This is taking Stock with pill Box and Kathleen Hayes, who's taking company public. He wanted to liquid like your majority show those shares who were quite a good We need a best portfolio. A little stack, elliottle her HELLI little cash. What if you were offered some kind of a stock option equity sharing program without doing a thing for you. You're a window into the world a professional investing.
You know what they say, Fools make money, bears make money, and things they get started at the bow where it is now. Everybody wants a foot to the market. This is Taking Stock with Pim Fox and Kathleen Hayes on Bloomberg Radio. Welcome to taking Stock on this Monday May on the road again as we broadcast live in Tucson, Arizona from Invested sixteen the Power of the Big Ideas of B and Y Melon Client Conference. I'm Kathleen Hayes
along with Pim Fox. Today we're gonna kick off the show with Brian Shay, vice chairman and CEO of Investment Services B n Y Melon, to look at a future vision for the investment industry, business model, fintech, in innovation and disruption, even robotics in banking and so much more, and of course we're to keep our eye on the news. Buyer is acquiring monk Santo for sixty two billion dollars as it tries to become the biggest seller of seeds and farm chemicals in the world. But is it paying
too much? We'll be looking at that, keeping her on the Fed of Courses. Boston Fed's Eric rosen Grid said, table looks pretty much set for another rate hike. Will it come in June? We're gonna be looking at so much interesting stuff on the show today. Let's get to Katherine Caldarie at Bloomberg World headquarters. She's got a Bloomberg business flash. Thank you, Kathleen. Well, it's an up and
down day on Wall Street. Stocks are fluctuating as investors who wait more clarity on the timing of the Federal reserves, next increase in interest rates, and the outlook for inflation. Hugh Johnson, chairman of Huge Townsend Advisor, says stocks will not know where to go until after next month's FED policy meeting. Everybody's looking for direction, and I think the focus is primarily on what's the Federal Reserve going to
do in the month of June. I think there's a very strong belief that the Federal Reserve is likely to raise interest rates in June. We check the markets every fifteen minutes about the trading day. Down Industrial average is up thirty seven points to tens of a percent, trading at seventeen thousand five D eight SMP five Foundered is up a fraction at trading at two thousand fifty two. The NASTAC is up ten points to tens of a
percent at forty seven seventy nine. West Texas Intermedia crude oil down forty cents of barrel seven eights of a percent at forty eight O one spot, Gold down on dollar eighty announced at twelve fifty one ten, and the tenure Treasury is up to thirty seconds with the yield of one point eight three percent. Among today's top business stories, as Kathleen mentioned, Bear is offering sixty two billion dollars to buy Monsanto, deepening investor concerned that it will strain
as finances. Their stock dropped as amount to six percent in German trading, extending losses since the potential deal was first revealed. Buying month Santo would allow Bear to tapp into growing demand at a time when farmers must boost productivity to feed an estimated ten billion people globally. By General Electric has agreed to take part in three billion dollars of Saudi Arabia investments. As a dessert kingdom seeks
to diversify its economy away from crude oil. GE will take part in efforts to drive projects in water, energy, aviation, digital and other non oil industries. The partnership is part of Saudi arabia strategy to invest in industries other than oil after crude prices plunged. Boweling shares are gaining Today it's pulled off a win over Airbus by landing an eleven point three billion dollar order from Vietnam's only private airline. The announcement was time to coincide with President Omba's visit
to Vietnam. ACCESS is going to stop investing in tobacco and divest all of its two billion dollars worth of assets in the industry. And now let's get an update if some of the other stories you're following. Thank you Catherine from the Bloomberg newsroom on Vanni quhen this news
update has rolled to you. My sector spider et s why by a singles doll when you can invest in the entire sector, visit sector sddrs dot com, or call one sector et F. The top US commander in Afghanistan says the death of a major Talaman leader could have a positive effect on peace efforts. Bloomberg's Michael Barr has More. General John W. Nicholson says the death of Maha Mohammed Aktar Mansour will have a disruptive effect on the insurgency.
President Obama talked about Mansurah's death while in Vietnam. He is an individual who has headed the Toller bond was specifically targeting US personnel and troops inside of Afghanistan, and Sea was killed by a drone strike in Pakistan. The President, while in Hanoi, also announced lifting the ban on selling arms to Vietnam. Michael Barr Bloomberg Radio. A judge has found a Botmore police officer not guilty on all charges
in connection with Reddy Gray's death and police custody. Maryland Congressman Elijah Cummings says the john and the justice system must be respected. In many of these cases, star is are never there is no trial again. This is the way Edward Nero was one of six Baltimore Police officers charged in the case. Along Island town is meeting up its so called voting while intoxicated the patrols ahead of
Memorial Day weekend. Supervisor Anthony Santino says the town of Hempstead is working to increase awareness of the dangers of voting while using alcohol or drugs. The town's bay constables will be patrolling waterways to help keep voters safe. Global News twenty four hours a day, powered by journalists more than one fifty news bureaus around the world. From the Broomberg news Room, I'm Bonny Quinn. Catherine, thank you, and recapping the Dow industrial leverage up thirty eight points trading
at seventeen thousand, five thirty nine. Smp F ive founded up half a point holding study at two thousand fifty two. NaSTA up ten at forty seven is seventy nine, and that's the Bloomberg business flash. Catherine Caddie, thank you so very much. The power of a big ideas invested. Sixteenth. We are live to a at Dove Mountain, about thirty
miles from Tucson, Arizona. A beautiful mountain range and is actually an historic Native American site here as B and Y Melon holds a very special conference for some of its top clients to look at the big challenges in the money management investment industry today. And we're very happy that Brian Shay is joining us to kick things off. Vice Chairman and CEO of Investment Services for B and Y Melon. Welcome and thank you for inviting us here.
Oh thanks, Kathleen. Pleased to be here and thrilled to be here with you and UH and also with two hundred of our top investment management and asset owner institutional asset owner clients UH to share ideas and insights with each other. Well, it's certainly been huh. I love it. Give you a little little metaphor, you know, rocky time for the investment industry the past few years. And as you know, I went on one of the hikes here around the hotel yesterday. You go straight at four or
five feet, your hearts pounding. But it is kind of a good men for though, for what people feel sometimes in this industry. Where are we now and what are the big questions that your clients have as they try to climb those hills. Yeah, I think we continue to be in a historic period of of change in the industry. UM. It's a it's really an unprecedented period of time in terms of lower than normal economic growth rates, obviously lower than normal or in case in many cases, negative interest
rates in Europe and Japan and other places. Very high amount of regulatory change which is really unabated since the financial crisis. UH, and pretty rapid change in technology as well. So the combination of all those changes is challenging financial institutions and investment managers UM, and you know, creating new
opportunities as well. We at B and Y MELON UM are the largest provider of services to investment managers globally around the world, and this conference is designed to help help our clients adapt to all that change and navigate all that change and UH and frankly, we don't we
don't see any you know, any let up inside. So our focuses on UM recognizing this all that uncertainty, all that change in the air, trying to focus on the things we can control to help our clients UH reinvent their business, transform their business models, and actually drive higher returns for investors and higher returns for the for their
companies as well. Alright, UH, stock market volatility is how how how do you fit in that in that in that question of what people are dealing with when it comes to clients and managing their money and what the and and what you can do for them and what
the questions are right now? Yeah, I think, um, I think you know, all the market volatility, whether it's you know, lower lower than normal ingistrates which affect investors, UH, market volatility across different asset classes, all of that is challenging traditional investment managers to drive you know, the kinds of
returns that investors really want and expect um. And all the change in technology UH and other challenges regulatory wise and otherwise are causing investment managers to want to focus
on the investment process. For from our for our business, that's actually an opportunity because what we do is we provide the technology platforms UH, the settlement declaring, the custody solutions that they need, and we we create shared economies of scale which lower the cost of investing and try to enable our asset management and asset owner clients to UH to serve their clients more effectively. All right, stock the stock market volatility, we're looking at that here in Tucson, Arizona.
Let's go back to UH, New York City, Bloomberg World Headquarters are stocks that are Dave Wilson to weigh in on the stock market to day. There's a lot going on in the market day, but it's basically overall flat, covering up a lot of interesting news and a lot of interesting stories. Absolutely. I mean, you look at the S and P five hundred and you're seeing very little volatility there. It's been within two tents of a percent
of last eeaks closed all day. So if you want volatility, you really have to look, especially to the deal stocks that you've got. Monsanto's shares up more than five percent after we we found out that Bears offer for the company UH sixty two billion dollars a hundred and twenty two dollars to share UH Monsanto trading at one of six sixty nine at the moment, so there's a long way from there to the value of the offer. And then you have a deal that actually fell apart in
the fertilizer business. See if Industries Holdings was looking to buy a Dutch company, o c I moved their headquarters in essence off shore for tax purposes. Well, we know the government here in the US has clamped down on that, so they decided to get out of that deal. In the stocks up more than six percent in response to that decision. So on the other hand, you look at Signa being down more than four percent, the Wall Street Journal reporting on disputes between that company and Anthem, which
made a deal to get together some months back. And he got Tribune Publishing, the owner of the Chicago Tribune in the Los Angeles Times, down fifty and a half percent after deciding to not go with an offer from Gannette and instead selling almost percent stake to a billionaire drug executive. So lots of developments on the take over front, uh, just not a whole lot of overall directions to the market at this point. So what's uh, what are you gonna look at when you come back in an hour
with your chart of the data. Well, you know we're gonna check out what's happened when it comes to uh dividends. That's something that Jeffreys focused on in their latest research. And you know that the way they see a dividend growth just as important as earnings these days. And we'll find out why. Well, always interesting when our stocks that are. Dave Wilson is on board. He will be back with an hour with more and we're gonna continue our live
broadcast TUSA on Arizona Dove Mountain. The Power of Big Ideas invested sixteen with B and Wine lent like Kathleen and Hayes all pimp Fox Taking Stuff on Bloomberg Radio Market Drivers brought you by Mercedes Benz. Study offers are in full blue, but your Mercedes Benz Tri State dealers take advantage of limited time leaves and finance programs on select models the string season. Visit m b USA dot com for details. Today Bloomberg Business News twenty four hours
a day at Bloomberg dot com. The Radio plus Mobile lap and on your radio is a Bloomberg Business Flash from Bloomberg World Headquarters. I'm Katherine Coldery. Bloomberg. Taking Stock is brought to you by van X Vectors et s. Expect more from your munis target tax accepted income, by maturity and credit quality, all with low cost et s. Visit Vanac dot com slash Muni vaneck access the opportunities.
Stocks are fluctuating after the SMP five thunder to be bounded from a seven week low investors are awaiting further direction on the health of the economy and prospects for
higher interest rates. James Blurred, president of the Federal Reserve Bank of St. Louis, said today he does not see the UK's vote on European Union membership influencing the US Central Banks meeting that will be held the week before the referendum, and San Francisco's John Williams said today that two to three rate increases this year are still about right. We check the markets every fifteen minutes throughout the trading
day on Bloomberg Radio. Down Industrial average is up forty three points a quarter percent, is trading at seventeen thousand, five hundred forty four. Smp F I founded up one point to two thousand fifty three, NASTAC higher by fourteen a quarter percent, trading at forty eighty three less. Texas Intermediate crude oil down fifty three cents of barrel of
also one point one percent, trading at forty eight. Spout Go down a dollar, announced at twelve fifty nine, and the Tenure Treasury is up one thirty second with the yield of one point eight three percent. And that's a Bloomberg Business Flash. This is Taking Stock with Kathleen Hayes and Grim Fox on Bloomberg Radio very special show as we broadcast line in Tucson, Arizona from the B and Y Melon Assets Servicing Conference INVESTED sixteen The Power of
Big Ideas on Kathleen Hayes along with Pim Fox. Pim will be joining us just a little bit later in the show. He is currently moderating a panel for b n Y Melon. Uh. It's they're launching an asset strategy view a new a new program they have in Pim is the moderator, so he's doing that well. I speak to a very important person here at this conference, Brian Shay He's vice chairman and CEO of Investment Services for
b N Y Melon. Where at dub Mountain, the rich Calton here uh near Tucson, a resort in the midst of the beautiful, beautiful mountains and two hundred plus clients. Briana, you have been at b N Y Melon for thirty three years now. First when you start with Pershing, which b N Y Melon acquired, but and so you've you've been there a while. But the company itself, B and Y Melon celebrating it's two thirties sec at anniversary. That's
really something, it really is. I mean, it's uh, you know, we're proud be part of a company that's managed to be a market leader in its business for two hundred thirt two years. That's increasingly rare and unusual, and it's pricely precisely because we've been able to sort of lead and manage change, which are skill sets that come in pretty handy in these markets in this environment as well.
But we were founded by um, you know, a visionary leader, Alexander Hamilton's uh not only one of the founding fathers of our country, but the first Treasury Secrets of the United States, UM and UM you know, literally in many respects, the sort of founder of moderate capitalism in America. So it's a pretty cool thing. The Bank of New York MELON made the Bank of New York at the time made the first documented loan UH in the history of the country, a ten thousand dollar loan actually to UH
to the government of the United States. So in many respects, we think of ourselves as helping to propel what has been a pretty strong economic success story UH for the last two hundred plus A years. So it's a pretty cool regulation regulatory change. It's certainly something that over the past almost decade now a lot of people in the financial services industry are dealing with a lot of big banks and leaving smaller banks. Are saying it's tough, it's
tougher to make money. They wonder if there's too much regulation. But you have said that, you for being my melon. You see an opportunity, business opportunity in all this regulatory change. Why what is it? Well, first of all, we um in the way of the financial crisis. There's no question that, you know, industry leaders need to embrace responsible regulatory reform, regulatory change, and we certainly do so UH things like UH you know, focus on capital ratios, liquidity ratios, UH,
red reduction, systemic risk. All that's really important UH to UH to actually embrace and lead that change, to UH strengthen investor confidence, confidence in our markets, and ultimately create an environment for our companies UH to succeed in a way that's actually good for the investor and good for the taxpayer as well. So we embrace that. But the opportunity for us during a couple of areas, one is that our clients are dealing with higher regulatory change costs,
and so they're looking to variabilize their costs. And the investment management space, investment managers are challenged by lots of other competitive dynamics, and they're looking to actually reduce their own let's increase their focus on the investment process itself and reduce their energy and time on technology operations, service delivery, and so we're their natural partner to actually provide those service to them solutions. That creates a little bit of
a growth opportunity for us. But more importantly, we look at regulatory change as an opportunity to reinvent our business and to actually change our value proposition for our clients UM and we think you can actually implement responsible regulatory reform and still make your business better if you have
the right mindset about it. I guess the best example I could mention is we were at the center of UH of an industry wide effort collaborating with the regulators to reform the tri party repoll market UM that mark it in the way that the financial crisis was identified as an area of systemic risk, and together working closely with the regulators, UM and other industry participants and leaders,
we were able to eliminate the intraday liquidity risk. We did that by changing the technology and changing the process and to end ultimately making our clients more efficient and productive and helping them manage their collateral and capital and liquidity more effectively. So we ended up making our clients more profitable and effective while reducing the systemic risk. Well.
And just this in the past couple of days, big announcement being my Mountain as part of a new a new step of new program Industrial and Commercial Bank of China is involved to help in institutional investors and money managers way to start issuing and trading the Chinese currency. What's going on? This sounds pretty important, kind of a proud moment when you're when the founder of your company is on the ten dollar abil in the United States.
UH it shows how far the company has come in two in thirty two years, when our global leader and we serve clients in thirty five countries in a hundred of different markets, and we've one of the big opportunities is to actually enable more investment global investment UH and investment in China, and so together working with the Bloomberg Working Group, uh D t C C and B and yml and and I C b C, which is the
longest largest bank in China. Last week we were we unveiled and issued the first UM, the first Chinese RMB denominated c D in the United States. B and yml AND acted as the paying agent and issuing agent UH and DT c C cleared the security and so it's the first time, and I think it's it's gonna be the initial phase of what will be much more growth than the Chinese global investment Mott, Well, we're gonna have
to watch that very closely. It is such so important having that the real and be the Chinese currency more traded, more invested, in a very important step of developing China's capital markets. Bryant sh thanks for joining us Vice chairman CEO of investment Services at B and Y Melon. This is Boomberg Radio continuing our live broadcast here at Invested sixty the Power Big Ideas Dove Mountaineer, Tucson, Arizona, B and Y Melon Conference. We're gonna be talking about the buyer of Santa Dea