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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 Handquarters.

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Speaker 1: I'm Charlie Pewett. Stocks lare all about the bank Stutsche

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Speaker 1: Bank shares They're tumbling seven percent right now. And this

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Speaker 1: update is brought to you by Instinct Options from Bank

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Speaker 1: of global connections. Stocks are falling, banks retreating amid growing

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Speaker 1: concern that Deutsche banks woes will spread to the global

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Speaker 1: financial sector. The SMP five hundred index off its session

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Speaker 1: lows down thirty now a drop of six tenths of

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Speaker 1: one percent to fifty seven as stacked down thirty five,

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Speaker 1: a decline there of seven tenths of one percent down.

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Speaker 1: Industrials down one forty two points, a drop of eight

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Speaker 1: tenths of one percent. Ten you're up three thirty seconds.

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Speaker 1: The old one point five six percent Gold up to

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Speaker 1: thirty ounce one again there of two tenths of one

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Speaker 1: percent crude oil West Texas Intermediate Advancing one point three

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Speaker 1: percent up sixty one cents forty seven sixty six a barrel.

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Speaker 1: On w T I, I'm Charlie Pellett, and that's a

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Speaker 1: Bloomberg business flash. You're listening to taking stock with Kathleen

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Speaker 1: Hay and Pim Fox on Bloomberg Radio. Whose set top

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Speaker 1: boxes it? Anyway? Kyle Dailey is a senior reporter for

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Speaker 1: Bloomberg b NA, joining us from Arlington, Virginia. Bloomberg b

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Speaker 1: NA a wholly owned subsidiary of Bloomberg, a leading source

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Speaker 1: of legal, regulatory and business information for professionals. Bloomberg Bonna's

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Speaker 1: authoritative coverage spends a full range of legal practices, and

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Speaker 1: in this case, we're paying attention to the Federal Communications

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Speaker 1: Commission delaying today's vote on a contentious proposal to open

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Speaker 1: the pay TV set top box market to competition. Kyle,

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Speaker 1: thank you very much for being with us outline exactly

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Speaker 1: what is at stake here and what did or did

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Speaker 1: not happen today? Sure, so, this proposal would open the

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Speaker 1: set top box market to third parties. What that means

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Speaker 1: is the sort of big, clunky set top box that

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Speaker 1: you rent from Comcast or Time Warner, Cable or Charter. Uh,

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Speaker 1: he would be able to replicate that experience on a Roku,

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Speaker 1: some drive or you know, any sort of third party

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Speaker 1: device that plogs into your TV. UH. So there's been

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Speaker 1: a lot of back and forth about this for months now,

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Speaker 1: and um SEC Chairman Tom Wheeler finally arrived at UH

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Speaker 1: for revision of an earlier proposal that would adopt an

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Speaker 1: app space approach, which which just means, you know, again,

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Speaker 1: a Comcast did make an app that replica it's that

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Speaker 1: whole experience of flipping around channel the channel and then

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Speaker 1: Google or Roku or whoever would be able to put

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Speaker 1: that into their device. Now there UH was still a

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Speaker 1: provision in there that would get the SEC involved in licensing,

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Speaker 1: and you know, we're trying to do some te f

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Speaker 1: reading because it was a pretty closed process. But what

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Speaker 1: seems to be happening is that that's kind of a

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Speaker 1: sticking point and um there seems to be some willingness

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Speaker 1: for for compromise, but they didn't quite get there in

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Speaker 1: time for a vote this morning. Okay, how this is

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Speaker 1: and this and your story very clearly points out how

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Speaker 1: this licensing question is so central to the story. You

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Speaker 1: point out that in the hearing the Republican commissioners came

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Speaker 1: out against the licensing provision. The Democratic commissioner uh said,

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Speaker 1: let me be candid with you problems with licensing. I

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Speaker 1: think this SEC is going a little bit too involved

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Speaker 1: in the licensing here. She said, she did not see

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Speaker 1: that the FCC has his authority. What is this about

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Speaker 1: the licensing language? Break this down for us. Why is

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Speaker 1: it so complicated and contentious? Well, that's that's another thing

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Speaker 1: that kind of makes this hard to track, is that

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Speaker 1: we don't know exactly. UM what's been released so far

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Speaker 1: is a fact sheet that just kind of says, okay,

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Speaker 1: here's what we would do. So what they would do,

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Speaker 1: as far as you know, anyone outside the SEC it

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Speaker 1: can understand, is they would set some sort of standard

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Speaker 1: for UM licensing between U copyright owners and PAPD providers

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Speaker 1: and then sort of how you know, just have a

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Speaker 1: standard there and then create an independent oversight board. UM.

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Speaker 1: So that basically to ensure that these devices are sticking

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Speaker 1: to the terms of licensing agreements between copyright holders and

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Speaker 1: a comcast or or a charter UM, and you ensure

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Speaker 1: that that those aren't violated and make sure that sort

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Speaker 1: of licensing across the board seems to be you know,

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Speaker 1: reasonable and and sort of you know, all parties are

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Speaker 1: happy with it. Beyond that, we don't know exactly how

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Speaker 1: that would work. What we do know is that, you know,

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Speaker 1: we've gotten used to UH in the last few years

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Speaker 1: to become a very partisan fec um. Most items sort

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Speaker 1: of fly under the radar and still you know, pass

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Speaker 1: UH without too much ceremony. But we see a lot

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Speaker 1: of especially on on these sort of big ticket things

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Speaker 1: of a split votes where the Democratic majority votes one

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Speaker 1: way the Republicans stow it the other way. Daily thank

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Speaker 1: you so very much for joining us. The senior reporter

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Speaker 1: for Bloomberg b n A joining us to talk about

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Speaker 1: the fccs UH decision on a contensius proposal to open

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Speaker 1: the pay TV set top box market market. Cat joins

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Speaker 1: us now Politics and national cover reporter for Bloomberg News

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Speaker 1: and Mark, I'm want to dive in to one of

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Speaker 1: our latest Bloomberg polls and stories. Hillary Clinton's turnout challenge

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Speaker 1: seems like in some ways that could be bigger than

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Speaker 1: her Donald Trump challenge. Yeah, I'm particularly among certain groups

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Speaker 1: that she really needs to be behind her. Uh, if

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Speaker 1: she's gonna win in key battleground states, and that is millennials,

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Speaker 1: younger voters, and African American voters. You know, the polls

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Speaker 1: consistently show that these uh, two groups you know overwhelmingly

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Speaker 1: back her, like her better than Donald Trump, but they're

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Speaker 1: less likely to vote. There's there's not as much enthusiasm

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Speaker 1: in some cases among millennials. UM, when you introduced the

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Speaker 1: third party option, they're more likely to vote third party

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Speaker 1: than they are to vote for Clinton, even if they

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Speaker 1: don't like Donald Trump. Is that really gonna hurt Clinton

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Speaker 1: in the outcome? When you look at electoral votes, it

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Speaker 1: couldn't matter, Like I said, in some of these battleground states.

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Speaker 1: I'm based in Ohio, and that's definitely a concern here

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Speaker 1: that if you have a close race. It was always

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Speaker 1: going to be close. In Ohio. It's a you know,

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Speaker 1: closely divided state. You know, if you lose a couple

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Speaker 1: of percentage points that you normally would get or that

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Speaker 1: you know, Barack Obama got in and two thousand and

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Speaker 1: eight when he carried the state, UM, that could make

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Speaker 1: a difference. Clinton going to carry Ohio, it's gonna be close. Um.

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Speaker 1: You know, the Clinton campaign acknowledges that Donald Trump has

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Speaker 1: some strength here that among the battleground states. You know,

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Speaker 1: he might be doing better in states like Ohio and

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Speaker 1: Iowa than he is in some of the other battleground

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Speaker 1: states just because of the demographics in the state, you know,

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Speaker 1: the number of older, white working class voters here, voters

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Speaker 1: without a college degree. Um. So that's part of the

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Speaker 1: challenge for the Clinton campaign. They sort of have to

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Speaker 1: make up for whatever advantage that Trump might have in

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Speaker 1: terms of appeal in the state with sort of this

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Speaker 1: ground game where she does have an advantage and a

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Speaker 1: more robust operation to sort of get her supporters to

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Speaker 1: the polls. So mark the story to talks about and

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Speaker 1: many have that one thing that's obvious. Younger you are,

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Speaker 1: the less you tend to vote period. Okay, but it's

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Speaker 1: also been an issue for Hillary Clinton, say compared to

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Speaker 1: Bernie Sanders, right that she doesn't there's a worry about

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Speaker 1: the millennial vote. So in some sense you could say, uh,

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Speaker 1: why worry about them anyway, They're not going to vote

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Speaker 1: as big big as numbers You're maybe not gonna Why

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Speaker 1: not concentrate on the part of the population, who's in

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Speaker 1: the middle a little more on the fence, who does

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Speaker 1: tend to go to the polls and sway them to

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Speaker 1: vote for you. I think they are doing that, But

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Speaker 1: they also just can't ignore the millennial voting block. It's

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Speaker 1: just such a large um segment of the voting population

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Speaker 1: now larger than Baby boomers, and you know, large enough

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Speaker 1: to dissway a race if it's close. And I think

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Speaker 1: that's the concern again, particularly in these battleground states, as

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Speaker 1: if you have a very close race on the margin,

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Speaker 1: these things like where millennials vote or turnout in the

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Speaker 1: African American community is can help decide who wins the state.

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Speaker 1: Can you tell us whether the government has decided to

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Speaker 1: stay in business at least until the middle of December.

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Speaker 1: Congress Uh did send President Obama stop gat spending bill

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Speaker 1: on Wednesday. UH. That's going to keep the government open

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Speaker 1: at least through December nine. You know, they'll have to

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Speaker 1: pick up after the election in terms of what happens

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Speaker 1: for the rest of the fiscal year. But there have

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Speaker 1: been some you know, debate and concern about you know,

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Speaker 1: what Congress was gonna do, uh, particularly when it came

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Speaker 1: to funding for things like the zeco virus. There was

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Speaker 1: some fight over whether, UM, that should be tied to

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Speaker 1: restricting funding for planned parenthood, which Democrats suppose for for example, UH,

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Speaker 1: and some other issues such as how to deal with

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Speaker 1: funding for lead abatement in places like Flint, Michigan. UH.

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Speaker 1: And at the end they sort of came to an

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Speaker 1: agreement that you know, if nothing else kicks the can

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Speaker 1: down the road till after the election. So will this

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Speaker 1: become any kind of political football in the remaining meets

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Speaker 1: of the campaign. I don't think the funding of it will. Uh.

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Speaker 1: You know, there might be still some discussion and arguments

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Speaker 1: about things like, you know, should the federal government be

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Speaker 1: paying for you know what ultimately our state or local

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Speaker 1: problems like the Flint water crisis UM, which is a

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Speaker 1: blame largely on action and inaction by the state and

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Speaker 1: local authorities there. You know, some Republicans think, well, that's

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Speaker 1: not really the federal government's job to step in and

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Speaker 1: clean up the mess when it's not really a federal issue. UM.

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Speaker 1: So you might seek debate about that sort of in

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Speaker 1: the astract. But in terms of funding the government, I

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Speaker 1: think we're probably kicking us beyond the elections. Just quick

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Speaker 1: final question. Do we know what Hillary Clinton or Donald

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Speaker 1: Trump has said about that particular issue funding local issues.

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Speaker 1: I've seen that really addressed. You mean, they both talked

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Speaker 1: about the need to deal with the problem, and I

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Speaker 1: think both have talked about you in terms of federal

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Speaker 1: government being a partner. But I don't know if they've

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Speaker 1: gotten into sort of the devil of detail of how

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Speaker 1: much should be federal responsibility versus state or local. All Right,

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Speaker 1: we think Mark Niquette joining us to talk politics, one

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Speaker 1: of our favorite subject heres. He's politics and national gun

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Speaker 1: reporter for Bloomberg News, and you're listening to taking Stock.

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Speaker 1: I'm Pim Fox, my co host, of course, Kathleen Hayes,

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Speaker 1: and this is Bloomberg