1
00:00:02,000 --> 00:00:05,439
Speaker 1: Global business news twenty four hours a day at Bloomberg

2
00:00:05,440 --> 00:00:08,119
Speaker 1: dot com, the Radio plus mobile act and on your

3
00:00:08,240 --> 00:00:11,760
Speaker 1: radio he's a Bloomberg business flag. And there you have

4
00:00:11,800 --> 00:00:13,520
Speaker 1: its sound of the closing bell or the New York

5
00:00:13,560 --> 00:00:17,079
Speaker 1: Stock Exchange as we wrap up creating on this Thursday August,

6
00:00:18,079 --> 00:00:21,439
Speaker 1: that is for Women's Olympic rowing team ringing closing bell

7
00:00:21,560 --> 00:00:24,320
Speaker 1: celebrating their gold medal in Rio. We are brought to

8
00:00:24,320 --> 00:00:27,720
Speaker 1: you by Sector Spider ETFs. Why buy a single stock

9
00:00:27,720 --> 00:00:30,960
Speaker 1: when you can invest in the entire sector? Visits sector

10
00:00:31,320 --> 00:00:36,839
Speaker 1: spd rs dot com or call six sector e t F.

11
00:00:37,440 --> 00:00:40,280
Speaker 1: A down day for the Dow, the SMPN, the nasdak

12
00:00:40,360 --> 00:00:43,680
Speaker 1: compositive index stocks declining a day before that speech by

13
00:00:43,680 --> 00:00:47,520
Speaker 1: fedshare Janet Yellen that may provide clues about the path

14
00:00:47,600 --> 00:00:50,800
Speaker 1: of interest rates in the US. Jacob Frankel as chairman

15
00:00:50,840 --> 00:00:54,600
Speaker 1: of JP morgan Chase International. He was interviewed right here

16
00:00:54,720 --> 00:01:00,320
Speaker 1: on taking stock. Well, I'm allful patients provided somebody is

17
00:01:00,360 --> 00:01:03,440
Speaker 1: doing what needs to be done during the patient's period.

18
00:01:04,080 --> 00:01:08,120
Speaker 1: Does anyone really believe that Congress will act get its

19
00:01:08,160 --> 00:01:12,000
Speaker 1: act together in the coming three to six months? Does

20
00:01:12,080 --> 00:01:15,080
Speaker 1: anyone really believe that we will see structure and measures

21
00:01:15,120 --> 00:01:17,520
Speaker 1: in the coming three to six months. A tenure down

22
00:01:17,560 --> 00:01:20,559
Speaker 1: four thirty seconds, the yield one point five seven percent,

23
00:01:20,680 --> 00:01:25,039
Speaker 1: Gold down three thirty two, a drop of three tenths

24
00:01:25,080 --> 00:01:28,720
Speaker 1: of one percent. Crude oil higher. West Texas Intermediate up

25
00:01:28,800 --> 00:01:31,680
Speaker 1: one two percent, up fifty seven cents of barrel to

26
00:01:31,920 --> 00:01:36,480
Speaker 1: fort thirty four. St. Jude Medical shares plunge today by

27
00:01:36,640 --> 00:01:40,040
Speaker 1: five percent. Carson Block, the renowned short seller and founder

28
00:01:40,080 --> 00:01:43,280
Speaker 1: of research for Muddy Waters, warning the tens of thousands

29
00:01:43,319 --> 00:01:46,240
Speaker 1: of amra of Americans are living with ticking time bombs,

30
00:01:46,280 --> 00:01:49,400
Speaker 1: and that is St. Jude pacemakers and defibrillators that are

31
00:01:49,440 --> 00:01:55,080
Speaker 1: easily compromised, causing potentially fatal disruptions. Company says the allegations

32
00:01:55,120 --> 00:01:59,640
Speaker 1: are quote absolutely untrue and several layers of security are

33
00:01:59,760 --> 00:02:03,320
Speaker 1: in place. Again recapping a move law for stocks with

34
00:02:03,360 --> 00:02:06,680
Speaker 1: the DAL, the SMP, and nez Dak all declining today,

35
00:02:06,960 --> 00:02:09,640
Speaker 1: the SMP down one tenth of one percent, falling two

36
00:02:09,680 --> 00:02:14,520
Speaker 1: points to one two four o two on Wall Street. Now,

37
00:02:14,720 --> 00:02:17,160
Speaker 1: let's take a look at other news from around the world.

38
00:02:17,320 --> 00:02:22,240
Speaker 1: On Bloomberg Radio, Charlie, Thank you from the Bloomberg news Room,

39
00:02:22,280 --> 00:02:25,560
Speaker 1: by Mark Crumpton. A U. S. Navy patrol boat fired

40
00:02:25,600 --> 00:02:29,560
Speaker 1: warning shots and an Iranian Revolutionary Guard vessel wednesday in

41
00:02:29,639 --> 00:02:32,640
Speaker 1: the Persian Gulf. Our ships were in international waters. Are

42
00:02:33,040 --> 00:02:37,160
Speaker 1: sailors were conducting themselves professionally as they are trained to do,

43
00:02:37,480 --> 00:02:39,720
Speaker 1: and we did not see the same from the Iranian

44
00:02:39,720 --> 00:02:41,680
Speaker 1: boats on the other side. That was spent on Prince

45
00:02:41,760 --> 00:02:44,720
Speaker 1: Secretary Peter Cook. The incident came a day after a

46
00:02:44,800 --> 00:02:49,040
Speaker 1: close encounter between US ships and Revolutionary Guard boats captured

47
00:02:49,080 --> 00:02:52,160
Speaker 1: on naval video. The White Houses were reacting to an

48
00:02:52,160 --> 00:02:56,480
Speaker 1: extradition request from Turkey for Fetila Gulan, a former imam

49
00:02:56,600 --> 00:03:00,520
Speaker 1: the country holds responsible for in signing last month's old coup.

50
00:03:00,760 --> 00:03:03,919
Speaker 1: White House Press Secretary johsh Ernest the administration has made

51
00:03:03,919 --> 00:03:08,120
Speaker 1: a firm commitment to the Turkish government that we will

52
00:03:08,840 --> 00:03:12,280
Speaker 1: consider their requests on the merits, and we've actually followed

53
00:03:12,360 --> 00:03:15,800
Speaker 1: up those promises with action. Uh. There are Department of

54
00:03:15,800 --> 00:03:19,280
Speaker 1: Justice officials in Turkey right now meeting with their counterparts

55
00:03:19,320 --> 00:03:22,000
Speaker 1: to go over the evidence that's been presented. Gulan, who

56
00:03:22,040 --> 00:03:25,560
Speaker 1: was exiled in rural Pennsylvania, is a former ally whom

57
00:03:25,600 --> 00:03:29,320
Speaker 1: Turkish President rage Urdawan has long accused of trying to

58
00:03:29,400 --> 00:03:33,320
Speaker 1: overthrow his government. Gulan has denied any involvement in the

59
00:03:33,360 --> 00:03:37,160
Speaker 1: failed coup. The t s A is advising travelers using

60
00:03:37,240 --> 00:03:40,200
Speaker 1: LaGuardia Airport to arrive at least two to two and

61
00:03:40,240 --> 00:03:43,320
Speaker 1: a half hours before their flight is scheduled to leave,

62
00:03:43,640 --> 00:03:47,320
Speaker 1: and even earlier during holiday travel periods. Complaints are piling

63
00:03:47,360 --> 00:03:50,720
Speaker 1: up from people arriving late to the airport because of construction.

64
00:03:50,960 --> 00:03:55,360
Speaker 1: The agency blames the airport's massive redevelopment project. Global News

65
00:03:55,400 --> 00:03:57,920
Speaker 1: twenty four hours a day, powered by more than twenty

66
00:03:58,200 --> 00:04:02,440
Speaker 1: hundred journalists and analysts more than one twenty countries. I'm

67
00:04:02,480 --> 00:04:06,240
Speaker 1: more Crumpton. This is Bloomberg, Charlie, and we thank you,

68
00:04:06,280 --> 00:04:09,040
Speaker 1: and again recapping the tal the SMP and has stack

69
00:04:09,080 --> 00:04:12,280
Speaker 1: all declining today, the SMP down one tenth of one percent,

70
00:04:12,680 --> 00:04:16,960
Speaker 1: dropping three points to twenty one seventy two. I'm Charlie Pellaton.

71
00:04:17,120 --> 00:04:22,279
Speaker 1: That's a Bloomberg business flash. Move around. Motion creates promotion.

72
00:04:22,440 --> 00:04:27,960
Speaker 1: I move you moved like they do. I've never seen

73
00:04:28,000 --> 00:04:34,200
Speaker 1: anyone move that back hard. People's moved like to get

74
00:04:34,240 --> 00:04:40,480
Speaker 1: a purpose. Just warning you stamp computers from really slow

75
00:04:40,520 --> 00:04:43,440
Speaker 1: as you shakers. It costs a little more. That name

76
00:04:43,480 --> 00:04:53,440
Speaker 1: cracked me up. Bloomberg taking stock movers and shakers with

77
00:04:53,560 --> 00:04:57,040
Speaker 1: pimp box and Kathleen as on Bloomberg Radio. Well, I've

78
00:04:57,080 --> 00:05:00,920
Speaker 1: got one, I've got they you so much is kicking

79
00:05:00,920 --> 00:05:04,120
Speaker 1: things off on Kathleen Hayes here in Jackson Hole, Wyoming.

80
00:05:04,200 --> 00:05:06,440
Speaker 1: The Kansas City Fed Symposium kicks off tonight. But the

81
00:05:06,480 --> 00:05:09,280
Speaker 1: market is moving ahead of that. In fact, when you

82
00:05:09,320 --> 00:05:12,080
Speaker 1: look on your Bloomberg you will see inside the SMP

83
00:05:12,200 --> 00:05:14,800
Speaker 1: five hundred you had two hundred and seventy six gainers,

84
00:05:14,960 --> 00:05:18,560
Speaker 1: two hund thirty three losers, six closing unchanged. Uh. My

85
00:05:18,680 --> 00:05:21,640
Speaker 1: call was Pim Fox in our New York studio along

86
00:05:21,640 --> 00:05:24,440
Speaker 1: with Dave Wilson are stocks editor. Dave, please kick it

87
00:05:24,480 --> 00:05:29,440
Speaker 1: off for us absolutely. Let's take a look at International Paper. Now,

88
00:05:29,440 --> 00:05:32,240
Speaker 1: there's been some back and forth lately about the price

89
00:05:32,279 --> 00:05:37,120
Speaker 1: of container board UH, used in packaging, and the Deutsche

90
00:05:37,120 --> 00:05:41,360
Speaker 1: Bank was out with a note today saying that International

91
00:05:41,480 --> 00:05:45,880
Speaker 1: Paper wants to raise prices for container board by fifty

92
00:05:46,000 --> 00:05:49,839
Speaker 1: dollars a ton as of October one. UH. The note

93
00:05:49,880 --> 00:05:53,880
Speaker 1: from analyst Debbie Jones cited unnamed people in the industry.

94
00:05:54,240 --> 00:05:58,040
Speaker 1: We try to contact International Paper for comment Uh, couldn't

95
00:05:58,040 --> 00:06:02,080
Speaker 1: reach anyone, you know that's at International Paper Shares up

96
00:06:02,080 --> 00:06:06,239
Speaker 1: about four percent in today's trading, and Rivals moved higher

97
00:06:06,279 --> 00:06:08,520
Speaker 1: as well, West Rock with a game of five point

98
00:06:08,640 --> 00:06:11,960
Speaker 1: nine percent and Packaging Corporate America up three and a

99
00:06:12,040 --> 00:06:15,839
Speaker 1: half percent. I'll tell you about Signet Jewelers. Shares of

100
00:06:15,960 --> 00:06:18,719
Speaker 1: Signet Jewelers down more than twelve and a half a

101
00:06:18,880 --> 00:06:23,520
Speaker 1: percent after the company posted earnings and revenue below analyst

102
00:06:23,640 --> 00:06:28,080
Speaker 1: estimates for the seventeen fiscal second a quarter. UH, the

103
00:06:28,400 --> 00:06:31,680
Speaker 1: jeweler based in Bermuda, reported earnings suggested earnings of a

104
00:06:31,680 --> 00:06:34,719
Speaker 1: dollar fourteen to share. Analysts were expecting earnings of a

105
00:06:34,760 --> 00:06:38,640
Speaker 1: dollar forty five. Same store sales down two point three

106
00:06:38,680 --> 00:06:42,240
Speaker 1: percent during the same period of time, and the company

107
00:06:42,400 --> 00:06:45,120
Speaker 1: says that we're disappointed by the second quarter results. Market

108
00:06:45,160 --> 00:06:48,960
Speaker 1: conditions have been challenging, particularly in what they describe as

109
00:06:49,120 --> 00:06:53,280
Speaker 1: energy dependent regions. Shares of Signet Jewelers down more than

110
00:06:53,320 --> 00:06:56,279
Speaker 1: twelve and a half percent. Well, you know, Pammy, You've

111
00:06:56,279 --> 00:06:58,880
Speaker 1: just got me thinking about jewelry now, So I've got

112
00:06:58,880 --> 00:07:02,080
Speaker 1: to look at Tiffany ups seven percent today. It posted

113
00:07:02,120 --> 00:07:05,680
Speaker 1: second quarter profit the topped analyst estimate a clamp down

114
00:07:05,760 --> 00:07:10,280
Speaker 1: on cost help but whether sluggish demand from its affluent customers.

115
00:07:10,520 --> 00:07:13,040
Speaker 1: Earnings were eighty four cents to share for the period

116
00:07:13,080 --> 00:07:17,760
Speaker 1: end of July thirty one on projections of seventy one cents.

117
00:07:17,800 --> 00:07:21,200
Speaker 1: And of course there is a global economic turbulence and

118
00:07:21,240 --> 00:07:23,440
Speaker 1: you can have high end luxury customers. That's an issue.

119
00:07:23,480 --> 00:07:26,320
Speaker 1: Our Blipic intelligence team has looked a lot at changes

120
00:07:26,320 --> 00:07:28,200
Speaker 1: in the dollar, changes in the global economy and how

121
00:07:28,240 --> 00:07:30,520
Speaker 1: it affects people come to the US to shop for

122
00:07:30,720 --> 00:07:34,480
Speaker 1: things like jewelry. I want to talk about express Scripts,

123
00:07:34,560 --> 00:07:37,520
Speaker 1: one of the biggest drug benefit managers, because this whole

124
00:07:37,560 --> 00:07:41,560
Speaker 1: issue with my Land and the price increases on its

125
00:07:41,640 --> 00:07:45,040
Speaker 1: allergy shot EpiPen have really come home to roost in

126
00:07:45,160 --> 00:07:49,080
Speaker 1: terms of express Scripts and its competitors. Uh, you know,

127
00:07:49,120 --> 00:07:52,640
Speaker 1: the question is if my Lands raising prices, who gets

128
00:07:52,640 --> 00:07:54,920
Speaker 1: the money? I mean, the focus has really been on

129
00:07:54,960 --> 00:07:58,800
Speaker 1: the drug maker itself so far. Now people are kind

130
00:07:58,800 --> 00:08:02,120
Speaker 1: of broadening their look and uh, they're seeing these these

131
00:08:02,120 --> 00:08:06,640
Speaker 1: pharmacy benefit managers as beneficiaries as well. Now. Express Scripts

132
00:08:06,840 --> 00:08:10,760
Speaker 1: told us via email that in many cases, employers are

133
00:08:10,800 --> 00:08:16,000
Speaker 1: shouldering most of the cost increases for EpiPen. Nonetheless, you've got.

134
00:08:16,040 --> 00:08:19,400
Speaker 1: And this all reflects the potential for UH my land

135
00:08:19,440 --> 00:08:22,600
Speaker 1: to have to cut the price of this treatment outright,

136
00:08:22,800 --> 00:08:25,600
Speaker 1: as opposed to offering more incentives, which was what they

137
00:08:25,640 --> 00:08:29,720
Speaker 1: did today, more discounts. Express Scripts down six percent on

138
00:08:29,800 --> 00:08:32,000
Speaker 1: the day. I also point out CVS Health down three

139
00:08:32,040 --> 00:08:34,800
Speaker 1: and a half percent and McKesson down three percent, both

140
00:08:34,840 --> 00:08:37,600
Speaker 1: of them affected by this whole issue with EpiPen. Alright,

141
00:08:37,600 --> 00:08:40,679
Speaker 1: and I'll just tell you about stand X International. Now,

142
00:08:40,760 --> 00:08:43,800
Speaker 1: this is a company that makes many of the products

143
00:08:43,920 --> 00:08:49,960
Speaker 1: for food merchandizing, such as display cases, reusable and expendable

144
00:08:50,120 --> 00:08:53,520
Speaker 1: UH magnetic components as well. It operates in the United

145
00:08:53,520 --> 00:08:56,800
Speaker 1: States as well as overseas, based in Salem, New Hampshire.

146
00:08:57,040 --> 00:08:59,079
Speaker 1: But the shares down more than eight and a half

147
00:08:59,120 --> 00:09:03,240
Speaker 1: percent after reporting a fourth quarter adjusted earnings per share

148
00:09:03,280 --> 00:09:06,200
Speaker 1: that were below analysts estimates. They missed by four cents.

149
00:09:06,840 --> 00:09:11,120
Speaker 1: The company also missing in terms of revenue. They said

150
00:09:11,120 --> 00:09:14,160
Speaker 1: that they had a hundred and ninety three million dollars

151
00:09:14,160 --> 00:09:17,959
Speaker 1: in sales estimate war for two hundred million dollars in sales.

152
00:09:18,200 --> 00:09:21,839
Speaker 1: Shares of stand X down more than eight and a

153
00:09:21,880 --> 00:09:24,760
Speaker 1: half percent. All right, it's time now for the volatility

154
00:09:24,800 --> 00:09:26,839
Speaker 1: Index Report. It, of course, are brought to you by

155
00:09:26,880 --> 00:09:30,440
Speaker 1: cbo VIX Options and Futures Volatility can be harnessed with

156
00:09:30,480 --> 00:09:33,719
Speaker 1: c b o A VIX Options and Futures CE disclosures.

157
00:09:33,840 --> 00:09:38,360
Speaker 1: Learn more at cboe dot com. Slash Powerful Outcomes, VIX,

158
00:09:39,000 --> 00:09:42,000
Speaker 1: the VIX lower, I beg your pardon. The VIX higher

159
00:09:42,040 --> 00:09:46,040
Speaker 1: today up more than three percent, up zero point four five,

160
00:09:46,240 --> 00:09:51,120
Speaker 1: settling at thirteen point eight nine and VIX short positions

161
00:09:51,400 --> 00:09:53,600
Speaker 1: are historic lows. And if you take a look at

162
00:09:53,600 --> 00:09:56,880
Speaker 1: the cash VIX, it has really collapsed since the June

163
00:09:56,880 --> 00:10:00,720
Speaker 1: Brexit vote. Uh, and the VIX futures curve has also

164
00:10:00,920 --> 00:10:06,800
Speaker 1: shifted lower. All right, Dave, you're my name is Dave.

165
00:10:09,080 --> 00:10:15,439
Speaker 1: Just what do you think you're doing? We're going Wilson, Dave, Dave,

166
00:10:19,080 --> 00:10:21,920
Speaker 1: al right, Mr Wilson, drumroll please. Stock of the day.

167
00:10:22,000 --> 00:10:24,600
Speaker 1: Horizon Global, that's right. This is a company that makes

168
00:10:24,679 --> 00:10:28,520
Speaker 1: trailer hitches, toe bars and related products. Used to be

169
00:10:28,559 --> 00:10:32,120
Speaker 1: known as Sequent spelled c E q U E n

170
00:10:32,160 --> 00:10:35,320
Speaker 1: T before being spun off about fourteen months ago by

171
00:10:35,320 --> 00:10:39,160
Speaker 1: the manufacturer Trimas. Horizon Global shares are listed under the

172
00:10:39,200 --> 00:10:42,040
Speaker 1: ticker h z N. They told me as much as

173
00:10:42,920 --> 00:10:44,600
Speaker 1: during the first four and a half months of trading.

174
00:10:44,840 --> 00:10:47,080
Speaker 1: Then they recoop the loss with help some from some

175
00:10:47,200 --> 00:10:51,600
Speaker 1: well received Darney's reports. Today, Horizon Global made its first

176
00:10:51,679 --> 00:10:54,240
Speaker 1: deal since the spin off. The company agreed to buy

177
00:10:54,280 --> 00:10:57,439
Speaker 1: a German tobar producer West Failure Group for about a

178
00:10:57,559 --> 00:11:00,000
Speaker 1: hundred and twenty five million dollars in cash and style.

179
00:11:00,200 --> 00:11:03,440
Speaker 1: The seller is an investor group led by DPE deuts

180
00:11:03,440 --> 00:11:06,440
Speaker 1: to private equity. Horizon Global said in a statement that

181
00:11:06,480 --> 00:11:09,560
Speaker 1: the purchase will add to earnings next year and lead

182
00:11:09,600 --> 00:11:13,800
Speaker 1: to a significant profit increase in future years, and that

183
00:11:13,880 --> 00:11:17,640
Speaker 1: prospect went over well with investors. Shares of Horizon Global

184
00:11:17,720 --> 00:11:21,319
Speaker 1: reach the record eighteen dollars and fifty cents in today's trading.

185
00:11:21,679 --> 00:11:25,320
Speaker 1: They closed at seventy seven. That works out to gain

186
00:11:25,440 --> 00:11:29,280
Speaker 1: about fifteen and a half percent, the biggest ever for

187
00:11:29,400 --> 00:11:33,160
Speaker 1: Horizon Global shares. Thank you very much, Dave Wilson, Bloomberg

188
00:11:33,240 --> 00:11:36,160
Speaker 1: Stocks Columns. You can send Dave an email at d

189
00:11:36,440 --> 00:11:39,600
Speaker 1: Wilson at Bloomberg dot net and sign up for his

190
00:11:39,720 --> 00:11:43,760
Speaker 1: daily free email newsletter. It will make you a smarter investor.

191
00:11:44,080 --> 00:11:48,080
Speaker 1: And you can follow him on Twitter at the One Dave.

192
00:11:48,800 --> 00:11:51,600
Speaker 1: You can also follow my co host Kathleen Hayes at

193
00:11:51,679 --> 00:11:55,000
Speaker 1: Kathleen Underscore Hayes and you can follow me pim Fox

194
00:11:55,160 --> 00:12:07,520
Speaker 1: at pim Fox. This his Bloomberg coming up on taking stock,

195
00:12:07,559 --> 00:12:09,319
Speaker 1: will be speaking with Tom Tucci. He is the head

196
00:12:09,360 --> 00:12:13,760
Speaker 1: of Treasuries Trading in New York at CIBC World Markets.

197
00:12:14,320 --> 00:12:17,000
Speaker 1: He says if central banks continue to take supply out

198
00:12:17,040 --> 00:12:19,560
Speaker 1: of the market, it's difficult for rates to move up.