0:02

Global business news twenty four hours

0:04

a day. It's Bloomberg dot Com the

0:07

radio plus mobile and on your radio.

0:09

This is a Bloomberg Business Black

0:11

from Bloomberg World Headquarters.

0:13

I'm Charlie Pellet. There. It is a sound of the closing

0:16

pallet the New York Stock Exchange. As we wrap

0:18

up trading on this Wednesday, August third, the

0:20

Dow, the SMP, NZDAC all

0:22

advancing, the Dow snapping a seven

0:25

day losing streak, SMP five

0:27

hundred index ending eight two day decline.

0:30

Stocks moved higher as investors way weather

0:32

the latest corporate earnings. Economic data

0:35

under rebounding crude prices could spur

0:37

further gains as equities trade

0:40

near records. Financial shares

0:42

rose, with a i G American

0:44

International Group having its biggest jump

0:46

in four years after profit beat

0:48

estimates. A i G surging seven

0:51

point three percent to fifty eight

0:53

eleven, Oil jumping more than

0:55

four percent to rise back about forty

0:57

one dollars a barrel Following weekly

1:00

supply data, lifting energy producers

1:02

West Texas Intermediate crewed a four

1:04

point one percent of a dollar sixte barrel

1:06

tow. Michael

1:08

Allison, his portfolio manager at Eaton

1:11

vance management. He was our guest today right

1:13

here on taking stock number one

1:15

in terms of just start the market back drop, and we've

1:17

been fairly surprised at how uh

1:21

steadily the wall of worry has

1:24

been client. You know, there's a lot to worry about,

1:26

Chinese situation, Brexit, election

1:28

uncertainty, economic concerning Fed

1:30

policy, all those sorts of things,

1:33

and yet the market has just continued

1:35

to, you know, to march upward um

1:37

in relatively sanguine fashion. And speaking

1:39

of Fed policy, Federal Reserve Bank of Chicago

1:42

President Charles Evans says an interest

1:44

rate increase could be warranted

1:46

this year as the economy picks

1:48

up steam, even though he is still worried

1:50

that inflation is too low. The

1:53

tenure of four thirty seconds yield one

1:55

point five three gold

1:57

downounced thirteen six. You

2:00

had dropped there of six tenths of one percent, and

2:03

the SMP as we recap here, up six

2:05

to sixty three, a gain of three

2:07

tenths of one percent. Town Industrial

2:09

is up thirty eight, a gain of two tenths

2:12

of one percent, and at four

2:14

o two on Wall Street. Now, let's

2:16

take a look at the other stories making news.

2:20

Charlie, thank you from the Bloomberg news Room.

2:22

I'm Mark Crumpton. Frances President

2:24

is weighing in on Republican presidential

2:26

nominee Donald Trump. French

2:28

President France, while Olan says Donald

2:30

Trump's excesses in the U s presidential

2:33

race are sickening. Lan speaking

2:35

with journalists over drinks worn against the authoritarian

2:38

tone adopted by Trump. Land

2:40

also says he was not happy when the Republican

2:42

presidential nominee spoke ill

2:45

of the memory of a soldier. It's a reference

2:47

to the war of words between Trump and

2:49

the parents of a Muslim American soldier who

2:51

was killed in the Rack. Alan says if

2:53

the American people choose Trump, it will

2:56

have consequences worldwide because

2:58

the US is a global economy. Michael

3:00

Barr Bloomberg Radio. The federal

3:02

emergency declaration for Flint,

3:05

Michigan, expires August fourteenth,

3:07

but city, state, and federal officials are

3:09

reassuring residents they're still working

3:12

to provide them with safe water. Bob

3:14

Kaplan is the e p a's acting regional

3:16

administrator. How long EPA will

3:18

be here will be driven by the facts and

3:21

the science, by the water quality, and that

3:23

by a date on the calendar. The most decorated

3:25

athlete in Olympic history will carry the

3:27

American flag during the opening ceremony

3:30

of the Rio Games. Michael Phelps was

3:32

selected in a vote by members of the U S Olympic

3:34

team. Fire officials are investigating

3:37

a massive fire last night that gutted

3:39

a grocery store in Queens that had served

3:41

the neighborhood nearly a century. It took

3:43

more than one hundred sixty firefighters

3:46

several hours to put out that blaze at

3:48

the Strawberry Farm supermarket at

3:50

one hundred fifty Street and twenty fourth

3:52

Avenue in white Stone. Global News

3:54

twenty four hours a day, powered by more

3:56

than twenty hundred journalists and analysts

3:58

and more than one hundred twenty countries. I'm

4:01

more Crumpton. This is Bloomberg, Charlie,

4:05

and we thank you. We are on Tesla watch.

4:07

Tesla shares down today by six

4:10

tenths of one percent. Tesla now at

4:14

recapping a move higher for equities

4:16

SMP, snapping a two day losing streak, up

4:18

six to sixty three, a

4:21

gain of three tenths of one I'm

4:23

Charlie Pellaton. That's a Bloomberg

4:25

business flash move around

4:28

motion. Creates the motion a move

4:33

they do. I've never seen anyone move that back

4:39

hard people. Let's move to great a purpose. That

4:46

was called movers and shakers. It costs

4:49

a little more, and that name cracked me up. Bloomberg

4:57

taking stock movers and Shakers

5:00

with Bim Box and Kathleen As

5:02

on Bloomberg Radio Movers

5:04

and Shakers for this Wednesday, August the third,

5:06

twenties sixteen, broadcasting live

5:09

from Atlantic Wharf in Boston, site

5:11

of Smith and Woolenski. Taking a look at

5:13

the SMP five hundred, three hundred and twenty

5:15

two issues are higher, one hundred

5:17

eighty two declined, and one remain

5:20

unchanged. That's go to Bloomberg's

5:22

Stocks Commis Dave Wilson to begin

5:24

our movers and shakers. But

5:27

you know a lot of those SMP five hundred stocks

5:29

are on the New York Stock Exchange,

5:31

and uh one of them is the

5:33

owner of the exchange, and that would be Intercontinental

5:36

Exchange or ICE. That

5:39

they reported second quarter results

5:41

the top to analysts average Asthimus of Bloomberg

5:43

Survey I said, they're buying back

5:45

a billion dollars of stock. The key thing,

5:48

though, is that they plan a five

5:50

for one stock split. Ice

5:52

has one of the most expensive stocks

5:55

on its own markets, and

5:57

so the split will bring

5:59

down the Ice of a single share

6:02

uh Ice with a gain of five

6:04

point three percent in today's training closing

6:06

a two hundred and seventy eight dollars and

6:09

two cents h Taking

6:11

a look now at handbag maker

6:13

Kate Spade, which David, of course you were talking

6:15

about, is taking stock opened

6:18

today. I think at that point

6:20

it was down about so not

6:23

quite as bad, but still an eighteen percent

6:25

declined today after Kate Spade

6:27

said that prop will be sixty three

6:30

to seventy three to seventy cents

6:32

a share. And you're ending January

6:34

after priving previously forecasting

6:37

seventy cents to eighty cents. Analysts

6:39

had a projected seven gate cent average for their

6:42

profit over that time period. And

6:44

you know, k It's been trying to reduce

6:46

promotions at department stores and then sell

6:48

more items at full price, not discounted, not

6:50

on sale, because they want to maintain the brands

6:53

Caher. You know, it's sending in their way a

6:55

dearth of foreign tours to the United States.

6:57

They've put off visits because of the

6:59

strong dollars slowing foot traffic

7:01

and forcing the company to mark down e

7:03

merchandise and a course PM. There's also competition

7:06

from you know, increasingly strong rivals like

7:09

Coach and Michael Course. I'm gonna tell you about

7:11

twenty one century Fox. The company just

7:13

releasing its fourth quarter results

7:15

EPs of fourty five cents

7:18

to share compared to estimates of a

7:20

thirty seven cents a share. The stock is

7:22

higher by about three and a half percent, and after

7:24

hours of trading, the company also announcing

7:27

an incremental three billion dollar

7:29

share buy backup program. Once again,

7:32

the stock of century Fox

7:34

higher in after hours trading, buy about

7:36

three and a half percent. You know, there's a certain

7:38

amount of irony. Shares of Twitter

7:41

are moved by tweets.

7:44

That's what happened today. Though there

7:46

was some speculation out there that

7:49

two of Twitter's largest shareholders, former

7:51

Microsoft chief executive Steve Bomber

7:54

and Saudi Prince Ahaid Been Tollal,

7:56

would buy the social network shares they

7:58

don't already own, but them they

8:00

have an eight point eight percent steak

8:03

in Twitter. Analysts were

8:05

rather skeptical. We talked to Acting and Capital

8:07

Victor Anthony Webb Bushes, Michael

8:09

Packedor and neither of them

8:12

put much credence into speculation. Uh

8:15

not. In the last you had Twitter shares

8:18

with a gain of seven and a quarter

8:20

percent in today's trading. Well,

8:22

hey, David, as you know A i G American

8:24

International Group also gaining about

8:27

that amount amount seven point three percent

8:29

today after it said we'll buy back three billion

8:31

dollars of stock after second quarter profit

8:33

climbed six point three percent, helped

8:36

by assets sales. This is something that the

8:38

CEO, Peter Hancock, has been doing, along

8:40

with slashing jobs to boost margins

8:42

after posting losses for three straight

8:45

periods through the first quarter. A

8:47

i G also announcing today that it's

8:49

reduced bets on event driven and

8:51

long short strategies, scaling back

8:54

its hedge fund investments, KIM and

8:56

fit pretty fit stock. Today

8:58

to share is a fit Fit up more than thirteen

9:01

percent. This is the biggest gain in more than

9:03

three months. They reported second quarter results

9:05

that exceeded analysts estimates. The

9:07

company reported that revenue

9:10

group forty six percent

9:12

in the second quarter compared to a year

9:14

earlier revenue, coming in at five

9:16

hundred and eighty six million

9:19

dollars. Fitbits earnings also excludes

9:21

some costs, but the shares as I mentioned,

9:24

up more than thirteen

9:26

percent. Time now for the Volatility Index

9:28

report brought to you by cbo E VIX options

9:31

and futures Volatility can be harnessed

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with CBOE VIX options in futures

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E dot com. Slash powerful outcomes

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of VIX well. The VIX down

9:42

about a half point at twelve point eight

9:44

six at the close, putting this

9:47

in some perspective. According

9:49

to a report from the head drivative strategist

9:51

at Macro Risk Advisors this

9:53

week, he points out at the gap between

9:55

c b o E the Volatility Index

9:58

contracts and the underlying index,

10:00

the VIX wide last month to its highest

10:02

positive readings since September twelve.

10:05

He says markets are pricing in greater

10:07

risk premium in the next few months. All

10:11

right, Dave, you're up, Hi, My

10:13

name is Dave. Just

10:17

what do you think you're doing today? We're

10:19

going for the floor

10:21

to Dave Food. Mr

10:26

Dave Wilson tell us about Nations

10:29

Star Mortgage a certainly well

10:31

but first quarterly earnings that some companies

10:33

are so predictable that analysts estimates are

10:35

accurate down of the penny. Others

10:37

defy any attempt at predictions,

10:40

and Nation Star Mortgage Holdings

10:42

is a good example. UH data

10:44

compabby Bloomberg shows the home loan servicing

10:47

companies earning for share differed

10:49

from analyst consensus estimate and Bloomberg

10:51

survey by an average of thirty four

10:54

percent since twelve. That's when nations

10:56

Star win public quarterly sales

10:58

varied from projections by an average of

11:00

about twenty percent. Now Nation Star,

11:03

whose ticker is n s M, reported

11:05

second quarter results today. There

11:08

was even more of a disparity than usual.

11:10

On the one hand, adjusted the EPs

11:13

PTE estimates by forty two percent.

11:15

On the other, revenue trailed by

11:17

thirty five percent. Now, the earnings

11:20

carried the day. City Group anialist Michael

11:22

k raised profit projections and lifted

11:25

his twelve month to share price estimate

11:27

by a dollar to fourteen dollars.

11:29

That he's neutral in the company, Others

11:31

were anything but neutral. In fact, Nation

11:34

Star actually got to K's twelvemonth

11:37

estimate in a single day. The

11:39

stock jumped almost nineteen per

11:41

cent. It was the biggest one day advancedince

11:43

going public and a close at fourteen

11:46

dollars and one cent. Steve

11:49

Wilson, our stock sitor, thank you so very

11:51

much. I'm Kathleen Hayes along with Pam Fox.

11:54

We're gonna continue our special broadcast

11:56

live. It's Smith and Molsky here in Boston.

11:59

This is Bloomberg m

12:03

HM. Coming

12:06

up on taking stock, will take stock of Tesla

12:09

Motors. The shares are down about six

12:11

percent so far this year. The

12:13

company reports results later today.

12:16

We've got details