WEBVTT - Stephen Schork on Oil: Supply Glut, Sees Oil Under $40 (Audio) 0:00:03.200 --> 0:00:06.560 Bloomber Business News twenty four hours a day at Bloomberg 0:00:06.600 --> 0:00:09.719 dot Com, the radio, plus mobile and on your radio. 0:00:09.960 --> 0:00:14.400 This is a Bloomberg Business Way shoon Bloomberg World back quarters. 0:00:14.440 --> 0:00:18.600 I'm Charlie Public folks from Diagio and Shawn Cones, ringing 0:00:18.640 --> 0:00:21.360 that closing battle to New York Stock Exchange on this 0:00:21.440 --> 0:00:24.880 Tuesday August. I'll move Laura for the noal. The SMP 0:00:25.000 --> 0:00:28.840 and NASTAC stocks closing well off their session loads, thin 0:00:28.960 --> 0:00:32.640 trading volume, Apple slumping ahead of Friday's jobs report, the 0:00:32.720 --> 0:00:35.839 dollar rose, oil fell. Jim Bianco was the president and 0:00:35.920 --> 0:00:39.239 founder of Bianco Research, and minutes ago right here on 0:00:39.320 --> 0:00:41.720 taking Stock, he had this to say about the Federal 0:00:41.760 --> 0:00:46.400 Reserve and its data dependency report is Friday. Is that 0:00:46.520 --> 0:00:49.040 it all comes down to Friday's number one number that 0:00:49.120 --> 0:00:52.159 gets revised many times over the next several months. Is 0:00:52.200 --> 0:00:55.080 that what's going to drive the Fed into deciding whether 0:00:55.120 --> 0:00:58.800 to raise rates or not raise raids. And that's not 0:00:58.880 --> 0:01:01.680 a very good way to do Paither the ten uere 0:01:01.720 --> 0:01:04.639 down to thirty seconds, yield one point five seven percent, 0:01:04.840 --> 0:01:08.280 SMP five hundred index down four to seventy six, and 0:01:08.360 --> 0:01:10.880 drop of two tents of one percent, the Dow down 0:01:10.959 --> 0:01:13.280 forty nine, a drop of three tents of one percent, 0:01:13.520 --> 0:01:16.280 and has stacked down two tenths of one percent. The 0:01:16.360 --> 0:01:19.800 Conference Board says consumer confidence increased to an almost one 0:01:19.880 --> 0:01:23.080 year high in August as Americans became more optimistic about 0:01:23.120 --> 0:01:27.280 the labor market. Conference confidence increased to one oh one 0:01:27.319 --> 0:01:30.000 point one, the highest in September. From that, he's six 0:01:30.040 --> 0:01:33.640 point seven. Lynn Franco is Director of Economic Indicators at 0:01:33.640 --> 0:01:35.920 the Conference Board. She was also our guest right here 0:01:35.959 --> 0:01:38.760 today on taking stock. Well, we've seen sort of a 0:01:38.800 --> 0:01:42.679 combination of factors. We had a nice increase in the 0:01:42.720 --> 0:01:47.520 present situation component, and that's now at back to pre 0:01:47.640 --> 0:01:50.840 recession levels, so it's been sort of a long climb. 0:01:51.400 --> 0:01:55.960 Expectations also gained some grounds, so I think overall consumers 0:01:55.960 --> 0:01:59.840 are feeling a lot more positive about business conditions and 0:02:00.040 --> 0:02:03.480 climate conditions. Uh, and the outlook ahead is a little 0:02:03.480 --> 0:02:06.480 bit improved as well. And today we had gold down 0:02:06.520 --> 0:02:11.400 thirteen dollars, the ounce declining one often again. Apple shares 0:02:11.480 --> 0:02:15.120 law today by eight tenths of one four oh two 0:02:15.160 --> 0:02:17.520 on Wall Street. Now, let's look at other news from 0:02:17.520 --> 0:02:21.240 around the world. A Bloomberg Radio Charlie. Thank you from 0:02:21.280 --> 0:02:23.960 the Bloomberg news room. I'm Mark Crumpton. At the Eye, 0:02:24.000 --> 0:02:27.959 Director James Comy is again warning about the bureau's inability 0:02:28.040 --> 0:02:31.880 to access digital devices because of encryption. He made his 0:02:31.960 --> 0:02:35.120 comments today at a symposium in Washington. As we make 0:02:35.160 --> 0:02:38.400 it harder and harder for them to get physically into 0:02:38.400 --> 0:02:42.200 this country to kill people, to do damage, surely they 0:02:42.240 --> 0:02:43.920 are going to turn to try to come in as 0:02:43.919 --> 0:02:48.000 a photon and doing damage through the Internet. Come also 0:02:48.040 --> 0:02:52.120 addressed concerns that Russian intelligence officials may be targeting the 0:02:52.200 --> 0:02:56.359 presidential election. Anonymous threats have forced the U. S. Department 0:02:56.360 --> 0:03:00.520 of Agriculture to close some offices. USDA spokesman Matt Herrick 0:03:00.560 --> 0:03:03.520 says they're working with the FBI, federal and local law 0:03:03.600 --> 0:03:06.200 enforcement to determine if the threats are credible, but for now, 0:03:06.280 --> 0:03:09.920 he says, workers at six locations in five states will 0:03:10.000 --> 0:03:13.480 not report to those offices until further notice. The closures 0:03:13.520 --> 0:03:17.040 come after several anonymous messages raised concerns about the safety 0:03:17.040 --> 0:03:20.200 of U. S. D A personnel and facilities. Those offices 0:03:20.200 --> 0:03:24.680 are in Colorado, Connecticut, North Carolina, Maryland, and two in 0:03:24.720 --> 0:03:28.640 West Virginia. Amy Moore as Bloomberg Radio, the New York 0:03:28.680 --> 0:03:33.560 Health Department is making substantial changes to its medical marijuana program, 0:03:33.760 --> 0:03:37.720 which has been criticized as being too restrictive. Those changes 0:03:37.760 --> 0:03:42.680 include expanding access to the drug, including allowing home delivery 0:03:42.960 --> 0:03:47.920 and enabling nurse practitioners to certify patients as medically qualified 0:03:47.960 --> 0:03:52.280 to use pot. Governor Andrew Cuomo's administration is expected to 0:03:52.320 --> 0:03:56.560 announce those changes today. Global News twenty four hours a day, 0:03:56.800 --> 0:04:00.160 powered by more than twenty d journalists and analysts in 0:04:00.240 --> 0:04:04.800 over one countries. I'm More Crumpton, this is Bloomberg, Charlie, 0:04:05.400 --> 0:04:07.560 and we thank you, and again recapping a move law 0:04:07.640 --> 0:04:11.480 for equities, the DAL, the SMP, nestak All declining, SMP 0:04:11.640 --> 0:04:14.800 down four to seventy six, a drop today of two 0:04:14.800 --> 0:04:17.960 tenths of one percent down, Industrials down forty eight, a 0:04:18.040 --> 0:04:21.520 decline of three tenths of one percent. I'm Charlie Pellett 0:04:21.640 --> 0:04:25.760 and that's a Bloomberg Business flash. Move around. Motion creates 0:04:25.800 --> 0:04:31.520 the motion. The elite move move like they do. I've 0:04:31.520 --> 0:04:37.720 never seen anyone move that back five people. Let's move 0:04:37.760 --> 0:04:44.640 like to get a purpose that he was called movers 0:04:44.640 --> 0:04:47.760 and shakers that costs a little moment. That name cracked 0:04:47.760 --> 0:04:57.719 me up. Bloomberg taking stock movers and shakers with Pim 0:04:57.800 --> 0:05:02.560 Fox and Kathleen as on bloom Radio Movers and Shakers. 0:05:02.600 --> 0:05:04.760 You know, if you look at the major market averages 0:05:04.800 --> 0:05:08.240 and those fractionally lower clothes which Charlie just read us 0:05:08.240 --> 0:05:10.360 the numbers on, it might mask the fact that there 0:05:10.440 --> 0:05:13.039 was actually some more of a definitive move lower. I 0:05:13.080 --> 0:05:16.000 think in stocks, if you look inside the SNP five 0:05:16.120 --> 0:05:19.839 hundred one eighty seven gainers but three hundred fourteen losers 0:05:19.880 --> 0:05:23.400 of four stocks closing unchanged. Joining me, now, our stocks are, 0:05:23.640 --> 0:05:25.520 Dave Wilson, what are you kicking off with when it 0:05:25.560 --> 0:05:27.359 comes to moving and shaking? Well, since it was a 0:05:27.440 --> 0:05:29.960 down day, we might as well start with the stock 0:05:30.040 --> 0:05:32.279 that fell the most in the SMP five hundred, and 0:05:32.320 --> 0:05:34.600 that would be hers. She And it was around this 0:05:34.680 --> 0:05:38.880 time yesterday we found out Models International abandoned its effort 0:05:38.920 --> 0:05:42.080 to buy the chocolate maker now her. She had rejected 0:05:42.120 --> 0:05:45.000 mondelies As in her initial offer about two months ago. 0:05:45.360 --> 0:05:49.000 Person familiar with the matter said Modeliese had proposed raising 0:05:49.040 --> 0:05:51.480 the offer by eleven dollars a share two hundred and 0:05:51.520 --> 0:05:54.880 eighteen dollars. Trouble is her she wanted at least a 0:05:55.000 --> 0:05:58.080 hundred and twenty five dollars, and we've seen this happen 0:05:58.160 --> 0:06:00.720 before over the past. That get in then half where 0:06:00.760 --> 0:06:03.839 the trust that controls her she on behalf of the 0:06:03.920 --> 0:06:07.720 Milton Hershey schools set up by the company's founder. Just 0:06:07.760 --> 0:06:11.400 doesn't go along with the potential suitor and the latest 0:06:12.040 --> 0:06:16.400 set back hers she shares down almost eleven on the day, 0:06:16.400 --> 0:06:21.240 and I'll point out models up about four. Well, uh, 0:06:21.640 --> 0:06:23.960 you know what, I'm just gonna rubbing my eyeballs to 0:06:23.960 --> 0:06:25.479 make sure I'm reading it correctly. When to look at 0:06:25.480 --> 0:06:28.400 Apricrombie and Fitch, the big teen retailer that is struggled 0:06:28.440 --> 0:06:30.680 with all kinds of things like dwindling mall traffic and 0:06:30.720 --> 0:06:34.120 a tourism slowdown that is hurt retailers that rely rely 0:06:34.200 --> 0:06:37.799 on the kind of large flag flagship locations in major 0:06:37.880 --> 0:06:42.360 cities that drives sales. Abercrombie and Fitch again, do tell 0:06:42.400 --> 0:06:44.440 me the most in three years. The loss of the 0:06:44.440 --> 0:06:47.479 second quarter was twenty five cents a share excluding some items, 0:06:47.480 --> 0:06:51.800 after analysts had projected a loss of twenty cents on average. 0:06:51.920 --> 0:06:54.800 The company also plans to close more stores, extending a 0:06:54.839 --> 0:06:56.920 push that is shrunk to change US store based by 0:06:56.920 --> 0:06:59.159 a third in the past six years. Stage. So maybe 0:06:59.200 --> 0:07:01.440 down the road that will help Abercrombie and Fitch, but 0:07:01.520 --> 0:07:06.360 not so much today. How about Potash Corporate Saskatchewan. Now 0:07:06.400 --> 0:07:09.240 that's not a name of here every day. It is, though, 0:07:09.240 --> 0:07:12.000 one of the biggest companies in the fertilizer business. And 0:07:12.040 --> 0:07:15.640 this is an industry that's been hurt by lower crop prices. 0:07:15.680 --> 0:07:18.160 Because farmers don't have as much money to spend, they 0:07:18.160 --> 0:07:21.880 don't need to buy as much fertilizer. Well, Potash Corp. 0:07:22.280 --> 0:07:27.640 Said today it's and talks with another Canadian fertilizer maker, Agrium, 0:07:27.680 --> 0:07:31.400 about what it called a potential merger of equals. People 0:07:31.440 --> 0:07:33.720 familiar with the matter set a deal maybe reached as 0:07:33.760 --> 0:07:37.920 soon as next week. Uh Potash Corps up twelve percent 0:07:38.120 --> 0:07:41.520 in US trade and Agrium of seven percent. A couple 0:07:41.560 --> 0:07:45.160 of US fertilizer makers hire as well, CF Industries Holdings 0:07:45.200 --> 0:07:48.040 up four percent and Mosaic with a gain of almost 0:07:48.120 --> 0:07:50.360 nine percent. Well, you know, sounds me like you can 0:07:50.400 --> 0:07:53.360 can entice away in the CEO of one of your competitors. 0:07:53.400 --> 0:07:55.760 Investors can like it at least for a day or so. 0:07:55.880 --> 0:08:01.320 I'm referring to UH, United Airlines. It's hiring Scott Kirby. 0:08:01.440 --> 0:08:03.560 He's going to be their new president. He's hiring Kirby 0:08:03.600 --> 0:08:07.840 away from American Airlines, and they're they're just all trying 0:08:07.880 --> 0:08:10.760 to increase the roster of executives who will have to 0:08:10.840 --> 0:08:13.800 contend with fair declines that are pushing industry to its 0:08:13.800 --> 0:08:17.960 worst returns in five years. Mr Kirby will join United 0:08:18.000 --> 0:08:22.320 Continental Holdings immediately. And this sudden move is filling a 0:08:22.400 --> 0:08:25.640 keyboid at United. It provides a potential successor who has 0:08:25.720 --> 0:08:30.320 deep airline roots to uh do the company. Uh. The 0:08:30.360 --> 0:08:35.480 stock price for United Airlines is up eight good day 0:08:35.480 --> 0:08:38.360 for the airline stocks overall to American up about two 0:08:38.360 --> 0:08:40.720 and a half percent, Dealta up one point seven percent, 0:08:40.720 --> 0:08:44.520 in Southwest up two percent. Since you mentioned Abercromby, we 0:08:44.600 --> 0:08:47.680 might as well go down another apparel road and look 0:08:47.720 --> 0:08:50.800 at G three. Now. They have a number of brands, 0:08:51.200 --> 0:08:55.920 uh Bass Shoes, for example, and unfortunately the news was 0:08:55.960 --> 0:08:59.160 about as bad for them as it was for Abercrombie 0:08:59.320 --> 0:09:02.320 when it came to earnings. G three with an unexpected 0:09:02.320 --> 0:09:05.720 loss for the fiscal second quarter revenue trailing. Analyst Savage 0:09:05.800 --> 0:09:08.760 esmates in Bloomberg survey G three's forecast for the third 0:09:08.840 --> 0:09:11.280 quarter in the year coming up shorter projections. You put 0:09:11.320 --> 0:09:15.600 that all together and the stock fell twenty point seven percent, 0:09:15.760 --> 0:09:18.520 just a bit more than just a quick comment on GAP. 0:09:18.559 --> 0:09:20.000 I feel kind of bad for them day because they 0:09:20.000 --> 0:09:23.880 had this big fire that destroyed their nine d square 0:09:23.920 --> 0:09:28.000 foot distribution facility in fish Kill. Was ravaged by flames 0:09:28.040 --> 0:09:31.319 Monday night. Employees escape safely, so that's the most important thing. 0:09:31.679 --> 0:09:34.600 But they announced they were investing nearly a hundred million 0:09:34.640 --> 0:09:37.760 dollars in this facility and adding jobs, so investor is 0:09:37.800 --> 0:09:40.480 concerned about being able to ship things out online. The 0:09:40.520 --> 0:09:43.920 price of the GAP stock down four point three percent today. 0:09:44.040 --> 0:09:46.840 Let's take a quick look now at our Volatility Index 0:09:46.840 --> 0:09:50.120 report brought to bias cboe VIS Options and Futures. Volatility 0:09:50.120 --> 0:09:53.280 can be harnessed with CBOVIS options in future associate disclosures 0:09:53.280 --> 0:09:57.240 and learn more at cbo dot com. Slash Powerful Outcomes VIX. 0:09:57.440 --> 0:10:00.000 Actually the VIC speaking out a small game that's at 0:10:00.040 --> 0:10:03.880 thirteen point oh four, up about a tenth of a percent, 0:10:04.559 --> 0:10:07.200 but still if you take a look at its long 0:10:07.320 --> 0:10:10.320 term average. It's well off the long term average of 0:10:10.400 --> 0:10:13.360 twenty and that makes people fret because quiet times like 0:10:13.400 --> 0:10:18.080 this can be accompanied by extremes. Alright, Dave, you're up. Hi, 0:10:18.920 --> 0:10:23.920 My name is Dave. Just what do you think you're doing. 0:10:24.400 --> 0:10:32.800 We're going for the price Dave drumlow roll please as 0:10:32.800 --> 0:10:35.240 we're getting ready for his stock of the day from 0:10:35.320 --> 0:10:39.360 Dave Wilson Tech Data. Right. You know, some stocks Kathleen 0:10:39.720 --> 0:10:42.679 vance to arise even though they have little support from analysts, 0:10:42.679 --> 0:10:46.520 and indeed the technology product distributor tech Data is one example. 0:10:46.800 --> 0:10:50.120 Now tech Data, they've been public for thirty years. Company 0:10:50.160 --> 0:10:52.840 shares trained on the ticker t e c D. They 0:10:53.000 --> 0:10:55.440 rose in each of the past three years and gained 0:10:55.480 --> 0:10:58.640 as much as percent this year. Yet data combined by 0:10:58.679 --> 0:11:03.040 Bloomberg shows animal was Cell. Ratings on tech Data out 0:11:03.120 --> 0:11:06.760 numbered buys three to two. As of yesterday, five other 0:11:06.800 --> 0:11:09.800 analysts had some version of the hole rating. The balance 0:11:09.800 --> 0:11:12.800 shifted in tech Data's favor today. Bank of America Merrill 0:11:12.920 --> 0:11:15.840 Lynch raised its rating to neutral from the equivalent of Cell. 0:11:16.240 --> 0:11:19.560 The firm sided week recent weakness and the shares, which 0:11:19.640 --> 0:11:23.000 dropped as much as eighteen percent after sending a record 0:11:23.160 --> 0:11:26.640 in June. Now tech data climbed as much as seven percent. 0:11:26.720 --> 0:11:29.680 Today in the wake of Merrill's call, Stock closed with 0:11:29.679 --> 0:11:31.920 a game of four point three percent. That was the 0:11:31.960 --> 0:11:35.959 biggest advance pro tech data in the past three months. Alright, 0:11:36.040 --> 0:11:39.280 check data. Dave Wilson, Stocks Editor his chart of the day. 0:11:39.280 --> 0:11:41.360 If you want to follow him Twitter, just check out 0:11:41.400 --> 0:11:43.080 at the one Dave Hey. You can follow me at 0:11:43.120 --> 0:11:45.880 Katheene Underscore Hayes Catheine with the k H A y s. 0:11:45.920 --> 0:11:48.040 But the most important thing of all taking stock. On 0:11:48.080 --> 0:11:51.280 Bloomberg Radio, We're gonna be looking at Core next. The 0:11:51.320 --> 0:11:55.960 price of the cbot reached its lowest since two thousand nine. Boy, 0:11:56.000 --> 0:11:57.960 what does that mean for farmers? We're gonna find out. 0:11:58.280 --> 0:12:06.800 I'm Kathleen Hayes and this is Bloomberg. A look at corn, 0:12:06.920 --> 0:12:11.120 a look at soybeans, a look at the agricultural commodities industry. 0:12:11.480 --> 0:12:14.480 To find out where commodity prices are now and what 0:12:14.640 --> 0:12:17.200 investors are thinking about where they go next. That's coming 0:12:17.280 --> 0:12:18.360 up on Bloomberg Radio.