1 00:00:04,000 --> 00:00:08,320 Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Brio to Washington, 2 00:00:08,400 --> 00:00:13,400 Speaker 1: d C, Bloomber to Boston, Bloomberg Well Under to San Francisco, 3 00:00:13,560 --> 00:00:17,640 Speaker 1: Bloomberg nine to the country, US Exam Channel one nine 4 00:00:17,880 --> 00:00:20,880 Speaker 1: and around the globe the Bloomberg Radio plus SAP and 5 00:00:20,920 --> 00:00:25,720 Speaker 1: Bloomberg got gone. This is taking stock, coming upon taking stock. 6 00:00:25,760 --> 00:00:28,880 Speaker 1: We're going to take stock of Puerto Rico. House Republicans 7 00:00:28,920 --> 00:00:32,560 Speaker 1: have reached an agreement with the Obama administration in order 8 00:00:32,600 --> 00:00:35,480 Speaker 1: to provide Puerto Rico with a path to restructure it's 9 00:00:35,560 --> 00:00:39,199 Speaker 1: seventy billion dollars worth of debt. That will be the 10 00:00:39,200 --> 00:00:43,120 Speaker 1: first step towards ending a decade long recession in the 11 00:00:43,159 --> 00:00:45,800 Speaker 1: island Commonwealth. And we're also going to take a look 12 00:00:45,840 --> 00:00:48,479 Speaker 1: at the stock market under pressure today is traders and 13 00:00:48,560 --> 00:00:51,520 Speaker 1: investors contemplate the possibility of a June rate hike by 14 00:00:51,600 --> 00:00:53,600 Speaker 1: the Fed. Let's get back to the Bloomberg news room. 15 00:00:53,720 --> 00:00:56,160 Speaker 1: Charlie Pellett has a Bloomberg business. Lael, all right, thank 16 00:00:56,160 --> 00:00:58,640 Speaker 1: you very much. Kathleen Hayes, thank you, Phim Fox stock 17 00:00:58,680 --> 00:01:00,840 Speaker 1: Star declining in. This update is brought to you by 18 00:01:01,480 --> 00:01:06,839 Speaker 1: National Realty Returns on Cash and rented real estate. Find 19 00:01:06,880 --> 00:01:10,520 Speaker 1: them at n r I. A dot net SMP five 20 00:01:10,600 --> 00:01:13,680 Speaker 1: hundred index heading toward a two month low amid concerned 21 00:01:13,720 --> 00:01:16,880 Speaker 1: that a Federal Reserve interest rate increases early as next 22 00:01:16,880 --> 00:01:21,360 Speaker 1: month could further burden a struggling global economy. Tesla Motor 23 00:01:21,400 --> 00:01:23,840 Speaker 1: shares turning around today. They are now up two point 24 00:01:23,840 --> 00:01:26,880 Speaker 1: three percent. Tesla planning to sell about one point four 25 00:01:26,920 --> 00:01:30,440 Speaker 1: billion in stock to help pay for an expansion. Colin 26 00:01:30,560 --> 00:01:33,480 Speaker 1: Langon is an analyst at UBS Securities. He's got a 27 00:01:33,520 --> 00:01:36,120 Speaker 1: cell rating on Tesla shares. I mean this is a 28 00:01:36,200 --> 00:01:38,880 Speaker 1: growth stock. I mean I think every time they to 29 00:01:39,000 --> 00:01:41,479 Speaker 1: a capital raise, it's all driven by reasons. In this 30 00:01:41,520 --> 00:01:44,680 Speaker 1: case the model three order demand being very strong, so 31 00:01:44,760 --> 00:01:46,360 Speaker 1: there's a lot of hype into it, a lot of 32 00:01:46,520 --> 00:01:51,400 Speaker 1: higher growth expectations. UBS is trimming some positions at the 33 00:01:51,440 --> 00:01:54,160 Speaker 1: investment bank, is part of a plan to reduce costs 34 00:01:54,160 --> 00:01:57,600 Speaker 1: across the business in response to a revenue slump. This 35 00:01:57,720 --> 00:02:01,160 Speaker 1: according to people with knowledge of the situation. New York 36 00:02:01,200 --> 00:02:04,240 Speaker 1: Fed President Bill Dudley says the Federal Reserve is moving 37 00:02:04,280 --> 00:02:06,960 Speaker 1: closer to raising interest rates at one of its next 38 00:02:07,000 --> 00:02:10,119 Speaker 1: two meetings, and the fact this message is getting through 39 00:02:10,160 --> 00:02:13,400 Speaker 1: to financial markets is welcome news. The tenure up to 40 00:02:13,520 --> 00:02:17,040 Speaker 1: thirty seconds yield there one point eight four percent. Big 41 00:02:17,120 --> 00:02:21,280 Speaker 1: day for American Eagle Outfitters, Urban Outfitters, and Perry Ellis International. 42 00:02:21,360 --> 00:02:25,080 Speaker 1: They are all rallying. American Eagle up eighteen percent, Urban 43 00:02:25,160 --> 00:02:29,240 Speaker 1: up thirteen point six percent, Perry up fourteen point seven percent, 44 00:02:29,760 --> 00:02:32,239 Speaker 1: SMP down nine points, to drop of four tenths of 45 00:02:32,280 --> 00:02:34,359 Speaker 1: one percent, to Down down ninety three, a drop of 46 00:02:34,440 --> 00:02:38,200 Speaker 1: point five percent, Gold down nine fifty now a drop 47 00:02:38,240 --> 00:02:41,800 Speaker 1: of one and a half percent, And at three thirty 48 00:02:41,800 --> 00:02:43,919 Speaker 1: two on Wall Street, a look at other news from 49 00:02:43,919 --> 00:02:46,680 Speaker 1: around the world. Thank you, Charlie from the Bloomberg News Room. 50 00:02:46,720 --> 00:02:48,760 Speaker 1: I'm David Gura. This news update is brought to you 51 00:02:48,800 --> 00:02:51,399 Speaker 1: by the Jeep Grand Cherokee, the most awarded suv ever. 52 00:02:51,560 --> 00:02:53,800 Speaker 1: The Grand Cherokee continues to raise the bar with its 53 00:02:53,880 --> 00:02:57,360 Speaker 1: luxurious interior and legendary four by four capability. Drive one 54 00:02:57,400 --> 00:03:00,240 Speaker 1: at your local Jeep dealer. Today, a senior Greek air 55 00:03:00,240 --> 00:03:03,120 Speaker 1: safety official is telling the Associated Press that debris found 56 00:03:03,160 --> 00:03:05,960 Speaker 1: so far and the Mediterranean does not belong to an aircraft. 57 00:03:06,280 --> 00:03:08,720 Speaker 1: The egypt Air jetliner was bound from Paris to Cairo, 58 00:03:08,800 --> 00:03:11,960 Speaker 1: with sixty six people aboard. It reportedly crashed after what 59 00:03:12,000 --> 00:03:15,880 Speaker 1: authorities call a mysterious series of extremely abrupt turns, for 60 00:03:16,000 --> 00:03:18,640 Speaker 1: no immediate signs of any survivors. Egypt Air Flight eight 61 00:03:18,680 --> 00:03:21,120 Speaker 1: oh four was an Airbus A three twenty carrying fifty 62 00:03:21,160 --> 00:03:23,880 Speaker 1: six passengers and ten crew members. It went down about 63 00:03:23,919 --> 00:03:26,680 Speaker 1: halfway between the Greek island of Crete and Egypt's northern 64 00:03:26,680 --> 00:03:30,400 Speaker 1: coastline after takeoff from Paris. Egypt Aviation minister says it 65 00:03:30,440 --> 00:03:32,359 Speaker 1: may have been a terrorist attack, but the White House 66 00:03:32,400 --> 00:03:35,320 Speaker 1: says it's too early to say exactly what happened. Ahmed 67 00:03:35,400 --> 00:03:38,280 Speaker 1: Adell is vice president of Egypt Air. We have found 68 00:03:38,320 --> 00:03:40,840 Speaker 1: the wreckage. We confirmed that the wreckage has been found, 69 00:03:41,800 --> 00:03:45,880 Speaker 1: and the search and rescue teams are now uh it's 70 00:03:45,960 --> 00:03:49,280 Speaker 1: turning into a search and recovery. French President Francois Olan, 71 00:03:49,400 --> 00:03:51,960 Speaker 1: speaking to the media in Paris through a translator today, 72 00:03:52,000 --> 00:03:54,520 Speaker 1: said his government is sending planes and ships to support 73 00:03:54,560 --> 00:03:58,600 Speaker 1: the search efforts, but we should express our solidarity, would 74 00:03:58,600 --> 00:04:01,160 Speaker 1: take to the families and also to find out the 75 00:04:01,240 --> 00:04:04,840 Speaker 1: cause of the catastrophie. Frances Lowerhouse of Parliament has approved 76 00:04:04,840 --> 00:04:06,920 Speaker 1: a two month extension of the state of emergency that 77 00:04:07,000 --> 00:04:09,760 Speaker 1: was declared after the deadly attacks in Paris. The measure 78 00:04:10,000 --> 00:04:12,560 Speaker 1: is aimed at covering the European Championship soccer tournament in 79 00:04:12,560 --> 00:04:15,240 Speaker 1: the Tour de France. Government Andrew Cuomo says it's time 80 00:04:15,280 --> 00:04:18,080 Speaker 1: to reform New York State's liquor laws. One suggestion includes 81 00:04:18,160 --> 00:04:22,080 Speaker 1: letting restaurants serve alcohol before noon. Global News twenty four 82 00:04:22,120 --> 00:04:24,680 Speaker 1: hours a day, powered by our journalists and more than 83 00:04:24,680 --> 00:04:27,000 Speaker 1: a hundred fifty news bureaus around the world. From the 84 00:04:27,040 --> 00:04:31,560 Speaker 1: Bloomberg News Room, I'm David Gura, Charlie, and we thank you, 85 00:04:31,600 --> 00:04:34,359 Speaker 1: and again recapping a move law for US equities. The 86 00:04:34,480 --> 00:04:37,159 Speaker 1: SMP five hundred index down nine now a drop of 87 00:04:37,279 --> 00:04:40,559 Speaker 1: five tenths of one percent. I'm Charlie Pellett, and that's 88 00:04:40,600 --> 00:04:46,919 Speaker 1: a Bloomberg Business Flash. This is taking Stock with Kathleen 89 00:04:47,000 --> 00:04:51,200 Speaker 1: Hayes and Pin Fox on Bloomberg Radio. Can it be 90 00:04:51,800 --> 00:04:56,920 Speaker 1: a breakthrough in the deadlock over Puerto Rico's debt between 91 00:04:56,960 --> 00:05:01,279 Speaker 1: House Republicans and the Obama administration. Well, let's just find out. 92 00:05:01,320 --> 00:05:05,719 Speaker 1: From Billy House from Bloomberg Politics, Bloomberg News. He's joining 93 00:05:05,800 --> 00:05:08,360 Speaker 1: us from Washington, d C. This is a story he's 94 00:05:08,360 --> 00:05:11,040 Speaker 1: been covering very closely. In fact, I just tweeted out 95 00:05:11,040 --> 00:05:14,000 Speaker 1: the story he co wrote with Laura Litvan at House 96 00:05:14,000 --> 00:05:18,480 Speaker 1: in session. Welcome to taking stock. Good afternoon, So what's 97 00:05:18,520 --> 00:05:20,960 Speaker 1: going on, what's in the deal, and does it look 98 00:05:21,000 --> 00:05:25,320 Speaker 1: like this time this is something that's really going to pass? Well, 99 00:05:25,440 --> 00:05:29,080 Speaker 1: the boat counting begins. So the latter question there is 100 00:05:29,839 --> 00:05:34,120 Speaker 1: is still up to two mendual members to decide how 101 00:05:34,120 --> 00:05:36,599 Speaker 1: they're going to go on this latest rewrite of a 102 00:05:36,680 --> 00:05:41,120 Speaker 1: bill to rescue Puerto Rico from its financial crisis. It's 103 00:05:41,160 --> 00:05:44,040 Speaker 1: this bill, like the previous one, creates an oversight board 104 00:05:44,880 --> 00:05:48,279 Speaker 1: UH and also creates a restructuring process for the island 105 00:05:48,400 --> 00:05:53,560 Speaker 1: seventy billion dollar in debt debt UH. So it's it's 106 00:05:53,600 --> 00:05:57,320 Speaker 1: brand new. It was dropped right before UH midnight, introduced 107 00:05:57,320 --> 00:06:01,320 Speaker 1: in the House, and all the the Treasures Department, along 108 00:06:01,360 --> 00:06:05,640 Speaker 1: with top House leader Speaker Paul Ryan in the top 109 00:06:05,680 --> 00:06:10,279 Speaker 1: Democrat Nancy Pelosi have signed off on that. Now. Of course, 110 00:06:10,400 --> 00:06:13,679 Speaker 1: as we've seen in the past, will rank and file 111 00:06:13,760 --> 00:06:18,040 Speaker 1: members join in cryan support of this as outside groups 112 00:06:18,360 --> 00:06:22,360 Speaker 1: still called the bill out billy have they? The lawmaker 113 00:06:22,360 --> 00:06:24,520 Speaker 1: has been able to figure out how to handle the 114 00:06:24,560 --> 00:06:28,720 Speaker 1: appointments to that seven member board that's supposed to oversee 115 00:06:29,200 --> 00:06:33,720 Speaker 1: Puerto Rico's finances. Well, yeah, that's that's absolutely was one 116 00:06:33,720 --> 00:06:37,119 Speaker 1: of the hang ups in the last few weeks, even 117 00:06:37,160 --> 00:06:41,040 Speaker 1: involving constitutional questions about whether the administration or the White 118 00:06:41,040 --> 00:06:45,039 Speaker 1: House could be to congressional appointees and vice versa. What 119 00:06:45,120 --> 00:06:48,680 Speaker 1: they've come up with as an elaborate system where there's 120 00:06:48,760 --> 00:06:52,719 Speaker 1: categories of the board number seven and which they have 121 00:06:52,800 --> 00:06:57,599 Speaker 1: overlapping rights and authority and different ways they can be 122 00:06:57,640 --> 00:07:01,440 Speaker 1: appointed or blocked. But it's a cat home of rules. 123 00:07:01,839 --> 00:07:04,440 Speaker 1: But they think they finally gotten that Reich cube that 124 00:07:04,560 --> 00:07:10,560 Speaker 1: will allow it to be passed. So this bill is 125 00:07:10,800 --> 00:07:15,120 Speaker 1: already of your story points out being perhaps at least 126 00:07:15,160 --> 00:07:18,720 Speaker 1: objections are being raised. Rather it means that he's going 127 00:07:18,760 --> 00:07:21,600 Speaker 1: to vote against it. You quote a Representative John Fleming, 128 00:07:21,680 --> 00:07:24,200 Speaker 1: a Louisiana Republican, he's a member of the ultra conservative 129 00:07:24,200 --> 00:07:28,560 Speaker 1: House Freedom Caucus, saying they have to consider whether Congress 130 00:07:28,560 --> 00:07:33,040 Speaker 1: will hold these states and territories responsible for their obligations 131 00:07:33,080 --> 00:07:35,480 Speaker 1: at cetera. And I guess what this is when I'm 132 00:07:35,480 --> 00:07:39,640 Speaker 1: really driving out is the politics, because it's it's encouraging 133 00:07:39,760 --> 00:07:42,520 Speaker 1: to see any kind of bill, you know, emerging now 134 00:07:42,560 --> 00:07:44,920 Speaker 1: in the midst of this heated presidential race, and they're 135 00:07:44,960 --> 00:07:48,000 Speaker 1: important races in the House and Senate as well, that 136 00:07:48,080 --> 00:07:51,480 Speaker 1: could get a problem that's been festering for some time solved, 137 00:07:52,320 --> 00:07:54,040 Speaker 1: is that when you hear from someone like Fleming, is 138 00:07:54,080 --> 00:07:57,000 Speaker 1: he just posturing for the folks at home. Well that's 139 00:07:57,000 --> 00:08:00,360 Speaker 1: a good point. Uh. First of all, the back as 140 00:08:00,360 --> 00:08:03,800 Speaker 1: a campaign here, as you point out, and the backdrop 141 00:08:03,920 --> 00:08:07,840 Speaker 1: is also that some outside groups worried about their classifications 142 00:08:07,840 --> 00:08:11,720 Speaker 1: of bonds or whatever, how they might be prioritized or 143 00:08:11,960 --> 00:08:17,240 Speaker 1: bumped down in this restructuring process, will turn out that 144 00:08:17,280 --> 00:08:19,520 Speaker 1: they are ads. They are running ads. In the past, 145 00:08:19,600 --> 00:08:23,720 Speaker 1: they've classified this bill as a bailout. Now, Speaker Paul 146 00:08:23,840 --> 00:08:28,040 Speaker 1: Ryan that will have the task of convincing his rank 147 00:08:28,080 --> 00:08:33,280 Speaker 1: and file members two come to the realization. At least, 148 00:08:33,280 --> 00:08:35,280 Speaker 1: he argues, this is no way a bill out, no 149 00:08:35,440 --> 00:08:38,000 Speaker 1: tax fair money will be used, and you have the 150 00:08:38,000 --> 00:08:41,280 Speaker 1: political courage to vote for something he says, is absolutely 151 00:08:41,320 --> 00:08:45,880 Speaker 1: necessary for the territory. UH already the House Freedom Practus, 152 00:08:45,960 --> 00:08:49,560 Speaker 1: which of course was the the group that was always 153 00:08:49,679 --> 00:08:54,760 Speaker 1: UH in in conflict with previous Speaker John Bayner says 154 00:08:54,800 --> 00:08:56,680 Speaker 1: it is not ready to commit to this new bill. 155 00:08:57,640 --> 00:09:00,760 Speaker 1: But to be fair, the chairman Jim's Or in Ohio 156 00:09:00,960 --> 00:09:03,120 Speaker 1: says that he has not read the new bill yet 157 00:09:03,160 --> 00:09:09,320 Speaker 1: and he's withholding his judgment. Billy, the sort of battle 158 00:09:09,400 --> 00:09:13,720 Speaker 1: that that goes on, it's because the island is spending 159 00:09:13,760 --> 00:09:18,040 Speaker 1: a third of its revenue servicing its debt. Does this 160 00:09:18,520 --> 00:09:24,200 Speaker 1: agreement do anything to alleviate the pressure on the economy, Well, 161 00:09:24,240 --> 00:09:28,240 Speaker 1: it does it, uh. First of all, it will it 162 00:09:28,679 --> 00:09:33,280 Speaker 1: provides a short stay of any litigation from creditors to 163 00:09:34,040 --> 00:09:38,600 Speaker 1: otherwise go outside of this deal to to to get paid. 164 00:09:39,200 --> 00:09:43,680 Speaker 1: That that's a brief rest. It lasts toll at least 165 00:09:43,800 --> 00:09:45,920 Speaker 1: February of next year. And now, of course that would 166 00:09:45,960 --> 00:09:49,560 Speaker 1: be just a month after the elections of a new 167 00:09:49,600 --> 00:09:53,280 Speaker 1: governor or governor at the same time. This, uh, this 168 00:09:53,360 --> 00:09:59,240 Speaker 1: will allow categories of creditors to decide whether as a group, 169 00:09:59,400 --> 00:10:04,360 Speaker 1: if enough of im agree to accept a prioritization scheme 170 00:10:04,760 --> 00:10:09,440 Speaker 1: or some sort of uh you know, haircut. Uh. So 171 00:10:09,760 --> 00:10:14,559 Speaker 1: it's all those were combined with other financial oversight uh 172 00:10:15,280 --> 00:10:19,040 Speaker 1: benefits at least in the view of the bill riders, 173 00:10:19,080 --> 00:10:22,880 Speaker 1: that could help aid the territories government to to kind 174 00:10:22,880 --> 00:10:27,400 Speaker 1: of wade through what it can on this enormous, enormous pressure. 175 00:10:27,440 --> 00:10:30,800 Speaker 1: It's it's same. Thank you very much for spending time 176 00:10:30,840 --> 00:10:34,959 Speaker 1: with us and clarifying the situation. Billy House, House, reporter 177 00:10:35,160 --> 00:10:38,120 Speaker 1: on our congressional team for Bloomberg News, coming to us 178 00:10:38,120 --> 00:10:42,160 Speaker 1: from the capital in Washington, d C. Home to Bloomberg 179 00:10:43,400 --> 00:10:46,520 Speaker 1: one and one oh five point seven h D two 180 00:10:47,000 --> 00:10:51,960 Speaker 1: in the Washington metro area. Talking about Puerto Rico and 181 00:10:52,440 --> 00:10:56,240 Speaker 1: House Republicans and the Obama administration reaching an agreement on 182 00:10:56,360 --> 00:11:05,840 Speaker 1: restructuring Puerto Rican debt? Is it time to buy Apple? Google? Facebook? 183 00:11:06,280 --> 00:11:08,559 Speaker 1: Keep it right here on Bloomberg Radio, we're gonna be 184 00:11:08,559 --> 00:11:11,520 Speaker 1: speaking with Loo Pianta Dosi from Eating Vance. He's added 185 00:11:11,559 --> 00:11:14,000 Speaker 1: to those holdings to his portfolio. Was recently. This is 186 00:11:14,000 --> 00:11:14,800 Speaker 1: Bloomberg Radio.