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

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

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Speaker 1: I'm Charlie Pellett's stocks are moving lawer after comments from

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Speaker 1: FED officials spurred speculation about higher borrowing costs. The SMP

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Speaker 1: five hundred index down nine points now to one to

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Speaker 1: drop there of four tenths of one percent down, Industrials

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Speaker 1: down sixty two points, the drop there of three tenths

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Speaker 1: of one percent, with the Dow at eighteen thousand, five

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Speaker 1: hundred seventy three and Nasdaq is down five tenths of

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Speaker 1: one percent to fifty two thirty four. The tenure down

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Speaker 1: five thirty seconds, had yield one point five seven percent.

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Speaker 1: Gold up five tenths of one percent, up six sixty

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Speaker 1: ounce It's thirteen forty nine and crude oil now up

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Speaker 1: two point one percent for a barrel of West Texas

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Speaker 1: Intermediate Crude up ninety four cents forty six sixty eight

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Speaker 1: for a barrel of w T. I I'm Charlie Pellett,

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Speaker 1: and that's a Lumberg business flash. This is taking stock

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Speaker 1: with pin box and Kathleen News on Bloomberg Radio. Another

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Speaker 1: very big deal coming out today. This time it's Linda

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Speaker 1: A G and Prats there inc. They're holding talks to combine,

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Speaker 1: setting up a potential deal that would create the world's

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Speaker 1: largest supplier of industrial gases. However, it could also lead

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Speaker 1: to some increased scrutiny from anti trust regulators, according to

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Speaker 1: our own Ed Hammond of Bloomberg News weighing in on

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Speaker 1: this big big story today, Ed, welcome to the show.

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Speaker 1: Thank you well. First of all, tell us about these

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Speaker 1: two companies. Who is Linda, who is PRACTS there for

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Speaker 1: people who don't know, and why are they combining? The

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Speaker 1: two of the biggest industrial gases companies in the world.

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Speaker 1: And essentially they provide industrial gases to a huge range

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Speaker 1: of different companies that would use in like soda makers

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Speaker 1: and things like that any where where you would find

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Speaker 1: sort of process to air um in the supply change.

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Speaker 1: So they're both very big in that space. We think

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Speaker 1: the reason that they're now talking is there was a

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Speaker 1: deal fairly recently in the space between air gas and

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Speaker 1: air liquid. It was a much smaller deal is valued

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Speaker 1: around thirteen billion dollars um and that came together last

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Speaker 1: year at the end of last year, and we think

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Speaker 1: that that has precipitated these these now new takeover or

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Speaker 1: merger discussions even between proc there and Linda. Now, is

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Speaker 1: this going to be a deal that will we make

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Speaker 1: the industry or will it be a milestone for having

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Speaker 1: paid top dollar? Well, I think it could potentially both

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Speaker 1: of them. So I think you would it would remake

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Speaker 1: the industry that's already an extremely consolidated industry. You know,

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Speaker 1: you have a very small number of players, and these

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Speaker 1: two are by far the biggest players in the industry,

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Speaker 1: so inevitably if they were combined, it would it would

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Speaker 1: be completely new shaped landscape. But I also think it

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Speaker 1: could be one where you know, you do see sort

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Speaker 1: of significant premiums or significant sacrifices being made on one

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Speaker 1: side to to actually reach do I think the difficulty

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Speaker 1: is going to be they are very similar in size,

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Speaker 1: So the question is who actually gets to run the

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Speaker 1: combined company, what the management structure is, what the social

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Speaker 1: issues that need addressing are. That's going to be the

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Speaker 1: interesting piece to play on this. So what about the

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Speaker 1: regulatory side? Who should we be watching this potential marriage

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Speaker 1: between Linda and practice Air. I think it's going to

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Speaker 1: get a really tough filling with regulators. I think just

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Speaker 1: generally the antitrusted environment at the moment, both here in

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Speaker 1: the US and in Europe, were both of these companies

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Speaker 1: have very significent presences. I think it's tough. I mean,

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Speaker 1: we're in a difficult environment. We're seeing that with the

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Speaker 1: health insurance deals getting blocked at the moment, with office

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Speaker 1: deeper staples being blocked, and I think we just we

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Speaker 1: are just seeing that kind of thing struggle. And then

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Speaker 1: I think you take on top of that, we're in

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Speaker 1: a very consolidated industry. Here you have two of the

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Speaker 1: biggest players trying to get together. I think this is

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Speaker 1: going to come up for a really, really tough time.

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Speaker 1: That said, from what we understand from sources, the company

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Speaker 1: to already discuss a necessarily high level what disposal they

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Speaker 1: may need to make, the kind of assets that they

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Speaker 1: would need to self to see this thing done. Ed.

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Speaker 1: Why is this a good deal for both companies? I

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Speaker 1: think it's a good deal for both companies, or at

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Speaker 1: least the argument they would make for why they need

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Speaker 1: to because the industry around them is consolidating, everyone is

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Speaker 1: becoming more global. These companies have strong positions, one in Europe,

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Speaker 1: notably Lindar, and one in the U s pract and

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Speaker 1: by coming together they would be able to be a

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Speaker 1: true global player. And we're seeing this kind of logic

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Speaker 1: put forward by other companies similar industries. If you take

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Speaker 1: the Montsanto discussions at the moment going on with buyer,

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Speaker 1: they're putting for the exactly the same which is that

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Speaker 1: the market is right to have a global leader in

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Speaker 1: a certain sector in that case, and agree chemicals in

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Speaker 1: this cases. Industrial guesses. All right, thanks very much for

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Speaker 1: joining us. Ed Hammond, he is Deal's reporter for Bloomberg News.

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Speaker 1: He can be followed on Twitter at ed Hammond. And

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Speaker 1: why thank you very much for joining us telling us

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Speaker 1: about Linda and pracs Air. All right, let's turn our

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Speaker 1: attention now to politics with Alex Wayne white House, reporter

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Speaker 1: for Bloomberg News. He can be followed on Twitter at

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Speaker 1: A A. Wayne, and he's here to give us a

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Speaker 1: little bit of detail about Donald Trump, the Republican nominee,

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Speaker 1: and his negotiating style. All right, Alex, tell us what

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Speaker 1: is Donald Trump good at when it comes to negotiating.

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Speaker 1: Is it getting the deal or is it making people

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Speaker 1: feel that they won as well, it's breaking contracts. He's uh,

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Speaker 1: he's He's shown in his in his in his business

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Speaker 1: history that he's he's not disinclined to walk away from

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Speaker 1: a deal if he considers it an impediment. And what

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Speaker 1: we've shown in our reporting is that that that sort

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Speaker 1: of philosophy. He's taking a philosophy and trying to translate

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Speaker 1: it to governance and in particular as foreign policy. Hmmm,

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Speaker 1: So how seriously should we take this? How should is

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Speaker 1: it and how then would that play out? If if

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Speaker 1: in fact that's how let's say Donald Trump wins the

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Speaker 1: White House, he has a foreign policy team, he has

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Speaker 1: a whole team together. How would that work? Would well?

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Speaker 1: He he has said that he would walk away from

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Speaker 1: things like the World Trade Organization UH, NAFTA, even NATO

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Speaker 1: if he thinks that the States is not getting a

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Speaker 1: good deal out of it. Uh for example, with NATO,

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Speaker 1: he thinks that some countries and the Alliance are not

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Speaker 1: contributing enough financially to the to the the isn't that

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Speaker 1: true that some of them are behind entertainments? That that

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Speaker 1: is true, but it's never been an obligation like a

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Speaker 1: test of the Alliance that you have to pay x

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Speaker 1: amount towards your military to be a member. Uh, there's

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Speaker 1: a there's a you know, aspirational goal. The Alliance would

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Speaker 1: like to see its members pay at least two percent

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Speaker 1: of the GDP towards their their own defense. But many

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Speaker 1: of the countries and the Alliance don't do that. There

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Speaker 1: aren't any consequences from that other than President Barack Obama

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Speaker 1: sometimes sitting down with leaders of these countries and chastising

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Speaker 1: them a little. But in Donald Trump's case, apparently the

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Speaker 1: consequence might be the U. S won't have your back

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Speaker 1: if Russia decides to invade Alex. Can you turn your

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Speaker 1: attention now to Hillary Clinton and the attempt to expand

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Speaker 1: the electoral map in which that's that's that's an interesting

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Speaker 1: little development. Her campaign and a superpack allied with her

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Speaker 1: have each supposedly independently decided to reduce their spending and

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Speaker 1: a couple of states that were considered key swing states,

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Speaker 1: Colorado and Virginia, Uh, and move those resources elsewhere, perhaps

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Speaker 1: to Georgia or Arizona, places that hitherto have not been

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Speaker 1: considered really available to Democratic presidential nominees. But polling suggests

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Speaker 1: she's got a she's got a chance in most states.

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Speaker 1: She might also want to increase her her spending in

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Speaker 1: Florida and Ohio, which are must twins for both candidates,

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Speaker 1: and she's got smaller leads there, But it shows it

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Speaker 1: shows how far Colorado and Virginia and Pennsylvania too, and

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Speaker 1: some other places, how far those states have moved away

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Speaker 1: from being a possibility for Donald Trump. Yeah. Well, the

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Speaker 1: polls certainly seemed to be moving in Hillary Clinton's favor

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Speaker 1: all the more. Any issues about emails, etcetera not apparently

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Speaker 1: not making much of a dent in the voter consciousness. Well,

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Speaker 1: you look inside these polls and you find that majorities

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Speaker 1: of voters in both parties don't like their candidates. Uh,

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Speaker 1: both Hillary Clinton and Donald Trump have have largely unfavorable

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Speaker 1: ratings from from voters. So nobody is super enthusiastic about

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Speaker 1: these candidates. And if you look inside this Washington Post

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Speaker 1: poll that was released today from Virginia, you can see

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Speaker 1: that Hillary Clunton has a larger lead among registered voters

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Speaker 1: than she does among likely voters, which is indication that

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Speaker 1: she may have some trouble actually getting her supporters to

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Speaker 1: the polls In November, Alex, the transition team were really

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Speaker 1: already talking about the transport team. How does that worries?

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Speaker 1: This normal that we're in August and Hillary Clinton's already

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Speaker 1: naming people to transition to the White House. Yeah, you know, um,

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Speaker 1: the transition process actually starts a lot earlier than I

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Speaker 1: think anybody in the public realizes this. These talks have

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Speaker 1: been going on since early in the spring. The White

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Speaker 1: House and and the Obama administration actually started reaching out

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Speaker 1: to not just Trump and Clinton, but to some of

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Speaker 1: the other campaigns at the time, uh, and inviting them

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Speaker 1: to participate in meetings to talk about how the transition works,

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Speaker 1: where their office space would be, what officials they would

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Speaker 1: get to assigned to manage things. Uh. So it's it's

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Speaker 1: actually it's actually not too early, and Trump ought to

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Speaker 1: be doing it too. I think by I think Hillary

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Speaker 1: Clinton announcing her transition team, I think that's a way

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Speaker 1: of her to try to telegraph, you know, look at

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Speaker 1: look at how organized I am compared to my opponent. Well,

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Speaker 1: and how confident I am that I'm going to win

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Speaker 1: that too. That's that's sort of a that's there's a

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Speaker 1: danger in that. I think she's I don't think she's

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Speaker 1: trying to broadcast that he's confident so much as she's

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Speaker 1: organized and professional. Hum well, uh. In terms of what

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Speaker 1: you are picking up on the Bloomer Polity Politics team

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Speaker 1: from inside the Trump campaign, are they desperate? Do they

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Speaker 1: have any card at there's leave to play? I don't

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Speaker 1: think so. I think I think what we're looking at

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Speaker 1: right now is is the debates kind of loom large

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Speaker 1: in the election. I don't see things happening in the

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Speaker 1: next few weeks before the first debate that would really

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Speaker 1: change the momentum in the campaign. Unless perhaps there's some

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Speaker 1: new damaging revelation about Hillary Clinton from her emails or

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Speaker 1: her from from the Clinton Foundation or from elsewhere. Um. So,

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Speaker 1: really the the debates, I think both both camps view

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Speaker 1: the debate says sort of the next turning point, Alice Wayne,

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Speaker 1: thank you so very much for joining us. He's a

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Speaker 1: White House reporter for Bloomberg News Bloomberg Politics. We thank

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Speaker 1: him for joining us today as we continue to follow

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Speaker 1: what is certainly agree with me, a very very very

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Speaker 1: interesting election year. I'm Kathleen Hayes along with Pim Fox,

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Speaker 1: and this is Bloomberg. Yeah,