1 00:00:02,880 --> 00:00:06,279 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,320 --> 00:00:09,399 Speaker 1: dot Com, the Radio plus Mobile Act and on your radio. 3 00:00:09,680 --> 00:00:13,640 Speaker 1: This is a Bloomberg Business flag from Bloomberg World Handquaters. 4 00:00:13,720 --> 00:00:17,200 Speaker 1: I'm Charlie Pott. Stocks very close to the lows of 5 00:00:17,200 --> 00:00:19,520 Speaker 1: the session. We've got just over an hour ago before 6 00:00:19,560 --> 00:00:22,040 Speaker 1: the closing bell on a Friday. Here stocks falling in 7 00:00:22,079 --> 00:00:24,279 Speaker 1: the worst sell off since Britain voted to leave the 8 00:00:24,280 --> 00:00:28,720 Speaker 1: European Union. This after a Federal Reserve official signaled more 9 00:00:28,800 --> 00:00:32,400 Speaker 1: willingness to raise interest rates. The SMP five hundred index 10 00:00:32,520 --> 00:00:36,040 Speaker 1: is down two percent, now tumbling forty four points to 11 00:00:36,720 --> 00:00:40,480 Speaker 1: thirty seven. Nasdaq is down one O seven, dropping two 12 00:00:40,479 --> 00:00:44,519 Speaker 1: point one percent down, Industrials down three D twenty one points, 13 00:00:44,520 --> 00:00:47,640 Speaker 1: a drop of one point seven percent, Tenure down twenty 14 00:00:47,640 --> 00:00:50,440 Speaker 1: one thirty seconds, yield there one point six seven percent, 15 00:00:50,800 --> 00:00:54,440 Speaker 1: Gold down seven seventy thirt thirty a drop of six 16 00:00:54,480 --> 00:00:58,360 Speaker 1: tenths of one percent, and West Texas Intermediate Crew down 17 00:00:58,440 --> 00:01:01,680 Speaker 1: three point six percent forty five n one barrel on 18 00:01:01,920 --> 00:01:08,240 Speaker 1: WT I I'm Charlie Pellett, and that's a Bloomberg Business flash. 19 00:01:08,880 --> 00:01:12,399 Speaker 1: You're listening to taking stock with pin box and Kathleen 20 00:01:12,480 --> 00:01:18,160 Speaker 1: Hayes on Bloomberg Radio, have you been drinking coconut water? Well, 21 00:01:18,200 --> 00:01:21,840 Speaker 1: if you're like many of the consumers in the developed world, 22 00:01:22,080 --> 00:01:26,360 Speaker 1: you've never been keener than you have now on coconut water. Starbucks, 23 00:01:26,360 --> 00:01:30,240 Speaker 1: for example, wants the tropical fruit in order to use 24 00:01:30,360 --> 00:01:34,280 Speaker 1: it for its milk to make lattees, and the celebrity 25 00:01:34,360 --> 00:01:38,200 Speaker 1: Rihanna promotes its water as a trendy sports drink. But 26 00:01:38,280 --> 00:01:41,840 Speaker 1: will there be any coconuts left to actually provide that 27 00:01:42,280 --> 00:01:46,119 Speaker 1: all that customers want as a refuser? Is our Caribbean 28 00:01:46,319 --> 00:01:49,680 Speaker 1: correspondent for Bloomberg News and joins us now from Santa Domingo, 29 00:01:49,880 --> 00:01:52,760 Speaker 1: the Dominican Republic, EZRA. Thank you very much for being 30 00:01:52,760 --> 00:01:55,440 Speaker 1: here and thank you for your story. Uh tell us 31 00:01:55,440 --> 00:02:00,520 Speaker 1: the details of the coconut business. I'm glad to be here. Sure, 32 00:02:00,560 --> 00:02:03,680 Speaker 1: in the last decade in the United States and Europe, 33 00:02:03,680 --> 00:02:06,400 Speaker 1: we've seen an explosion in the demand for coconuts. As 34 00:02:06,400 --> 00:02:10,480 Speaker 1: you mentioned, coconut water is that increasingly trendy drink. Um 35 00:02:10,720 --> 00:02:14,359 Speaker 1: coconut milk, coconut creams are in demand. Even the husks 36 00:02:14,440 --> 00:02:18,679 Speaker 1: from coconuts are being used for um car parts and 37 00:02:18,880 --> 00:02:21,840 Speaker 1: the end seats and vehicles for the filling. So there's 38 00:02:21,840 --> 00:02:24,600 Speaker 1: been a real explosion in the demand worldwide for UM 39 00:02:24,800 --> 00:02:29,400 Speaker 1: coconut products. Meanwhile, in the Caribbean, UM they've never really 40 00:02:29,400 --> 00:02:34,640 Speaker 1: rebounded from when the demand was lower. They've struggled with 41 00:02:34,800 --> 00:02:39,120 Speaker 1: natural disasters and insect UM that spreads what's called lethal 42 00:02:39,200 --> 00:02:42,120 Speaker 1: yellowing disease. That's that kills up the fruit and has 43 00:02:42,200 --> 00:02:45,920 Speaker 1: killed entire plantations, and farmers just haven't replanted UM. So 44 00:02:45,960 --> 00:02:47,840 Speaker 1: they're not able to keep up with the demand that 45 00:02:48,120 --> 00:02:51,840 Speaker 1: we've seen increasing in the last decade. But they could UM. 46 00:02:51,880 --> 00:02:54,600 Speaker 1: They could start planting more and I'm assuming as the 47 00:02:54,639 --> 00:02:59,120 Speaker 1: prices rise the incentive is there. It's not like UM, 48 00:02:59,160 --> 00:03:02,160 Speaker 1: you know, the base that are dying off or bananas 49 00:03:02,200 --> 00:03:05,640 Speaker 1: that are some day never gonna be possible to grow again. 50 00:03:06,040 --> 00:03:08,519 Speaker 1: It's just that they haven't really been on their a 51 00:03:08,720 --> 00:03:11,600 Speaker 1: game lately. Right, Yeah, Well, there's two things that uh 52 00:03:11,840 --> 00:03:14,680 Speaker 1: em play here. First is this legally yelling disease. Yellowing 53 00:03:14,720 --> 00:03:18,200 Speaker 1: disease is pretty devastating across the Caribbean, and they really 54 00:03:18,200 --> 00:03:21,359 Speaker 1: haven't figured out a way to replace. The current is 55 00:03:21,520 --> 00:03:24,760 Speaker 1: what's called the tall Atlantic palm, with another ridle that 56 00:03:24,760 --> 00:03:28,320 Speaker 1: that yields the same fruit um and even when they 57 00:03:28,360 --> 00:03:33,320 Speaker 1: do replant a palm tree, it takes about seven years 58 00:03:33,440 --> 00:03:36,400 Speaker 1: for to start producing coconuts, So there's a delay there 59 00:03:36,440 --> 00:03:39,000 Speaker 1: between the time that they replant these plantations and they 60 00:03:39,040 --> 00:03:41,560 Speaker 1: actually begin to yield fruit. And then the other thing 61 00:03:41,680 --> 00:03:43,680 Speaker 1: is for some of these farmers that have these small 62 00:03:44,360 --> 00:03:48,320 Speaker 1: farms and they're contributing their buying. We visited a distributor 63 00:03:48,440 --> 00:03:50,880 Speaker 1: up in north coast of the Dominican Republic who who 64 00:03:50,880 --> 00:03:53,760 Speaker 1: bought from local farmers, and he told us that, you know, 65 00:03:53,800 --> 00:03:56,640 Speaker 1: the price has increased, so they're receiving more for and 66 00:03:56,720 --> 00:03:59,080 Speaker 1: they've planted less, but their income is the same. So 67 00:03:59,400 --> 00:04:02,720 Speaker 1: there's really no incentive for them to cut down their 68 00:04:02,760 --> 00:04:05,680 Speaker 1: trees and replant or expand their plantations because their income 69 00:04:05,760 --> 00:04:09,000 Speaker 1: is the same due to the increasing prices. As is 70 00:04:09,040 --> 00:04:12,600 Speaker 1: it possible that other markets will fill the gap, because 71 00:04:12,880 --> 00:04:16,240 Speaker 1: as you note, the coconut is not indigenous to the 72 00:04:16,279 --> 00:04:19,799 Speaker 1: cur that's true, and it's not one of the largest 73 00:04:20,040 --> 00:04:23,799 Speaker 1: producers in the world. In the Asian countries, Philippines, Um, India, 74 00:04:23,839 --> 00:04:27,680 Speaker 1: Indonesia are the world's leaders, and across the globe, we 75 00:04:27,760 --> 00:04:30,000 Speaker 1: have seen in the last twenty years. In the ten 76 00:04:30,080 --> 00:04:34,440 Speaker 1: years um a increase in production and um the amount 77 00:04:34,440 --> 00:04:36,400 Speaker 1: of an increase in the amount of land that's planted 78 00:04:36,440 --> 00:04:40,159 Speaker 1: for coconuts. So the people, like the producers of Vita 79 00:04:40,160 --> 00:04:44,080 Speaker 1: Cocoa in the US, which consumers are certainly recognized, said 80 00:04:44,120 --> 00:04:47,160 Speaker 1: that they have no no issues with um, you know, 81 00:04:47,720 --> 00:04:51,640 Speaker 1: sourcing their coconuts and they're not worried about a worldwide shortage. 82 00:04:53,160 --> 00:04:55,440 Speaker 1: I believe that the Vita Coca they source a lot 83 00:04:55,520 --> 00:04:59,679 Speaker 1: of their coconut water from Brazil. Correct, that's correct. Actually, 84 00:04:59,720 --> 00:05:02,200 Speaker 1: the story there goes um that the two founders of 85 00:05:02,240 --> 00:05:04,760 Speaker 1: Vita Coco met two Brazilian women in a bar in 86 00:05:04,839 --> 00:05:07,560 Speaker 1: Manhattan and asked them what they missed most from their 87 00:05:07,560 --> 00:05:10,120 Speaker 1: home country, and they said the coconut water. And that's 88 00:05:10,120 --> 00:05:13,559 Speaker 1: where the idea for but Coco was born. So they sigh, 89 00:05:15,080 --> 00:05:17,640 Speaker 1: all right, Azra, thanks very much. Awesome story and Santa 90 00:05:17,720 --> 00:05:19,600 Speaker 1: Domingo must be a sweet place to be as well 91 00:05:19,640 --> 00:05:23,680 Speaker 1: as refeaser as our Caribbean correspondent in Santa Amingo, Dominican 92 00:05:23,720 --> 00:05:26,599 Speaker 1: Republic talking about the shorage and coconuts. This story has 93 00:05:26,600 --> 00:05:28,760 Speaker 1: gotten a ton of hits on the website, so definitely 94 00:05:28,839 --> 00:05:31,200 Speaker 1: check it out. When you have a chance on Bloomberg 95 00:05:31,400 --> 00:05:34,560 Speaker 1: dot Com. Let's go now to my favorite place in 96 00:05:34,600 --> 00:05:38,039 Speaker 1: the entire world, Columbus, Ohio, where Mark Nakatt, the government 97 00:05:38,040 --> 00:05:40,600 Speaker 1: reporter for Bloomberg News, standing by to talk to us 98 00:05:40,600 --> 00:05:44,400 Speaker 1: about what's going on in global politics and Mark, we're 99 00:05:44,400 --> 00:05:48,600 Speaker 1: going to kick it off in China reviving the heartland. 100 00:05:48,680 --> 00:05:53,160 Speaker 1: What what's going on with China really coming here to 101 00:05:53,279 --> 00:05:56,080 Speaker 1: buy stuff? Yes, we have a story up on the 102 00:05:56,080 --> 00:06:00,000 Speaker 1: website by my colleague Andrew Meeta talking about how despite 103 00:06:00,120 --> 00:06:03,039 Speaker 1: the fact that China is sort of vilified on the 104 00:06:03,080 --> 00:06:05,800 Speaker 1: campaign trail as sort of being an unfair trading partner 105 00:06:05,880 --> 00:06:09,280 Speaker 1: and you know, manipulating currency and so forth, China has 106 00:06:09,279 --> 00:06:13,080 Speaker 1: actually been uh doing a lot of investing in the 107 00:06:13,200 --> 00:06:15,920 Speaker 1: United States and particularly here in Ohio where I'm based. 108 00:06:16,600 --> 00:06:19,520 Speaker 1: The story talks about how we have, uh there's an 109 00:06:19,560 --> 00:06:22,599 Speaker 1: old General Motors factory that used to make Chevy trailblazers 110 00:06:22,600 --> 00:06:25,359 Speaker 1: that shut down a few years ago, and uh Chinese 111 00:06:25,360 --> 00:06:28,839 Speaker 1: glass company Fulio Glass has essentially taken over this plans 112 00:06:29,080 --> 00:06:32,440 Speaker 1: has brought inkers to make automotive glass and it's part 113 00:06:32,480 --> 00:06:35,880 Speaker 1: of billions of dollars that China has invested in Ohio 114 00:06:35,920 --> 00:06:38,760 Speaker 1: and Michigan alone and across the US in terms of UH, 115 00:06:38,839 --> 00:06:42,000 Speaker 1: you know, having an imprint in in um um doing 116 00:06:42,000 --> 00:06:43,880 Speaker 1: business here in the United States. I will tell you 117 00:06:43,920 --> 00:06:47,400 Speaker 1: that my grandfather worked at that old General Motors factory 118 00:06:47,440 --> 00:06:51,120 Speaker 1: in Columbus, Ohio for like thirty years. UM and we 119 00:06:51,200 --> 00:06:53,320 Speaker 1: have a history in Ohio. I I obviously I'm a 120 00:06:53,360 --> 00:06:55,799 Speaker 1: Buckeye as well. I'm from Granville. We have a history 121 00:06:55,800 --> 00:06:59,360 Speaker 1: in Ohio of dealing quite well with foreign investment. I mean, 122 00:06:59,400 --> 00:07:02,880 Speaker 1: I remember when Honda and the Japanese came into Marysville 123 00:07:02,920 --> 00:07:06,560 Speaker 1: to put in a plant there and we, uh, we 124 00:07:06,600 --> 00:07:08,000 Speaker 1: did all right with it. And now they're going to 125 00:07:08,080 --> 00:07:11,360 Speaker 1: make the accurate NSX there, which is pretty sweet, right. 126 00:07:11,440 --> 00:07:13,280 Speaker 1: That was a big deal at the time. Form Our 127 00:07:13,280 --> 00:07:16,679 Speaker 1: Governor Jim Rhodes had a personal relationship with the Honda 128 00:07:16,720 --> 00:07:18,760 Speaker 1: chairman at the time, convinced him to come to Ohio. 129 00:07:18,800 --> 00:07:23,240 Speaker 1: It was their first sort of non Japanese plant and 130 00:07:23,280 --> 00:07:26,880 Speaker 1: it's worked out great for uh, certainly Honda and for Ohio. 131 00:07:26,960 --> 00:07:30,960 Speaker 1: It's a huge employer in central Ohio and for the state. Well, Mark, 132 00:07:31,000 --> 00:07:33,840 Speaker 1: can you connect that with some of the political rhetoric 133 00:07:33,960 --> 00:07:38,160 Speaker 1: that we've heard from both candidates because I imagine those 134 00:07:38,480 --> 00:07:41,680 Speaker 1: voters also work at some of these plants, but sure do. 135 00:07:41,800 --> 00:07:43,720 Speaker 1: And there's kind of a disconnect there because a lot 136 00:07:43,800 --> 00:07:45,840 Speaker 1: of the rhetoric you here on the on the campaign trail, 137 00:07:45,880 --> 00:07:49,200 Speaker 1: particularly as it relates to trade, is how um bad 138 00:07:49,240 --> 00:07:53,280 Speaker 1: it's been for workers and manufacturing in the states like 139 00:07:53,360 --> 00:07:58,360 Speaker 1: Ohio and Pennsylvania. Um. You know, trade deals like NAFTA 140 00:07:58,480 --> 00:08:02,920 Speaker 1: and the proposed TPP and are blamed for jobs and 141 00:08:03,000 --> 00:08:07,000 Speaker 1: companies leaving the state and country as opposed to you know, 142 00:08:07,080 --> 00:08:10,000 Speaker 1: foreign investment coming here and and then really that's sort 143 00:08:10,000 --> 00:08:12,680 Speaker 1: of the pushback against the you know, the criticism of 144 00:08:12,720 --> 00:08:16,520 Speaker 1: trade deals that it facilitates the kind of um uh 145 00:08:16,800 --> 00:08:21,280 Speaker 1: foreign investment and job creation that's made possible by these 146 00:08:21,280 --> 00:08:24,840 Speaker 1: trade deals, and you know, it's it's partly the case 147 00:08:24,920 --> 00:08:28,480 Speaker 1: that the candidates haven't reconciled that sort of this distinction 148 00:08:28,560 --> 00:08:30,520 Speaker 1: on the on the trail. I mean, the voters in 149 00:08:30,560 --> 00:08:33,040 Speaker 1: this cycle are very angry. You know, they're looking for 150 00:08:33,080 --> 00:08:37,199 Speaker 1: somebody to blame because either they're unemployed or unemployed or 151 00:08:37,240 --> 00:08:39,839 Speaker 1: their wages are stagnant. And it's easy to blame these 152 00:08:39,840 --> 00:08:41,960 Speaker 1: trade deals and much harder to sort of push back 153 00:08:42,000 --> 00:08:44,559 Speaker 1: and show what the value of these agreements are. Well. 154 00:08:44,559 --> 00:08:48,480 Speaker 1: The concern, of course that Donald Trump, I guess and 155 00:08:48,559 --> 00:08:52,319 Speaker 1: Bernie Sanders had for about the trade deals was really, 156 00:08:52,840 --> 00:08:56,040 Speaker 1: um the balance, right, I mean, how many jobs have 157 00:08:56,440 --> 00:08:58,720 Speaker 1: we gained compared to how many jobs have they gained? 158 00:08:58,720 --> 00:09:01,120 Speaker 1: And I guess now Hillary clintons against TPP as well, 159 00:09:01,160 --> 00:09:04,199 Speaker 1: since that helps her get a few votes. But what 160 00:09:04,600 --> 00:09:09,360 Speaker 1: about let's shift and talk about, um more more concerns 161 00:09:09,360 --> 00:09:13,640 Speaker 1: that are candidates have with international relations? What about Donald 162 00:09:13,679 --> 00:09:17,200 Speaker 1: Trump's deal with Vladimir Putin? Right now? I mean, he 163 00:09:17,320 --> 00:09:19,800 Speaker 1: is getting slammed by Hillary Clinton and a lot of 164 00:09:19,840 --> 00:09:22,640 Speaker 1: people in the media, UM for saying that he thinks 165 00:09:23,000 --> 00:09:26,559 Speaker 1: what uh, Putin is a better leader than Obama. Right, 166 00:09:26,600 --> 00:09:28,880 Speaker 1: It's actually kind of a double whammy there. UM. In 167 00:09:28,960 --> 00:09:32,760 Speaker 1: the forum that was held on Wednesday, UM, regarding issues 168 00:09:33,080 --> 00:09:36,480 Speaker 1: pertaining to the Commander in chief UH and veterans UH, 169 00:09:36,559 --> 00:09:39,960 Speaker 1: Donald Trump said both that he thinks, you know, Putin 170 00:09:40,000 --> 00:09:41,800 Speaker 1: has been a great leader and as you said, better 171 00:09:41,840 --> 00:09:44,240 Speaker 1: than than President Obama. But he also went on to 172 00:09:45,000 --> 00:09:48,719 Speaker 1: UH complain about and in almost disparage, US general is 173 00:09:48,760 --> 00:09:51,559 Speaker 1: saying that they've essentially been reduced to rubble under the 174 00:09:51,600 --> 00:09:54,320 Speaker 1: Obama administration. So it's kind of this double whammy of 175 00:09:54,760 --> 00:09:59,920 Speaker 1: you know, not not defending United States generals and pray 176 00:10:00,000 --> 00:10:03,240 Speaker 1: sing a foreign adversary, Russia. And he's also given other 177 00:10:03,280 --> 00:10:06,080 Speaker 1: interviews where he's sort of poo poo the idea that 178 00:10:06,440 --> 00:10:10,320 Speaker 1: you know, Russia might be trying to hack into or 179 00:10:10,360 --> 00:10:13,280 Speaker 1: interfere with US elections, you know, allegations that have been 180 00:10:13,320 --> 00:10:16,160 Speaker 1: out there and concerns about foreign involvement. You know, Trump's 181 00:10:16,200 --> 00:10:18,600 Speaker 1: tried to sort of, you know, suggest that might not 182 00:10:18,640 --> 00:10:20,640 Speaker 1: be the case. And it's also a left you know, 183 00:10:20,720 --> 00:10:23,560 Speaker 1: Hillary Clinton in a position to say, you know, especially 184 00:10:23,559 --> 00:10:25,600 Speaker 1: to other Republicans, look, you know, is this what you 185 00:10:25,640 --> 00:10:28,840 Speaker 1: really want in your nominee? That you know, if a candidate, 186 00:10:28,920 --> 00:10:31,480 Speaker 1: you know, even for eight years ago, had sort of 187 00:10:31,520 --> 00:10:34,840 Speaker 1: praised Putin and disparaged the president United States, you would 188 00:10:34,880 --> 00:10:38,720 Speaker 1: not see a favorable reaction, for sure. Thanks very much. 189 00:10:38,800 --> 00:10:42,720 Speaker 1: Mark Niquette is our government reporter for Bloomberg News coming 190 00:10:42,720 --> 00:10:46,080 Speaker 1: to us from Columbus, Ohio, and you can follow Mark 191 00:10:46,320 --> 00:10:51,360 Speaker 1: on Twitter at m Niquette. This is taking stock the 192 00:10:52,440 --> 00:10:56,200 Speaker 1: Columbus Ohio. Are you familiar with Columbus Ohio? H I? Oh, 193 00:10:56,559 --> 00:10:59,480 Speaker 1: what a Great State. Yeah, and they also produced you 194 00:11:01,320 --> 00:11:04,000 Speaker 1: Well Done. All Right, I'm PIM Fox my co host 195 00:11:04,040 --> 00:11:13,439 Speaker 1: Matt Miller. This is taking stock, and this is Bloombergh.