1 00:00:02,560 --> 00:00:05,920 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:06,000 --> 00:00:08,640 Speaker 1: dot Com the radio plus Global LAFT and on your 3 00:00:08,720 --> 00:00:13,480 Speaker 1: Radio's at Bloomberg Busy Squad from Bloomberg World Headquarters. I'm 4 00:00:13,560 --> 00:00:17,239 Speaker 1: Catherine Cowdery and AzaC closing Bellstown's The down industri laverage 5 00:00:17,280 --> 00:00:19,720 Speaker 1: is up thirty nine points a quarter percent rating at 6 00:00:19,760 --> 00:00:23,000 Speaker 1: seventeen thousand, eight hundred sixty nine. SMP five fundered up 7 00:00:23,079 --> 00:00:25,360 Speaker 1: nine points four tons of a percent at two thousand 8 00:00:25,480 --> 00:00:28,560 Speaker 1: ninety eight, NAZAC higher by thirty two points two thirds 9 00:00:28,560 --> 00:00:31,240 Speaker 1: of a percent at forty nine thirty three, while a 10 00:00:31,280 --> 00:00:34,720 Speaker 1: winning session helped extend the SMP five hundreds weekly advanced 11 00:00:34,760 --> 00:00:38,040 Speaker 1: its biggest since March. There's growing confidence at the economy 12 00:00:38,200 --> 00:00:41,479 Speaker 1: is strengthening enough to handle higher borrowing classes. Early as 13 00:00:41,479 --> 00:00:44,000 Speaker 1: this summer, investors have been coming to grips with the 14 00:00:44,000 --> 00:00:47,520 Speaker 1: prospects for rising interest rates, and equities briefly trimmed gains 15 00:00:47,760 --> 00:00:50,320 Speaker 1: after Federal Reserve here Janet Yellen said in remarks at 16 00:00:50,360 --> 00:00:54,080 Speaker 1: Harvard University that an improving economy would probably warrant another 17 00:00:54,200 --> 00:00:57,080 Speaker 1: rate increase in the coming months. The dollar strengthened down 18 00:00:57,080 --> 00:01:00,160 Speaker 1: at Yellen's comment, swaying on commodity producers and consume were 19 00:01:00,160 --> 00:01:04,759 Speaker 1: stables companies. Paul Multi, portfolio manator at King's View Asset Management, 20 00:01:05,000 --> 00:01:08,080 Speaker 1: on the market's reaction to Yellen's comments. The market have 21 00:01:08,160 --> 00:01:12,319 Speaker 1: helped in react much to her comments, but the bond 22 00:01:12,360 --> 00:01:15,920 Speaker 1: market did. The bond market the infest rates popped up 23 00:01:15,959 --> 00:01:19,080 Speaker 1: a little bit. Ten year Treasury down six thirty seconds 24 00:01:19,080 --> 00:01:21,759 Speaker 1: with the yield of one point eight five percent. Crude 25 00:01:21,800 --> 00:01:25,679 Speaker 1: oil fell, trimming its third weekly advances. Canadian energy producers 26 00:01:25,959 --> 00:01:30,200 Speaker 1: moved to resume operations after wildfires eased West Texas Inemdio 27 00:01:30,240 --> 00:01:34,240 Speaker 1: crude oil down two cents of barrel at spot, gold 28 00:01:34,240 --> 00:01:37,319 Speaker 1: down ten dollar thirty cents an ounce to twelve twelve forty. 29 00:01:37,840 --> 00:01:40,800 Speaker 1: Among today's top business stories. The economy expanded at a 30 00:01:40,880 --> 00:01:44,000 Speaker 1: slightly faster pace in the first quarter than initially estimated, 31 00:01:44,319 --> 00:01:48,200 Speaker 1: reflecting less damage from trade in inventories. The Commerce Department 32 00:01:48,280 --> 00:01:51,320 Speaker 1: reported that gross domestic product increased an annual rate of 33 00:01:51,360 --> 00:01:53,640 Speaker 1: eight tens of a percent in the first quarter. That's 34 00:01:53,720 --> 00:01:56,280 Speaker 1: up from an initial estimate of half a percent. And 35 00:01:56,400 --> 00:01:59,000 Speaker 1: there is close to choosing thanks to Arrange Funds for 36 00:01:59,160 --> 00:02:02,640 Speaker 1: its proposed act position of Monsanto. People familiar with the 37 00:02:02,680 --> 00:02:05,400 Speaker 1: matter say there will probably raise more than forty billion 38 00:02:05,440 --> 00:02:08,200 Speaker 1: dollars in short term bridge financing and most of the 39 00:02:08,240 --> 00:02:12,400 Speaker 1: remainder in term loans. Monsanto rejected Bear's initial sixty two 40 00:02:12,440 --> 00:02:15,840 Speaker 1: billion dollar loan as too low. And now let's get 41 00:02:15,840 --> 00:02:17,680 Speaker 1: an update on some of the other stories were following 42 00:02:17,680 --> 00:02:21,240 Speaker 1: today right here on Bloomberg Radio. Catherine, thank you from 43 00:02:21,240 --> 00:02:24,320 Speaker 1: the Bloomberg News room. I Mark Crumpton. This news update 44 00:02:24,400 --> 00:02:26,639 Speaker 1: is brought to you by the Suffolk County I d 45 00:02:26,880 --> 00:02:30,880 Speaker 1: A financial incentives and programs to help your business thrive 46 00:02:30,960 --> 00:02:34,200 Speaker 1: on Long Island. Visit Suffolk i d A dot Org. 47 00:02:34,720 --> 00:02:38,399 Speaker 1: Egypt's chief investigator says the search for the egypt Their 48 00:02:38,520 --> 00:02:41,880 Speaker 1: plane that crashed last week, killing all sixty six people 49 00:02:41,960 --> 00:02:45,040 Speaker 1: on board, as narrowed to a three mile wide area 50 00:02:45,080 --> 00:02:48,320 Speaker 1: in the Mediterranean Sea. That's based on signals from the 51 00:02:48,360 --> 00:02:52,680 Speaker 1: plane's emergency beacon. The investigation team today clarified that the 52 00:02:52,720 --> 00:02:56,160 Speaker 1: beacon information was from the day of the crash May nineteenth, 53 00:02:56,400 --> 00:02:59,840 Speaker 1: and that no news signals have been received. President Obama 54 00:02:59,840 --> 00:03:02,960 Speaker 1: may history today in Hiroshima, laying a wreath at the 55 00:03:03,040 --> 00:03:06,160 Speaker 1: site of the first US nuclear bomb attack. The President 56 00:03:06,280 --> 00:03:11,840 Speaker 1: urged moral progress alongside scientific advancements, we must our mindset 57 00:03:11,960 --> 00:03:20,919 Speaker 1: about war itself, to prevent conflicts through diplomacy and strive 58 00:03:21,320 --> 00:03:26,000 Speaker 1: to end conflicts after they've begun. Mr Obama is the 59 00:03:26,080 --> 00:03:30,000 Speaker 1: first sitting US president to visit Hiroshima. The c d C. 60 00:03:30,240 --> 00:03:33,239 Speaker 1: S Thomas Frieden says the US now has its first 61 00:03:33,280 --> 00:03:36,600 Speaker 1: case of a patient infected with bacteria found to be 62 00:03:36,720 --> 00:03:42,240 Speaker 1: resistant to all known antibiotics. Medicine cabinet is empty for 63 00:03:42,280 --> 00:03:44,720 Speaker 1: some patients. It is the end of the road for 64 00:03:44,760 --> 00:03:48,480 Speaker 1: antibiotics unless we act urgently. City Bike says it topped 65 00:03:48,480 --> 00:03:51,800 Speaker 1: its daily ridership record on Wednesday when more than fifty 66 00:03:51,880 --> 00:03:55,760 Speaker 1: three thousand people took out bicycles. Global News twenty four 67 00:03:55,800 --> 00:03:59,040 Speaker 1: hours a day, powered by our hundred journalists and more 68 00:03:59,080 --> 00:04:02,120 Speaker 1: than one hundred the news bureaus around the world. From 69 00:04:02,120 --> 00:04:07,040 Speaker 1: the Bloomberg Newsroom, I'm Mark Crumpton, Catherine, thank you, and 70 00:04:07,160 --> 00:04:10,720 Speaker 1: recapping as those benchmarks begin to settle down. Industrial larverage 71 00:04:10,800 --> 00:04:12,720 Speaker 1: up forty five points to close out the week at 72 00:04:12,760 --> 00:04:15,440 Speaker 1: seventeen thousand, eight hundred seventy two. S and p F 73 00:04:15,440 --> 00:04:18,760 Speaker 1: I've founded up nine points to two thousand nine nastacup 74 00:04:18,800 --> 00:04:22,080 Speaker 1: thirty two points, to forty nine. At thirty three, Bloomberg 75 00:04:22,120 --> 00:04:24,360 Speaker 1: Taking Stock is brought to you by Carbonite. You never 76 00:04:24,400 --> 00:04:27,320 Speaker 1: know when disaster will strike your business, from spilled coffee 77 00:04:27,320 --> 00:04:31,719 Speaker 1: to malware attacks. Protect your digital files with secure automatic 78 00:04:31,720 --> 00:04:35,279 Speaker 1: cloud backup from Carbonite. Visit carbonite dot com today to 79 00:04:35,360 --> 00:04:39,159 Speaker 1: get two three months with offer code broadcast. And that's 80 00:04:39,160 --> 00:04:43,160 Speaker 1: a Bloomberg business flash. Move around most greer promotion. I 81 00:04:43,360 --> 00:04:48,640 Speaker 1: feel moved on the move they do. I've never seen 82 00:04:48,680 --> 00:04:55,279 Speaker 1: anyone move that fast. Fried people's like you've got a purpose. 83 00:05:00,560 --> 00:05:03,280 Speaker 1: He's called movers and Shakers. It costs a little more. 84 00:05:03,760 --> 00:05:13,120 Speaker 1: That name cracked me up. Bloomberg taking Stock Movers and 85 00:05:13,320 --> 00:05:17,239 Speaker 1: Shakers with pim Box and Kathleen as on Bloomberg Radio. 86 00:05:17,800 --> 00:05:22,000 Speaker 1: Movers and Shakers are Friday, May twenties seven, twenty sixteen, 87 00:05:22,120 --> 00:05:25,320 Speaker 1: three hundred and nineties. Six issues advanced in the SMP 88 00:05:25,480 --> 00:05:29,159 Speaker 1: five hundred, one hundred and three issues fall and six 89 00:05:29,200 --> 00:05:33,280 Speaker 1: remain unchanged. Dave Wilson, Bloomberg Stocks commis joins us now 90 00:05:33,320 --> 00:05:36,320 Speaker 1: to begin our Movers and Shakers. Dave, I gotta talk 91 00:05:36,320 --> 00:05:39,800 Speaker 1: about Viacom. You realize it's the ninety third birthday of 92 00:05:39,839 --> 00:05:43,560 Speaker 1: the controlling shareholders Sumner Redstone, and it's clear he is 93 00:05:43,600 --> 00:05:47,200 Speaker 1: not going gentle into that good night to quote phrase. 94 00:05:47,680 --> 00:05:52,520 Speaker 1: He's already removed Viacom's chief executive, Fleet Dowmond, and a director, 95 00:05:52,600 --> 00:05:56,719 Speaker 1: George Abrams, from a trust that will oversee his controlling 96 00:05:56,760 --> 00:06:00,440 Speaker 1: steak when he can no longer do so. And now 97 00:06:00,520 --> 00:06:03,400 Speaker 1: there's a question of whether Dowmen is going to keep 98 00:06:03,480 --> 00:06:07,359 Speaker 1: his job at Viacom and whether Abrams and other directors 99 00:06:07,400 --> 00:06:11,560 Speaker 1: will as well. Uh. In a statement, Redstone spokesman said, 100 00:06:11,600 --> 00:06:13,680 Speaker 1: some of the red Stone will make every decision with 101 00:06:13,760 --> 00:06:17,400 Speaker 1: the same deliberation and consideration with which he removed Philip 102 00:06:17,440 --> 00:06:20,799 Speaker 1: Dowmand and George Abrams as trustees, based on the best 103 00:06:20,880 --> 00:06:23,880 Speaker 1: interests of shareholders. That's as far as it went. Nonetheless, 104 00:06:24,120 --> 00:06:25,880 Speaker 1: the idea that there may be a shake up at 105 00:06:25,920 --> 00:06:29,400 Speaker 1: the top of Viacom went overwhelm. Viacom shares a four 106 00:06:29,520 --> 00:06:33,120 Speaker 1: percent in today's trading. Well, you know how I love 107 00:06:33,160 --> 00:06:35,280 Speaker 1: to follow retail, and of course I love to follow 108 00:06:35,360 --> 00:06:39,839 Speaker 1: who doesn't, uh cosmetics. Well, that leads us to alta salon. 109 00:06:39,960 --> 00:06:42,400 Speaker 1: What a terrific day this stock had. It was up 110 00:06:42,440 --> 00:06:45,520 Speaker 1: as much as eleven it's closing up more than nine 111 00:06:45,560 --> 00:06:49,799 Speaker 1: percent at two hundred thirty three dollars and change today. 112 00:06:50,160 --> 00:06:54,080 Speaker 1: And this is all because they report better than expected 113 00:06:54,120 --> 00:06:58,839 Speaker 1: first quarter results. They raised their full year outlook, and 114 00:06:59,160 --> 00:07:03,080 Speaker 1: UH an analyst that no Mura, boosted his price target 115 00:07:03,160 --> 00:07:07,400 Speaker 1: to two forty four dollars. It's interesting their comp Their 116 00:07:07,440 --> 00:07:12,840 Speaker 1: comparable comparable store sales were up something like fifteen percent 117 00:07:13,280 --> 00:07:16,320 Speaker 1: versus an increase of eleven point four percent in the 118 00:07:16,360 --> 00:07:20,080 Speaker 1: first quarter last year. Here's what Numera analysts UH Simeon 119 00:07:20,160 --> 00:07:23,080 Speaker 1: Siegal wrote in a note. In an environment where modestly 120 00:07:23,160 --> 00:07:29,400 Speaker 1: positive comps are hailed, fiftcent lies on another plane, another plane. Alright, 121 00:07:29,400 --> 00:07:32,080 Speaker 1: I'm gonna tell you about something that's on a new 122 00:07:32,160 --> 00:07:34,840 Speaker 1: plane here. This is a relationship between Verizon and its 123 00:07:34,880 --> 00:07:37,840 Speaker 1: two unions, having reached an agreement in principle on a 124 00:07:37,880 --> 00:07:41,400 Speaker 1: new labor contract. This all according to the US Labor Department, 125 00:07:41,680 --> 00:07:45,920 Speaker 1: and this would move move the forward the attempt to 126 00:07:46,440 --> 00:07:48,880 Speaker 1: get rid of the strike. Forty four days strike thirty 127 00:07:48,920 --> 00:07:52,960 Speaker 1: six thousand landline employees looking to return to work after 128 00:07:53,080 --> 00:07:55,920 Speaker 1: the strike. They're putting the four year deal in writing 129 00:07:55,920 --> 00:07:59,280 Speaker 1: and union members should return to work in the next week. 130 00:07:59,400 --> 00:08:03,880 Speaker 1: Shares of rising communications up nine tenths of a percent today. 131 00:08:04,080 --> 00:08:06,920 Speaker 1: You know, usually when you see a takeover happened, a 132 00:08:07,000 --> 00:08:10,240 Speaker 1: company shares go up. But how about when a takeover 133 00:08:10,360 --> 00:08:14,520 Speaker 1: threatens to fall apart? Well, today you saw a couple 134 00:08:14,520 --> 00:08:17,000 Speaker 1: of companies shares go up in response to that prospect. 135 00:08:17,280 --> 00:08:20,560 Speaker 1: I'm referring to Energy Transfer, Equity and Williams. They agree 136 00:08:20,600 --> 00:08:23,000 Speaker 1: to get together less September. Since then, the value of 137 00:08:23,040 --> 00:08:25,480 Speaker 1: the deal is followed by almost half. Companies have gone 138 00:08:25,480 --> 00:08:28,360 Speaker 1: back and forth about whether they breached the terms. Energy 139 00:08:28,360 --> 00:08:30,640 Speaker 1: Transfer went to court late yesterday for the right to 140 00:08:30,720 --> 00:08:34,679 Speaker 1: scrap the transaction and to receive a breakup fee of 141 00:08:34,720 --> 00:08:38,120 Speaker 1: almost one and a half billion dollars. Energy Transfer shares 142 00:08:38,200 --> 00:08:40,480 Speaker 1: up five point seven percent today in the wake of 143 00:08:40,559 --> 00:08:43,720 Speaker 1: that move, and Williams Higher as well, shares up three 144 00:08:43,760 --> 00:08:48,440 Speaker 1: point two percent. Costco, Walmart, other dollar store chains, well, 145 00:08:48,559 --> 00:08:51,720 Speaker 1: Big Lot is joining a very successful club these dollar 146 00:08:51,760 --> 00:08:55,680 Speaker 1: store chains that are exceeding expectations, attracting more customers, keeping 147 00:08:55,679 --> 00:08:59,680 Speaker 1: their operations lean. Big Lots closing up today by some 148 00:09:00,040 --> 00:09:05,040 Speaker 1: four percent to nearly fifty one dollars a share. Uh 149 00:09:05,120 --> 00:09:09,960 Speaker 1: They actually their their earnings crushed estimates, posting a profit 150 00:09:10,000 --> 00:09:12,320 Speaker 1: of eighty two cents a share, topping the seventy cents 151 00:09:12,320 --> 00:09:15,199 Speaker 1: projected by analyst Pim. I'll tell you about Whole food 152 00:09:15,280 --> 00:09:18,880 Speaker 1: So sticking with the shopping Whole Foods Market the shares 153 00:09:18,960 --> 00:09:21,960 Speaker 1: down about one and a half percent today. A report 154 00:09:22,080 --> 00:09:24,960 Speaker 1: from analysts said wed Bush warned that the new three 155 00:09:25,080 --> 00:09:29,079 Speaker 1: sixty five format from Whole Foods Market is a long 156 00:09:29,200 --> 00:09:32,800 Speaker 1: term threat to Sprouts farmers Market, but that the slow 157 00:09:32,960 --> 00:09:37,600 Speaker 1: rollout of three gives Sprouts plenty of time to adjust. 158 00:09:37,840 --> 00:09:41,160 Speaker 1: Shares of Whole Foods Market down one and a half 159 00:09:41,200 --> 00:09:43,679 Speaker 1: percent today. Time now for the volatile of the Inks 160 00:09:43,720 --> 00:09:46,680 Speaker 1: report brought to you by cbo E VIS Options and Futures. 161 00:09:46,760 --> 00:09:50,240 Speaker 1: Volatility can be harnessed with CBOE VIS Options and Futures 162 00:09:50,360 --> 00:09:53,480 Speaker 1: c disclosures. Learn more at cbo e dot com. Slash 163 00:09:53,520 --> 00:09:59,040 Speaker 1: Powerful Outcomes VIX. The VIX closing lower by a full 164 00:09:59,120 --> 00:10:02,840 Speaker 1: percent or mo or at thirteen point oh a, on 165 00:10:03,000 --> 00:10:06,160 Speaker 1: track for a five week low. It's also poised for 166 00:10:06,200 --> 00:10:10,600 Speaker 1: the first weekly decline in three All right, Dave, you're 167 00:10:11,400 --> 00:10:16,840 Speaker 1: h my name is Dave. Just what do you think 168 00:10:16,880 --> 00:10:20,199 Speaker 1: you're doing today? We're going for the price down wil 169 00:10:20,679 --> 00:10:27,040 Speaker 1: Dave Dave Hey, Mr Wilson Bloomberg Stocks. Colm, It's called 170 00:10:27,120 --> 00:10:30,520 Speaker 1: tell us about a company that I confess until I 171 00:10:30,559 --> 00:10:34,000 Speaker 1: read your piece, I did not know anything about it. 172 00:10:34,000 --> 00:10:36,080 Speaker 1: It's been so much in the news. I mean, first 173 00:10:36,160 --> 00:10:38,839 Speaker 1: they had a busted ipl then they had a busted deal. 174 00:10:39,240 --> 00:10:41,000 Speaker 1: You don't see that all the time. Now, this is 175 00:10:41,000 --> 00:10:44,200 Speaker 1: a company that installs rooftop solar systems. They went public 176 00:10:44,200 --> 00:10:48,720 Speaker 1: in September or tickers v s l R Vitman made 177 00:10:48,720 --> 00:10:51,360 Speaker 1: its initial public offering it's sixteen dollars to share. The 178 00:10:51,400 --> 00:10:54,320 Speaker 1: stock fell below that price on the second day of trading, 179 00:10:54,360 --> 00:10:56,640 Speaker 1: and by the third day, the i p O had 180 00:10:56,679 --> 00:10:59,960 Speaker 1: gone bust. Now, Vivant did get back to sixteen dollars 181 00:11:00,080 --> 00:11:03,400 Speaker 1: is once on July twenty one, the day after the 182 00:11:03,440 --> 00:11:06,560 Speaker 1: company agreed to a two point two billion dollar offer 183 00:11:06,920 --> 00:11:10,480 Speaker 1: from the solar plant developer son Edison. Vivid backed out 184 00:11:10,480 --> 00:11:14,040 Speaker 1: of the purchase in March as son Edison headed for bankruptcy. 185 00:11:14,280 --> 00:11:17,880 Speaker 1: So there's your busted deal. Two weeks ago, Vivin fell 186 00:11:17,920 --> 00:11:20,720 Speaker 1: as low as two dollars and sixteen cents. That's a 187 00:11:20,720 --> 00:11:23,800 Speaker 1: plunge of eighty six percent from the I p O price. 188 00:11:24,000 --> 00:11:27,200 Speaker 1: The stock then began a rebound, and the recovery accelerated 189 00:11:27,240 --> 00:11:30,280 Speaker 1: today after Deutsche Bank raised the stocks rating to buy 190 00:11:30,320 --> 00:11:33,839 Speaker 1: from hold. Analyst Mishal Shaw wrote in a report that 191 00:11:34,000 --> 00:11:37,960 Speaker 1: Vivian stands to benefit from strong US residential demand. That 192 00:11:38,080 --> 00:11:40,600 Speaker 1: prospect sent the company's shares to the biggest one day 193 00:11:40,640 --> 00:11:44,079 Speaker 1: game since the Son Edison deal was announced. They searched 194 00:11:44,440 --> 00:11:48,720 Speaker 1: forty two percent. That's quite a nice game. Hey, davioson 195 00:11:48,760 --> 00:11:52,280 Speaker 1: we have a great holiday weekend. Davilson our stocks editor, 196 00:11:52,440 --> 00:11:55,160 Speaker 1: resident music colleges. You can follow on Twitter at the 197 00:11:55,200 --> 00:11:58,360 Speaker 1: one day up. Next, we are going to look at 198 00:11:58,400 --> 00:12:01,760 Speaker 1: the president's visit two of Oshima. This is Bloomberg Radio. 199 00:12:05,600 --> 00:12:08,240 Speaker 1: Bloomber Taking Stock is brought to you by S S 200 00:12:08,240 --> 00:12:13,120 Speaker 1: and C. More experienced, superior technology, independence and expertise. That's 201 00:12:13,120 --> 00:12:15,880 Speaker 1: how S sn C drives the future of fund administration. 202 00:12:16,320 --> 00:12:19,120 Speaker 1: S S and C. They are the future of fund administration.