Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,
Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco,
Speaker 1: Bloomberg nine to the Country series Exam General one nineteen
Speaker 1: and around the globe the Bloomberg Radio plus David Bloomberg
Speaker 1: dot Com. This is taking Stock. Coming up on taking Stock,
Speaker 1: will take stock of Waste Management. They raised their twenties
Speaker 1: sixteen earnings guidance. They reported better than estimated earnings. They
Speaker 1: got a revenue boost from positive market conditions. Will speak
Speaker 1: with Jim Fish, he is the president of Waste Management.
Speaker 1: Just gott a quick give a quick heads up as well.
Speaker 1: Movie star a TV star marine who is taking theater
Speaker 1: to military bases around the world. Adam Driver. Also coming
Speaker 1: up on Bloomberg Radio today. Now to We're on Katherine
Speaker 1: Cowdery in the newsroom for a Bloomberg Business Flash. Thank you, Kathleen.
Speaker 1: The stock market heading for its worst day since it's
Speaker 1: so off following Britain's vote believe the European Union. Retailers
Speaker 1: are posting their steepis losses in five weeks after sluggish
Speaker 1: income growth. In June, men consumers had to tap into,
Speaker 1: say things, to maintain their pace of spending. Coals and
Speaker 1: Macy's are down about flat point four percent. Randy Fishman
Speaker 1: at Deutsche Bank Securities on the decline in market volatility,
Speaker 1: people get more comfortable with equities. As volatility goes down,
Speaker 1: and it does create a bit of a feedback loop
Speaker 1: in the market where you see markets not being volatile,
Speaker 1: people get more comfortable investing. There are also structured products
Speaker 1: that systematically will allocate back into equities as equities get safer.
Speaker 1: I think that people are more and more focused on safety.
Speaker 1: We check the markets every fifteen minutes throughout the trading day.
Speaker 1: Down Industrial leverages down one hundred sixteen points two thirds
Speaker 1: of a percent at eighteen thousand, two hundred eighty eight.
Speaker 1: SMB five foundered down seventeen point three quarters of a percent,
Speaker 1: trading at four then as Jack is down fifty three points,
Speaker 1: the loss of one percent, trading at fifty one thirty less.
Speaker 1: Texas intermediate crude oil down fifty five cents of barrel
Speaker 1: one point four percent at thirty two. Spackled up thirteen
Speaker 1: dollars ten tents anounce at thirteen seventy two, seventy ten
Speaker 1: year Treasury down three thirty seconds, with the yield of
Speaker 1: one point five three percent. Among today's top business story,
Speaker 1: CBS Health will add thirty five products to its list
Speaker 1: of excluded drugs. In it will no longer cover some
Speaker 1: treatments for cancer and diabetes, and an aggressive move to
Speaker 1: favor lower price treatments. CBS is targeting drugs with greater
Speaker 1: than two price increases over three years. The Drug Benefit
Speaker 1: Manager is expanding a strategy of excluding expensive products when
Speaker 1: alternatives are available. It's two thirty two on Wall Street.
Speaker 1: Let's get an update of some of the other stories
Speaker 1: were following today right here on Bloomberg Radio. Thank you,
Speaker 1: Catherine from the Bloomberg News Room. I'm Ramy in essentio.
Speaker 1: New York City Police Commissioner Bill Bratton is stepping down.
Speaker 1: He'll stay on the job until September. Brand's term has
Speaker 1: been marred by complaints about his so called broken window policing.
Speaker 1: President Obama was asked today whether he believes Russia was
Speaker 1: behind the recent cyber security breaches of democratic emails. I
Speaker 1: don't think that it wildly swings. What is a tough,
Speaker 1: difficult relationship that we have with Russia right now? The
Speaker 1: President also says if the breach was pulled off by
Speaker 1: Russian hackers, it will not upset his relationship with Russian
Speaker 1: President Vladimir Putin. Bottled water will be more popular than
Speaker 1: soda for the first time in the US this year.
Speaker 1: Here's Bloomberg's Bob Moon. It's not just convenient for the
Speaker 1: switch from sugar age rinks from Nessle to PepsiCo bottling
Speaker 1: companies of wodage. A decades long campaign against tap water.
Speaker 1: Take this Fiji water commercial untouched, prompting skeptical comedian Lewis
Speaker 1: Black to push back against the trend a few years back. Awa,
Speaker 1: I think it means the end of water as we
Speaker 1: know it. Maybe he was onto something. Bottlers and animals
Speaker 1: safe hears over what's coming out of the taps, such
Speaker 1: as Flint, Michigan's lead contamination crisis, are causing more people
Speaker 1: to seek his safe and sealed source of drinking water,
Speaker 1: Bob Moon, Bloomberg Radio and The state has approved a
Speaker 1: plan to generate half of its power from renewable sources
Speaker 1: by the year twenty thirty. The strategy involves big subsidies
Speaker 1: to extend the operational life of upstate nuclear plans, while
Speaker 1: the state expands its use of solar as well as
Speaker 1: wind energy. While many environmental groups cheer that policy, some
Speaker 1: oppose what they call a costly and unnecessary investment in
Speaker 1: nuclear power. Global News twenty four hours a day, powered
Speaker 1: by more than twenty six hundred journalists and analysts in
Speaker 1: more than one d twenty countries. I'm Ramie in Essensio.
Speaker 1: This is Bloomberg, Catherine, thank you. Now, let's get a
Speaker 1: quick update of the benchmark. Stone Industrial leverages down one
Speaker 1: hundred sixteen points at eighteen thousand, two hundred eighty eight,
Speaker 1: smp F I funded down seventeen point four. Then Nassakistan
Speaker 1: fifty three points at fifty one thirty. And that's a
Speaker 1: Bloomberg business flash. You're listening to taking stock with Pim
Speaker 1: Fox and Kathleen Hayes on Bloomberg Radio. Waste Management. It
Speaker 1: raised its twenties sixteen earnings guidance. It reported better than
Speaker 1: estimated earnings the trash collect just saying that market conditions.
Speaker 1: In fact, it is the number one garbage disposal company
Speaker 1: in North America. It said that market conditions were positive
Speaker 1: for the company and for the industry. Here to tell
Speaker 1: us more is Jim Fish he is the president of
Speaker 1: Waste Management newly and pointed the president of Waste Management
Speaker 1: joining us from Houston, Texas, Jim Fish, thanks very much
Speaker 1: for being with us, Thanks for having me. Just give
Speaker 1: people a little bit of an overview of waste management.
Speaker 1: I know that you've got over twenty million customers, almost
Speaker 1: two hundred and fifty landfills, but maybe just give people
Speaker 1: an idea of the size and scale of your operation. Yeah,
Speaker 1: so we have we're an integrated waste holler with what's
Speaker 1: recycling as a huge component of what we do. We
Speaker 1: collect trash from as you said, over over twenty two
Speaker 1: million customers. We've got about two hundred and fifty landfills,
Speaker 1: we have about a hundred and fifty recycled facilities, we
Speaker 1: have over four hundred garbage collection facilities. So we're we're
Speaker 1: a fully integer at player within North America. You know,
Speaker 1: you just reported your earnings a week or so ago,
Speaker 1: and even though some are saying look out tough times
Speaker 1: recycling business, Waste Management continues to see its stock rise.
Speaker 1: Your stock that is reaching a six month high recently,
Speaker 1: uh well, up from fifty two on your stock press
Speaker 1: at the start of year forty seven. This time last year.
Speaker 1: What's the dynamic here? Well, yeah, almost a six month
Speaker 1: time but also also close to an all time high. Um.
Speaker 1: I think when you look at recycling, uh, you know
Speaker 1: that that's it's almost kind of a good news and
Speaker 1: the bad news here. You know, we're closer to the
Speaker 1: trough and recycling we're making a lot of progress on
Speaker 1: on you know, improving that business, but we're much closer
Speaker 1: to the trough than we are to the peak, and
Speaker 1: yet still producing strong cash flows and and and a
Speaker 1: fifty two weeks or an all time high stock price.
Speaker 1: So I think what you're seeing is that the rest
Speaker 1: of the business, aside from recycling is is doing quite well,
Speaker 1: and that's where the strength is coming from. Are we
Speaker 1: seeing applications of technology to waste and recycling? I keep
Speaker 1: thinking of robotics. I mean, is there a time when
Speaker 1: we're going to see intelligent robotics systems process waste and
Speaker 1: sort recyclable materials. Well, for sure, we We've actually have
Speaker 1: a pretty automated recycled facility today with things like optical
Speaker 1: readers that recognize the type of plastic that's coming up
Speaker 1: a conveyor belt and and it shoots a stream of
Speaker 1: air at that at that tide bottle and and uh
Speaker 1: and shoots it into a bin. So so there's a
Speaker 1: lot of technology and these recycled facilities today, and I
Speaker 1: think that will only increase. So tell us a little
Speaker 1: bit more about what has differentiated you from other companies
Speaker 1: in this space. Well, I think first and foremost, Uh,
Speaker 1: you know, we've taken a strong stance on pricing. And
Speaker 1: you know the way we've referred to pricing in our
Speaker 1: industry is there's there's not much the way of price elasticity.
Speaker 1: Nobody says, Okay, now they've lowered the price low enough
Speaker 1: that I'm gonna create more trash. It's not like big
Speaker 1: screen TVs where you where you lower the price of
Speaker 1: big screens and you might create enough demand to to
Speaker 1: put you economically ahead. So really, the only right answer
Speaker 1: with respect to our business is to increase price, and
Speaker 1: we've taken a leadership role there. Does that mean that
Speaker 1: you will forego certain, let's say recycling contracts because they're
Speaker 1: not going to really help your margins? Well, no, I
Speaker 1: think what we you know, we're looking at recycling as
Speaker 1: as you know, in need of of improvements. Uh, doesn't
Speaker 1: mean we won't renegotiate some of these contracts, and we're
Speaker 1: doing that. We're probably away through renegotiation. I think what
Speaker 1: we're doing with with municipalities, and we've done quite a
Speaker 1: bit of it already, is saying, look, uh, the old model,
Speaker 1: where you had commodity prices at hundred dollars, in our
Speaker 1: processing costs at seventy, we were willing to pay you
Speaker 1: your your share of the commodities on the back end
Speaker 1: up front. When commodity prices are at seventy in our
Speaker 1: processing costs is seventy, it doesn't there's nothing to share.
Speaker 1: So we've we've you know, gone back and renegotiate the
Speaker 1: contracts and said, look, uh, you know, irrespective of where
Speaker 1: commodity prices are, we want to get paid our processing
Speaker 1: cost and some acceptable margin up front and then will
Speaker 1: split what's left with with the customer. Better be careful
Speaker 1: you get too efficient, you won't have any business list.
Speaker 1: But you know, if people be so efficient recycly, they
Speaker 1: won't do it. But I'm as I'm thinking about growth
Speaker 1: and where you go next, I'm wondering a bit more
Speaker 1: about your gas to energy facilities in the United States,
Speaker 1: because that's you know, the whole energy industry has been
Speaker 1: under pressure where how how does that work for you
Speaker 1: and how much is it adding to the profits? So
Speaker 1: we we have gased energy at UM well over a
Speaker 1: hundred and fifty of our landfills. UH. The only landfills
Speaker 1: that don't have it are are very small landfills in
Speaker 1: terms of volume. So at at all of our medium
Speaker 1: and large landfills we have gas energy and those produce
Speaker 1: h somewhere depending on the size of the landfill. We
Speaker 1: have some lantils that that produce as much as tim
Speaker 1: mega whites and mega wats of energy out of them.
Speaker 1: We have some that are as small as three. But
Speaker 1: but there's a fair amount of energy production going on.
Speaker 1: And we do things like like UM power part of
Speaker 1: the University New Hampshire and UH there's a fab facility
Speaker 1: in South Carolina for automobiles that we power a portion
Speaker 1: of that uh fabrication facility. So we really are producing
Speaker 1: energy out of out of what we uh the trash
Speaker 1: it's going to these landfills. Many thanks to Jim Fish,
Speaker 1: president of Waste Management based in Houston, Texas, navigating the
Speaker 1: twists and turns of the recycling garbage industry. You could
Speaker 1: say effectively, and guiding his company to nearly record earnings
Speaker 1: last week. I'm Kathleen Hayes along with Pim Fox on
Speaker 1: taking Stock. This is Bloomberg coming up on taking Stock.
Speaker 1: He was a jarhead and devil dog, a marine Adam driver,
Speaker 1: also an actor. Featured in Star Wars episode seven. He's
Speaker 1: bringing theater to the military.