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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
Speaker 1: I'm Katherine Cowdery Bloomberg. Taking Stock is brought to you
Speaker 1: by national realty providers of one satisfaction guaranteed New York
Speaker 1: City realty investments. See them at m r i A
Speaker 1: dot net. We check the markets every fifteen minutes throughout
Speaker 1: the trading day. Now, let's go over to the First
Speaker 1: Word Breaking news desk for today's afternoon call with Bill Maloney. Bill,
Speaker 1: Good afternoon, Katherine. Modest gains for US stocks today, with
Speaker 1: the Dow currently higher by thirty five points, sp S
Speaker 1: gain five and AzaC rises twenty three. Over in Europe,
Speaker 1: Spain rose one point three percent, the UK climbed one
Speaker 1: point one percent back in the U s mall cap
Speaker 1: six hundred is little changed, and the US tenure yield
Speaker 1: at one point for four six out of tennis to
Speaker 1: be sectors are highered by gains in consumer discretionary, telecom
Speaker 1: and healthcare. Financial's, consumer staples and utilities led to the
Speaker 1: down side down. Transports rise seventy three Nazarbotech's outperform climbing
Speaker 1: fifty and the DAT and the vix is down by
Speaker 1: five point eight percent. Down leaders included Home Depot, Fiser,
Speaker 1: and Caterpillar, while JP Morgan and DuPont led to the
Speaker 1: downside until news Edita is said to plan assets sales
Speaker 1: to address anti trust concerned over its deal with Humana.
Speaker 1: Micrimes dropped ten percent after its earnings, where Holly Davidson
Speaker 1: served as much as seventeen percent. That's the most since
Speaker 1: two thousand nine. Live from the first breaking news a
Speaker 1: scone Bill Maloney, Katherine, thank you, Bill and to hear
Speaker 1: live breaking news over your Bloomberg type s q U
Speaker 1: a K on your terminal. West Texas Intermediate crude oil
Speaker 1: is up eighty four cents of barrel one and three
Speaker 1: quarters percent at seventeens. About gold up twenty three dollars
Speaker 1: announced at thirteen sixty ten year treasury up seven thirty
Speaker 1: seconds with the yield of one point four four percent.
Speaker 1: And in a breaking story, a group of as money
Speaker 1: is nine gunmen that have attacked a restaurant popular with
Speaker 1: four warners in a diplomatic zone of the Bangladeshi capital
Speaker 1: on Friday, night. Now authorities say they have taken hostages
Speaker 1: and they've exchanged gunfire with security forces. Some foreigners are
Speaker 1: believed to be the hostages. We'll have more details as
Speaker 1: they become available. And that's a Bloomberg Business flash. This
Speaker 1: is taking Stock with Kathleen Hayes and Prim Fox on
Speaker 1: Bloomberg Radio. A mixed bag for US auto sales last
Speaker 1: month raises the question more than ever after a very
Speaker 1: hot year last year, have sales peaked in the United States.
Speaker 1: General Motors, Toyota, Chrysler, Honda, all saying Friday that their
Speaker 1: sales in June trailed analyst estimates, although Nissan and Ford
Speaker 1: Motor beat projections. In fact, Nissan saw their sales pop
Speaker 1: some thirteen percent to a June record. He's about to
Speaker 1: tell us where the auto industry is, where it's heading next,
Speaker 1: about a big drop in b W sales and some
Speaker 1: is from Tesla that has people wondering about the future
Speaker 1: of self driven cars. Alan Baum, principle at Baum and Associates.
Speaker 1: He's joining us from the heart of the auto industry
Speaker 1: in West Bloomfield, Michigan. Alan, good afternoon, and good afternoon
Speaker 1: to you. So what do you know what can you
Speaker 1: say from this report about the strength of demand for
Speaker 1: US cars and trucks, Well, it is, uh, it's it's good,
Speaker 1: it's not great. UH. The thing to be a little
Speaker 1: concerned about. You know, we're still two percent ahead of
Speaker 1: last year year to date. But what kind of flies
Speaker 1: under the radar is that last fall we had annual
Speaker 1: sales rates um in in uh as say, in the
Speaker 1: fall at eighteen million rate uh in UH in those months,
Speaker 1: and obviously that's gonna be a hard nut to crack
Speaker 1: this year. So the fact that we're ahead a little
Speaker 1: bit so far this year does not to me suggest
Speaker 1: that that's going to continue. I think we're gonna be
Speaker 1: by the end of the year. We're just gonna be
Speaker 1: flat with last year. Now that's not horrible. That's seventeen
Speaker 1: and a half billion units, and I think we'll go
Speaker 1: down from there again, not horribly U. But what we're
Speaker 1: seeing is one of the things I was looking for
Speaker 1: today was the pickup story. UM. As you they remember,
Speaker 1: Jim has been on the wolf pack a little bit
Speaker 1: with respect to the strength of their pickup versus Ford UH.
Speaker 1: And they actually came out on the short end of
Speaker 1: it this month. UM. And they were down, Ford was
Speaker 1: up uh and so was the ram UH brand. Now
Speaker 1: what I don't know, and we'll see you the next
Speaker 1: few days, is how incentives flew out there? What was
Speaker 1: the uh the approach that that the automakers took. But
Speaker 1: clearly GM is trying to dent UH that was in
Speaker 1: fact their their strategy. And though that uh Ford in
Speaker 1: n f C A at least in June, it didn't work.
Speaker 1: Um So you know that matters a because of course
Speaker 1: with the huge profitability exactly so in terms of the
Speaker 1: Big three, what how does their profitability look to you
Speaker 1: this year? Good for investors or maybe not so hot? No,
Speaker 1: I think they're doing quite well. Like you know, when
Speaker 1: I talk about incentives, we haven't had very uh. GM
Speaker 1: has been restrained in their incentives. They're reducing their their
Speaker 1: fleet sales. UH So from the profitability standpoint, they're good.
Speaker 1: But so is Florid because Florida has a full year
Speaker 1: of availability of the F series and this fall they'll
Speaker 1: have the new Super Duty, which will increase transaction prices
Speaker 1: yet again for a very popular model. Um GM has
Speaker 1: also continued to do well with the large utilities, which
Speaker 1: of course are incredibly profitable now on the car side,
Speaker 1: the only glimmer of hope really from GM is the
Speaker 1: new Malibu, which is a great car and it's selling well. Uh.
Speaker 1: The Cruise, on the other hand, it is not and
Speaker 1: it is a it's a new car as well and
Speaker 1: not doing so well. Okay, Alan, two more questions. I
Speaker 1: want to get in before we have to say goodbye.
Speaker 1: VW sales down twenty two per cent? Is their eighth
Speaker 1: straight drop? Can they turn this around? They can turn
Speaker 1: it around, but not soon. And you know the problem is,
Speaker 1: even with the announcement of the settlement, it says nothing
Speaker 1: about getting their existing diesel new cards back on the market.
Speaker 1: So that's going to continue and uh. And the result
Speaker 1: is there incentives they're huge, just to get people in
Speaker 1: their show rooms. US regulators are investigating a fatal accident
Speaker 1: involving a Tesla motor sedan that was driving on autopilot
Speaker 1: of forty year old man killed in Ohio. The Tesla
Speaker 1: didn't read the side of a big truck. What does
Speaker 1: this mean for the future of auto drive self driven cars?
Speaker 1: Seems to me it's only one, but you know it
Speaker 1: was my husband or brother. I might think twice. And
Speaker 1: if it's test foot It gets a lot of attention
Speaker 1: because of course everything Tesla does gets a lot of attention.
Speaker 1: That's said, uh, this is an unusual situation. They have
Speaker 1: said that they are putting out data software uh, in
Speaker 1: the in the self driving realm, which of course is
Speaker 1: an unusual thing in cars. It's not an unusual thing
Speaker 1: on your on your iPhone or on your keyboard. So
Speaker 1: this is They'll get through this. Um, There'll be some
Speaker 1: issues that have to be addressed. Well, Alan Baum, we
Speaker 1: know you'll come back and discuss those issues with us.
Speaker 1: It's a fascinating story, such an important trend in the
Speaker 1: auto industry. Our sympathy to the family of the man
Speaker 1: who was killed in Ohio. It was Alan Boum, principal
Speaker 1: at Baum and Associates. I'm Kathleen Hayes. This is taking
Speaker 1: Stock and this is Bloomberg. What's next for the stock
Speaker 1: market following the Brexit? What are central banks going to
Speaker 1: do to keep the global economy on track? And what
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