1 00:00:02,120 --> 00:00:05,480 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:05,559 --> 00:00:08,640 Speaker 1: dot Com, the radio plus mobile lab and on your radio. 3 00:00:08,920 --> 00:00:12,960 Speaker 1: This is a Bloomberg Business flight from Bloomberg World Headquarters. 4 00:00:13,000 --> 00:00:16,080 Speaker 1: I'm Charlie Pellott. A mixed picture for equities right now. 5 00:00:16,120 --> 00:00:19,840 Speaker 1: The downin s MPR lower nestack is Hilt's head. Right 6 00:00:19,840 --> 00:00:22,400 Speaker 1: over to the first word, breaking news deaths for today's 7 00:00:22,440 --> 00:00:26,440 Speaker 1: afternoon call. And here he is Bill Maloney, Good afternoon, Charlie. 8 00:00:26,480 --> 00:00:29,360 Speaker 1: Manus averages are quiet today, with the Dow currently down 9 00:00:29,400 --> 00:00:32,120 Speaker 1: thirteen and a half points, sysipes down one and then 10 00:00:32,200 --> 00:00:35,200 Speaker 1: NAZAC is higher by nine. The small cap six hundred 11 00:00:35,280 --> 00:00:37,680 Speaker 1: is little changed and the US ten yield at one 12 00:00:37,760 --> 00:00:41,199 Speaker 1: point five four percent. Five out of ten sub sectors 13 00:00:41,240 --> 00:00:44,959 Speaker 1: are high, led by gains in healthcare, technology and consumer staples. 14 00:00:45,360 --> 00:00:49,320 Speaker 1: Energy and materials led to the downside down Transports fall 15 00:00:49,400 --> 00:00:52,440 Speaker 1: thirty and as a biotechs gain four. Utilities are a 16 00:00:52,440 --> 00:00:55,320 Speaker 1: little changed and the VIX is up by three percent. 17 00:00:55,720 --> 00:00:59,560 Speaker 1: Down Leaders to the downside included American Express, DuPont and Caterpillar. 18 00:01:00,040 --> 00:01:04,559 Speaker 1: Leaders included Fiser, Disney and Goldman Sachs. Noegia cruise lines 19 00:01:04,560 --> 00:01:07,600 Speaker 1: fell as much as ten point eight percent after its results, 20 00:01:07,800 --> 00:01:10,480 Speaker 1: while Endyo International gain as much as twenty eight percent 21 00:01:10,840 --> 00:01:13,680 Speaker 1: after its earnings, and Walt Disney reports after the belt 22 00:01:13,680 --> 00:01:16,280 Speaker 1: tonight Esmates are for at dollar sixty one on revenues 23 00:01:16,480 --> 00:01:19,480 Speaker 1: of fourteen point one six billion, Live on the first 24 00:01:19,520 --> 00:01:21,679 Speaker 1: year Baking News. Ask on Bill Maloney chili alright, thank 25 00:01:21,680 --> 00:01:23,679 Speaker 1: you very much, and to hear live breaking news over 26 00:01:23,720 --> 00:01:26,319 Speaker 1: your Bloomberg Time squawk s q U a w K 27 00:01:26,600 --> 00:01:29,800 Speaker 1: on your terminal. We are brought to you by Marx 28 00:01:29,880 --> 00:01:33,119 Speaker 1: Penneth l LP, ranked among the top three for rensic 29 00:01:33,160 --> 00:01:36,119 Speaker 1: accounting firms in New York by the New York Law 30 00:01:36,200 --> 00:01:38,920 Speaker 1: Journal for the six year in a row. Visit Mars 31 00:01:39,040 --> 00:01:42,960 Speaker 1: Penneth dot com. I'm Charlie Pellett and that's a Bloomberg 32 00:01:43,000 --> 00:01:47,600 Speaker 1: business flash. You're listening to taking Stock with Kathleen and 33 00:01:47,640 --> 00:01:52,960 Speaker 1: Pim Fox on Bloomberg Radio. According to Texas public health officials, 34 00:01:53,000 --> 00:01:55,919 Speaker 1: the death of a new born in the Houston area 35 00:01:56,000 --> 00:02:00,000 Speaker 1: has been linked to the Zeka virus, and today Governor 36 00:02:00,160 --> 00:02:02,800 Speaker 1: Rick Scott of Florida said that the federal government must 37 00:02:02,800 --> 00:02:06,000 Speaker 1: stop playing politics and Congress needs to immediately come back 38 00:02:06,040 --> 00:02:09,560 Speaker 1: to session to resolve the dispute over funding for ZEKA. 39 00:02:10,320 --> 00:02:12,600 Speaker 1: Here to tell us more is Brian Ry. He is 40 00:02:12,720 --> 00:02:17,280 Speaker 1: senior healthcare policy analyst for Bloomberg Intelligence Government Team. He 41 00:02:17,360 --> 00:02:21,720 Speaker 1: joins us from Washington, d C, home to Bloomberg FM 42 00:02:21,760 --> 00:02:25,760 Speaker 1: and one oh five point seven h D two. Brian, 43 00:02:26,480 --> 00:02:31,320 Speaker 1: this new bit of news is not really new, It's 44 00:02:31,320 --> 00:02:35,480 Speaker 1: only new in its specifics. Why is it taking this 45 00:02:35,680 --> 00:02:39,040 Speaker 1: kind of news item to get people's attention about the 46 00:02:39,040 --> 00:02:42,040 Speaker 1: seriousness of the Zeke virus. Well, Pam, first of all, 47 00:02:42,040 --> 00:02:44,160 Speaker 1: thanks for having me on. And it's a great question because, 48 00:02:44,200 --> 00:02:46,040 Speaker 1: as you sort of pointed out, a lot of things 49 00:02:46,080 --> 00:02:47,760 Speaker 1: are going on right now and none of them are 50 00:02:47,880 --> 00:02:51,320 Speaker 1: very good. Governor Scott dan in Florida also announced and 51 00:02:51,360 --> 00:02:54,120 Speaker 1: I think they've identified four more cases, bringing the total 52 00:02:54,200 --> 00:02:57,200 Speaker 1: up to twenty one. The CDC has issued the first ever, 53 00:02:57,560 --> 00:03:00,280 Speaker 1: as far as we can tell, first ever domestic travel 54 00:03:00,320 --> 00:03:03,639 Speaker 1: advisory for a neighborhood in Miami. And the Olympics are 55 00:03:03,639 --> 00:03:07,160 Speaker 1: in an area of the world that's also been ravaged 56 00:03:07,520 --> 00:03:09,880 Speaker 1: um by the virus, and you know, has the potential 57 00:03:09,919 --> 00:03:11,920 Speaker 1: to have some not so good news coming out of 58 00:03:11,960 --> 00:03:15,639 Speaker 1: the Olympics. UM. Now, the problem for Congress is twofold. 59 00:03:15,720 --> 00:03:18,360 Speaker 1: Number one, Republicans and Democrats have had a hard time 60 00:03:18,400 --> 00:03:21,160 Speaker 1: coming together on the right level of funding and legislation 61 00:03:21,240 --> 00:03:24,280 Speaker 1: to to help address this. And the second problem is, 62 00:03:24,440 --> 00:03:26,000 Speaker 1: even if they could come to an agreement, they're not 63 00:03:26,040 --> 00:03:28,320 Speaker 1: in session right now. They're out on their summer recess 64 00:03:28,440 --> 00:03:31,480 Speaker 1: until until Labor Day. Uh. And so it's one of 65 00:03:31,520 --> 00:03:33,400 Speaker 1: those things that we're going to continue to have this 66 00:03:33,480 --> 00:03:36,360 Speaker 1: slow drip of news news news, and oh, by the way, 67 00:03:36,400 --> 00:03:38,840 Speaker 1: we're now less than three months away from the election. 68 00:03:38,880 --> 00:03:41,400 Speaker 1: That sort of helps to harden those political stances even more. 69 00:03:42,240 --> 00:03:46,720 Speaker 1: What was the political atmosphere in June when Senate Democrats 70 00:03:46,960 --> 00:03:50,720 Speaker 1: blocked a compromise bill. You know, the the attitude at 71 00:03:50,720 --> 00:03:52,800 Speaker 1: first earlier in the year was actually okay, you know, 72 00:03:52,840 --> 00:03:56,400 Speaker 1: certainly President Obama had wanted more money one point nine billion. 73 00:03:56,760 --> 00:03:59,280 Speaker 1: They felt like they had had a compromise between Senate 74 00:03:59,480 --> 00:04:02,720 Speaker 1: Democrats and Republicans at one point one billion. The Conference 75 00:04:02,720 --> 00:04:05,360 Speaker 1: Committee had worked that out. Uh. Senate Democrats, as you 76 00:04:05,480 --> 00:04:09,200 Speaker 1: pointed out, blocked a legislation over concerns about some some 77 00:04:09,280 --> 00:04:12,680 Speaker 1: provisions in the bill didn't specify some additional funding for 78 00:04:12,720 --> 00:04:15,720 Speaker 1: planned parenthood. For example, that's a lightning rod for both sides, 79 00:04:16,080 --> 00:04:17,839 Speaker 1: and they sort of drew a line in the sand 80 00:04:17,880 --> 00:04:20,640 Speaker 1: there and they adjourned for their summer recess without having 81 00:04:20,640 --> 00:04:23,520 Speaker 1: come to an agreement. Now, again, we don't know what 82 00:04:23,640 --> 00:04:25,320 Speaker 1: sort of mood they'll be in. You know that the 83 00:04:25,360 --> 00:04:27,600 Speaker 1: expression is absence makes the heart grow funder. I'm not 84 00:04:27,640 --> 00:04:30,280 Speaker 1: sure that's the case for Republicans and Democrats coming off 85 00:04:30,320 --> 00:04:33,200 Speaker 1: their their recess. But if this sort of thing it 86 00:04:33,320 --> 00:04:35,160 Speaker 1: changed to happen, my guess is we'll see them come 87 00:04:35,200 --> 00:04:38,359 Speaker 1: to some sort of an agreement uh in September. But again, 88 00:04:38,400 --> 00:04:40,800 Speaker 1: with an election three months away, neither side feels really 89 00:04:40,839 --> 00:04:43,839 Speaker 1: compelled to be the one that gives in. First we 90 00:04:43,960 --> 00:04:47,320 Speaker 1: mentioned Texas, also Florida. I want you to tell us 91 00:04:47,320 --> 00:04:50,200 Speaker 1: about what's going on in Puerto Rico. You know, it's 92 00:04:50,279 --> 00:04:52,680 Speaker 1: it's really bad uh there. And you know, a big 93 00:04:52,760 --> 00:04:56,160 Speaker 1: chunk of the funding that was certainly requested by President 94 00:04:56,160 --> 00:04:59,520 Speaker 1: Obama was to increase funding both for medicaid and additional 95 00:04:59,520 --> 00:05:03,080 Speaker 1: grants to help treat to help combat the population there. 96 00:05:03,400 --> 00:05:05,359 Speaker 1: And certainly, not only is it a problem for the 97 00:05:05,400 --> 00:05:08,240 Speaker 1: people within Puerto Rico, but because it's US territory, you know, 98 00:05:08,279 --> 00:05:11,719 Speaker 1: there's easy transit between the islands, um and and the 99 00:05:11,720 --> 00:05:13,279 Speaker 1: rest of the continent of the United States. And so 100 00:05:13,560 --> 00:05:17,640 Speaker 1: you've seen concerns. Certainly in Florida bipartisan both senators Republican 101 00:05:17,680 --> 00:05:21,320 Speaker 1: Marco Rubio Democrat Bill Nelson certainly want them to come 102 00:05:21,320 --> 00:05:23,920 Speaker 1: back and address this. And I think Rubio would even 103 00:05:23,960 --> 00:05:27,599 Speaker 1: be fine with the president's higher request. But certainly both 104 00:05:27,600 --> 00:05:30,680 Speaker 1: parties there want to get this fixed. You know. Unfortunately 105 00:05:31,000 --> 00:05:33,120 Speaker 1: for them so far, the rest of the country isn't 106 00:05:33,120 --> 00:05:35,720 Speaker 1: impacted by that. And you know the expression all politics 107 00:05:35,760 --> 00:05:38,000 Speaker 1: are local and right now it's it's something that's in 108 00:05:38,040 --> 00:05:40,280 Speaker 1: the news but hasn't really touched home for I guess 109 00:05:40,320 --> 00:05:44,880 Speaker 1: a sufficient number of Americans, well, Brian Uh to reconvene Congress. 110 00:05:45,279 --> 00:05:49,520 Speaker 1: Forty seven Senate Democrats have already asked the Senate Majority Leader, 111 00:05:49,680 --> 00:05:52,960 Speaker 1: Mitch McConnell, as well as Paul Ryan House Leader, to 112 00:05:53,040 --> 00:05:56,760 Speaker 1: go ahead and reconvene Congress immediately. You know they could 113 00:05:56,920 --> 00:06:00,000 Speaker 1: I think, um, you know, Senator McConnell's answer would probably well, 114 00:06:00,240 --> 00:06:02,240 Speaker 1: why should we reconvene for you so you can say 115 00:06:02,240 --> 00:06:03,640 Speaker 1: no again. You know, you had a bill we had 116 00:06:03,640 --> 00:06:06,400 Speaker 1: to compromise, uh there on the desk that you rejected 117 00:06:06,400 --> 00:06:08,440 Speaker 1: in June, and I think they feel comfortable that that's 118 00:06:08,480 --> 00:06:11,440 Speaker 1: the bill they want to move forward. Now. Again, events 119 00:06:11,440 --> 00:06:13,960 Speaker 1: can change very quickly, but I don't think that they're 120 00:06:13,960 --> 00:06:17,120 Speaker 1: necessarily going to heed the call of Democrats and Secretary 121 00:06:17,160 --> 00:06:19,560 Speaker 1: Hillary Clinton on the campaign trail to come back and 122 00:06:19,600 --> 00:06:21,560 Speaker 1: be seen as doing their bidding to just have this 123 00:06:21,880 --> 00:06:24,360 Speaker 1: become more and more of an argument over, for example, 124 00:06:24,400 --> 00:06:28,080 Speaker 1: planned parenthood instead of trying to address address the issue now. Again, 125 00:06:28,279 --> 00:06:30,640 Speaker 1: Republicans may decide that that's not something they want to 126 00:06:30,680 --> 00:06:32,359 Speaker 1: draw a line in the sand on either, But I 127 00:06:32,360 --> 00:06:35,120 Speaker 1: don't think that's the cases we sit here on August nine. 128 00:06:35,680 --> 00:06:39,839 Speaker 1: As we sit here, there are companies such as in Novio, Snofi, 129 00:06:40,040 --> 00:06:43,560 Speaker 1: and Glaxo smith Klein. They are working to develop a 130 00:06:43,680 --> 00:06:46,919 Speaker 1: Zeka vaccine. Did they rely on this kind of government 131 00:06:46,960 --> 00:06:49,240 Speaker 1: funding as well? Well, it certainly helps. And you know 132 00:06:49,320 --> 00:06:51,680 Speaker 1: two of the ones you mentioned U you know, Santa 133 00:06:51,720 --> 00:06:53,719 Speaker 1: Fee and Glaxo smith Klein are in fact working in 134 00:06:53,760 --> 00:06:56,120 Speaker 1: sort of these private public partnership. Santa Fe is in 135 00:06:56,160 --> 00:06:58,200 Speaker 1: the deal with the U. S. Army to try and 136 00:06:58,200 --> 00:07:01,080 Speaker 1: work on a vaccine. Glad So Smith Klient is working 137 00:07:01,160 --> 00:07:03,119 Speaker 1: separately with the n i H, and so these grant 138 00:07:03,160 --> 00:07:05,760 Speaker 1: funds you know, are coming in not only for the 139 00:07:05,839 --> 00:07:09,760 Speaker 1: vaccines but also for diagnostic agents and tests to help 140 00:07:09,800 --> 00:07:11,840 Speaker 1: people to at least identify what this is, because this 141 00:07:11,920 --> 00:07:13,880 Speaker 1: is one of the tough things about ZEKA is it's 142 00:07:13,880 --> 00:07:16,679 Speaker 1: not readily apparent that that you might have. The symptoms 143 00:07:16,680 --> 00:07:19,520 Speaker 1: are tough, tough to deal with, tough to identify, and 144 00:07:19,720 --> 00:07:22,160 Speaker 1: and so yes, absolutely this is something where they would 145 00:07:22,160 --> 00:07:25,120 Speaker 1: rely on some government funding to help move that process along. 146 00:07:25,560 --> 00:07:28,240 Speaker 1: Thank you very much for enlightening us. Brian Ry is 147 00:07:28,240 --> 00:07:32,520 Speaker 1: our senior healthcare policy analyst for Bloomberg Intelligence, the government 148 00:07:32,560 --> 00:07:36,320 Speaker 1: team of course, Bloomberg Intelligence providing real and unique research 149 00:07:36,720 --> 00:07:39,840 Speaker 1: and context on a variety of industries, all markets, and 150 00:07:40,120 --> 00:07:46,480 Speaker 1: government factors that affect business. This is Bloomberg. 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