getting their existing diesel new cards back on the market.

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Speaker 1: So that's going to continue and uh. And the result

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Speaker 1: is there incentives they're huge, just to get people in

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Speaker 1: their show rooms. US regulators are investigating a fatal accident

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Speaker 1: involving a Tesla motor sedan that was driving on autopilot

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Speaker 1: of forty year old man killed in Ohio. The Tesla

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Speaker 1: didn't read the side of a big truck. What does

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Speaker 1: this mean for the future of auto drive self driven cars?

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Speaker 1: Seems to me it's only one, but you know it

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Speaker 1: was my husband or brother. I might think twice. And

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Speaker 1: if it's test foot It gets a lot of attention

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Speaker 1: because of course everything Tesla does gets a lot of attention.

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Speaker 1: That's said, uh, this is an unusual situation. They have

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Speaker 1: said that they are putting out data software uh, in

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Speaker 1: the in the self driving realm, which of course is

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Speaker 1: an unusual thing in cars. It's not an unusual thing

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Speaker 1: on your on your iPhone or on your keyboard. So

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Speaker 1: this is They'll get through this. Um, There'll be some

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Speaker 1: issues that have to be addressed. Well, Alan Baum, we

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Speaker 1: know you'll come back and discuss those issues with us.

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Speaker 1: It's a fascinating story, such an important trend in the

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Speaker 1: auto industry. Our sympathy to the family of the man

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Speaker 1: who was killed in Ohio. It was Alan Boum, principal

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Speaker 1: at Baum and Associates. I'm Kathleen Hayes. This is taking

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Speaker 1: Stock and this is Bloomberg. What's next for the stock

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Speaker 1: market following the Brexit? What are central banks going to

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Speaker 1: do to keep the global economy on track? And what

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Speaker 1: does it mean for your portfoliobo ob coming up. This

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Speaker 1: is Bloomberg.