Global business news twenty four hours a day's Bloomberg dot Com, the Radio plus mobile lap and on your radio. This is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm Katherine Caldery. We take the markets every fifteen minutes throughout the trading day. Let's go over to the First Word Breaking news desk for today's afternoon call with Bloomberg's Bill Maloney. Bill,
Good afternoon, Katherine. Stocks are under pressure today, with the Dow currently down a hundred and eight points, says Bees drop sixteen and NAZAC is lower by forty six. The small cap six hundred drops nine points, and the US
ten yield at one point five percent. Nine out of tennis be sectors are lower, led by losses in the consumer, discretionary, financials and the industrials small gains for energy down, Transports drop two percent, NASA by takes Outperform up thirteen points, Utilities fall four and the vix is up by ten percent. Down Leaders to the downside included Fiser, Goldman, Sacks, and Apple Small for Procner, gamble X on mobile and Travelers.
Malan Cry jumped as much as sixteen percent after its earnings, while Biogen surged surged as much as ten and a half percent incher day after the water Jeneral reported that Biogen has drawn takeover interest from Ourgon and mark It's another busy night for earnings and some of the names reporting acted the belt to night include Tableau Software, Electronic Arts, Fitbit, and a I G. Live from the First Breaking News Desk on Bill Maloney, Katherine, thank you Bill and to
hear a love breaking news over your Bloomberg Type A s qu a K on your terminal West six is senter Media. Crude oilis down forty nine cents a barrel of one on a quarter percent to thirty nine fifty six ten. Your treasury down four thirty seconds with the yield of one point five three percent, and that's a Bloomberg business slash. This is taking stock with Gableen Hayes and Prim Fox on Bloomberg Radio. New York State has proved a plan to generate half of the state's power
from renewable source sources by the year twenty thirty. They joined California and setting one of the most ambitious clean energy goals in the nation. And in addition, the plan includes billions of dollars in subsidies to keep upstate nuclear plants operational while the use of solar and wind energy ramps up. Here to tell us more is Kit Connelledge.
He is senior Industrials and Utilities analysts for Bloomberg Intelligence, providing unique in real time research and context on a variety of industries as well as markets and government factors that affect businesses. Our terminal customers can access this function at b I go. Kit thanks very much for coming into the studio. Tell us about this plan that has passed the New York State Public Service Commission sure UM. The idea is to subsidize three nuclear plants upstate. They're
along Lake Erie. UH, they've been losing money. Um. Nuclear is a zero emissions source of power. UH. It also provides a lot of jobs and a lot of tax taxes for the local communities. So those are all important factors and why Governor Cuomo UH and the members of the Public Service Commission and unions in the area all
supported giving subsidies to the nuclear plants. So with zero missions, with these very important link to communities and jobs, what has been the problem for nuclear power and power plants and upraim seems to me that a lot of government policies have been against nuclear because they're worried about the possibility of a meltdown. They're worried about in of course, and that not in my backyard, etcetera. So it's nice that York State is turning it around, But hasn't that
been the problem for nuclear? Yeah? Absolutely, it's Uh, it's certainly the problem for building a new nuclear plant. That's not going to happen in too many places, although it's happening in Georgia and South Carolina. Um. Also, it's very expensive to build a new one for the existing plants. I think we still see a very significant anti nuclear um presence out there, people who are just you know, don't like the idea of nuclear plants. They have had
some problems, some issues. You can debate how serious they were, etcetera. But clearly, for example, the state of California decided that, uh, within the next eight years, they would close the last remaining power plant in California and basically pay off the shareholders of p G and E who owns that Diablo Canyon plant, uh, and just say, Okay, that's the end of nuclear in California. We're going all solar and wind. How much is this gonna cost rape pairs? Uh? In
New York it looks like about two percent. Uh, it's about five dred million dollars a year additional payments. That's obviously spread out over a lot of electric bills, millions of electric bills. UH. It didn't get highlighted because nobody has an interest in highlight at the nuclear plant owners are happy to have higher profit margins. UH. Governor Cuomo and the Public Service Commission are happy to have a zero emission source and happy to have the unions supporting them.
So nobody's going around saying this is really costing your money, but it will raise bills by two percent. Some people may say that's perfectly well worth it. Well, your excellent work on the your North America Dashboard for bluebrig Intelligence Electric Utilities. Looking at this whole there, there's a great note of political melodrama in here, though, because you point out that Excellent and Entergy will perhaps get the first nuclear subsidies, but you also point out that Calpine and
dyning Gy aren't done finding this nuclear aid. Tell us about that part of the now. Absolutely, I think there's in in other states. When, for example, the state of Ohio tried to subsidize h one nuclear plant and some coal plants because they were losing money. UH, they were overturned by the federal authorities who who ran the UH
merchant power grid UH the PGM grid. So I think that we're gonna see the UH the merchant power gas and they don't have metch Cole in New York, but the gas plants in New York are gonna be fighting against the subsidy because if if you didn't have the subsidy, the gas plants would be operating in a market with no nuclear plants upstate, and they expect to get higher prices. So they're saying, hey, wait a minute. You know, since when do they get subsidized and we don't get subsidized.
It was supposed to be an open market. This is a new rule. Now I understand that the three upstate plants that are going to participate, this is what Gina near Rochester UH, plus the James A. Fitzpatrick and the nine mile Point facilities. Those are all north of Syracuse. Excellent wants to buy the fitz Fitzpatrick plant from Energy. Correct, Yeah, that's correct. The Entergy wants to get out this merchant business.
They've had enough of it. It's a very volatile business and utilities, as you know, are very risk averse company owned Indian Point and that's not eligible for at least like two years. Well, that's right. They they they're sort of stuck with Indian Point. They'd rather not own it, but they feel like it's worth a couple of billion dollars. So until they get paid, they're they're not shutting it down.
But if Excellent wants to buy this from them, and Excellent is very committed to the nuclear merchant business and if they're getting higher margins, they're happy to buy it potentially. Well, we're very happy it had you on the show today. Kit Connellege, senior industry analysts for Bloomberg in Intelligence, Electric utilities, Nuclear subsidies coming to New York State. This is Bloomberg.
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