Global business news twenty four hours a day at Bloomberg dot com, the radio, plus Globo lact and on your radio. This is a Bloomberg Business flag from Bloomberg World Handquarters. I'm Charlie Pellett's stocks continue to trade Laura, forty two minutes to go ahead of the close on a Friday.
We're brought to you by Sector Spider et F s Y by a single stock when you can invest in the entire sector of visits sector sp d rs dot com or call one sector e t F SMP five hundred index heading for its steepest drop in two months, amid caution over tepid global growth and a series of looming events with the potential to spur renewed market turbulence. Right now, the SMP five hundred index is down twenty four points to drop there of one one percent to
two thousand ninety one. Now, let's head over to the first Word desk. Let's get the latest update now and here's Bill Maloney. Good afternoon, Charlie. Manuis averages have been under pressure from the start today. Dall is currently down a hundred and fifty nine points as if he's dropped twenty four and NAZAC is lower by seventy five. The small cap six hunder falls eleven points and the U S ten yield drops to one point six three percent. Nine out of tennesse B sectors are lower, led by
losses and energy, financials and consumer discretionary. Only Telecom gained down, Transports dropped a hundred and thirty five points and as a biotech Sinc seventy four and the VIX is higher by eighteen percent. Down Leaders to the downside included Caterpillar, Goman,
Sacks and Boeing. Verizon led to the upside. H R not Block gain thirteen percent that's most since two thousand eight after earnings, while Mattress firm fell thirteen percent after its results and the latest UK pole conducted for or Be Independent showed fifty five percent leave fortcent remain live from the first breaking news descom Bill Maloney, Charlie, all right, thank you very much, billing to hear a live breaking news over your Bloomberg squawk. Ask you you a w
K on your terminal. I'm Charlie Pelt. That's a Bloomberg business flash. Mr Secretary, Mr Burns, did you hear the news about good old General Musser Street. They renamed it after him. The Mercer legacy is secure. Onlie had to do is Die? That's a lot less work. We ought to give it a try. How you're going to get your debt plan through? Hamilton's a record sixteen Tony nominations.
That's just the snippet from the room where it happens where some of the stars of this very talented cast are singing one of the all the songs are so popular, but certainly that is one of the big ones. Now, the Tony Awards are this weekend, and as we get ready for that and wait to see how many actual awards Hamilton's wins. On the sixteen, it has been nominated for a very interesting story written today by our own Henry Goldman, Alexander Hamilton's introduced the idea of federal taxes.
Broad A producers, enjoying a record season, buoyed by his namesake musical, are lobbying Congress to limit what they owe. Henry, that's a great way to start your story. And welcome to taking stock, Hi, Kathleen, It's a pleasure to be here. So uh, you know who doesn't love Hamilton's And you know you have any kind of friends or relatives coming from out of town, everybody wants to go to Broadway, which is one reason why you know New York State
Senator Chuck Schumer is arguing for this tax break. Tell us about it. Well, it took several years of lobbying and cajoling before Broadway last year was able to get a tax provision passed by the Congress and signed by the President that would allow investors in Broadway shows to deduct their investment in the first year. And UH this was something that TV and movie investors had, but live
theater investors didn't have. And the idea was that people who were investing in Broadway shows they would actually have to pay tax on what was the estimated profit that a producer might include in his offering circular to the investor. But it was basically an optimistic assessment of how much money they might make and how soon they might make it. And on the basis of that optimistic estimate, UH, an
investor was taxed even if the show might fail. So they were able to get this past, which allowed investors to first of all deduct their investment as a as an expense and also avoid paying tax on so called phantom income based on the optimistic assessment of the producer, who, after all, is trying to sell a show in the first place. Well, there's no doubt that, you know, as your story points out, four or five per wormans is closed without even recouping their startup costs. It's such a gamble.
You gotta for a lot of people, gotta have money you're willing to never see again if you're going to invest in a Broadway play. So why is the opposition in Congress? Well, it is a gamble, but life is a gamble. I mean, you know, let's say you are in the biotech business and you go out and you try to sell stock, either as a private offering or as a public offering, and that biotech company or any other startup goes belly up. Those investors lose their money.
And so there are people in Congress who say that why should this industry, the show biz industry, get a tax advantage that people in other industries don't get. But did you just say that television, film, other kinds of Well, that's right, I mean, but you know, we're talking about
glamorous professions. That this is the argument against that that the glamour has sort of clouded the eyes of some members of Congress, and they voted to do this, and um, it's uh, that's you know, part of the argument against it. So that's the argument against it. Is the argument for in part that you know, we support the arts in many ways. It is a constant struggle for painters, for sculptors. Uh you know, so is it that different to give
a Broadway play which is actually theater some support as well. Well, you know, it is a tough investment. We do want to support the theater. The theater probably nationally provides about fifteen billion dollars in economic activity to the country, just live theater long. We're not talking about TV and movies here.
So uh, there there are arguments for it, obviously, And one of the arguments is that you know, somebody who starts a company like my biotech company, for example, he can go to a bank, you can go to a venture capitalist and get that kind of money to start up. And really a Broadway showman can't do that. He doesn't have those sources of capital available to him. You see Hamilton's. I did see Hamilton's. I liked Hamilton's, but I'm not about to promote Hamilton's. There are a lot of good
shows out there. There are shows that fail that are really good. Well, you're you're a very lucky man, sir. A lot of people would love to be in Henry Goldman Shoes. I'm gonna tweet out your story. Henry Broadway wants logs, longer, tax breakers, Hamilton's Prince Money. This is taking Stock on Bloomberg Radio. We're going to continue to listen to one of the hit tunes from Hamilton's awarded her sixteen Tony nominee awards this year. This is Fig Radio, Bloomberg.
Taking Stock is going to be taking a look at lagoons that you can put in the desert, Crystal lagoons. Yes, coming up, Bomb Bloomberg Radio.