1 00:00:04,000 --> 00:00:08,320 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:08,400 --> 00:00:13,400 Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, 3 00:00:13,560 --> 00:00:17,919 Speaker 1: Bloomberg to the Country Series Exam Channel one nine, and 4 00:00:18,120 --> 00:00:22,120 Speaker 1: around the globe the Bloomberg Radio Plus and Bloomberg dot Com. 5 00:00:22,239 --> 00:00:26,319 Speaker 1: This is taking Stock. I'm Kathleen Hayes. Welcome back. My 6 00:00:26,440 --> 00:00:29,320 Speaker 1: co host Pim Fox is out of the office today. 7 00:00:29,400 --> 00:00:33,400 Speaker 1: A big day for auto sales, the likes of GM 8 00:00:33,400 --> 00:00:37,519 Speaker 1: and Ford having a decline in their recent auto sales, 9 00:00:37,920 --> 00:00:42,720 Speaker 1: while Kia looking pretty good. In fact, Kia announced record 10 00:00:42,880 --> 00:00:46,160 Speaker 1: May sales. We're going to find out how much Hamsters 11 00:00:46,280 --> 00:00:49,680 Speaker 1: will be helping those sales. First, let's get to Charlie 12 00:00:49,720 --> 00:00:51,840 Speaker 1: Pellow in the newsroom. He's got a bloom big business 13 00:00:51,840 --> 00:00:54,560 Speaker 1: flash and stock. So Hi, Thank you, Kathleen. Twenty nine 14 00:00:54,560 --> 00:00:56,640 Speaker 1: minutes to go ahead of the clothes on this page 15 00:00:56,640 --> 00:01:00,200 Speaker 1: book Wednesday. We are brought to you by Sectors to 16 00:01:00,280 --> 00:01:02,840 Speaker 1: E t F S. Why buy a single stock when 17 00:01:02,920 --> 00:01:05,520 Speaker 1: you can invest in the entire sector of visits sector 18 00:01:05,800 --> 00:01:08,600 Speaker 1: s P d R S dot com or call one 19 00:01:08,920 --> 00:01:13,240 Speaker 1: sector E t F Federal Reserve says the U. S. 20 00:01:13,280 --> 00:01:16,880 Speaker 1: Economy expanded at a modest pace across most of the 21 00:01:16,920 --> 00:01:20,639 Speaker 1: countries since mid April, causing the labor market to tighten 22 00:01:20,800 --> 00:01:25,039 Speaker 1: as employers continued adding jobs and nudging wages higher. In 23 00:01:25,080 --> 00:01:28,880 Speaker 1: its page book report, the Fed said quote wages grew 24 00:01:28,959 --> 00:01:33,600 Speaker 1: modestly and price pressures grew slightly in most districts. Stocks 25 00:01:33,600 --> 00:01:36,840 Speaker 1: a little changed after the SMP five d index captain's 26 00:01:36,920 --> 00:01:41,400 Speaker 1: longest stretch of stretch of monthly advances since two thousand fourteen, 27 00:01:41,760 --> 00:01:44,360 Speaker 1: first trading day of the new month. Stocks are higher 28 00:01:44,440 --> 00:01:47,760 Speaker 1: right now SMP of two points to two thousand ninety nine, 29 00:01:48,120 --> 00:01:51,320 Speaker 1: a gain of point one percent, down, industrials up nine 30 00:01:51,360 --> 00:01:54,760 Speaker 1: again also a point one percent, and stack up six 31 00:01:54,880 --> 00:01:58,320 Speaker 1: a gain of point one percent. One issue for investors 32 00:01:58,520 --> 00:02:02,000 Speaker 1: is the deal making in ament and government regulation. Bob 33 00:02:02,080 --> 00:02:06,720 Speaker 1: dall As, senior portfolio manager at Neuvine Asset Management, Sadly, 34 00:02:07,000 --> 00:02:08,800 Speaker 1: we just don't know what the rules are. You know, 35 00:02:08,880 --> 00:02:11,639 Speaker 1: you you're do an M and a transaction and then 36 00:02:11,639 --> 00:02:14,760 Speaker 1: the government turns around and and breaks it up later, 37 00:02:15,000 --> 00:02:17,600 Speaker 1: or you don't know what the regulatory environment is going 38 00:02:17,639 --> 00:02:21,919 Speaker 1: to be or the tax environment. Like investors with uncertainty, 39 00:02:22,000 --> 00:02:24,920 Speaker 1: corporate managements are facing the same thing, so they're very 40 00:02:24,919 --> 00:02:29,240 Speaker 1: reluctant to step forward, and investments stead stayed well below 41 00:02:29,240 --> 00:02:32,280 Speaker 1: what we'd like to see. Gold down three ten younds 42 00:02:32,320 --> 00:02:35,240 Speaker 1: to twelve fourteen, a drop of three tenths of one percent, 43 00:02:35,360 --> 00:02:39,959 Speaker 1: Crude now hired by seven cents, seventeen, naval gain of 44 00:02:40,040 --> 00:02:43,120 Speaker 1: point one percent, and three two on Wall Street. Now 45 00:02:43,120 --> 00:02:45,840 Speaker 1: we'll look at other news. Thank you, Charlie from the 46 00:02:45,840 --> 00:02:49,040 Speaker 1: Bloomberg News room. I'm Rainey, innocent. CIO. Police on the 47 00:02:49,080 --> 00:02:51,360 Speaker 1: campus of U c l A say today's shooting was 48 00:02:51,440 --> 00:02:54,880 Speaker 1: a murder suicide. The campus had been on lockdown since 49 00:02:54,880 --> 00:02:57,240 Speaker 1: this morning when reports of a shooting came in. The 50 00:02:57,280 --> 00:03:00,480 Speaker 1: lockdown has now been lifted and official say the campus 51 00:03:00,639 --> 00:03:03,960 Speaker 1: is safe. A French company says it's special undersea search 52 00:03:04,080 --> 00:03:07,000 Speaker 1: vessel has detected signals from one of the flight recorders 53 00:03:07,040 --> 00:03:09,560 Speaker 1: on egypt Air eight oh four that crashed into the 54 00:03:09,560 --> 00:03:12,799 Speaker 1: Mediterranean Sea last month. A company statement does not say 55 00:03:12,840 --> 00:03:15,000 Speaker 1: how it knows that the signals were from the egypt 56 00:03:15,000 --> 00:03:18,040 Speaker 1: Air black box. The French investigation agency b e A 57 00:03:18,240 --> 00:03:21,200 Speaker 1: says it's impossible to determine from the signals whether it 58 00:03:21,360 --> 00:03:24,919 Speaker 1: is the flight's data or voice recorder. Donald Trump tops 59 00:03:25,000 --> 00:03:28,000 Speaker 1: Hillary Clinton on honesty. According to a new national poll 60 00:03:28,040 --> 00:03:31,640 Speaker 1: by Rasmussen Reports, thirty percent of voters found Trump more 61 00:03:31,680 --> 00:03:35,640 Speaker 1: honest than most politicians. That's compared to fifteen percent for Clinton. 62 00:03:35,880 --> 00:03:39,960 Speaker 1: But voters found both presidential candidates less honest than most 63 00:03:40,080 --> 00:03:46,160 Speaker 1: other politicians say Clinton and fort say Trump is less honest. 64 00:03:46,800 --> 00:03:49,720 Speaker 1: May was a violent month in Chicago. Police say there 65 00:03:49,720 --> 00:03:53,320 Speaker 1: were sixty six murders and more than three hundred shootings 66 00:03:53,480 --> 00:03:56,920 Speaker 1: in the city last month. Interim Police Superintendent Eddie Johnson 67 00:03:56,960 --> 00:03:59,080 Speaker 1: says a city needs to do a better job of 68 00:03:59,120 --> 00:04:01,960 Speaker 1: stopping repeat offenders. Some of the parts that we are 69 00:04:02,080 --> 00:04:05,880 Speaker 1: getting correct is simply holding these individuals accountable for repeat 70 00:04:05,920 --> 00:04:09,840 Speaker 1: gun offenses. So I'll be spearheading the charge to hold 71 00:04:09,880 --> 00:04:12,160 Speaker 1: them more accountable. So we need our judicial partners in 72 00:04:12,200 --> 00:04:15,240 Speaker 1: our state legislators to help the help us hold them accountable. 73 00:04:15,360 --> 00:04:18,599 Speaker 1: Johnson says more than sixty people were struck by gunfire 74 00:04:18,720 --> 00:04:22,000 Speaker 1: over the Memorial Day weekend. Global News twenty four hours 75 00:04:22,000 --> 00:04:24,720 Speaker 1: a day, powered by our journalists in more than one 76 00:04:25,080 --> 00:04:28,000 Speaker 1: fifty news bureaus around the world. From the Bloomberg Newsroom, 77 00:04:28,040 --> 00:04:31,640 Speaker 1: I'm Rainey Incencio, Charlie and we thank you, and again 78 00:04:31,720 --> 00:04:35,320 Speaker 1: recapping stocks to remain higher. S and P five index 79 00:04:35,480 --> 00:04:39,080 Speaker 1: up three now to two thousand, ninety nine point sixty seven, 80 00:04:39,120 --> 00:04:42,159 Speaker 1: a gain of point one percent. I'm Charlie Pellett and 81 00:04:42,279 --> 00:04:46,799 Speaker 1: that's a bloom Bird business flash. You're listening to Taking 82 00:04:46,880 --> 00:04:54,040 Speaker 1: Stock with Fox on Bloomberg Radio. If you're US big 83 00:04:54,080 --> 00:04:57,760 Speaker 1: three auto manufacturing me, it was not so hot for you. 84 00:04:58,000 --> 00:05:01,400 Speaker 1: Declines for Ford and GM. In fact, GM sales down 85 00:05:02,560 --> 00:05:06,960 Speaker 1: four down six percent. Christs are up just one percent. However, 86 00:05:07,560 --> 00:05:12,320 Speaker 1: if you are the head of Kia Motors America, you 87 00:05:12,400 --> 00:05:16,120 Speaker 1: are clapping today. I am sure announcing the best every 88 00:05:16,360 --> 00:05:21,640 Speaker 1: male sales on record, nearly sixty three thousand units. It 89 00:05:21,760 --> 00:05:25,560 Speaker 1: was highlighted by double digit increases for the Sportage and 90 00:05:25,600 --> 00:05:29,440 Speaker 1: Sorrento c u VS. Very happy to welcome to the show. 91 00:05:29,480 --> 00:05:31,520 Speaker 1: Now someone who can tell us what's going on, what's 92 00:05:31,680 --> 00:05:35,320 Speaker 1: driving this game, and that'd be Michael Sprague's CEO, chief 93 00:05:35,360 --> 00:05:38,520 Speaker 1: operating officer for Kia Motors America, and he's joining us 94 00:05:38,560 --> 00:05:42,880 Speaker 1: from Irvine, California, this afternoon. Welcome Michael, Thanks for having 95 00:05:42,920 --> 00:05:46,680 Speaker 1: me so a good month. You've had a few good months. 96 00:05:47,200 --> 00:05:49,320 Speaker 1: What what to what do you attribute the strength of 97 00:05:49,400 --> 00:05:53,000 Speaker 1: Kia sales now? I would say we've got the right 98 00:05:53,279 --> 00:05:56,480 Speaker 1: um products for the market right now. Uh, that you 99 00:05:56,600 --> 00:06:00,840 Speaker 1: mentioned our CUV sales were up in May. Consider are 100 00:06:00,880 --> 00:06:03,840 Speaker 1: all new Sportage which just came out the spring head 101 00:06:03,839 --> 00:06:08,440 Speaker 1: its best month ever, uh, selling over units and our 102 00:06:08,480 --> 00:06:11,320 Speaker 1: Sorrentos see you be sold close to twelve thousand units. 103 00:06:11,800 --> 00:06:14,720 Speaker 1: And as we've been talking about over the last year, 104 00:06:15,160 --> 00:06:18,800 Speaker 1: consumers are shifting to cuvs, and we've got two of 105 00:06:18,839 --> 00:06:21,080 Speaker 1: the newest products in the market. Just to make sure 106 00:06:21,080 --> 00:06:26,000 Speaker 1: everbody realizes too that a CUV is a crossover utility vehicle. 107 00:06:26,600 --> 00:06:30,200 Speaker 1: So how much do you expect the Kia Hamsters to 108 00:06:30,320 --> 00:06:33,240 Speaker 1: add to that? I think this is so fun. As 109 00:06:33,279 --> 00:06:36,840 Speaker 1: of Friday they are back after a two year hiatus, 110 00:06:36,920 --> 00:06:41,080 Speaker 1: dancing and singing away yet again. Yes, absolutely, we've introduced 111 00:06:41,080 --> 00:06:43,400 Speaker 1: them back in two thousand and nine when we introduced 112 00:06:43,400 --> 00:06:47,640 Speaker 1: the Soul and which is also a crossover utility vehicle, 113 00:06:48,000 --> 00:06:51,880 Speaker 1: and every year our Soul sales have gone up and 114 00:06:52,120 --> 00:06:54,839 Speaker 1: uh we had this is now the seventh campaign and 115 00:06:54,920 --> 00:06:57,760 Speaker 1: we found a direct link between when we advertised that 116 00:06:58,360 --> 00:07:00,960 Speaker 1: with the Hamsters are sold, they go up and so 117 00:07:01,520 --> 00:07:04,599 Speaker 1: our dealers were asking for it, consumers were asking for it, 118 00:07:04,680 --> 00:07:06,800 Speaker 1: so we thought now was the right time to bring 119 00:07:06,839 --> 00:07:08,880 Speaker 1: them back. Well, I've bet a lot of TV networks 120 00:07:08,880 --> 00:07:11,560 Speaker 1: were asking for it too. I mean, that's a it's 121 00:07:11,600 --> 00:07:13,920 Speaker 1: an ad that would bring in some revenue. But instead 122 00:07:13,960 --> 00:07:16,400 Speaker 1: you're going to be showing only on YouTube and some 123 00:07:16,560 --> 00:07:20,920 Speaker 1: thirty four thousand movie theaters across the country. Why not television? Well, 124 00:07:20,960 --> 00:07:24,720 Speaker 1: you know, we we see television ratings to client viewership 125 00:07:24,760 --> 00:07:27,880 Speaker 1: decline over the summer because a lot of reruns come 126 00:07:27,920 --> 00:07:30,680 Speaker 1: back and people are out doing other activities and a 127 00:07:30,680 --> 00:07:33,240 Speaker 1: lot of people are actually going to the movies, and 128 00:07:33,440 --> 00:07:36,280 Speaker 1: particularly between Memorial Day through Labor Day, it's one of 129 00:07:36,280 --> 00:07:39,360 Speaker 1: the biggest times for the movie industry, and you know, 130 00:07:39,400 --> 00:07:42,080 Speaker 1: people are there to be entertained, and we've got an 131 00:07:42,080 --> 00:07:45,040 Speaker 1: ad that we think will definitely connect with consumers as 132 00:07:45,080 --> 00:07:48,520 Speaker 1: the preparing to watch the latest movies. Do you think 133 00:07:48,960 --> 00:07:50,600 Speaker 1: is this part of a move away? Do you think 134 00:07:50,680 --> 00:07:53,320 Speaker 1: Americans viewing habits have changed so much that's just not 135 00:07:53,320 --> 00:07:55,360 Speaker 1: worth it to pay the big bucks to advertise on 136 00:07:55,360 --> 00:07:57,880 Speaker 1: a big network. No, I would say that, you know, 137 00:07:58,040 --> 00:08:01,600 Speaker 1: it's all everything works um in compliments to each other. 138 00:08:01,640 --> 00:08:03,640 Speaker 1: I mean, we still have, as a brand that's only 139 00:08:03,640 --> 00:08:06,120 Speaker 1: been in the US for the last twenty years, we 140 00:08:06,200 --> 00:08:09,280 Speaker 1: still have to use broadcast television to raise awareness for 141 00:08:09,320 --> 00:08:12,640 Speaker 1: the brand um and also you know, YouTube and other 142 00:08:12,720 --> 00:08:15,880 Speaker 1: digital means in now cinema as well. All of them 143 00:08:15,960 --> 00:08:20,040 Speaker 1: helped compliment and spread the message because consumers are watching 144 00:08:20,120 --> 00:08:23,960 Speaker 1: and consuming content in so many different places. Michael Sprague 145 00:08:24,040 --> 00:08:27,240 Speaker 1: is the CEO of Kia Motors America. When you see 146 00:08:27,280 --> 00:08:29,520 Speaker 1: the sales figures for some for some of the big 147 00:08:29,560 --> 00:08:33,720 Speaker 1: auto makers, big auto sellers in the US, this in 148 00:08:33,720 --> 00:08:36,160 Speaker 1: the month of May, does that concern you at all? 149 00:08:36,200 --> 00:08:38,480 Speaker 1: Do you think there's the question being raised today for 150 00:08:38,640 --> 00:08:43,160 Speaker 1: a lot of US is have auto sales peaked well? 151 00:08:43,200 --> 00:08:45,880 Speaker 1: You know, And again it goes back to product and 152 00:08:45,960 --> 00:08:48,760 Speaker 1: if if you have the right product, then your sales 153 00:08:48,800 --> 00:08:52,440 Speaker 1: should continue to be pretty strong. And they mentioned we 154 00:08:52,520 --> 00:08:55,240 Speaker 1: believe we've got the right product. Over sixty three percent 155 00:08:55,280 --> 00:08:59,200 Speaker 1: of our sales are for cuvs or people movers. So 156 00:08:59,240 --> 00:09:02,720 Speaker 1: the sportage current of the soul in the Sedona, uh, 157 00:09:02,760 --> 00:09:04,760 Speaker 1: And so I think we're feeling pretty good about the 158 00:09:04,800 --> 00:09:07,280 Speaker 1: outlook for the rest of the year. Gas prices are 159 00:09:07,320 --> 00:09:09,600 Speaker 1: going up a little bit, not too much of a concern. 160 00:09:09,679 --> 00:09:12,240 Speaker 1: At this point, the FED is probably going to raise 161 00:09:12,320 --> 00:09:14,839 Speaker 1: the rates. I think we'll be able to manage through that. 162 00:09:15,280 --> 00:09:17,760 Speaker 1: You know, the election. I think there's still there's some 163 00:09:17,840 --> 00:09:20,000 Speaker 1: people that are holding back a little bit until they 164 00:09:20,040 --> 00:09:22,760 Speaker 1: see what happens with the election. But for a brand 165 00:09:22,840 --> 00:09:26,440 Speaker 1: like US, that's basically all new since we came over 166 00:09:26,480 --> 00:09:29,320 Speaker 1: the last couple of years. You know, people are discovering 167 00:09:29,360 --> 00:09:31,760 Speaker 1: us and they're excited by what we're offering. You've just 168 00:09:31,840 --> 00:09:36,240 Speaker 1: opened a manufacturing plant in Mexico. Will uh, you'll be 169 00:09:36,280 --> 00:09:39,120 Speaker 1: shipping a lot more than autos into the US from Mexico. 170 00:09:39,520 --> 00:09:43,360 Speaker 1: And will it save you money to have autos built 171 00:09:44,080 --> 00:09:47,880 Speaker 1: in North America. Yes, So this is now our second 172 00:09:48,160 --> 00:09:51,760 Speaker 1: production facility in North America. The first one we have 173 00:09:52,000 --> 00:09:54,880 Speaker 1: is in West Point, Georgia, where we build the Optima 174 00:09:54,920 --> 00:09:59,199 Speaker 1: and Sorrento, which makes up about forty of our US sales. 175 00:09:59,600 --> 00:10:03,120 Speaker 1: And so now having this other facility in northern Mexico 176 00:10:03,240 --> 00:10:06,480 Speaker 1: does allow us to ship vehicles there to the US, 177 00:10:06,559 --> 00:10:09,000 Speaker 1: but it also allows us to ship vehicle to other 178 00:10:09,040 --> 00:10:12,320 Speaker 1: parts of Central and South America. So it's from a 179 00:10:12,360 --> 00:10:18,000 Speaker 1: strategic standpoint, it's very beneficial to the US. Well, Michael Sprague, 180 00:10:18,000 --> 00:10:20,439 Speaker 1: thank you so much for joining us. Congratulations on your 181 00:10:21,000 --> 00:10:23,160 Speaker 1: your sales for May, and and thanks for bringing the 182 00:10:23,440 --> 00:10:28,679 Speaker 1: hamsters back for Kia being having the opportunity. Okay, Michael 183 00:10:28,720 --> 00:10:33,280 Speaker 1: Sprague is chief operating Officer executive vice president for Kia 184 00:10:33,360 --> 00:10:39,480 Speaker 1: Motors America, joining us today from Irvine, California. We're gonna 185 00:10:39,480 --> 00:10:43,080 Speaker 1: be taking a look at stocks next. The averages are 186 00:10:43,120 --> 00:10:46,120 Speaker 1: slightly higher today. We've got the Dow Jones up about 187 00:10:46,160 --> 00:10:49,680 Speaker 1: attempt sixteen points to seventeen thousand, eight three, with SMB 188 00:10:49,800 --> 00:10:52,920 Speaker 1: five hundred up three point four, about point two to 189 00:10:53,760 --> 00:10:56,040 Speaker 1: the Nastacks at point one five. That's seven points at 190 00:10:57,200 --> 00:11:05,240 Speaker 1: This is Bloomberg Radio. Stocks are modestly higher today two 191 00:11:05,360 --> 00:11:07,720 Speaker 1: weeks to the FED while they raise raids or not, 192 00:11:08,120 --> 00:11:12,439 Speaker 1: and are opportunities better overseas for investors. That's coming up 193 00:11:12,760 --> 00:11:14,200 Speaker 1: now on Bloomgrigg Radio.