1 00:00:03,920 --> 00:00:08,240 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:08,320 --> 00:00:13,320 Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:13,440 --> 00:00:17,680 Speaker 1: Bloomberg nine to the Country series Exam General one nineteen 4 00:00:17,800 --> 00:00:21,320 Speaker 1: and around the globe the Bloomberg Radio plus David Bloomberg 5 00:00:21,320 --> 00:00:25,480 Speaker 1: dot Com. This is taking Stock. Coming up on taking Stock, 6 00:00:25,520 --> 00:00:28,360 Speaker 1: will take stock of Waste Management. They raised their twenties 7 00:00:28,400 --> 00:00:32,279 Speaker 1: sixteen earnings guidance. They reported better than estimated earnings. They 8 00:00:32,360 --> 00:00:36,360 Speaker 1: got a revenue boost from positive market conditions. Will speak 9 00:00:36,400 --> 00:00:39,720 Speaker 1: with Jim Fish, he is the president of Waste Management. 10 00:00:40,040 --> 00:00:42,600 Speaker 1: Just gott a quick give a quick heads up as well. 11 00:00:42,960 --> 00:00:46,280 Speaker 1: Movie star a TV star marine who is taking theater 12 00:00:46,520 --> 00:00:49,880 Speaker 1: to military bases around the world. Adam Driver. Also coming 13 00:00:49,920 --> 00:00:52,559 Speaker 1: up on Bloomberg Radio today. Now to We're on Katherine 14 00:00:52,560 --> 00:00:56,120 Speaker 1: Cowdery in the newsroom for a Bloomberg Business Flash. Thank you, Kathleen. 15 00:00:56,200 --> 00:00:58,560 Speaker 1: The stock market heading for its worst day since it's 16 00:00:58,560 --> 00:01:02,280 Speaker 1: so off following Britain's vote believe the European Union. Retailers 17 00:01:02,280 --> 00:01:05,080 Speaker 1: are posting their steepis losses in five weeks after sluggish 18 00:01:05,080 --> 00:01:07,920 Speaker 1: income growth. In June, men consumers had to tap into, 19 00:01:07,959 --> 00:01:10,600 Speaker 1: say things, to maintain their pace of spending. Coals and 20 00:01:10,680 --> 00:01:14,119 Speaker 1: Macy's are down about flat point four percent. Randy Fishman 21 00:01:14,160 --> 00:01:17,720 Speaker 1: at Deutsche Bank Securities on the decline in market volatility, 22 00:01:17,840 --> 00:01:21,600 Speaker 1: people get more comfortable with equities. As volatility goes down, 23 00:01:21,640 --> 00:01:23,399 Speaker 1: and it does create a bit of a feedback loop 24 00:01:23,440 --> 00:01:26,839 Speaker 1: in the market where you see markets not being volatile, 25 00:01:26,880 --> 00:01:30,479 Speaker 1: people get more comfortable investing. There are also structured products 26 00:01:30,520 --> 00:01:35,080 Speaker 1: that systematically will allocate back into equities as equities get safer. 27 00:01:35,120 --> 00:01:38,520 Speaker 1: I think that people are more and more focused on safety. 28 00:01:38,720 --> 00:01:41,200 Speaker 1: We check the markets every fifteen minutes throughout the trading day. 29 00:01:41,200 --> 00:01:44,640 Speaker 1: Down Industrial leverages down one hundred sixteen points two thirds 30 00:01:44,640 --> 00:01:47,240 Speaker 1: of a percent at eighteen thousand, two hundred eighty eight. 31 00:01:47,640 --> 00:01:50,720 Speaker 1: SMB five foundered down seventeen point three quarters of a percent, 32 00:01:50,720 --> 00:01:54,400 Speaker 1: trading at four then as Jack is down fifty three points, 33 00:01:54,400 --> 00:01:57,200 Speaker 1: the loss of one percent, trading at fifty one thirty less. 34 00:01:57,200 --> 00:01:59,960 Speaker 1: Texas intermediate crude oil down fifty five cents of barrel 35 00:02:00,040 --> 00:02:03,600 Speaker 1: one point four percent at thirty two. Spackled up thirteen 36 00:02:03,640 --> 00:02:06,840 Speaker 1: dollars ten tents anounce at thirteen seventy two, seventy ten 37 00:02:06,920 --> 00:02:09,160 Speaker 1: year Treasury down three thirty seconds, with the yield of 38 00:02:09,200 --> 00:02:12,920 Speaker 1: one point five three percent. Among today's top business story, 39 00:02:13,000 --> 00:02:15,880 Speaker 1: CBS Health will add thirty five products to its list 40 00:02:16,000 --> 00:02:20,000 Speaker 1: of excluded drugs. In it will no longer cover some 41 00:02:20,040 --> 00:02:23,160 Speaker 1: treatments for cancer and diabetes, and an aggressive move to 42 00:02:23,200 --> 00:02:26,560 Speaker 1: favor lower price treatments. CBS is targeting drugs with greater 43 00:02:26,600 --> 00:02:30,520 Speaker 1: than two price increases over three years. The Drug Benefit 44 00:02:30,560 --> 00:02:34,560 Speaker 1: Manager is expanding a strategy of excluding expensive products when 45 00:02:34,600 --> 00:02:39,040 Speaker 1: alternatives are available. It's two thirty two on Wall Street. 46 00:02:39,120 --> 00:02:40,800 Speaker 1: Let's get an update of some of the other stories 47 00:02:40,800 --> 00:02:45,239 Speaker 1: were following today right here on Bloomberg Radio. Thank you, 48 00:02:45,320 --> 00:02:48,359 Speaker 1: Catherine from the Bloomberg News Room. I'm Ramy in essentio. 49 00:02:48,480 --> 00:02:51,560 Speaker 1: New York City Police Commissioner Bill Bratton is stepping down. 50 00:02:51,720 --> 00:02:54,360 Speaker 1: He'll stay on the job until September. Brand's term has 51 00:02:54,360 --> 00:02:57,680 Speaker 1: been marred by complaints about his so called broken window policing. 52 00:02:58,320 --> 00:03:01,320 Speaker 1: President Obama was asked today whether he believes Russia was 53 00:03:01,360 --> 00:03:05,200 Speaker 1: behind the recent cyber security breaches of democratic emails. I 54 00:03:05,240 --> 00:03:10,080 Speaker 1: don't think that it wildly swings. What is a tough, 55 00:03:10,520 --> 00:03:12,920 Speaker 1: difficult relationship that we have with Russia right now? The 56 00:03:13,000 --> 00:03:15,720 Speaker 1: President also says if the breach was pulled off by 57 00:03:15,760 --> 00:03:19,200 Speaker 1: Russian hackers, it will not upset his relationship with Russian 58 00:03:19,200 --> 00:03:22,760 Speaker 1: President Vladimir Putin. Bottled water will be more popular than 59 00:03:22,840 --> 00:03:24,799 Speaker 1: soda for the first time in the US this year. 60 00:03:24,919 --> 00:03:27,639 Speaker 1: Here's Bloomberg's Bob Moon. It's not just convenient for the 61 00:03:27,680 --> 00:03:30,400 Speaker 1: switch from sugar age rinks from Nessle to PepsiCo bottling 62 00:03:30,440 --> 00:03:33,200 Speaker 1: companies of wodage. A decades long campaign against tap water. 63 00:03:33,400 --> 00:03:39,839 Speaker 1: Take this Fiji water commercial untouched, prompting skeptical comedian Lewis 64 00:03:39,880 --> 00:03:42,520 Speaker 1: Black to push back against the trend a few years back. Awa, 65 00:03:43,600 --> 00:03:46,760 Speaker 1: I think it means the end of water as we 66 00:03:46,920 --> 00:03:49,400 Speaker 1: know it. Maybe he was onto something. Bottlers and animals 67 00:03:49,440 --> 00:03:51,360 Speaker 1: safe hears over what's coming out of the taps, such 68 00:03:51,360 --> 00:03:54,480 Speaker 1: as Flint, Michigan's lead contamination crisis, are causing more people 69 00:03:54,480 --> 00:03:56,600 Speaker 1: to seek his safe and sealed source of drinking water, 70 00:03:56,800 --> 00:03:59,360 Speaker 1: Bob Moon, Bloomberg Radio and The state has approved a 71 00:03:59,440 --> 00:04:02,440 Speaker 1: plan to generate half of its power from renewable sources 72 00:04:02,440 --> 00:04:06,040 Speaker 1: by the year twenty thirty. The strategy involves big subsidies 73 00:04:06,040 --> 00:04:09,240 Speaker 1: to extend the operational life of upstate nuclear plans, while 74 00:04:09,240 --> 00:04:11,720 Speaker 1: the state expands its use of solar as well as 75 00:04:11,720 --> 00:04:15,320 Speaker 1: wind energy. While many environmental groups cheer that policy, some 76 00:04:15,480 --> 00:04:18,880 Speaker 1: oppose what they call a costly and unnecessary investment in 77 00:04:19,120 --> 00:04:22,240 Speaker 1: nuclear power. Global News twenty four hours a day, powered 78 00:04:22,240 --> 00:04:24,800 Speaker 1: by more than twenty six hundred journalists and analysts in 79 00:04:24,839 --> 00:04:27,799 Speaker 1: more than one d twenty countries. I'm Ramie in Essensio. 80 00:04:28,080 --> 00:04:31,840 Speaker 1: This is Bloomberg, Catherine, thank you. Now, let's get a 81 00:04:31,920 --> 00:04:34,400 Speaker 1: quick update of the benchmark. Stone Industrial leverages down one 82 00:04:34,440 --> 00:04:37,559 Speaker 1: hundred sixteen points at eighteen thousand, two hundred eighty eight, 83 00:04:37,960 --> 00:04:42,160 Speaker 1: smp F I funded down seventeen point four. Then Nassakistan 84 00:04:42,279 --> 00:04:44,480 Speaker 1: fifty three points at fifty one thirty. And that's a 85 00:04:44,520 --> 00:04:49,000 Speaker 1: Bloomberg business flash. You're listening to taking stock with Pim 86 00:04:49,080 --> 00:04:53,800 Speaker 1: Fox and Kathleen Hayes on Bloomberg Radio. Waste Management. It 87 00:04:53,920 --> 00:04:57,440 Speaker 1: raised its twenties sixteen earnings guidance. It reported better than 88 00:04:57,600 --> 00:05:01,760 Speaker 1: estimated earnings the trash collect just saying that market conditions. 89 00:05:01,800 --> 00:05:04,520 Speaker 1: In fact, it is the number one garbage disposal company 90 00:05:04,560 --> 00:05:08,640 Speaker 1: in North America. It said that market conditions were positive 91 00:05:08,839 --> 00:05:11,599 Speaker 1: for the company and for the industry. Here to tell 92 00:05:11,680 --> 00:05:15,479 Speaker 1: us more is Jim Fish he is the president of 93 00:05:15,680 --> 00:05:19,320 Speaker 1: Waste Management newly and pointed the president of Waste Management 94 00:05:19,400 --> 00:05:22,360 Speaker 1: joining us from Houston, Texas, Jim Fish, thanks very much 95 00:05:22,360 --> 00:05:24,680 Speaker 1: for being with us, Thanks for having me. Just give 96 00:05:24,720 --> 00:05:27,360 Speaker 1: people a little bit of an overview of waste management. 97 00:05:27,480 --> 00:05:30,520 Speaker 1: I know that you've got over twenty million customers, almost 98 00:05:30,520 --> 00:05:33,080 Speaker 1: two hundred and fifty landfills, but maybe just give people 99 00:05:33,120 --> 00:05:36,839 Speaker 1: an idea of the size and scale of your operation. Yeah, 100 00:05:36,880 --> 00:05:40,640 Speaker 1: so we have we're an integrated waste holler with what's 101 00:05:40,680 --> 00:05:43,960 Speaker 1: recycling as a huge component of what we do. We 102 00:05:44,040 --> 00:05:46,920 Speaker 1: collect trash from as you said, over over twenty two 103 00:05:46,920 --> 00:05:51,120 Speaker 1: million customers. We've got about two hundred and fifty landfills, 104 00:05:51,120 --> 00:05:54,359 Speaker 1: we have about a hundred and fifty recycled facilities, we 105 00:05:54,400 --> 00:05:59,200 Speaker 1: have over four hundred garbage collection facilities. So we're we're 106 00:05:59,360 --> 00:06:02,719 Speaker 1: a fully integer at player within North America. You know, 107 00:06:02,760 --> 00:06:06,040 Speaker 1: you just reported your earnings a week or so ago, 108 00:06:06,720 --> 00:06:11,679 Speaker 1: and even though some are saying look out tough times 109 00:06:11,760 --> 00:06:16,760 Speaker 1: recycling business, Waste Management continues to see its stock rise. 110 00:06:16,839 --> 00:06:20,880 Speaker 1: Your stock that is reaching a six month high recently, 111 00:06:21,200 --> 00:06:24,000 Speaker 1: uh well, up from fifty two on your stock press 112 00:06:24,000 --> 00:06:26,120 Speaker 1: at the start of year forty seven. This time last year. 113 00:06:26,360 --> 00:06:29,720 Speaker 1: What's the dynamic here? Well, yeah, almost a six month 114 00:06:29,720 --> 00:06:32,400 Speaker 1: time but also also close to an all time high. Um. 115 00:06:32,839 --> 00:06:35,560 Speaker 1: I think when you look at recycling, uh, you know 116 00:06:35,600 --> 00:06:37,400 Speaker 1: that that's it's almost kind of a good news and 117 00:06:37,400 --> 00:06:39,919 Speaker 1: the bad news here. You know, we're closer to the 118 00:06:39,920 --> 00:06:43,240 Speaker 1: trough and recycling we're making a lot of progress on 119 00:06:43,240 --> 00:06:45,960 Speaker 1: on you know, improving that business, but we're much closer 120 00:06:46,000 --> 00:06:47,880 Speaker 1: to the trough than we are to the peak, and 121 00:06:47,960 --> 00:06:51,400 Speaker 1: yet still producing strong cash flows and and and a 122 00:06:51,400 --> 00:06:53,559 Speaker 1: fifty two weeks or an all time high stock price. 123 00:06:54,360 --> 00:06:56,839 Speaker 1: So I think what you're seeing is that the rest 124 00:06:56,880 --> 00:07:00,000 Speaker 1: of the business, aside from recycling is is doing quite well, 125 00:07:00,040 --> 00:07:02,000 Speaker 1: and that's where the strength is coming from. Are we 126 00:07:02,080 --> 00:07:07,040 Speaker 1: seeing applications of technology to waste and recycling? I keep 127 00:07:07,080 --> 00:07:09,320 Speaker 1: thinking of robotics. I mean, is there a time when 128 00:07:09,360 --> 00:07:14,240 Speaker 1: we're going to see intelligent robotics systems process waste and 129 00:07:14,520 --> 00:07:18,520 Speaker 1: sort recyclable materials. Well, for sure, we We've actually have 130 00:07:18,800 --> 00:07:22,520 Speaker 1: a pretty automated recycled facility today with things like optical 131 00:07:22,560 --> 00:07:26,160 Speaker 1: readers that recognize the type of plastic that's coming up 132 00:07:26,160 --> 00:07:28,720 Speaker 1: a conveyor belt and and it shoots a stream of 133 00:07:28,720 --> 00:07:32,080 Speaker 1: air at that at that tide bottle and and uh 134 00:07:32,160 --> 00:07:35,280 Speaker 1: and shoots it into a bin. So so there's a 135 00:07:35,280 --> 00:07:38,480 Speaker 1: lot of technology and these recycled facilities today, and I 136 00:07:38,480 --> 00:07:42,600 Speaker 1: think that will only increase. So tell us a little 137 00:07:42,640 --> 00:07:48,200 Speaker 1: bit more about what has differentiated you from other companies 138 00:07:48,240 --> 00:07:52,280 Speaker 1: in this space. Well, I think first and foremost, Uh, 139 00:07:52,520 --> 00:07:54,920 Speaker 1: you know, we've taken a strong stance on pricing. And 140 00:07:55,960 --> 00:07:58,280 Speaker 1: you know the way we've referred to pricing in our 141 00:07:58,320 --> 00:08:01,360 Speaker 1: industry is there's there's not much the way of price elasticity. 142 00:08:01,400 --> 00:08:04,840 Speaker 1: Nobody says, Okay, now they've lowered the price low enough 143 00:08:04,840 --> 00:08:07,360 Speaker 1: that I'm gonna create more trash. It's not like big 144 00:08:07,360 --> 00:08:09,400 Speaker 1: screen TVs where you where you lower the price of 145 00:08:09,400 --> 00:08:11,920 Speaker 1: big screens and you might create enough demand to to 146 00:08:11,960 --> 00:08:15,440 Speaker 1: put you economically ahead. So really, the only right answer 147 00:08:15,560 --> 00:08:18,800 Speaker 1: with respect to our business is to increase price, and 148 00:08:18,840 --> 00:08:21,720 Speaker 1: we've taken a leadership role there. Does that mean that 149 00:08:21,760 --> 00:08:26,400 Speaker 1: you will forego certain, let's say recycling contracts because they're 150 00:08:26,440 --> 00:08:29,040 Speaker 1: not going to really help your margins? Well, no, I 151 00:08:29,040 --> 00:08:31,880 Speaker 1: think what we you know, we're looking at recycling as 152 00:08:31,920 --> 00:08:35,520 Speaker 1: as you know, in need of of improvements. Uh, doesn't 153 00:08:35,520 --> 00:08:38,160 Speaker 1: mean we won't renegotiate some of these contracts, and we're 154 00:08:38,200 --> 00:08:43,120 Speaker 1: doing that. We're probably away through renegotiation. I think what 155 00:08:43,160 --> 00:08:46,880 Speaker 1: we're doing with with municipalities, and we've done quite a 156 00:08:46,880 --> 00:08:50,240 Speaker 1: bit of it already, is saying, look, uh, the old model, 157 00:08:50,320 --> 00:08:52,600 Speaker 1: where you had commodity prices at hundred dollars, in our 158 00:08:52,640 --> 00:08:55,920 Speaker 1: processing costs at seventy, we were willing to pay you 159 00:08:55,920 --> 00:08:58,679 Speaker 1: your your share of the commodities on the back end 160 00:08:58,760 --> 00:09:01,800 Speaker 1: up front. When commodity prices are at seventy in our 161 00:09:01,840 --> 00:09:04,760 Speaker 1: processing costs is seventy, it doesn't there's nothing to share. 162 00:09:04,880 --> 00:09:08,120 Speaker 1: So we've we've you know, gone back and renegotiate the 163 00:09:08,160 --> 00:09:11,839 Speaker 1: contracts and said, look, uh, you know, irrespective of where 164 00:09:11,960 --> 00:09:14,920 Speaker 1: commodity prices are, we want to get paid our processing 165 00:09:14,960 --> 00:09:18,720 Speaker 1: cost and some acceptable margin up front and then will 166 00:09:18,720 --> 00:09:22,280 Speaker 1: split what's left with with the customer. Better be careful 167 00:09:22,320 --> 00:09:24,559 Speaker 1: you get too efficient, you won't have any business list. 168 00:09:24,559 --> 00:09:26,520 Speaker 1: But you know, if people be so efficient recycly, they 169 00:09:26,559 --> 00:09:28,320 Speaker 1: won't do it. But I'm as I'm thinking about growth 170 00:09:28,400 --> 00:09:30,560 Speaker 1: and where you go next, I'm wondering a bit more 171 00:09:30,720 --> 00:09:34,600 Speaker 1: about your gas to energy facilities in the United States, 172 00:09:34,640 --> 00:09:36,920 Speaker 1: because that's you know, the whole energy industry has been 173 00:09:36,960 --> 00:09:38,880 Speaker 1: under pressure where how how does that work for you 174 00:09:38,960 --> 00:09:42,280 Speaker 1: and how much is it adding to the profits? So 175 00:09:42,320 --> 00:09:47,199 Speaker 1: we we have gased energy at UM well over a 176 00:09:47,280 --> 00:09:50,439 Speaker 1: hundred and fifty of our landfills. UH. The only landfills 177 00:09:50,480 --> 00:09:52,440 Speaker 1: that don't have it are are very small landfills in 178 00:09:52,520 --> 00:09:55,000 Speaker 1: terms of volume. So at at all of our medium 179 00:09:55,040 --> 00:09:59,400 Speaker 1: and large landfills we have gas energy and those produce 180 00:09:59,760 --> 00:10:02,120 Speaker 1: h somewhere depending on the size of the landfill. We 181 00:10:02,200 --> 00:10:04,640 Speaker 1: have some lantils that that produce as much as tim 182 00:10:04,720 --> 00:10:07,199 Speaker 1: mega whites and mega wats of energy out of them. 183 00:10:07,720 --> 00:10:09,600 Speaker 1: We have some that are as small as three. But 184 00:10:09,600 --> 00:10:11,760 Speaker 1: but there's a fair amount of energy production going on. 185 00:10:11,840 --> 00:10:15,880 Speaker 1: And we do things like like UM power part of 186 00:10:15,920 --> 00:10:20,760 Speaker 1: the University New Hampshire and UH there's a fab facility 187 00:10:20,840 --> 00:10:23,959 Speaker 1: in South Carolina for automobiles that we power a portion 188 00:10:24,040 --> 00:10:28,360 Speaker 1: of that uh fabrication facility. So we really are producing 189 00:10:28,440 --> 00:10:31,080 Speaker 1: energy out of out of what we uh the trash 190 00:10:31,080 --> 00:10:35,440 Speaker 1: it's going to these landfills. Many thanks to Jim Fish, 191 00:10:35,679 --> 00:10:41,679 Speaker 1: president of Waste Management based in Houston, Texas, navigating the 192 00:10:41,720 --> 00:10:45,800 Speaker 1: twists and turns of the recycling garbage industry. You could 193 00:10:45,840 --> 00:10:50,200 Speaker 1: say effectively, and guiding his company to nearly record earnings 194 00:10:50,320 --> 00:10:54,520 Speaker 1: last week. I'm Kathleen Hayes along with Pim Fox on 195 00:10:54,679 --> 00:11:02,200 Speaker 1: taking Stock. This is Bloomberg coming up on taking Stock. 196 00:11:02,240 --> 00:11:06,320 Speaker 1: He was a jarhead and devil dog, a marine Adam driver, 197 00:11:06,679 --> 00:11:11,600 Speaker 1: also an actor. Featured in Star Wars episode seven. He's 198 00:11:11,600 --> 00:11:13,199 Speaker 1: bringing theater to the military.