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Speaker 1: over the first word, breaking news fast for today's afternoon call.
Speaker 1: Here's Bill Maloney. Good afternoon, Charlie. Averages are under pressure
Speaker 1: today FEDZ, Williams and Lockhart see at least two rate
Speaker 1: increases in two sixteen. Dallas turnally lower by two hundred
Speaker 1: two points, SESPES dropped twenty two and AzaC falls sixty one.
Speaker 1: The down the sup are back below their fifty game
Speaker 1: moving averages, and the small cap six hundred drops twelve
Speaker 1: points US ten yield at one point seven six percent.
Speaker 1: Nine out of tenants to be sectors are lower, led
Speaker 1: by losses and staples, utilities and healthcare. Small gains in
Speaker 1: energy down Transports outperformed gained forty six NAZIBO texts fall
Speaker 1: and the vix is higher by eight percent. Dew Leaders
Speaker 1: to the downside included Home Deepot, American Express, and Microsoft
Speaker 1: Small Games for Caterpillar and Dow Pot. Abby fell as
Speaker 1: much as six percent on Humera patent concerns. Home Depot
Speaker 1: dropped two point six percent after its results, while United
Speaker 1: Rentals jumped as much as nine percent. City groups said
Speaker 1: the company was poised to gain on a seventeen rental
Speaker 1: rate rebound. Live on the first Breaking news desk on
Speaker 1: Bill Maloney, Charlie all right, thank you very much, Bill Maloney,
Speaker 1: and to hear live breaking news over your Bloomberg time
Speaker 1: Squawk squ a w K on your terminal. I'm Charlie
Speaker 1: Pelotons on Bloomberg Business Flash. You're listening to taking stock
Speaker 1: on Bloomberg. Rady pasting live from the Kimpton Morrison House
Speaker 1: Hotel in Alexandria, Virginia and the Washington metro area, home
Speaker 1: to Bloomberg and one oh five point seven FM h
Speaker 1: D two. And you know, Kathleen, one of the things
Speaker 1: that everyone seems to rely on is an understanding of
Speaker 1: the government's position and the Internet, and of course saved
Speaker 1: the Internet net neutrality all very important topics, and here
Speaker 1: to help us understand it a little bit better is
Speaker 1: a Brad Barker. Brad is a senior analyst for a
Speaker 1: Bloomberg Intelligence, and of course Bloomberg Intelligence provides a real
Speaker 1: time research context on the variety of industries and all
Speaker 1: types of government and the market factors. Just type b
Speaker 1: I go uh into your Bloomberg Brad, thanks very much
Speaker 1: for spending time with us. Tell us a little bit
Speaker 1: what is net neutrality and what is going on with
Speaker 1: the court system when we're waiting for a big decision. Sure, thanks, Pim,
Speaker 1: Hello Kathleen, thanks for having me here. So, net neutrality
Speaker 1: essentially prevents um I sps from creating fast lanes on
Speaker 1: the Internet. In other words, they can't charge a Netflix
Speaker 1: or somebody else similar extra money to make sure that
Speaker 1: they connect you to to UH to the end user,
Speaker 1: which is us, the customer. Now that decision is going
Speaker 1: to be handed down by the d C Circuit Court
Speaker 1: on any Tuesday or Friday at ten am going forward.
Speaker 1: Now that's important for a couple of reasons. Uh. The
Speaker 1: first reason is there are two rules going on at
Speaker 1: the FCC right now which would be impacted by this
Speaker 1: The first one are I s P privacy rules. What
Speaker 1: these rules do is they would give the consumer the
Speaker 1: ability to opt out from having their UH data collected
Speaker 1: by the ice piece such as Comcast or Verizon, and
Speaker 1: then have that data then be old to advertisers. This
Speaker 1: is something right now that Facebook and Google are allowed
Speaker 1: to do because they're regulated under the FTC and not
Speaker 1: the FCC. Well, so who is who's fighting whom here
Speaker 1: and who's leading the charge on each side? Sure? So
Speaker 1: on on net neutrality? What you have? You have a
Speaker 1: ten ten century have filed suit and the f c
Speaker 1: C is on the other side of this, and most
Speaker 1: people seem to think that the FEC will most likely
Speaker 1: win this decision. Now you could, we could Who is
Speaker 1: the FCC representing? The FEC didn't just wake up on
Speaker 1: morning and say let's go after it, didn't, Sure the
Speaker 1: FEC is representing the American public. Um they passed net
Speaker 1: neutrality rules and two thousand fifteen, which you know would
Speaker 1: would would not allow the Internet providers to charge fast
Speaker 1: lanes for companies out there as well as create winners.
Speaker 1: You know, because if they could charge, say a Netflix,
Speaker 1: extra money, then if you had another company who was
Speaker 1: smaller and was unable to pay that fee. You know,
Speaker 1: Netflix could connect to the consumers faster. Brad, you mentioned
Speaker 1: rule number one. What was rule number two? Uh? Now,
Speaker 1: if the net neutrialing rules are upheld, it is expected
Speaker 1: that the SEC will then go after um the zero
Speaker 1: rating pens, which are free data plans which are currently
Speaker 1: being offered by by T Mobile, who which which allows
Speaker 1: you to connect to Netflix, Apple Music, Amazon Prime and
Speaker 1: you can stream your stuff on their on their phones
Speaker 1: for free. Now, a lot of people feel that this
Speaker 1: is violating the tenants of net neutrality, and everyone seems
Speaker 1: to think that if the rules are upheld that the
Speaker 1: SEC will then tell T Mobile to shut this down.
Speaker 1: You have Sprint who just yesterday announced that if you
Speaker 1: sign up for their plan, you'll get Amazon Prime for
Speaker 1: free for a year. They could also do the same
Speaker 1: thing with uh A. T and T and Verizon also
Speaker 1: have their similar plans. Well. Mind a certain extent is
Speaker 1: the battle here between people who who do a lot
Speaker 1: of streaming online and listen to lots of music and
Speaker 1: watch a lot of movies on their mobile phones and
Speaker 1: people who don't, who say they're clogging it, they're slowing
Speaker 1: it down. They're doing it at my expense. Is that
Speaker 1: because it isn't just clear cut who wins and who
Speaker 1: loses here, Well, so it sounds sounds a good that's
Speaker 1: a good question, you know, undernet neutrality bottom line, if
Speaker 1: the rules are shut down, that will allow the the
Speaker 1: internet service providers veriz in A, T and T, Comcast,
Speaker 1: Time Owner, Cable, et cetera, to charge other other companies
Speaker 1: money to use their their pipes. So to speak. If
Speaker 1: the rules are upheld, all the internet companies would not
Speaker 1: have to to pay anything for using the pipes. And
Speaker 1: anybody could you know, it could go online and serve
Speaker 1: the web and connect to any any company and not
Speaker 1: have to pay extra for it. Well, Brad Barker, hats
Speaker 1: off to you. This is a very very important issue
Speaker 1: and a very complicated one, and you do a great
Speaker 1: job day in and day out at covering for us
Speaker 1: UH here on Bloomberg Intelligence Bloomberg LP. Brad Barker in fact,
Speaker 1: as a senior analyst, he's usually in the Washington metro area.
Speaker 1: He's in Bloomberg World headquarters in New York City. Today,
Speaker 1: Pim Fox and I are in the Washington metro area
Speaker 1: because we're broadcasting live at the Kempton Morrison House Hotel
Speaker 1: in Alexandria, Virginia. Of course, the Washington metro area is
Speaker 1: home to Bloomberg and one oh five point seven f
Speaker 1: m h D two Mr Bloomberg Radio, Bloomberg Tank. King
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