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Bloomberg's Wilson on Winners, Losers, Stock of the Day (Audio) · Bloomberg Intelligence

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  Speaker 1: Global business news twenty four hours a day. If Bloomberg
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  Speaker 1: dot Com the radio plus mobile lap and on your radio,
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  Speaker 1: This is a Bloomberg Business flash from Bloomberg World. Hank Waters,
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  Speaker 1: I'm Charlie Pelotadal. The SMP nestack all lower on this Wednesday.
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  Speaker 1: Folks from Line Brokerage ringing that closing bell stocks declined
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  Speaker 1: in light volume amid fragile sentiment as traders way the
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  Speaker 1: probability of the UK voting to remain in the European
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  Speaker 1: Union a day ahead of the referendum and early climb
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  Speaker 1: for equities lost momentum after brexit. Polls released today quelled optimism.
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  Speaker 1: SMP five hundred index down three at the close to
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  Speaker 1: two thousand eighty five, a drop of two tenths of
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  Speaker 1: one percent down. Industrials down forty nine, a drop of
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  Speaker 1: three tenths of one percent. The nastack composited indecks down
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  Speaker 1: ten to thirty three, a drop there of two tenths
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  Speaker 1: of one percent. Ten you up six thirty seconds, the
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  Speaker 1: yield one point six eight percent. Gold lower by three
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  Speaker 1: tenths of one percent, down three eight anounce to twelve
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  Speaker 1: sixty eight. Crude oil down one sent fourteen barrel West
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  Speaker 1: Texas Intermedia dropping by one point four percent. Now, what
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  Speaker 1: about opportunities in US stocks? John Manley is chief equity
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  Speaker 1: strategist at Wells Fargo Funds. He was our guest right
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  Speaker 1: here on taking Stock. One are the things that's happened
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  Speaker 1: for the last two years that's so amazing to me
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  Speaker 1: is that neither stocks nor earnings expectations have gone anywhere
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  Speaker 1: in the U S. And I think that's helped the
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  Speaker 1: big companies as well as the yield play. I think
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  Speaker 1: earnings are starting to lift off a little bit, and
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  Speaker 1: if that happens, I think you could see more outperformance
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  Speaker 1: in the MidCap sector. So I'm sort of agnostic when
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  Speaker 1: it comes to this sort of thing. I still think
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  Speaker 1: for myself being an aging baby, when where you know,
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  Speaker 1: large caps are not a bad place to be. The
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  Speaker 1: National Association of Realtors says sales have previously owned homes
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  Speaker 1: climbed in May to the highest in more than nine years,
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  Speaker 1: indicating the demand for resident for real estate remains robust.
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  Speaker 1: SMP five hundred index fell three points today to two
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  Speaker 1: thousand and eighty five and dropped there of two tenths
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  Speaker 1: of one percent again recapping it out down forty nine
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  Speaker 1: at the close to seventeen thousand, seven hundred eighty, a
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  Speaker 1: drop of three tenths of one percent, and Nastak lower
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  Speaker 1: by two tenths of one percent to three four o
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  Speaker 1: two on Wall Street. Now, let's take a look at
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  Speaker 1: other news from around the world. On Bloomberg Radio Charlie,
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  Speaker 1: Thank you from the Bloomberg news Room by Mark Crumpton.
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  Speaker 1: On Thursday, voters in the UK go to the polls
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  Speaker 1: to decide whether to remain in the European Union. At
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  Speaker 1: a rally today, Prime Minister David Cameron said staying in
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  Speaker 1: the EU makes Britain, in his words, stronger, safer and
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  Speaker 1: better off. Go out and vote Remain. Go out and
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  Speaker 1: vote Remain for a big beta Britain inside reform European Union.
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  Speaker 1: UK Independence Party leader and Leave campaigner Nigel far says
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  Speaker 1: EU leaders are unable to lower unemployment and economic stagnation,
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  Speaker 1: or to deal with the migrant crisis. Tomorrow people will
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  Speaker 1: bring the opportunity to have a to say this must,
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  Speaker 1: and polls have consistently shown voters split, with the outcome
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  Speaker 1: too close to call. Hillary Clinton has picked up the
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  Speaker 1: endorsement of Brent Scotcroft. He's a retired U. S. Air
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  Speaker 1: Force Lieutenant general and was the National Security Advisor under
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  Speaker 1: President's Gerald Ford and George H. W. Bush. Scocroft says
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  Speaker 1: Secretary Clinton would bring quote unique experience to the presidency.
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  Speaker 1: Former House Speaker Dennis Hastert has reported to a federal
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  Speaker 1: prison facility in southeastern Minnesota. That's where he will begin
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  Speaker 1: a fifteen month sentence after he admitted guilt in a
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  Speaker 1: hush money case in an effort to conceal past child molestation.
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  Speaker 1: Governor Cuomo wants to know who allowed police officers to
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  Speaker 1: shut down a lane of the Lincoln Tunnel to provide
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  Speaker 1: a private escort for a businessman. The businessman and two
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  Speaker 1: high ranking NYPD officers were arrested earlier this week as
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  Speaker 1: part of an ongoing federal corruption investigation. Global News twenty
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  Speaker 1: four hours a day, powered by more than twenty journalists
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  Speaker 1: and analyst in more than one countries. I'm more Crumpton,
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  Speaker 1: this is Bloomberg, Charlie, and we thank you and again
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  Speaker 1: recapping all move law for stocks today, SMP five hundred
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  Speaker 1: index down three to two thou eighty five, a drop
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  Speaker 1: of two tenths of one. I'm Charlie Pellett, and that's
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  Speaker 1: a Bloomberg business flash. Move around most great promotion at
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  Speaker 1: the elite move you move like they do. I've never
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  Speaker 1: seen anyone move that fast. Five people. Let's dove like
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  Speaker 1: to treat a purpose that was called movers and shakers.
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  Speaker 1: They cost a little more and that name cracked me up.
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  Speaker 1: Bloomberg taking stock movers and shakers with Pim Fox and
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  Speaker 1: Kathleen Hay's on Bloomberg Radio, a little more tilt to
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  Speaker 1: the downside to day in this and P. Five hundred one,
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  Speaker 1: you look at the winners and losers. In fact, two
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  Speaker 1: four companies saw their share prices close lower to our
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  Speaker 1: thirteen higher, eight unchanged our stocks that are divals and
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  Speaker 1: his back to kick off movers and shakers. Well, given
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  Speaker 1: that it was a down day, it's probably is good
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  Speaker 1: a reason as any to start with the worst performer
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  Speaker 1: in the SMP five D and that would be uh
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  Speaker 1: the graphics software maker Adobe Systems. Their fiscal second quarter
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  Speaker 1: sales came up just short of analysts avage estimate in
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  Speaker 1: the Bloomberg survey, and Adobe's third quarter revenue forecast was
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  Speaker 1: also lower than projections. They're one of these companies that
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  Speaker 1: have been affected by this whole shift towards Internet based
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  Speaker 1: software cloud computing as approsed to programs installed on desktops.
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  Speaker 1: They've countered that with something called the Creative Cloud, a
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  Speaker 1: subscription service. Nonetheless, the idea that revenue coming up short
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  Speaker 1: not going over well with investors. Adobe Systems down five
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  Speaker 1: point seven percent on the day. I'll tell you about
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  Speaker 1: the shares of McDonald's down more than one and a
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  Speaker 1: half percent to a hundred and twenty dollars sixty two cents.
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  Speaker 1: That's declined of more than two dollars a share. Rbc
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  Speaker 1: A restaurant analyst David Palmer, in a note to clients,
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  Speaker 1: says that traffic is still negative at McDonald's as the
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  Speaker 1: chain continues to wrestle with its dollar menu hangover. You
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  Speaker 1: may recall that McDonald's eliminated the popular dollar menu earlier
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  Speaker 1: this year when it was no longer profitable for franchises. Indeed,
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  Speaker 1: he says that there is perhaps too much it's that
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  Speaker 1: the stock is too expensive compared to the relative chains
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  Speaker 1: such as Chicka fill Or in an out burger. He
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  Speaker 1: says that second quarter sales growth estimates for McDonald's is
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  Speaker 1: two and a half percent, down from three and a
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  Speaker 1: half percent. McDonald shares down one and a half percent today. Well,
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  Speaker 1: I'd like to look at fed X. It dropped four
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  Speaker 1: and a half percent today. That's quite a chunk of
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  Speaker 1: change if you own that stocks the list in five months.
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  Speaker 1: In fact, it disappointed investors by not providing more specifics
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  Speaker 1: on how the four point eight billion dollar acquisition of
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  Speaker 1: Dutch shipping company t n T Express will affect earnings.
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  Speaker 1: In fact, FedEx excluded the impact of the May acquisition
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  Speaker 1: of t n T. Maybe it's just so soon they
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  Speaker 1: couldn't figure it out. Dave Wilson from their profit forecast
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  Speaker 1: for the current fiscal year, which runs through May seventeen,
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  Speaker 1: they said the deal with boost earnings in fiscal eighteen.
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  Speaker 1: Helen Becker, very well known Cohen and Company analyst, said
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  Speaker 1: in a report today quote, we find it frustrating that
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  Speaker 1: management did not give better metrics regarding the merger, as
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  Speaker 1: it will be a large driver of growth into the future.
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  Speaker 1: This acquisition of t n T gives FedEx an extensive
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  Speaker 1: ground delivery network in Europe, making a stronger competitor to
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  Speaker 1: market leaders including a United Parcel Service and Deutsche post A,
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  Speaker 1: g S, D h L Dave. We're talking about stocks
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  Speaker 1: with Anna Day and if you look at those that
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  Speaker 1: were up in the SMP, you see a lot of
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  Speaker 1: drug and biotechnology companies on the list. This all has
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  Speaker 1: to do with the Independent Payment Advisory Board. It was
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  Speaker 1: created under the Affordable Care Act and it's a group
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  Speaker 1: that will be able to cut expenses under the Medicare program. Now,
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  Speaker 1: as it turns out, there was some speculation that this
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  Speaker 1: Advisory Board would go into effect this year, while we've
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  Speaker 1: now found out from the government that this cost cutting
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  Speaker 1: panel will probably take effect next year instead. So it's
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  Speaker 1: a matter of timing, and it's the sort of thing
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  Speaker 1: that went over well with investors in the companies that
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  Speaker 1: would be affected by this new committee. Uh, you've got
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  Speaker 1: Bristol Myers squib up one and a half percent today,
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  Speaker 1: Abbott Labs of two point seven percent, sell Gene if
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  Speaker 1: you're looking at biotechnology of two and a half percent,
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  Speaker 1: for general and pharmaceuticals with a gain of two percent,
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  Speaker 1: and I also stay with healthcare for a second. Anthem
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  Speaker 1: down more than two percent today. Anthem, of course, in
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  Speaker 1: July of last year, announcing an agreement to acquire Signal Corp.
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  Speaker 1: The price tag then was fifty billion dollars. Currently the
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  Speaker 1: transaction values forty five billion dollars. UH Anthem and Signa
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  Speaker 1: they are, of course preparing for a showdown. Senior Justice
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  Speaker 1: Department officials looking to review the deal and insurers are
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  Speaker 1: perhaps set to meet on Friday with the department's number
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  Speaker 1: three official, a critical moment as the government makes its
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  Speaker 1: decision about whether to approve or block the deal. Anthem
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  Speaker 1: shares down two. Well, just a quick word. Priceline got
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  Speaker 1: an upgrade from Barklay's and the share price is up.
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  Speaker 1: Let me see it was right here on my screen.
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  Speaker 1: It's up one at a quarter percent PIM All right.
• 9:43
  Speaker 1: Let me tell you now it is time for the
• 9:46
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• 9:59
  Speaker 1: today up two point one nine to twenty point sixty seven.
• 10:02
  Speaker 1: That's an increase of more than eleven percent. Unusual movement
• 10:06
  Speaker 1: because the idea is that you need actual price volatility
• 10:09
  Speaker 1: before the options market actually pays up in the form
• 10:12
  Speaker 1: of higher implied volatility, which is what the VIX measures.
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  Speaker 1: All right, Dave here, my name is Dave. Just what
• 10:23
  Speaker 1: do you think you're doing today? We're going for a
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  Speaker 1: price on will Dave who doesn't like walking through Restoration Hardware?
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  Speaker 1: What's going on there, Dave Wilson, Well, I'll tell you
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  Speaker 1: a Restoration Hardware has gone through quite a reversal of
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  Speaker 1: fortune in the stock market. The home version's retailer restet
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  Speaker 1: a record last November after surging more than four or
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  Speaker 1: fold from its initial price back in November. Then the
• 10:51
  Speaker 1: stock tumbles as much as seventies seven percent and almost
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  Speaker 1: gave back the entire gain. Now Restoration Hardware trades under
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  Speaker 1: the ticker our H. The stocks plunge stem from disappointed results.
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  Speaker 1: Just two weeks ago, company reported an unexpected loss for
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  Speaker 1: the fiscal first quarter and cut its fo YOUR profit
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  Speaker 1: forecast by thirty eight percent. Restoration Hardware's fall lad BB
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  Speaker 1: and T Capital Markets to revive an idea that the
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  Speaker 1: firm proposed two years ago, a takeover by the cookware
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  Speaker 1: and home accessories retailer Williams Sonoma Alice Anthony Chakomba wrote
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  Speaker 1: in a report that the deal makes even more sense
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  Speaker 1: now than it did then. In his view, Restoration Hardware
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  Speaker 1: would fit in well with Williams Sonoma's West Elm and
• 11:35
  Speaker 1: Pottery barn Jays and a deal with lift earnings right away,
• 11:39
  Speaker 1: and that prospect of a transaction lifted Restoration Hardware shares
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  Speaker 1: by seven point two percent, their biggest gains in February,
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  Speaker 1: and Williams Senoma also rose that stock, adding two point
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  Speaker 1: seven percent. Thank you very much, Dave Wilson, Bloomberg Stocks columnist.
• 11:55
  Speaker 1: They're listening to taking stock on Bloomberg Radio. Blumber. Taking
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