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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile app, and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie. Plot stocks are lower, bouncing along the bottom.

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Speaker 1: We are brought to by as S, S and C.

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Speaker 1: More experienced, superior technology, independence and expertise. That's how SS

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Speaker 1: and C drives the future of fund administration. S S

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Speaker 1: and C. They are the future of fund administration. Now

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Speaker 1: over the first word, breaking news fast for today's afternoon call.

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Speaker 1: Here's Bill Maloney. Good afternoon, Charlie. Averages are under pressure

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Speaker 1: today FEDZ, Williams and Lockhart see at least two rate

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Speaker 1: increases in two sixteen. Dallas turnally lower by two hundred

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Speaker 1: two points, SESPES dropped twenty two and AzaC falls sixty one.

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Speaker 1: The down the sup are back below their fifty game

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Speaker 1: moving averages, and the small cap six hundred drops twelve

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Speaker 1: points US ten yield at one point seven six percent.

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Speaker 1: Nine out of tenants to be sectors are lower, led

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Speaker 1: by losses and staples, utilities and healthcare. Small gains in

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Speaker 1: energy down Transports outperformed gained forty six NAZIBO texts fall

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Speaker 1: and the vix is higher by eight percent. Dew Leaders

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Speaker 1: to the downside included Home Deepot, American Express, and Microsoft

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Speaker 1: Small Games for Caterpillar and Dow Pot. Abby fell as

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Speaker 1: much as six percent on Humera patent concerns. Home Depot

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Speaker 1: dropped two point six percent after its results, while United

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Speaker 1: Rentals jumped as much as nine percent. City groups said

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Speaker 1: the company was poised to gain on a seventeen rental

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Speaker 1: rate rebound. Live on the first Breaking news desk on

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Speaker 1: Bill Maloney, Charlie all right, thank you very much, Bill Maloney,

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Speaker 1: and to hear live breaking news over your Bloomberg time

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Speaker 1: Squawk squ a w K on your terminal. I'm Charlie

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Speaker 1: Pelotons on Bloomberg Business Flash. You're listening to taking stock

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Speaker 1: on Bloomberg. Rady pasting live from the Kimpton Morrison House

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Speaker 1: Hotel in Alexandria, Virginia and the Washington metro area, home

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Speaker 1: to Bloomberg and one oh five point seven FM h

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Speaker 1: D two. And you know, Kathleen, one of the things

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Speaker 1: that everyone seems to rely on is an understanding of

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Speaker 1: the government's position and the Internet, and of course saved

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Speaker 1: the Internet net neutrality all very important topics, and here

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Speaker 1: to help us understand it a little bit better is

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Speaker 1: a Brad Barker. Brad is a senior analyst for a

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Speaker 1: Bloomberg Intelligence, and of course Bloomberg Intelligence provides a real

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Speaker 1: time research context on the variety of industries and all

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Speaker 1: types of government and the market factors. Just type b

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Speaker 1: I go uh into your Bloomberg Brad, thanks very much

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Speaker 1: for spending time with us. Tell us a little bit

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Speaker 1: what is net neutrality and what is going on with

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Speaker 1: the court system when we're waiting for a big decision. Sure, thanks, Pim,

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Speaker 1: Hello Kathleen, thanks for having me here. So, net neutrality

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Speaker 1: essentially prevents um I sps from creating fast lanes on

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Speaker 1: the Internet. In other words, they can't charge a Netflix

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Speaker 1: or somebody else similar extra money to make sure that

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Speaker 1: they connect you to to UH to the end user,

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Speaker 1: which is us, the customer. Now that decision is going

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Speaker 1: to be handed down by the d C Circuit Court

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Speaker 1: on any Tuesday or Friday at ten am going forward.

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Speaker 1: Now that's important for a couple of reasons. Uh. The

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Speaker 1: first reason is there are two rules going on at

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Speaker 1: the FCC right now which would be impacted by this

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Speaker 1: The first one are I s P privacy rules. What

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Speaker 1: these rules do is they would give the consumer the

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Speaker 1: ability to opt out from having their UH data collected

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Speaker 1: by the ice piece such as Comcast or Verizon, and

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Speaker 1: then have that data then be old to advertisers. This

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Speaker 1: is something right now that Facebook and Google are allowed

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Speaker 1: to do because they're regulated under the FTC and not

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Speaker 1: the FCC. Well, so who is who's fighting whom here

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Speaker 1: and who's leading the charge on each side? Sure? So

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Speaker 1: on on net neutrality? What you have? You have a

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Speaker 1: ten ten century have filed suit and the f c

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Speaker 1: C is on the other side of this, and most

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Speaker 1: people seem to think that the FEC will most likely

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Speaker 1: win this decision. Now you could, we could Who is

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Speaker 1: the FCC representing? The FEC didn't just wake up on

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Speaker 1: morning and say let's go after it, didn't, Sure the

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Speaker 1: FEC is representing the American public. Um they passed net

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Speaker 1: neutrality rules and two thousand fifteen, which you know would

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Speaker 1: would would not allow the Internet providers to charge fast

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Speaker 1: lanes for companies out there as well as create winners.

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Speaker 1: You know, because if they could charge, say a Netflix,

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Speaker 1: extra money, then if you had another company who was

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Speaker 1: smaller and was unable to pay that fee. You know,

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Speaker 1: Netflix could connect to the consumers faster. Brad, you mentioned

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Speaker 1: rule number one. What was rule number two? Uh? Now,

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Speaker 1: if the net neutrialing rules are upheld, it is expected

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Speaker 1: that the SEC will then go after um the zero

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Speaker 1: rating pens, which are free data plans which are currently

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Speaker 1: being offered by by T Mobile, who which which allows

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Speaker 1: you to connect to Netflix, Apple Music, Amazon Prime and

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Speaker 1: you can stream your stuff on their on their phones

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Speaker 1: for free. Now, a lot of people feel that this

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Speaker 1: is violating the tenants of net neutrality, and everyone seems

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Speaker 1: to think that if the rules are upheld that the

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Speaker 1: SEC will then tell T Mobile to shut this down.

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Speaker 1: You have Sprint who just yesterday announced that if you

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Speaker 1: sign up for their plan, you'll get Amazon Prime for

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Speaker 1: free for a year. They could also do the same

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Speaker 1: thing with uh A. T and T and Verizon also

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Speaker 1: have their similar plans. Well. Mind a certain extent is

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Speaker 1: the battle here between people who who do a lot

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Speaker 1: of streaming online and listen to lots of music and

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Speaker 1: watch a lot of movies on their mobile phones and

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Speaker 1: people who don't, who say they're clogging it, they're slowing

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Speaker 1: it down. They're doing it at my expense. Is that

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Speaker 1: because it isn't just clear cut who wins and who

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Speaker 1: loses here, Well, so it sounds sounds a good that's

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Speaker 1: a good question, you know, undernet neutrality bottom line, if

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Speaker 1: the rules are shut down, that will allow the the

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Speaker 1: internet service providers veriz in A, T and T, Comcast,

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Speaker 1: Time Owner, Cable, et cetera, to charge other other companies

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Speaker 1: money to use their their pipes. So to speak. If

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Speaker 1: the rules are upheld, all the internet companies would not

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Speaker 1: have to to pay anything for using the pipes. And

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Speaker 1: anybody could you know, it could go online and serve

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Speaker 1: the web and connect to any any company and not

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Speaker 1: have to pay extra for it. Well, Brad Barker, hats

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Speaker 1: off to you. This is a very very important issue

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Speaker 1: and a very complicated one, and you do a great

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Speaker 1: job day in and day out at covering for us

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Speaker 1: UH here on Bloomberg Intelligence Bloomberg LP. Brad Barker in fact,

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Speaker 1: as a senior analyst, he's usually in the Washington metro area.

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Speaker 1: He's in Bloomberg World headquarters in New York City. Today,

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Speaker 1: Pim Fox and I are in the Washington metro area

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Speaker 1: because we're broadcasting live at the Kempton Morrison House Hotel

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Speaker 1: in Alexandria, Virginia. Of course, the Washington metro area is

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Speaker 1: home to Bloomberg and one oh five point seven f

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Speaker 1: m h D two Mr Bloomberg Radio, Bloomberg Tank. King

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