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attend for r I A S space is limited. Register now at b n y melon dot com slash e t F. Now over to the first Word Breaking news desk for today's afternoon call. Here he is Bill Maloney. Good afternoon, Charlie. US stocks are week again today made continued breaks. It fears Dallas currently down seventy one point says to be dropped six in as that declines ten in Europe. France drop two point three percent, Spain and
Italy two point one percent. The German ten yield fell below zero for the first time, the U small cap six hundreds down two points, and the US ten yield at one point six one percent. Seven out of tennis b sectors are lower, led by losses in financials, materials, and energy, gains in telecom, staples and the utilities down. Transports drop a hundred and nineteen as a biotechs fall one,
and the vix is down by point three percent. Down Leaders to the downside included American Express, JP, Morgan and Home Depot. Leaders included GE, Walmart and Verizon. Credit card issuers fell as Secrety financials saw higher right offs. Secrety plunge percent the most ever. Airlines were weak again today, while Samantic rose another three percent after yesterday's five percent gain.
Live from the first breaking news desk gone Bill Maloney, Charlie all right, thank you very much, Bill Maloney, and to hear live breaking news over your Bloomberg type squawk s q U A w K on your terminal. I'm Charlie Platon death so bred business flash. You're listening to taking Stock with Pim Fox and Kathleen Nades on Bloomberg Radio.
A big win for the Internet today, a federal court up held net neutrality regulations designed to ensure an open Internet at handed a victory to the BABA administration and a defeat to telephone and cable providers here to talk to us about net neutrality. What this decision means for the large corporations who are driving at what it means
for consumers is our own match shutting Helm. He's communications litigation analyst for Bloomberg Intelligence in Washington, d C. Matt Welcome, Thanks, Kathleen, thanks for having me. I love the way you sum up what net neutrality is in one of your primers on Bloomberg Intelligence. You say it prevents roadblocks, tolls, and
fast lanes for Internet traffic. And even though Internet service providers owner control that infrastructure, the wires or wireless spectrum on which Internet traffic travels, neutrality limits those I s p s power talk to us about what this means. Sure, sure so, so that's exactly right. So the basic idea behind net neutrality is that the Internet works best as
an open highway for for all traffic. And so even though your Internet service provider be at a T N T or Comcast, or wireless provider Verizon or Sprint, even though they own effectively the facilities that bring you the Internet, the idea here is that they shouldn't be able to exercise total control over all that traffic. And so the SEC adopted three rules. It said that I s P shouldn't be able to block traffic, it shouldn't be able to slow down certain traffic, and it shouldn't be able
to do UH deals to prioritize certain traffics. So, for example, a T and T couldn't cut a deal with Netflix to give its traffic faster access to you than another video service provider. All traffic should be able to drive on the same roads on the same terms, Matt, who are on the opposing sides you mentioned A T and T, Verizon and Comcast. They might be on one side of this debate. Who's on the other side, That's exactly right. So so so they have have brought the challenge that
the Internet service providers on the other side. You have the FCC UH that that has adopted this rule, adopted these rules, and it's defending those rules in courts. The FCC is supported by by Internet type companies, companies that that depend on reaching end users and wouldn't want to be interfered with by those Internet service providers whose pipes they have to ride on. So companies like etc. Twitter, Netflix, UH Dish, which has a television service that rides over
the Internet. UH, they support Google, I would imagine Google. Google as well has largely been a supporter of that neutrality, although it's increasingly becoming an Internet service provider itself as as it expands to uh to deliver its own service in some areas. So it's it's historically been a strong supporter of net neutrality. It has supported these rules as well, maybe not as strongly as it did in earlier years. Well, then, if I'm an investor, how does this change anything for me?
Because it's the court upheld the existing system. Does this make it harder for those providers to make money and enrich their shareholders? Well, from the company's perspective, the problem here is that internet service had had always sort of sat outside of the regulatory box, if you will. Um. The SEC always sort of took a hands off approach
because it was always outside of the law. Um. But but since the SEC kept losing these net neutrality cases, and this is the third time it's tried to adopt this rule, these rule, and this is only the first time that it's actually succeeded. In order to to justify its rules, it brought internet service within to the heart of the law. So it has the broadest potential power over the service going forward. It effectively gets to determine what is a reasonable practice under a very vague standard
UH going forward. So so, what what the companies I think are most concerned about here isn't these net neutrality rules? They said, Hey, we we want to We want to protect net neutrality as much as the SEC wants it. But what the companies are concerned about is what is the FEC going to do with that broad reasonableness power uh to oversee internet service going forward? If rates get too high, will we see the SEC stepping in to regulate the rates UH next? I think that's that's sort
of the big driver of the lawsuit. Matt just quickly, is this the last legal word on neutrality? Well, if if the Internet service providers have their way, it won't be. They they will likely ask the full Appeals Court to reconsider this decision, and that will be due at the end of July. They also have the option to take this to the Supreme Court or try to take this to the Supreme Court, but that's a that's a tough tough road to to follow that the Supreme Court denies
most cases. So this very well could be the final word in the case. Thank you very much for joining us. Matt Chettenheim is communications litigation analyst for Bloomberg Intelligence. Joining us from Washington, d C, home to Bloomberg Fm. You're listening to taking Stock. I'm Pim Fox, my co host Kathleen Hayes. This is Bloomberg Radio. Bloomberg taking Stock is brought to you by Cone Resnick Accounting, Tax Advisory. Is your business ready to break through? See you have professionals
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