Latest / Bloomberg Intelligence / Bloomberg's Halperin on Trump/Pence, Mulvany on Monsanto(Audio)

Transcript

Bloomberg's Halperin on Trump/Pence, Mulvany on Monsanto(Audio) · Bloomberg Intelligence

• 0:03
  Speaker 1: Global business news twenty four hours a day at Bloomberg
• 0:06
  Speaker 1: dot com, the Radio plus mobile app, and on your radio.
• 0:09
  Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
• 0:14
  Speaker 1: I'm Charlie Howett. Stocks continue to trade at records, with
• 0:18
  Speaker 1: the SMP five hundred index advancing eleven points now to
• 0:22
  Speaker 1: sixty three, a gain there of six tenths of one percent.
• 0:25
  Speaker 1: We've got the down Jones Industrial Average up one hundred
• 0:28
  Speaker 1: thirty six points, up by seven tenths of one percent.
• 0:31
  Speaker 1: Nastack up twenty seven points to five thousand thirty three.
• 0:34
  Speaker 1: That is a gain of six tenths of one percent.
• 0:37
  Speaker 1: Crude oil up at forty five fifty three a barrel
• 0:40
  Speaker 1: up seventy six cents now, that's a gain of one
• 0:43
  Speaker 1: point seven percent, and gold down ten ninety an ounce.
• 0:46
  Speaker 1: The thirteen thirty two dropped there of point eight percent,
• 0:49
  Speaker 1: the tenure down sixteen thirty seconds. The yield on the
• 0:51
  Speaker 1: tenure is one point five two percent. So again, recapping
• 0:55
  Speaker 1: US equities are higher. SMP five hundred index now up
• 0:59
  Speaker 1: by five tenths of one percent. I'm Charlie Pellett. That's
• 1:02
  Speaker 1: a Bloomberg Business slash. Thank you, you're listening to Taking
• 1:07
  Speaker 1: Stock with Pim Box and Kathleen Hayes on Bloomberg Radio Agriculture. Well,
• 1:14
  Speaker 1: it uses a lot of chemicals, and buyer has raised
• 1:18
  Speaker 1: its offer from on Santo. The shares him on Santo
• 1:21
  Speaker 1: up about two and a half percent. Here to tell
• 1:24
  Speaker 1: us more about this bid, it's worth about fifty four
• 1:28
  Speaker 1: point seven billion dollars. Is Lydia mulvaney. She is Agriculture
• 1:33
  Speaker 1: America's reporter for Bloomberg News and joins us from Chicago. Lydia,
• 1:37
  Speaker 1: thank you very much for being with us. Tell us
• 1:39
  Speaker 1: about this new offer on the part of buyer foremon Santo. Sure,
• 1:44
  Speaker 1: just a little bit of history. Um So, Buyer, the
• 1:47
  Speaker 1: German chemical company made an original offer to buy mon
• 1:50
  Speaker 1: Santo in May for one dollars to share, and that
• 1:55
  Speaker 1: valued the company around fifty three point four billion dollars.
• 1:59
  Speaker 1: And Monsanto, who basically rejected that because they said it
• 2:02
  Speaker 1: was too low, um undervalued them. Um So now they've come,
• 2:06
  Speaker 1: you know, come back with a higher offer today of
• 2:09
  Speaker 1: one share. Um that's the valuation by a little more
• 2:13
  Speaker 1: than a billion dollars um and it also um include
• 2:17
  Speaker 1: the breakup fee of one point five billion if the
• 2:20
  Speaker 1: deal doesn't pass um regulatory regulatory scrutiny. Um that was
• 2:25
  Speaker 1: the sticking point in earlier negotiations. What can what can
• 2:30
  Speaker 1: observers or investors take away from the fact that Monsanto
• 2:34
  Speaker 1: stock is currently trading at a hundred and three dollars
• 2:36
  Speaker 1: and eight cents. But the offer by Buyer, as you
• 2:39
  Speaker 1: just described as a hundred and twenty five dollars, why
• 2:41
  Speaker 1: is it so much lower than the offer? Um, Well,
• 2:44
  Speaker 1: there might be a little bit of um uh skepticism. Basically,
• 2:50
  Speaker 1: people thought, uh, you know, a lot of analysts were saying, well,
• 2:54
  Speaker 1: they need to really uh be offering you five one
• 2:59
  Speaker 1: forty to really um you know, make some headway. So uh,
• 3:04
  Speaker 1: there might be some feelings out there that it's a
• 3:06
  Speaker 1: little bit less uh than what's needed. All right, So
• 3:10
  Speaker 1: is it possible that this party could get a little
• 3:12
  Speaker 1: bit crowded? Could there be someone else, such as be
• 3:15
  Speaker 1: a SF that would come in and perhaps make a
• 3:19
  Speaker 1: bid from Montsanto? Well, people actually uh think that you know,
• 3:25
  Speaker 1: Buyer came back with this announcement today because mont Santo
• 3:31
  Speaker 1: has been talking uh to be a s s on.
• 3:34
  Speaker 1: Bloomberg News reported yesterday that um the two companies have
• 3:39
  Speaker 1: been reviving talks about um, you know combining uh there
• 3:45
  Speaker 1: uh you know there um agriculture so BSF has a
• 3:50
  Speaker 1: chemicals unit UM and so basically mont Santo uh is
• 3:56
  Speaker 1: a is a seed giant. UM. Their their biggest business
• 4:00
  Speaker 1: to seeds and UM. You know, if the if Montanto
• 4:04
  Speaker 1: and BSS combined, uh, that would make it the biggest
• 4:09
  Speaker 1: company in both seeds and chemicals. And it seems as
• 4:12
  Speaker 1: though there are a lot of chemical mergers, particularly the
• 4:16
  Speaker 1: merger between a Dow Chemical and DuPont that seems to
• 4:20
  Speaker 1: be progressing. But the takeover the Cegenta takeover by China
• 4:24
  Speaker 1: National Chemical Corps that's attracted a lot of regulatory and
• 4:28
  Speaker 1: political scrutiny. Is that going to happen with any bid
• 4:30
  Speaker 1: from Montsanto? Um the bear in mont Santo uh combination,
• 4:37
  Speaker 1: it's been said that uh you know that might have
• 4:40
  Speaker 1: some uh difficulty with regulators, and that's why, um, you
• 4:45
  Speaker 1: know mont Santa wanted the breakup. See in there, um
• 4:49
  Speaker 1: they both do seeds, so UM there might be there's
• 4:52
  Speaker 1: more crossover UM. But actually you know, from people I've
• 4:55
  Speaker 1: been talking today, it sounds like, um, there might be
• 4:58
  Speaker 1: less of that with b a s F combination as
• 5:02
  Speaker 1: they don't do any seeds, so the only worry there
• 5:05
  Speaker 1: would be um uh you know mont Santo makes round
• 5:10
  Speaker 1: up that's its main uh crop protection um product, we'd
• 5:16
  Speaker 1: killer so um they would have to look at that,
• 5:19
  Speaker 1: but um, it's not like a big part, all right.
• 5:22
  Speaker 1: Thank business, Yeah, thank you very much for joining us.
• 5:25
  Speaker 1: Lydia Mulveny, Agriculture America's reporter for Bloomberg News, joining us
• 5:29
  Speaker 1: from Chicago. Let's turn our attention now to politics with
• 5:34
  Speaker 1: Mark Halprin. He is, of course the host of with
• 5:37
  Speaker 1: all due respect, co managing editor for Bloomberg and Politics
• 5:40
  Speaker 1: weeknights with all due respect weeknights at five pm Wall
• 5:44
  Speaker 1: Street Time on Bloomberg Television and Bloomberg in Washington, d C.
• 5:49
  Speaker 1: Mark Halprin, I guess the news topic of the day
• 5:53
  Speaker 1: is Donald Trump and his selection for vice presidential candidate.
• 5:59
  Speaker 1: Tell us more. Well, it's uh, it's being reported by
• 6:03
  Speaker 1: several organizations, and Mike Pence, the governor of Indiana, is
• 6:06
  Speaker 1: the choice. We've still woken to a couple of Republicans
• 6:09
  Speaker 1: who have been like to believe by the Trump campaign
• 6:11
  Speaker 1: that attended in that direction. Uh, and that Trump can
• 6:13
  Speaker 1: be expected to peer side by side of Pence in
• 6:15
  Speaker 1: New York City tomorrow. On the record, campaign officials are cautioning,
• 6:19
  Speaker 1: no decision has been made, but we want to try
• 6:21
  Speaker 1: to keep the surprised as long as they can. But
• 6:23
  Speaker 1: my understanding from all my sources is this is up
• 6:27
  Speaker 1: set in motion now and Trump would have to stop
• 6:29
  Speaker 1: it and change his mind if it's going to be
• 6:30
  Speaker 1: anyone but Pence. Can you tell our listeners a little
• 6:34
  Speaker 1: bit about Mike Pence? Who is he? What does he
• 6:37
  Speaker 1: bring to the ticket? Nowhere near as well known as
• 6:40
  Speaker 1: the other two believed to be finalist New Gangbridge Chris Christie.
• 6:42
  Speaker 1: This is not a guy who's been on the cover
• 6:44
  Speaker 1: of Time magazine, but he is well known in certain
• 6:46
  Speaker 1: circles that are important to Donald Trump. He's important, well
• 6:49
  Speaker 1: known in the Capitol Hill. He was before governor of Indiana.
• 6:52
  Speaker 1: He was a meeting member of the House of Representatives,
• 6:54
  Speaker 1: a conservative social conservative, also kind of an economic populist.
• 6:57
  Speaker 1: Vote against the Bank Bay Latin some other big, big
• 7:00
  Speaker 1: items that a lot of Americans and Republicans in particularly
• 7:04
  Speaker 1: have turned on very popular with the donor community. The
• 7:08
  Speaker 1: Koch Brothers and other leading big donors within the Republican
• 7:11
  Speaker 1: Party of a big fan of Mike Pence, and uh
• 7:14
  Speaker 1: well known among social conservatives as well. So Mike Pence
• 7:17
  Speaker 1: is kind of an inside pick, you know. People. I
• 7:19
  Speaker 1: think we'll find him to be a pleasant man, a conservative,
• 7:22
  Speaker 1: and someone who can maybe build bridges to that part
• 7:26
  Speaker 1: of the electorate that Donald Trump still needs. Mark Halprin,
• 7:29
  Speaker 1: are you already packing your bags for the Republican National
• 7:33
  Speaker 1: Convention in Cleveland? Give us a preview. Well, I'm in
• 7:37
  Speaker 1: Cleveland now. I was in Indianapolis yesterday chasing around Donald
• 7:40
  Speaker 1: Trump and Mike Pence. But this convention is going to
• 7:43
  Speaker 1: be different than ones we've seen. First of all, there's
• 7:45
  Speaker 1: a big fight going on today over the rules and
• 7:48
  Speaker 1: whether there'll be any rules changes, So I will see
• 7:50
  Speaker 1: how that plays out. Could affect future elections, to be sure,
• 7:53
  Speaker 1: but perhaps also this election and whether the delegates will
• 7:56
  Speaker 1: be unbound or they'll be at least a debate about
• 7:58
  Speaker 1: the question of whether the delegates undoubted from the results
• 8:01
  Speaker 1: of the primaries and caucuses in their state. The speaker
• 8:04
  Speaker 1: list was released today and there's some familiar political names
• 8:07
  Speaker 1: on there, some people from other walks of life, but
• 8:09
  Speaker 1: I think the Trump family and the vice presidential pick
• 8:12
  Speaker 1: will probably dominate this convention in a pretty big way.
• 8:16
  Speaker 1: Tell us about Donald Trump announcing the creation of an
• 8:19
  Speaker 1: Israel Advisory Committee. Why is he doing that? Well, this
• 8:23
  Speaker 1: is an issue that is important to a lot of Americans,
• 8:26
  Speaker 1: not just the Jewish Americans, but a lot of evangelical
• 8:29
  Speaker 1: voters care a lot about the issue. And this is
• 8:31
  Speaker 1: one where Donald Trump hopes to go on the offense.
• 8:33
  Speaker 1: It's an issue where President Obama's record on Israel, although
• 8:36
  Speaker 1: he's quite proud of it, is one that has critics.
• 8:39
  Speaker 1: And this is an issue where UH donors and voters
• 8:42
  Speaker 1: and some states can be activated. And so Donald Trump
• 8:45
  Speaker 1: is I think trying to leverage the focus on that
• 8:48
  Speaker 1: issue with intendment with intensity on the part of some voters.
• 8:52
  Speaker 1: Now at the Republican National Convention, they're going to be
• 8:56
  Speaker 1: many non politicians speaking, such as Silicon Valley millionaire Peter Thiel,
• 9:01
  Speaker 1: as well as the oil billionaire Harold Ham and UFC
• 9:05
  Speaker 1: president Dana White. Tell us about why what is this?
• 9:10
  Speaker 1: What does this tell you about the tone of the convention.
• 9:13
  Speaker 1: We've seen business leaders speak at past conventions, but they
• 9:15
  Speaker 1: take on a special significance. Of course, Trump is a
• 9:17
  Speaker 1: businessman and not a politician, and so we'll hear from
• 9:20
  Speaker 1: these leaders, and obviously the economy's front center. These will
• 9:23
  Speaker 1: be validators for Donald Trump to say that he understands
• 9:26
  Speaker 1: how markets work. There's been a lot of debate about
• 9:28
  Speaker 1: Trump's business record. Has successful Lizzy, has he been successful
• 9:32
  Speaker 1: at the expense of others who are less fortunate and
• 9:34
  Speaker 1: less successful? And I think these speakers are meant to
• 9:37
  Speaker 1: kind of validate Trump's record of success as business name,
• 9:41
  Speaker 1: but all of the last five presidential nominees for the
• 9:45
  Speaker 1: Republican Party, Mitt Romney, John McCain, George W. Bush, Bob Dole,
• 9:49
  Speaker 1: and George Herbert Walker Bush they're absent from this, uh
• 9:54
  Speaker 1: this convention. What does that also say, Well that Trump
• 9:57
  Speaker 1: hasn't unified the party, and he's been clear that he's
• 9:59
  Speaker 1: been he can win without unifying the party. Uh, they'll
• 10:02
  Speaker 1: be they'll probably be probably be more signs of unity
• 10:05
  Speaker 1: here than disunity. But the absence of those past nominees
• 10:09
  Speaker 1: is some It says quite a bit. And the fact
• 10:11
  Speaker 1: that two Republican presidents aren't going to be here does
• 10:14
  Speaker 1: say quite a bit about Trump's failure to broaden now
• 10:19
  Speaker 1: keeping his existence orders and broaden and bring in certain
• 10:22
  Speaker 1: segments of the country and of the party, including some
• 10:24
  Speaker 1: of the biggest figures in the establishment. Thank you very
• 10:27
  Speaker 1: much for spending time with us. Mark Halprin is the
• 10:30
  Speaker 1: host of With all due respect a weeknights at five
• 10:33
  Speaker 1: pm Wall Street Time on Bloomberg Television and on Bloomberg
• 10:38
  Speaker 1: One in Washington, d C. You're listening to Taking Stockheim
• 10:42
  Speaker 1: pim Fox. Coming up, we're gonna take stock of bank earnings.
• 10:46
  Speaker 1: JP Morgan shares higher by more than two percent. We'll
• 10:49
  Speaker 1: be speaking with Fred Kennon. He is the global director
• 10:51
  Speaker 1: of research at k b W. Find out our bank
• 10:56
  Speaker 1: stocks something you ought to be buying. Also, we'll take
• 10:59
  Speaker 1: a look at Israel the high technology shares. Why are
• 11:02
  Speaker 1: they leading a tech rally. We've got Stephen Schoenfeld, the
• 11:05
  Speaker 1: chief investment officer of Blue Star Indexes. This is Bloomberg