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Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C.

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Speaker 1: Bloomberg to Boston, Blueberg twell hundred to San Francisco, Bloomberg

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Speaker 1: nine to the Country series at jam General one nineteen

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Speaker 1: and around the globe the Bloomberg Radio Plus Appen Bloomberg

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Speaker 1: Got Gone. This is taking stock, coming up on taking stock.

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Speaker 1: We're gonna take stock of Wells Fargo. It has been

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Speaker 1: a bad month for Wells Fargo shareholders and for the bank,

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Speaker 1: the bank agreeing to pay in order to settle allegations

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Speaker 1: related to fraudulent accounts being opened, and also the appearance

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Speaker 1: before two sets of regulators in Washington of John Stump,

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Speaker 1: the company's chief executive. We're gonna have more on Wells Fargo.

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Speaker 1: Find out maybe Wells Fargo stock is on sale right now, though,

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Speaker 1: Let's go to Catherine Cowdy in the Bloomberg news room

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Speaker 1: for Bloomberg Business Flash. Thank you, Bam and Bloomberg. Taking

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Speaker 1: Stock is brought to by Sector Spider e t S.

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Speaker 1: Why buy a single stock when you can invest in

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Speaker 1: the entire sector? Visit sector spdrs dot com or call

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Speaker 1: one A six six sector et F. The stock market

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Speaker 1: is rallying on track to and the month and quarter

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Speaker 1: on a positive note thanks a recovering from a sharp

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Speaker 1: drop as Deutsche Bank tries to reach your investors about

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Speaker 1: his financial health. On the economic front, to reports showed

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Speaker 1: that consumer spending installed in August, Bloomberg's been a del

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Speaker 1: judace has the details. The government data are consistent with

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Speaker 1: projections at household purchases will provide a smaller but respectable

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Speaker 1: contribution to GDP. The Commerce Department reports consumers spending was

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Speaker 1: unchanged last month after four months of steady gains. Adjusted

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Speaker 1: for inflation, spending drop for the first time since January.

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Speaker 1: Income growth also slowed, rising point two. The poors could

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Speaker 1: be short lived. The University of Michigan Consumer Sentiment Index

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Speaker 1: rose in September, the first game in four months. At

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Speaker 1: the Bloomberg first word desc company del judais Bloomberg Radio

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Speaker 1: we take the markets every fifteen minute throughout the trading

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Speaker 1: day and Bloomberg Radio down. Industrial averages up two hundred

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Speaker 1: nine points one point one percent, trading at eighteen thousand,

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Speaker 1: three hundred fifty two. SMP five funded up twenty three

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Speaker 1: points one point one percent seventy four. The nasdact is

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Speaker 1: higher by fifty four points, a gain of one percent.

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Speaker 1: Is trading at fifty three twenty three less. Texas intermedi

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Speaker 1: At crude oil up twenty seven cents of barrel, six

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Speaker 1: tents of a percent to forty eight ten sparckled down

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Speaker 1: five dollars forty cents an ounced to thirteen sixty ten

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Speaker 1: year Treasury down ten thirty seconds with the yield of

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Speaker 1: one point five nine percent. Among today's top business stories,

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Speaker 1: IBM wants to use artificial intelligence technology to automate parts

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Speaker 1: of the finance industry's regulatory compliance effort. And now let's

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Speaker 1: get an update of some of the other stories we're

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Speaker 1: following on Bloomberg Radio today. Thank you, Catherine from the

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Speaker 1: Bloomberg Newsroom. I'm Jill Schneider. This news update is brought

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Speaker 1: to you by the Jeep Grand Cherokee, the most awarded

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Speaker 1: suv ever. The Grand Cherokee continues to raise the bar

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Speaker 1: with its luxurious interior and legendary four by four capability.

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Speaker 1: Draw one at your local Jeep dealer Today. Officials say

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Speaker 1: the investigation into the deadly train crash at the Hoboken

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Speaker 1: station could take at least seven to ten days. It

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Speaker 1: was a tough ride to work for some commuters after

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Speaker 1: yesterday's crash. This Hoboken commuter is worried about the future

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Speaker 1: I don't see for months. The New Jersey Transit portion

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Speaker 1: of the Hoboken station remained closed today. A museum to

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Speaker 1: honor Navy seals is being planned in New York. Officials

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Speaker 1: say the museum, which could open in two thousand eighteen

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Speaker 1: in Saville, will be named for Lieutenant Michael P. Murphy,

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Speaker 1: The Medal of Honor recipient, died along with eighteen others

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Speaker 1: in a gun battle in Afghanistan in June two thousand five.

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Speaker 1: A mistake during Monday Nights presidential debate gave one Virginia

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Speaker 1: woman a big headache. Bloomberg's Michael Barr explains, Thank goodness,

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Speaker 1: this woman has unlimited data on her smartphone. A Virginia

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Speaker 1: on TV during the residential debate. Ce Spend put Trip

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Speaker 1: Diaz's number on TV, asking viewers to call and text

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Speaker 1: the comments on the candidates debate though most watched presidential

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Speaker 1: debate in history, so you, Spends spokesman Howard Mortman says

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Speaker 1: they got it wrong, and I've apologized to the stafford

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Speaker 1: Woman Michael Barr. Bloomberg Radio Global News twenty four hours

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Speaker 1: a day, powered by more than twenty journalists and analysts

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Speaker 1: in more than one hundred twenty countries. I'm Joel Schneider,

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Speaker 1: this is Bloomberg. Katherine, thank you, and now let's get

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Speaker 1: a quick update of the benchmarks. DL and DUST for

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Speaker 1: laverage up two hundred nine points at eighteen thousand, three

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Speaker 1: hundred fifty three. Smp F I founded up twenty three

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Speaker 1: point nwas Jack Hier by fifty four points at fifty

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Speaker 1: three And that's a Bloomberg business flash. You're listening to

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Speaker 1: taking stock with Kathleen and Pim Fox on Bloomberg Radio.

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Speaker 1: The shares of Wells Fargo, they are up about two

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Speaker 1: tenths of a percent right now forty dollars and forty

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Speaker 1: nine cents. But earlier in the year this was a

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Speaker 1: fifty four dollar a share stock and would know that

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Speaker 1: Wells Fargo has not had the best of months. The

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Speaker 1: chief executive John Stump peering before two sets of regulators

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Speaker 1: in Washington this week to speak about allegations and efforts

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Speaker 1: on the part of investigators to learn more about accounts

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Speaker 1: that were open for people that for all intensive purposes

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Speaker 1: did not exist. Here to tell us more. Peter Anderson

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Speaker 1: he his chief investment officer, a fiduciary trust company. Peter,

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Speaker 1: always a pleasure, Thanks for joining me. You're welcome. Now

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Speaker 1: let's separate what is going on at Wells Fargo in

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Speaker 1: terms of investigations and the chief executives performance and role

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Speaker 1: in future and the actual bank because that may help

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Speaker 1: us guide, you know, the guide the conversation about what

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Speaker 1: the stock is actually worth exactly, and you know, I

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Speaker 1: think they're in line with problem him Uh. This past

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Speaker 1: week there has been a lot of focus on the

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Speaker 1: CEO's activities and appearing before two agencies to discuss this.

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Speaker 1: And while we don't want to understate the damage of

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Speaker 1: the scandal, I think a lot of focus has been

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Speaker 1: lost on the value of the stock and going forward,

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Speaker 1: what the plans will be to recover uh investor confidence.

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Speaker 1: And we're waiting. A lot of investors are waiting on

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Speaker 1: the sidelines, kind of in a holding pattern, to get

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Speaker 1: a sense of what the board of directors, for instance,

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Speaker 1: what they're thinking and what they might uh possibly propose

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Speaker 1: as a solution. There has been uh, they've been silent

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Speaker 1: on the issue so far. And you're a shareholder, Yes,

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Speaker 1: we are. We have a long term shareholder and uh,

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Speaker 1: we have a lot of confidence and faith in the company. However,

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Speaker 1: this period of I would say lack of disclosure is

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Speaker 1: somewhat of concern because we think we need more information,

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Speaker 1: as any stock analysts would to get a sense of

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Speaker 1: what the future cash flows are in factoring in what

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Speaker 1: their proposed solutions would be to the scandal. Well, let

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Speaker 1: me just play you a clip of Elizabeth Warren, senator

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Speaker 1: from Massachusetts, speaking on the panel. They were questioning the

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Speaker 1: chief executive John Stump of of Wells Fargo. Just listen

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Speaker 1: to what she had to say. You should resign, You

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Speaker 1: should give back the money that you took while this

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Speaker 1: scam was going on, and you should be criminally investigated

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Speaker 1: by both the Department of Justice and the Securities in

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Speaker 1: Exchange Commission. Harsh words from Senator Elizabeth Warren. Uh, Peter Anderson,

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Speaker 1: this has got to affect the brand? Or am I wrong? Well?

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Speaker 1: You know, I think what it should affect is the

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Speaker 1: board of directors. You know, their duty bound to respond

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Speaker 1: to this and UM. While the CEO certainly is in

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Speaker 1: the center of this firestorm right now, at least in

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Speaker 1: the public eye. You know, as an analyst, I would

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Speaker 1: say that you need to know what the the highest

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Speaker 1: leadership is thinking, which is higher than the CEO. Right

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Speaker 1: is that? But he's also the chairman, right, I mean

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Speaker 1: John Stump is also the chairman and chief executive. He is.

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Speaker 1: And you know a lot of government experts have been

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Speaker 1: saying for years that you should always separate those two

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Speaker 1: authorities because of situations like this. But there are independent

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Speaker 1: directors that certainly our duty bound to come forward and mentioned.

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Speaker 1: Not only what I would say is disclosed and proposed,

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Speaker 1: So disclose what's happened. And I well, John, I give

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Speaker 1: you an example. John Chen, the chief executive of BlackBerry

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Speaker 1: is on the board, yes, of Wells Fargo. Have you

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Speaker 1: received any information from them? Have they given you any

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Speaker 1: indication about anything uh? Publicly the board? As far as

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Speaker 1: I know, the only uh disclosure they've given was the

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Speaker 1: notice about clawback UH for the the two very highlighted

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Speaker 1: individuals right now, the CEO and the other person. But

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Speaker 1: other than that, we do not have anything official. So

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Speaker 1: for instance, let me give you An example him that

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Speaker 1: might help investors modeled future cash flows is if the

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Speaker 1: board were to have an investor conference call and disclose

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Speaker 1: and propose what they are thinking in terms of fixing

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Speaker 1: this going forward. I think that would give more clarity

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Speaker 1: to the situation. You know, as investors, most analysts are

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Speaker 1: looking to companies for guidance rights for things as basic

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Speaker 1: as earnings. So this I put this kind of in

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Speaker 1: the same category, only even uh more highly ranked in

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Speaker 1: the sense that if they can give us information and

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Speaker 1: how they might fix this, there would be clarity and

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Speaker 1: we could go forward with our analysis. And Peter Anderson,

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Speaker 1: I just wanna offer a little bit up of your resume,

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Speaker 1: uh Harvard, Yale, Northeastern Physics. Maybe the physics will come

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Speaker 1: in handy with this with this particular situation. And also

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Speaker 1: previously the head of multi asset wealth management at Congress

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Speaker 1: Wealth Management. Um, is there a click a time a

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Speaker 1: time frame here? I know we're on a time clock,

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Speaker 1: give you about ten seconds. Is there a time clock

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Speaker 1: for the board of directors? Well, time is their enemies

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Speaker 1: of him, and as I would urge them to quickly

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Speaker 1: propose a solution and then we can get back to

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Speaker 1: our Bloomberg terminals and do the analysis. I want to

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Speaker 1: thank you very much for joining me. Peter Anderson is

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Speaker 1: the chief investment officer at Fiduciary Trust Company. They're based

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Speaker 1: in Boston, home to Bloomberg, shairs of Microsoft. I mean,

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Speaker 1: beg your pardon. Shares of Wells Fargo are up a

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Speaker 1: quarter of our percent. Right now, you're listening to taking Stop.

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Speaker 1: This is bloom Blog coming up on taking stock. We're

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Speaker 1: going to take stock of the election and what would

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Speaker 1: happen if there's a big post election market move. Which

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Speaker 1: way would it go? That's next