1 00:00:03,840 --> 00:00:08,160 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:08,240 --> 00:00:13,200 Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:13,360 --> 00:00:17,799 Speaker 1: Bloomberg nine to the countries, Jus General one nine and 4 00:00:17,960 --> 00:00:21,760 Speaker 1: around the globe the Bloomberg Radio Plus happened, Bloomberg got gone. 5 00:00:22,079 --> 00:00:25,520 Speaker 1: This is taking stock. Coming up on taking stock, We're 6 00:00:25,520 --> 00:00:28,560 Speaker 1: gonna take stock of home ownership. We'll also talk about 7 00:00:28,560 --> 00:00:32,240 Speaker 1: a shift that's going on toward long deferred major renovations 8 00:00:32,280 --> 00:00:37,400 Speaker 1: and remodeling projects. Talk about kitchens, bathrooms, and whole house remodels. 9 00:00:37,400 --> 00:00:41,320 Speaker 1: That's all coming up with Brad Hunter, chief Economist, Home Advisor. 10 00:00:41,640 --> 00:00:43,559 Speaker 1: Right now, let's go to Charlie Pellett to the Bloomberg 11 00:00:43,560 --> 00:00:46,120 Speaker 1: news room for Bloomberg Business Flag, and I thank you him. 12 00:00:46,120 --> 00:00:48,880 Speaker 1: Fox the Bulls getting a remodeling right now. Trading Laura 13 00:00:48,920 --> 00:00:53,360 Speaker 1: the dalv smp NESDAK all declining companies including Intel and 14 00:00:53,479 --> 00:00:58,360 Speaker 1: Southwest Airlines, disappointing investors, casting doubt on whether corporate earnings 15 00:00:58,360 --> 00:01:02,080 Speaker 1: will be healthy enough to keep equities trading at records. 16 00:01:02,440 --> 00:01:06,640 Speaker 1: Southwest Airlines prominent example, down right now by eleven point 17 00:01:06,720 --> 00:01:10,840 Speaker 1: one percent. It's said heightened competition is driving down airfares 18 00:01:10,920 --> 00:01:14,720 Speaker 1: more than in previous quarters as the industry's capacity expansion 19 00:01:14,760 --> 00:01:19,560 Speaker 1: outstrips demand. CEO Gary Kelly was on Bloomberg Television this 20 00:01:19,600 --> 00:01:23,480 Speaker 1: morning talking about the latest quarter. Up. We had all 21 00:01:23,520 --> 00:01:26,560 Speaker 1: time record earnings, earnings per share, We're up fifteen and 22 00:01:26,600 --> 00:01:29,920 Speaker 1: a half percent, so as a stellar quarter. We had 23 00:01:29,959 --> 00:01:34,720 Speaker 1: revenue growth of about five percent on a unit basis. 24 00:01:34,760 --> 00:01:38,160 Speaker 1: Our revenues were also up, so we're outperforming the industry 25 00:01:38,480 --> 00:01:42,600 Speaker 1: in every way. And again we've got Southwest down eleven percent, 26 00:01:42,720 --> 00:01:46,559 Speaker 1: dropping four sixty four thirty nine right now on shares 27 00:01:46,640 --> 00:01:50,520 Speaker 1: of Southwest Mario drawn. He says the European Central Bank 28 00:01:50,560 --> 00:01:54,600 Speaker 1: will not hesitate to add fresh stimulus if needed once 29 00:01:54,640 --> 00:01:56,960 Speaker 1: it has a clearer picture of the economic impact from 30 00:01:56,960 --> 00:02:00,120 Speaker 1: the UK's vote to leave the European Union, and the 31 00:02:00,240 --> 00:02:03,520 Speaker 1: National Retail Federation says US back to school spending will 32 00:02:03,560 --> 00:02:06,880 Speaker 1: grow eleven percent this year, a sign that families are 33 00:02:06,920 --> 00:02:10,160 Speaker 1: more confident about the economy and ready to stock up 34 00:02:10,160 --> 00:02:14,280 Speaker 1: on supplies. X on Mobile buying natural gas explorer inter 35 00:02:14,440 --> 00:02:17,919 Speaker 1: Oil Corp. For more than two and a half billion dollars. 36 00:02:18,080 --> 00:02:20,960 Speaker 1: X on Mobile down three tenths of one percent, crude 37 00:02:21,040 --> 00:02:23,600 Speaker 1: is down two and a half percent. West Texas Intermediate 38 00:02:23,600 --> 00:02:26,320 Speaker 1: crewde to forty four sixty of barrel Laura now by 39 00:02:26,360 --> 00:02:29,640 Speaker 1: one point one percent. Gold up thirteen dollars the ounce 40 00:02:29,720 --> 00:02:32,080 Speaker 1: the thirteen thirty two, a gain there of one percent 41 00:02:32,480 --> 00:02:35,120 Speaker 1: ten year of six thirty seconds, the yield one point 42 00:02:35,200 --> 00:02:39,320 Speaker 1: five SMP down ten to sixty two, a drop of 43 00:02:39,600 --> 00:02:42,240 Speaker 1: point five percent. And now let's take a look at 44 00:02:42,280 --> 00:02:46,840 Speaker 1: other stories making news. Thank you, Charlie from the Bloomberg newsroom. 45 00:02:46,880 --> 00:02:49,360 Speaker 1: I'm Jill Schneider. This news update is brought to you 46 00:02:49,400 --> 00:02:52,560 Speaker 1: by the Jeep Grand Cherokee, the most awarded suv ever. 47 00:02:52,880 --> 00:02:55,760 Speaker 1: The Grand Cherokee continues to raise the bar with its 48 00:02:55,840 --> 00:02:59,840 Speaker 1: luxurious interior and legendary four by four capability. Drive one 49 00:03:00,040 --> 00:03:03,519 Speaker 1: your local jeep dealer today. Texas Senator Ted Cruz says 50 00:03:03,560 --> 00:03:06,320 Speaker 1: he will listen to Donald Trump's speech tonight, but Willie 51 00:03:06,400 --> 00:03:08,880 Speaker 1: endorse him for that. We turned to Bloomberg's Michael Barr. 52 00:03:08,960 --> 00:03:11,960 Speaker 1: Texas Senator Ted Cruz says he has not committed to 53 00:03:12,160 --> 00:03:15,200 Speaker 1: voting for Donald Trump, but he definitely won't be voting 54 00:03:15,200 --> 00:03:19,000 Speaker 1: for Hillary Clinton. Crews speaking to the Texas delegation in Cleveland, 55 00:03:19,320 --> 00:03:22,040 Speaker 1: was asked by a delegate why he didn't stick to 56 00:03:22,080 --> 00:03:25,040 Speaker 1: the pledge to support the party's eventual nominee. I am 57 00:03:25,080 --> 00:03:28,040 Speaker 1: not in the heaven of supporting the people who attacked 58 00:03:28,120 --> 00:03:32,560 Speaker 1: my wife and attack my father. Crews was vooed by 59 00:03:32,600 --> 00:03:35,280 Speaker 1: delegates after he refused to endorse Trump in his speech 60 00:03:35,320 --> 00:03:39,240 Speaker 1: at the Republican National Convention. Michael Barr Bloomberg Radio. The 61 00:03:39,240 --> 00:03:42,640 Speaker 1: White House is responding to comments Donald Trump made about NATO. 62 00:03:42,920 --> 00:03:46,160 Speaker 1: Trump said he might reconsider America's commitment to the Allies 63 00:03:46,160 --> 00:03:48,960 Speaker 1: in the event of a possible attack by Russia. Here's 64 00:03:48,960 --> 00:03:53,160 Speaker 1: White House spokesman Josh Ernest. NATO is the cornerstone of 65 00:03:53,400 --> 00:03:58,680 Speaker 1: American national security is a policy that the United States 66 00:03:58,680 --> 00:04:05,880 Speaker 1: has pursued under every post World War Two president Democratic, Democratic, Republican. 67 00:04:06,120 --> 00:04:08,040 Speaker 1: The n y p D says a man suspected of 68 00:04:08,120 --> 00:04:10,640 Speaker 1: tossing a hoax bomb through the window of a police 69 00:04:10,640 --> 00:04:14,160 Speaker 1: car is in custody after an overnight standoff. Chief James 70 00:04:14,200 --> 00:04:16,800 Speaker 1: O'Neil says the object was thrown from another vehicle. It 71 00:04:16,880 --> 00:04:20,200 Speaker 1: turned out to include a candle and a harmless electrical component. 72 00:04:20,520 --> 00:04:23,000 Speaker 1: Global News twenty four hours a day, powered by more 73 00:04:23,080 --> 00:04:27,360 Speaker 1: than journalists and analysts in more than one twenty countries. 74 00:04:27,560 --> 00:04:31,520 Speaker 1: I'm Jill Schneider, and this is Bloomberg, Charlie, and we 75 00:04:31,680 --> 00:04:35,080 Speaker 1: thank you. And again recapping the SMP five hundred indecks 76 00:04:35,120 --> 00:04:39,039 Speaker 1: down nine at one sixty three, a drop there of 77 00:04:39,320 --> 00:04:43,960 Speaker 1: five tenths of one percent. And again the down industrials 78 00:04:43,960 --> 00:04:46,400 Speaker 1: trading lower by eighty nine points, drop of five tenths 79 00:04:46,400 --> 00:04:49,080 Speaker 1: of one percent. I'm Charlie, PA, that's a Bloomberg business 80 00:04:49,120 --> 00:04:53,480 Speaker 1: flash you're listening to. Taking stocked with Pim Fox and 81 00:04:53,640 --> 00:04:58,400 Speaker 1: Kathleen Hayes on Bloomberg Radio. Housing getting its groove back. 82 00:04:58,720 --> 00:05:01,640 Speaker 1: Housing market has been show more signs of life. Sales 83 00:05:01,640 --> 00:05:04,680 Speaker 1: of previously owned homes last month hit their highest level 84 00:05:04,760 --> 00:05:08,080 Speaker 1: since two thousand seven. This all according to the National 85 00:05:08,080 --> 00:05:13,000 Speaker 1: Association of Real Chairs. Mortgage applications aimed at purchasing a 86 00:05:13,200 --> 00:05:16,440 Speaker 1: home have been on the rise, and hard housing stock 87 00:05:16,520 --> 00:05:20,279 Speaker 1: figures earlier this week showed that groundbreaking on new homes 88 00:05:20,360 --> 00:05:24,000 Speaker 1: rebounded in June. Here to tell us more about the 89 00:05:24,080 --> 00:05:27,400 Speaker 1: home building sector is Brad Hunter. He's chief economist for 90 00:05:27,560 --> 00:05:30,960 Speaker 1: Home Advisor and he can be followed on Twitter at 91 00:05:31,279 --> 00:05:34,440 Speaker 1: Bradley Hunter. Brad thanks very much for coming in. Good 92 00:05:34,440 --> 00:05:36,400 Speaker 1: to see him. All right. Tell people, first of all, 93 00:05:36,440 --> 00:05:38,360 Speaker 1: before we get into the details of housing, tell us 94 00:05:38,400 --> 00:05:42,880 Speaker 1: what is home Advisor. Home Advisor is an online marketplace 95 00:05:42,960 --> 00:05:47,919 Speaker 1: where we connect people who are homeowners that need help 96 00:05:47,960 --> 00:05:51,840 Speaker 1: from a professional to do some sort of home improvement project. So, 97 00:05:51,920 --> 00:05:54,080 Speaker 1: for example, if you're looking for someone to do the 98 00:05:54,120 --> 00:05:57,040 Speaker 1: electrical work on your house, or trying to maybe get 99 00:05:57,080 --> 00:06:01,240 Speaker 1: a carpenter or a subcontractor and of that. Yeah, a 100 00:06:01,320 --> 00:06:04,080 Speaker 1: remodel of a room or any kind of repair even 101 00:06:04,240 --> 00:06:08,520 Speaker 1: made services. Okay, And it is a division, separate business 102 00:06:08,520 --> 00:06:12,680 Speaker 1: division of I A c interactive correct, right, chief exactly, 103 00:06:12,680 --> 00:06:14,919 Speaker 1: Barrett Dialer. Maybe he calls for some who same as 104 00:06:15,000 --> 00:06:17,760 Speaker 1: match dot Com, same same parent companies match dot Com. 105 00:06:17,800 --> 00:06:21,560 Speaker 1: So in a sense, you're matching up the home build 106 00:06:21,560 --> 00:06:25,839 Speaker 1: the home improvement expert with with the customer. All right, 107 00:06:25,920 --> 00:06:28,520 Speaker 1: what's your take right now on the on the home 108 00:06:28,920 --> 00:06:31,320 Speaker 1: building industry in the United States, the state of housing, 109 00:06:32,080 --> 00:06:35,159 Speaker 1: The home building business is still proceeding a pace. You know. 110 00:06:35,200 --> 00:06:38,880 Speaker 1: I think that we're gonna be up twelve for single family. 111 00:06:38,920 --> 00:06:42,200 Speaker 1: I think that we're probably topping out on multi family. 112 00:06:42,279 --> 00:06:44,920 Speaker 1: I think we're hitting a saturation point now. It's hard 113 00:06:44,920 --> 00:06:49,120 Speaker 1: to make deals pencil nowadays on multi family where land 114 00:06:49,120 --> 00:06:51,520 Speaker 1: prices are. It's getting harder with the single family with 115 00:06:51,600 --> 00:06:54,120 Speaker 1: land prices too, So the builders are going more to 116 00:06:54,200 --> 00:06:58,240 Speaker 1: the remote locations and UH but as a consequence, they're 117 00:06:58,240 --> 00:07:00,279 Speaker 1: able to buy the land cheaper and they're able to 118 00:07:00,279 --> 00:07:03,159 Speaker 1: bring product in that sometimes is under two hundred thousand 119 00:07:03,160 --> 00:07:05,760 Speaker 1: dollars for a new house, let's express homes, that kind 120 00:07:05,800 --> 00:07:08,800 Speaker 1: of thing. So the demand is there, but the supply, 121 00:07:09,000 --> 00:07:12,360 Speaker 1: at least in the areas that are most most desirable, 122 00:07:12,400 --> 00:07:17,680 Speaker 1: are lacking. Demand is growing and supply is growing, but 123 00:07:17,800 --> 00:07:20,240 Speaker 1: it's a struggle to keep up in a sense because 124 00:07:20,320 --> 00:07:25,320 Speaker 1: of the land shortages and then the UH land prices. 125 00:07:25,520 --> 00:07:29,280 Speaker 1: We're back above previous peak land prices for for developed 126 00:07:29,280 --> 00:07:31,160 Speaker 1: lots now and a lot of markets around the country, 127 00:07:31,320 --> 00:07:34,720 Speaker 1: And of course we're not anywhere near well getting near 128 00:07:35,480 --> 00:07:38,360 Speaker 1: previous peak home prices. But the builders are feeling a squeeze, 129 00:07:38,360 --> 00:07:39,640 Speaker 1: and I think they're gonna feel a little bit more 130 00:07:39,640 --> 00:07:41,920 Speaker 1: of a margin squeeze going forward. All right, Let's say 131 00:07:41,920 --> 00:07:45,680 Speaker 1: you actually already have a home to live in UH 132 00:07:45,720 --> 00:07:49,440 Speaker 1: and you're looking for renovation and remodeling statistics to help 133 00:07:49,480 --> 00:07:52,160 Speaker 1: you understand some of the trends. You say that you've 134 00:07:52,520 --> 00:07:55,080 Speaker 1: noticed a shift that's going on. Yeah, we uh. We 135 00:07:55,240 --> 00:07:59,560 Speaker 1: track about ten million service requests going through our network 136 00:07:59,680 --> 00:08:01,720 Speaker 1: each years, so we have a lot of granularity, a 137 00:08:01,760 --> 00:08:05,480 Speaker 1: lot of detail on what's going on with home improvement, 138 00:08:05,600 --> 00:08:08,680 Speaker 1: and we're seeing a shift towards more major renovations that 139 00:08:08,840 --> 00:08:11,560 Speaker 1: is not so many of the sort of basic maintenance 140 00:08:11,560 --> 00:08:16,520 Speaker 1: and repair operations, but more like you know, entire kitchen 141 00:08:16,560 --> 00:08:20,160 Speaker 1: remodels and more of the bathroom remodels. Garage remodels are 142 00:08:20,240 --> 00:08:24,240 Speaker 1: up sixty percent. We're seeing multi room major remodels up 143 00:08:25,200 --> 00:08:28,200 Speaker 1: over the last year. You noted that the number one 144 00:08:28,320 --> 00:08:33,680 Speaker 1: fastest growing type of service request is for moving services. Yeah. 145 00:08:34,160 --> 00:08:36,200 Speaker 1: What does that tell you, Well, if you look at 146 00:08:36,280 --> 00:08:38,520 Speaker 1: what happened with the home sales number that came out 147 00:08:38,559 --> 00:08:42,000 Speaker 1: this morning, strong one point one pc increase um, there's 148 00:08:42,040 --> 00:08:44,679 Speaker 1: more churn, as I call it, and when there's churn, 149 00:08:45,160 --> 00:08:47,880 Speaker 1: there's more need for home improvement. What happens is the 150 00:08:47,920 --> 00:08:50,560 Speaker 1: person is getting ready to sell the house. They have 151 00:08:50,679 --> 00:08:53,240 Speaker 1: to get some contractors to come in, fix things up, 152 00:08:53,240 --> 00:08:55,560 Speaker 1: get it ready to pass the inspection, and get it 153 00:08:55,600 --> 00:08:58,160 Speaker 1: ready to show. So they're putting on fresh paint and 154 00:08:58,160 --> 00:09:00,680 Speaker 1: everything like that. And then when the new person comes 155 00:09:00,679 --> 00:09:03,280 Speaker 1: and buys it, they want to personalize it, they want 156 00:09:03,280 --> 00:09:05,080 Speaker 1: to make it their own place. So they say, well, 157 00:09:05,080 --> 00:09:07,360 Speaker 1: I don't like these cabinets, are going to replace those 158 00:09:07,360 --> 00:09:12,600 Speaker 1: in flooring and whatever. What is the Homeowner Happiness Intacts. 159 00:09:13,240 --> 00:09:16,000 Speaker 1: That's something that's actually officially coming out tomorrow, so you 160 00:09:16,080 --> 00:09:17,679 Speaker 1: and your listeners are getting a little bit of a 161 00:09:17,679 --> 00:09:22,040 Speaker 1: sneak preview of it. We surveyed eighteen thousand homeowners around 162 00:09:22,040 --> 00:09:25,760 Speaker 1: the country and we asked them questions across a spectrum 163 00:09:25,760 --> 00:09:30,240 Speaker 1: of three major categories, which is the dwelling, the community 164 00:09:30,280 --> 00:09:34,600 Speaker 1: they live in, and accessibility and convenience. So how happy 165 00:09:34,679 --> 00:09:40,160 Speaker 1: are you among across those those factors? And San Francisco 166 00:09:40,600 --> 00:09:43,040 Speaker 1: is the place where in the country people are the 167 00:09:43,080 --> 00:09:46,760 Speaker 1: happiest with where they live. Couldn't have something to do 168 00:09:46,840 --> 00:09:49,720 Speaker 1: with the weather. The weather is actually one of the 169 00:09:50,000 --> 00:09:54,200 Speaker 1: one of the strong indicators there. And uh, you know, 170 00:09:54,280 --> 00:09:58,240 Speaker 1: it's a it's overall, just across the board almost every 171 00:09:58,280 --> 00:10:01,840 Speaker 1: category of what people like. Uh. The one thing that 172 00:10:01,920 --> 00:10:04,440 Speaker 1: they did say that they didn't like so much is 173 00:10:04,520 --> 00:10:07,280 Speaker 1: the commuting. The commuting all right, so all right, So 174 00:10:07,280 --> 00:10:10,040 Speaker 1: if you go down from not down, but the next 175 00:10:10,440 --> 00:10:14,440 Speaker 1: city that you've found to be in the happiness index. 176 00:10:14,600 --> 00:10:16,520 Speaker 1: Where else? If you're not in San Francisco, where do 177 00:10:16,600 --> 00:10:22,360 Speaker 1: people want another? Another couple of popular places are Seattle, Denver. St. 178 00:10:22,440 --> 00:10:26,160 Speaker 1: Louis very strong in terms of the homeowner hack happiness 179 00:10:26,160 --> 00:10:28,760 Speaker 1: index in all of those cities. All right, give us 180 00:10:28,800 --> 00:10:31,120 Speaker 1: the worst, the one at the at the at the bottom. 181 00:10:31,120 --> 00:10:35,760 Speaker 1: What is it. I think it's a Washington d C. Yeah, Washington, 182 00:10:35,800 --> 00:10:38,400 Speaker 1: it's one of the words. And also commuting is a problem. 183 00:10:38,640 --> 00:10:42,200 Speaker 1: Milwaukee is also on your list. Yeah, not not high community. 184 00:10:42,480 --> 00:10:45,040 Speaker 1: That was not very high either. Brad Hunter, thank you 185 00:10:45,120 --> 00:10:48,360 Speaker 1: very much, Chief economist for a Home Advisor. You can 186 00:10:48,400 --> 00:10:52,680 Speaker 1: follow him on Twitter at Bradley Hunter. I'm pim Fox 187 00:10:52,800 --> 00:11:03,280 Speaker 1: and this is Bloomberg coming up on taking stock. It's 188 00:11:03,320 --> 00:11:06,040 Speaker 1: been thirteen months since the last time the SMP five 189 00:11:06,120 --> 00:11:10,360 Speaker 1: hundred broke new records. We've got Hillary Kramer, the president 190 00:11:10,400 --> 00:11:14,160 Speaker 1: chief investment officer of A and G Capital Group. Next.