WEBVTT - Bloomberg's Campbell on WFC; Olorunnipa on VP Debate (Audio)

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<v Speaker 1>Global business news twenty four hours a day at Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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<v Speaker 1>I'm Katherine Calory Bloomberg. Taking Stock is brought to you

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<v Speaker 1>by Hartford Funds, where they believe in human centric infesting

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<v Speaker 1>because no matter how far technology advances, investors will always

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<v Speaker 1>be humans first. Well, earlier games of evaporated end stocks

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<v Speaker 1>are declining. Investor c a sixty chance of the February

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<v Speaker 1>reserve raising interest rate in December, and that's up ten

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<v Speaker 1>percentage points from a week earlier. So shares favored for

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<v Speaker 1>their higher dividends are selling off along with companies sensitive

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<v Speaker 1>to arising dollar, while banks are gaining. We check the

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<v Speaker 1>markets every fifteen minutes throughout the trading DAYWN Bloomberg Radio

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<v Speaker 1>down Industrial Average is down one hundred five points six

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<v Speaker 1>tenths of a percent, trading at eighteen thousand, one hundred

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<v Speaker 1>forty eight. SMP five founded down thirteen points two thirds

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<v Speaker 1>of a percent at seven. The Nazzack is down twenty

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<v Speaker 1>points four tents of a percent and trading at eighty one.

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<v Speaker 1>West Texas Intermediate Crude oil down nineteen cents of barrel

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<v Speaker 1>for tens of a percent at forty eight sixty two.

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<v Speaker 1>Spot gold is down three point one percent right now,

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<v Speaker 1>that's a loss of forty dollars sixty cents announced trading

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<v Speaker 1>at twelve seventy two ten ten. Your treasury down fifteen

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<v Speaker 1>thirty seconds, yield at one point sixty seven forty two.

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<v Speaker 1>And that's a Bloomberg business flash. This is taking stock

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<v Speaker 1>with pin Box and Kathleen Hayes on Bloomberg Radio. The

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<v Speaker 1>shares of Wells Fargo have lost a little bit more

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<v Speaker 1>than one and a half percent so far this week.

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<v Speaker 1>The stock currently trades at forty three dollars and seventy

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<v Speaker 1>two cents, and the treasurer of the State Treasurer of

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<v Speaker 1>Illinois said the bank would no longer be a broker

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<v Speaker 1>dealer for about thirty billion dollars of state investment funds annually,

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<v Speaker 1>and he said that it would cost Wells Fargo millions

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<v Speaker 1>of dollars in fees. Wells Fargo disputed that figure. Here

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<v Speaker 1>to tell us more out the woes of Wells Fargo,

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<v Speaker 1>and they also happened to take place in the city

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<v Speaker 1>of Chicago. Elizabeth Campbell, our municipal bonds reporter for Bloomberg News,

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<v Speaker 1>and she joins us from Chicago. Elizabeth, this is a

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<v Speaker 1>story that just keeps rolling on. Tell us more. Yeah,

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<v Speaker 1>and right here in Chicago, we're just yesterday our city

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<v Speaker 1>treasure Kurt Summers told Bloomberg exclusively actually that he plans

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<v Speaker 1>to the invest about twenty five million that the city

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<v Speaker 1>has invested with Wells Fargo after um after the scandal

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<v Speaker 1>came out. Basically, well Fargo is admitted to opening potentially

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<v Speaker 1>millions of bogus client accounts, and Treasure Summers here in

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<v Speaker 1>Chicago has said Chicago deserves better, and so his office,

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<v Speaker 1>which manages the city seven billion dollar invest in portfolio,

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<v Speaker 1>is planning to unwind these twenty five million of assets

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<v Speaker 1>is as quickly as possible in a way that would

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<v Speaker 1>be you know, protect taxpayers, according to Treasure Summers, and

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<v Speaker 1>in a way that's prudent. So and that that's the

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<v Speaker 1>news here, Elizabeth. Uh, you're The story also says that

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<v Speaker 1>he wrote that Illinois won't be using Wells Fargo on

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<v Speaker 1>any new bond sales until further notice. So is is

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<v Speaker 1>a temporary unwinding if Wells Fargo makes amends, well commenced again.

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<v Speaker 1>What we're you supposed to take away from this? Well, Yeah,

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<v Speaker 1>Governor Rouners office told us that the Wells Fargo won't

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<v Speaker 1>be on any new bond sales until further notice. They're

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<v Speaker 1>not part of the deal that Illinois expected to price

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<v Speaker 1>next week. Technically, Governor Rounders administration hasn't done any bond

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<v Speaker 1>business with the bank. Um, we'll see if this spreads

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<v Speaker 1>beyond just the state of Illinois. Chicago actually maybe be

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<v Speaker 1>taking you further steps to several relations with falls Fargo.

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<v Speaker 1>That the chair of the City's Finance Committee, UM, the

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<v Speaker 1>City Council's Finance Committee, Alderman Edward Edward Burke Um, he

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<v Speaker 1>actually introduced a measure on Friday that would bar Chicago

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<v Speaker 1>from doing any business of Falls Fargo, including bond deals.

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<v Speaker 1>And so that plan is going to be taken up

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<v Speaker 1>tomorrow in the m City Council Finance Committee, meaning this Wednesday. Elizabeth,

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<v Speaker 1>do you believe that any of this is the result

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<v Speaker 1>of seeing John Stunt, that chief executive a Wells Fargo,

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<v Speaker 1>appear before congressional leaders, You know, I do. It seems

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<v Speaker 1>like this pullback from these state and city treasures is

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<v Speaker 1>coming as the pressure is building on the bank. I mean,

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<v Speaker 1>like you mentioned, CEO Strump just testified there's more pressure

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<v Speaker 1>on him and perhaps even the bank's board to resign

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<v Speaker 1>because of this fake account tobaccle. You know, and while

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<v Speaker 1>he told lawmakers and patal Congress that the bank was

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<v Speaker 1>working to help customers, they were deeply sorry that they

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<v Speaker 1>broke their trust. You know, it seems like these treasures,

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<v Speaker 1>including those here from the city of Chicago and for

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<v Speaker 1>the state of Illinois, aren't waiting around um for any amens.

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<v Speaker 1>Elizabeth Campbell, thank you so very much for joining us

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<v Speaker 1>terrific story. She's our municipal bonds reporter for Bloomberg News

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<v Speaker 1>in Chicago. Her breaking news story out about the Chicago

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<v Speaker 1>Treasury investing twenty five million dollars of investments from Wells

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<v Speaker 1>Fargo can atulations. Elizabeth, Well, let's move on to the

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<v Speaker 1>big event tonight, the vice presidential debates Democrat Tim Kaine

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<v Speaker 1>Republican Mike Pence. To politicians and their late fifties, each

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<v Speaker 1>with subernatorial and congressional experience, set to face off for

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<v Speaker 1>ninety minutes at Longwood University in Farmville, Virginia. Very happy

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<v Speaker 1>now to welcome us a government reporter for Bloomberg News

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<v Speaker 1>to lou Olarudnipa to tell us about the debate and

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<v Speaker 1>what these two face so to Uh, how much is

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<v Speaker 1>at stake? How much device presidents ever make when it

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<v Speaker 1>comes to who gets elected to be president United States? Yeah,

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<v Speaker 1>that's a that's a great question. And historically we haven't

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<v Speaker 1>seen a very big impact by vice presidential debates on

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<v Speaker 1>polls in presidential races. But this is a race that's

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<v Speaker 1>unlike any of the race that we've seen in in

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<v Speaker 1>recent history. So there are going to be a lot

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<v Speaker 1>of eyeballs on this on this debate, and the goal

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<v Speaker 1>for each candidate is to sort support and boost their

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<v Speaker 1>their running mate. And this is a time where Donald

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<v Speaker 1>Trump has had a pretty tough week after last week's debate,

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<v Speaker 1>He's kind of struggled in the news. Headlines have not

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<v Speaker 1>been in his favor, everything from uh, negative news about

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<v Speaker 1>Trump University too, about negative news about his taxes tax

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<v Speaker 1>returns that it were leaked to the New York Times,

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<v Speaker 1>to his ongoing fight with the Miss Universe from twenty

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<v Speaker 1>years ago. So it's the goal of my tens is

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<v Speaker 1>going to be to change that narrative and to boost

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<v Speaker 1>Trump at a time when a lot of his supporters

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<v Speaker 1>are are worrying about the outcome of this election. So, Lou,

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<v Speaker 1>you're in Farmville, Virginia, right, That's right, Okay, And maybe

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<v Speaker 1>just tell people a little bit about Farmville. It's near

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<v Speaker 1>the Appomattox River, and um the sort of formats for

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<v Speaker 1>the debate because you know where their hell can have

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<v Speaker 1>an effect on how their hell can have an effect

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<v Speaker 1>on the debate itself. That's true. Farmville is a relatively

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<v Speaker 1>small town. It's about an hour away from Richmond, in

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<v Speaker 1>about three arch from Washington, d C. It's in UH

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<v Speaker 1>Governor Tim Kaine, now Senator Tim Kaine's backyard. This is

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<v Speaker 1>his home state. And UH it's the debate's gonna be

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<v Speaker 1>held at a university UH school here, and it's going

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<v Speaker 1>to be a traditional style debate. As a moderator, UH

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<v Speaker 1>and UH they're both going to be asked questions and

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<v Speaker 1>they're going to have uh plenty of time to answer.

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<v Speaker 1>It's going to be a ninety minute debate only to

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<v Speaker 1>UH two candidates answering, So they'll have a lot of

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<v Speaker 1>time to delve into policy issues and really dig deep

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<v Speaker 1>into the plans that their running mates have for the country, Um,

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<v Speaker 1>and it's going to be an opportunity for both candidates

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<v Speaker 1>to really introduce themselves to the world stage because, uh,

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<v Speaker 1>a lot of people don't know these vice president vice

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<v Speaker 1>presidential candidates. So totally one of our Booberg news stories

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<v Speaker 1>UM does lays out six things we need to know

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<v Speaker 1>before the showdown. Let's femail how many we can get through.

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<v Speaker 1>First of all, who faces the bigger test and why

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<v Speaker 1>in these debates tonight? I would say the bigger test

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<v Speaker 1>is probably for Pence. He has to change the narrative

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<v Speaker 1>for his his running mate, Donald Trump, who's behind in

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<v Speaker 1>the polls, and the narrative right now is that he's

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<v Speaker 1>losing and he's struggling, and he's been a little bit erratic.

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<v Speaker 1>So if he needs to have a steady hand and

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<v Speaker 1>really changed the narrative. And that's a very really difficult

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<v Speaker 1>test for Kane. He just kind of has to keep

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<v Speaker 1>things going the way they are and and boost his candidate,

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<v Speaker 1>which is Hillary Clinton, who seems to be doing pretty

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<v Speaker 1>well in the polls right now. Go ahead, preparation. Uh yeah,

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<v Speaker 1>we famously saw last week that Donald Trump didn't do

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<v Speaker 1>a lot of preparation, So I assume that his running

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<v Speaker 1>mate is going to do a lot more. It's going

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<v Speaker 1>to have done a lot more preparation for this debate,

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<v Speaker 1>and they're both very well versed in policy, as you know,

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<v Speaker 1>governors and uh, people with congressional experience. So I don't

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<v Speaker 1>think that either will have trouble being prepared at this

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<v Speaker 1>debate tonight. Nice guys, canna finish last. Yeah, they're both

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<v Speaker 1>seen as as nice, nice people, as a very very

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<v Speaker 1>cordial and we're not expecting them to be calling each

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<v Speaker 1>other names or interrupting each other the way that Donald

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<v Speaker 1>Trump and Hillary Clinton did uh last week. So it'll

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<v Speaker 1>be interesting to see how they country response to that

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<v Speaker 1>type of cordial debate. Very different from what we've seen

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<v Speaker 1>this year in a very wild presidential season. According to

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<v Speaker 1>a recent Fox News poll, nearly one third of likely

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<v Speaker 1>voters have no opinion of either Kane or Pence. Is

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<v Speaker 1>that unusual? It's a been unusual. These are two vice

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<v Speaker 1>presidential candidates that did not run for presidents, so a

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<v Speaker 1>lot of people don't know who they are. Often you

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<v Speaker 1>see presidential picks choosing their their picks based on people

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<v Speaker 1>they ran again, so people who have a national following

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<v Speaker 1>and that's something that these two candidates don't have. And

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<v Speaker 1>this is probably gonna be the biggest political state that

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<v Speaker 1>either has ever been on. So that's that's gonna be

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<v Speaker 1>an opportunity for people to reach a conclusion about how

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<v Speaker 1>they feel about each candidate. Were already talked about how

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<v Speaker 1>the four that will encourage the actual debate, but tell

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<v Speaker 1>us about how much the records of these two vice

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<v Speaker 1>presidential candidates will be scrutinized. Uh Yeah, this will be

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<v Speaker 1>an opportunity to really dig into their records because there

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<v Speaker 1>are places where uh, their their records differ from their

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<v Speaker 1>running mates. Uh. We can think about Governor Pence and

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<v Speaker 1>the fact that he voted for the Iraq War, something

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<v Speaker 1>that Donald Trump says that he was against him that

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<v Speaker 1>he says with a disastrous vote by all who are

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<v Speaker 1>in Congress. We can look at Kane and the fact

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<v Speaker 1>that he had somewhat different views on abortion uh as

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<v Speaker 1>as Secretary Clinton. So this will be an opportunity for

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<v Speaker 1>them to explain their own uh political records and defend

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<v Speaker 1>their their running mate on issues where they have some differences.

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<v Speaker 1>I want to thank you very much to lou on

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<v Speaker 1>A Upita. He is our US government reporter for Bloomberg News.

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<v Speaker 1>So joining us from the site of tonight's debate between

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<v Speaker 1>the vice presidential candidates and to take place in Longwood

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<v Speaker 1>University in Farmville, Virginia. That's about three hours outside of Washington,

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<v Speaker 1>d C. You're listening to Taking Stock. I'm PIM Fox

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<v Speaker 1>my co host Kathleen Hayes. This is Bloomberg