1 00:00:03,279 --> 00:00:06,680 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,720 --> 00:00:09,799 Speaker 1: dot com, the radio, plus Globo lact and on your radio. 3 00:00:10,039 --> 00:00:14,120 Speaker 1: This is a Bloomberg Business flag from Bloomberg World Handquarters. 4 00:00:14,160 --> 00:00:17,720 Speaker 1: I'm Charlie Pellett's stocks continue to trade Laura, forty two 5 00:00:17,720 --> 00:00:20,240 Speaker 1: minutes to go ahead of the close on a Friday. 6 00:00:20,280 --> 00:00:22,560 Speaker 1: We're brought to you by Sector Spider et F s 7 00:00:22,720 --> 00:00:25,239 Speaker 1: Y by a single stock when you can invest in 8 00:00:25,280 --> 00:00:29,560 Speaker 1: the entire sector of visits sector sp d rs dot 9 00:00:29,600 --> 00:00:34,440 Speaker 1: com or call one sector e t F SMP five 10 00:00:34,520 --> 00:00:37,640 Speaker 1: hundred index heading for its steepest drop in two months, 11 00:00:37,960 --> 00:00:40,880 Speaker 1: amid caution over tepid global growth and a series of 12 00:00:40,960 --> 00:00:44,920 Speaker 1: looming events with the potential to spur renewed market turbulence. 13 00:00:45,000 --> 00:00:47,839 Speaker 1: Right now, the SMP five hundred index is down twenty 14 00:00:47,840 --> 00:00:50,440 Speaker 1: four points to drop there of one one percent to 15 00:00:50,560 --> 00:00:53,519 Speaker 1: two thousand ninety one. Now, let's head over to the 16 00:00:53,560 --> 00:00:56,279 Speaker 1: first Word desk. Let's get the latest update now and 17 00:00:56,440 --> 00:01:01,360 Speaker 1: here's Bill Maloney. Good afternoon, Charlie. Manuis averages have been 18 00:01:01,480 --> 00:01:04,600 Speaker 1: under pressure from the start today. Dall is currently down 19 00:01:04,680 --> 00:01:06,760 Speaker 1: a hundred and fifty nine points as if he's dropped 20 00:01:06,760 --> 00:01:10,120 Speaker 1: twenty four and NAZAC is lower by seventy five. The 21 00:01:10,200 --> 00:01:13,080 Speaker 1: small cap six hunder falls eleven points and the U 22 00:01:13,200 --> 00:01:16,200 Speaker 1: S ten yield drops to one point six three percent. 23 00:01:16,760 --> 00:01:18,960 Speaker 1: Nine out of tennesse B sectors are lower, led by 24 00:01:19,000 --> 00:01:24,520 Speaker 1: losses and energy, financials and consumer discretionary. Only Telecom gained down, 25 00:01:24,600 --> 00:01:27,240 Speaker 1: Transports dropped a hundred and thirty five points and as 26 00:01:27,240 --> 00:01:30,479 Speaker 1: a biotech Sinc seventy four and the VIX is higher 27 00:01:30,520 --> 00:01:34,880 Speaker 1: by eighteen percent. Down Leaders to the downside included Caterpillar, Goman, 28 00:01:34,959 --> 00:01:39,000 Speaker 1: Sacks and Boeing. Verizon led to the upside. H R 29 00:01:39,000 --> 00:01:41,760 Speaker 1: not Block gain thirteen percent that's most since two thousand 30 00:01:41,840 --> 00:01:45,400 Speaker 1: eight after earnings, while Mattress firm fell thirteen percent after 31 00:01:45,520 --> 00:01:49,240 Speaker 1: its results and the latest UK pole conducted for or 32 00:01:49,320 --> 00:01:54,520 Speaker 1: Be Independent showed fifty five percent leave fortcent remain live 33 00:01:54,560 --> 00:01:56,840 Speaker 1: from the first breaking news descom Bill Maloney, Charlie, all right, 34 00:01:56,840 --> 00:01:58,800 Speaker 1: thank you very much, billing to hear a live breaking 35 00:01:58,840 --> 00:02:02,160 Speaker 1: news over your Bloomberg squawk. Ask you you a w 36 00:02:02,320 --> 00:02:05,240 Speaker 1: K on your terminal. I'm Charlie Pelt. That's a Bloomberg 37 00:02:05,280 --> 00:02:10,920 Speaker 1: business flash. Mr Secretary, Mr Burns, did you hear the 38 00:02:10,960 --> 00:02:16,160 Speaker 1: news about good old General Musser Street. They renamed it 39 00:02:16,200 --> 00:02:20,240 Speaker 1: after him. The Mercer legacy is secure. Onlie had to 40 00:02:20,320 --> 00:02:22,880 Speaker 1: do is Die? That's a lot less work. We ought 41 00:02:22,919 --> 00:02:25,320 Speaker 1: to give it a try. How you're going to get 42 00:02:25,400 --> 00:02:31,480 Speaker 1: your debt plan through? Hamilton's a record sixteen Tony nominations. 43 00:02:31,600 --> 00:02:34,480 Speaker 1: That's just the snippet from the room where it happens 44 00:02:34,480 --> 00:02:37,959 Speaker 1: where some of the stars of this very talented cast 45 00:02:38,040 --> 00:02:41,040 Speaker 1: are singing one of the all the songs are so popular, 46 00:02:41,040 --> 00:02:43,079 Speaker 1: but certainly that is one of the big ones. Now, 47 00:02:43,080 --> 00:02:47,040 Speaker 1: the Tony Awards are this weekend, and as we get 48 00:02:47,040 --> 00:02:49,519 Speaker 1: ready for that and wait to see how many actual 49 00:02:49,520 --> 00:02:52,320 Speaker 1: awards Hamilton's wins. On the sixteen, it has been nominated 50 00:02:52,320 --> 00:02:55,079 Speaker 1: for a very interesting story written today by our own 51 00:02:55,120 --> 00:02:59,560 Speaker 1: Henry Goldman, Alexander Hamilton's introduced the idea of federal taxes. 52 00:02:59,639 --> 00:03:03,320 Speaker 1: Broad A producers, enjoying a record season, buoyed by his 53 00:03:03,440 --> 00:03:08,520 Speaker 1: namesake musical, are lobbying Congress to limit what they owe. Henry, 54 00:03:08,560 --> 00:03:10,200 Speaker 1: that's a great way to start your story. And welcome 55 00:03:10,200 --> 00:03:13,079 Speaker 1: to taking stock, Hi, Kathleen, It's a pleasure to be here. 56 00:03:13,440 --> 00:03:15,679 Speaker 1: So uh, you know who doesn't love Hamilton's And you 57 00:03:15,720 --> 00:03:18,240 Speaker 1: know you have any kind of friends or relatives coming 58 00:03:18,280 --> 00:03:21,120 Speaker 1: from out of town, everybody wants to go to Broadway, 59 00:03:21,200 --> 00:03:24,360 Speaker 1: which is one reason why you know New York State 60 00:03:24,400 --> 00:03:28,680 Speaker 1: Senator Chuck Schumer is arguing for this tax break. Tell 61 00:03:28,760 --> 00:03:33,880 Speaker 1: us about it. Well, it took several years of lobbying 62 00:03:34,160 --> 00:03:38,680 Speaker 1: and cajoling before Broadway last year was able to get 63 00:03:38,720 --> 00:03:43,000 Speaker 1: a tax provision passed by the Congress and signed by 64 00:03:43,000 --> 00:03:47,480 Speaker 1: the President that would allow investors in Broadway shows to 65 00:03:47,560 --> 00:03:52,520 Speaker 1: deduct their investment in the first year. And UH this 66 00:03:52,600 --> 00:03:57,560 Speaker 1: was something that TV and movie investors had, but live 67 00:03:57,680 --> 00:04:04,480 Speaker 1: theater investors didn't have. And the idea was that people 68 00:04:04,520 --> 00:04:07,280 Speaker 1: who were investing in Broadway shows they would actually have 69 00:04:07,360 --> 00:04:12,600 Speaker 1: to pay tax on what was the estimated profit that 70 00:04:12,720 --> 00:04:17,039 Speaker 1: a producer might include in his offering circular to the investor. 71 00:04:17,560 --> 00:04:20,680 Speaker 1: But it was basically an optimistic assessment of how much 72 00:04:20,680 --> 00:04:23,920 Speaker 1: money they might make and how soon they might make it. 73 00:04:24,200 --> 00:04:28,279 Speaker 1: And on the basis of that optimistic estimate, UH, an 74 00:04:28,279 --> 00:04:33,920 Speaker 1: investor was taxed even if the show might fail. So 75 00:04:34,279 --> 00:04:38,920 Speaker 1: they were able to get this past, which allowed investors 76 00:04:39,000 --> 00:04:42,960 Speaker 1: to first of all deduct their investment as a as 77 00:04:43,000 --> 00:04:47,320 Speaker 1: an expense and also avoid paying tax on so called 78 00:04:47,720 --> 00:04:52,760 Speaker 1: phantom income based on the optimistic assessment of the producer, who, 79 00:04:52,800 --> 00:04:54,919 Speaker 1: after all, is trying to sell a show in the 80 00:04:54,960 --> 00:04:57,000 Speaker 1: first place. Well, there's no doubt that, you know, as 81 00:04:57,040 --> 00:05:00,479 Speaker 1: your story points out, four or five per wormans is 82 00:05:00,480 --> 00:05:04,520 Speaker 1: closed without even recouping their startup costs. It's such a gamble. 83 00:05:04,560 --> 00:05:06,000 Speaker 1: You gotta for a lot of people, gotta have money 84 00:05:06,000 --> 00:05:07,640 Speaker 1: you're willing to never see again if you're going to 85 00:05:07,720 --> 00:05:10,360 Speaker 1: invest in a Broadway play. So why is the opposition 86 00:05:10,400 --> 00:05:13,120 Speaker 1: in Congress? Well, it is a gamble, but life is 87 00:05:13,120 --> 00:05:16,400 Speaker 1: a gamble. I mean, you know, let's say you are 88 00:05:16,440 --> 00:05:18,800 Speaker 1: in the biotech business and you go out and you 89 00:05:18,920 --> 00:05:21,840 Speaker 1: try to sell stock, either as a private offering or 90 00:05:21,880 --> 00:05:26,360 Speaker 1: as a public offering, and that biotech company or any 91 00:05:26,400 --> 00:05:30,440 Speaker 1: other startup goes belly up. Those investors lose their money. 92 00:05:30,640 --> 00:05:33,360 Speaker 1: And so there are people in Congress who say that 93 00:05:34,600 --> 00:05:39,000 Speaker 1: why should this industry, the show biz industry, get a 94 00:05:39,040 --> 00:05:42,039 Speaker 1: tax advantage that people in other industries don't get. But 95 00:05:42,040 --> 00:05:45,560 Speaker 1: did you just say that television, film, other kinds of Well, 96 00:05:45,640 --> 00:05:47,799 Speaker 1: that's right, I mean, but you know, we're talking about 97 00:05:47,880 --> 00:05:52,919 Speaker 1: glamorous professions. That this is the argument against that that 98 00:05:53,000 --> 00:05:57,040 Speaker 1: the glamour has sort of clouded the eyes of some 99 00:05:57,120 --> 00:06:03,320 Speaker 1: members of Congress, and they voted to do this, and um, 100 00:06:03,480 --> 00:06:07,040 Speaker 1: it's uh, that's you know, part of the argument against it. 101 00:06:07,680 --> 00:06:12,279 Speaker 1: So that's the argument against it. Is the argument for 102 00:06:12,520 --> 00:06:15,000 Speaker 1: in part that you know, we support the arts in 103 00:06:15,040 --> 00:06:18,280 Speaker 1: many ways. It is a constant struggle for painters, for sculptors. 104 00:06:18,360 --> 00:06:21,360 Speaker 1: Uh you know, so is it that different to give 105 00:06:21,400 --> 00:06:26,599 Speaker 1: a Broadway play which is actually theater some support as well. Well, 106 00:06:26,760 --> 00:06:29,360 Speaker 1: you know, it is a tough investment. We do want 107 00:06:29,360 --> 00:06:34,200 Speaker 1: to support the theater. The theater probably nationally provides about 108 00:06:34,279 --> 00:06:39,600 Speaker 1: fifteen billion dollars in economic activity to the country, just 109 00:06:39,760 --> 00:06:42,960 Speaker 1: live theater long. We're not talking about TV and movies here. 110 00:06:43,560 --> 00:06:50,280 Speaker 1: So uh, there there are arguments for it, obviously, And 111 00:06:51,240 --> 00:06:54,679 Speaker 1: one of the arguments is that you know, somebody who 112 00:06:55,400 --> 00:06:59,560 Speaker 1: starts a company like my biotech company, for example, he 113 00:06:59,600 --> 00:07:01,159 Speaker 1: can go to a bank, you can go to a 114 00:07:01,240 --> 00:07:04,240 Speaker 1: venture capitalist and get that kind of money to start up. 115 00:07:04,720 --> 00:07:07,800 Speaker 1: And really a Broadway showman can't do that. He doesn't 116 00:07:07,839 --> 00:07:12,000 Speaker 1: have those sources of capital available to him. You see Hamilton's. 117 00:07:12,560 --> 00:07:14,960 Speaker 1: I did see Hamilton's. I liked Hamilton's, but I'm not 118 00:07:15,080 --> 00:07:17,880 Speaker 1: about to promote Hamilton's. There are a lot of good 119 00:07:17,880 --> 00:07:20,480 Speaker 1: shows out there. There are shows that fail that are 120 00:07:20,520 --> 00:07:23,680 Speaker 1: really good. Well, you're you're a very lucky man, sir. 121 00:07:25,240 --> 00:07:26,760 Speaker 1: A lot of people would love to be in Henry 122 00:07:26,760 --> 00:07:29,080 Speaker 1: Goldman Shoes. I'm gonna tweet out your story. Henry Broadway 123 00:07:29,120 --> 00:07:32,760 Speaker 1: wants logs, longer, tax breakers, Hamilton's Prince Money. This is 124 00:07:32,800 --> 00:07:35,880 Speaker 1: taking Stock on Bloomberg Radio. We're going to continue to 125 00:07:35,960 --> 00:07:39,600 Speaker 1: listen to one of the hit tunes from Hamilton's awarded 126 00:07:39,600 --> 00:07:49,200 Speaker 1: her sixteen Tony nominee awards this year. This is Fig Radio, Bloomberg. 127 00:07:49,280 --> 00:07:52,360 Speaker 1: Taking Stock is going to be taking a look at 128 00:07:52,600 --> 00:07:56,600 Speaker 1: lagoons that you can put in the desert, Crystal lagoons. Yes, 129 00:07:56,760 --> 00:07:58,080 Speaker 1: coming up, Bomb Bloomberg Radio.