Broadcasting live to New York, Bloomberg even to Washington, d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg to the country series General one and around the globe the Bloomberg Radio plus chapp and Bloomberg got gone. This is taking stock. Coming off on taking stock, Trito's, Derrito's and Cheetos. Yes, we're gonna be talking about PepsiCo quarterly profit topping Wall Street estimates. The shares are higher by
more than one and a half percent. We're gonna be speaking with jog Needs equity analysts for consumers staples at SMP Global Market Intelligence. Coming up on taking stock. Now to the newsroom. Charlot Pellets there with the Bloomberg business lash, and I think of very much, Kathleen, thank you. Pim Fox. The doll the SMP lower, naznac is higher. Stocks are falling, crude oil slipping below forty dollars a barrel on renewed.
Concerned about an oversupply in the US treasuries falling, with gold amid eighties in demand for haven assets before tomorrow's payrolls report. Right now, gold is down six ninety The ounce thirteen sixty drop of five tenths of one percent. Crude oil down to twenty four a barrel right now forty five seventeen on West Texas, Enemyia crude down four point eight percent, Brent crew down five point one percent.
Filing for US unemployment benefits unexpectedly declined last week to the lowest level since mid April, the Labor Department said John Bless. Claims dropped by sixteen thousand, two hundred fifty four thousand. White Wave shares surging today They are up now by eighteen point six percent. Done Known has agreed to buy White Wave Foods for about ten billion dollars, adding the best selling US soy milk brand Silk and the line of plant based foods, and doubling its size
in that market. At Hammond Covers deals for Bloomberg News sort of pivots towards health and while list that we're seeing a lot of the big food groups they're trying to do. At the moment, it doesn't come cheap. There is a guess, Tavalian, there's not many companies that do sort of you know, specialize in this space in the way that White Waves do. And it's the company that has had a huge amount of sort of noise around
it for the past couple of years. A lot of people have looked at it, a lot of people have been interested in it. So it is expensive, but it also does make sense that they're paying up for this very highly priced asset. PepsiCo shares surging after second quarter profit beat analysts estimates. The company also boosted its full year forecasts, help by rising sales of snacks and soft drinks in the US. PepsiCo shares up now by one point three percent, and it is to thirty two on
Wall Street. Now, let's take a look at other news from around the world on Bloomberg Radio. Thank you, Charlie from the Bloomberg News Room. I'm Raimi in essentio. On Capitol Hill, FBI Director James Comey is facing an onslaught of criticism from Republicans regarding his decision not to pursue criminal charges against Hillary Clinton over her use of a private mail server. Committee chairman Jason chafe It says he's
mystified over how the FBI chief made his decision. The average American that if they had done what you laid out in your statement, that they'd be in handcuffs, and they might be on their way to jail, and they probably should call me. Maintains there is no evidence the former Secretary of State lie to the FBI. The Justice Department accepted his recommendation and now says the investigation is over.
Minnesota's governor is asking the Department of Justice to investigate the shooting of a black man by a police officer during a traffic stop. The victim's girlfriend posted the aftermath of the shooting live on Facebook. She says police pulled over Filando Castile for a broken tail light. The couple's daughter was in the backseat of the car. Here's Minneapolis and double A CP president in Nikima Levy pounds, the reality is that something needs to be done, and it
needs to happen with a sense of urgency. We're tired of the excuses. We're tired of the status quo. We're tired of people being killed at the hands of those who are supposed to protect. And swimming hours for women only will continue at two Brooklyn pools. That's after city officials determined the pools policy does not qualify as gender discrimination. Women only swimming at the sites in Williamsburg and Crown Heights is largely meant to accommodate Orthodox Jewish women whose
religious beliefs bar them from bathing with men. Global News twenty four hours a day, powered by more than journalists and analysts in more than one twenty countries from the Bloomberg News Room. I'm Ramy in essentio, Charlie, and we thank you and again recapping the down SMP R law and NASDAK has higher SMP five hundred index now down nine points of two thousand ninety, a drop of four tenths of one percent. I'm Charlie. That's a Bloomberg Business flash.
Busy is taking stock with Kathleen Hayes and Prim Fox on Bloomberg Radio. So you thought maybe sugary soft drinks and snack foods are on their way out in a new, more health conscious world, will think again. Results out from Pepsi beating estimates and our next guest is actually lifting his twelve month target on a PEPSI by four dollars
to a hundred twenty two dollars a share. Joe Agneasy joins us now Equity analysts for consumer Staples at SMP Global Market Intelligence here in New York City, Joe, Welcome to the show. Good afternoon, So PEPSI what made the quarter so good? While they reported solid organic sales growth at three point three percent, this was driven by four percent growth at Frio Lay, which is an improvement open the prior year, and improving pricing at the North American
beverages their beverage Group developing markets up seven percent. This is being fueled by improved portfolio of healthier options health and wellness as people say that packaged food companies are shifting towards health and wellness as a consumers desire to eat better. Um. These sails are being fueled by cost savings to the company's multi year productivity improvement initiatives, which we see further supporting EPs growth going forward. I wonder if you could tell us a little bit about some
of the divisions. I mean, let's start off with the Quaker Foods operation in North America. Lower raw material cause productivity gains, and they cut some operations at a joint venture for dairy products. Yeah, so quickerly the smaller division of the company. Uh, what they're doing there is part of their overall growth strategy, which is shifting their products
and ingredients towards healthy eating UH. In Quaker, for instance, they're launching stack bars, which the convenient item that consumers are shifting towards, helping support revenue growth in the division. But as I said, the Quakes Food division is a little bit smaller. The division Freedom Law is the largest
division for the company. Gener is about a toll profits and against are They're adding natural dents, UH, eliminating artificial colors and flavors, launching new products which we expect to help drive help books in the second half of the year. Could you just give us a sense though, so on the margin, it seems to me they're adding some products that are helping UM, but they sell products around the world.
If you look at if you just kind of divide this into truly like healthier less sugar products versus everything else. Are they still getting by far and away the bulk of their profit from kind of the sugary drinks and the snacky snack foods. Well, the beverage shells are about
half of total sales. A little bit more of the profits UH the weekend if everybody wants to focus on, is in the carbonated soft drink, which continues to decline along with the diet beverages, but within beverages itself, they're shifting towards non carbonated drinks, which are doing extremely well. They've got brands such as Gatorade and Tropicana what's are growing strongly. Outside of the beverage division, they do focus
on salty and savory snacks, which is performing extremely well. Um, they're they're focusing passage sizes are larger package, family and party size packages, and they're shifting the ingredients to give options to consumers who prefer to eat health here. So they're launching lower fat products, reduced calorie products in such
of those that that that fit to consumer trends. Can you tell us a little bit about some of these new products as I'm looking at what's called the craft Cola brand eighteen ninety three, how does that fit in with the idea that they're going to bring back diet pepsi that's made with aspartane. That's less than a year
after they've changed the sweetener for diet pepsi. But what the doing is there's a sagentation of the market, so UH as many different consumer groups that they are speaking different uh the different desires for Cola the Pepsi eighteen ninety three is a premium product, something of sleek can made with real sugar. The diet soda with the affactan that you mentioned UH is going to be they get
pulled of them shelves. They've got a back last consumers who were very loyal to the product, and so they've recognize that they've made a mistaken pulling that product and they're not gonna added back. UM, giving consumers options and choices across the beverage category, the better meat demands of the consumers today. Acquisitions, UM, they have their flesh with cash they're looking to spend. Yeah, I think there they are inferent spanser. I would be surprised that they need
a significant, large acquisition. They mentioned to then the call that a tuck tucking acquisitions will be the most likely way they go UM, and again, I would think that would focus on healthier organic type items. That's that's hitting TV snack category into assaulting savory type snack typors and not submission acquisitions like other UH players make within the packaged food stack. You're not like the the acquisition today announced by dan On for a white Wave estimated value
about ten billion dollars. Thank you very much. Joe and Y c. He is equity analyst consumers Staples for S and P Global Market Intelligence, who can follow them on Twitter at sp Capital. I Q you're listening to taking Stock? I'm PIM Fox my co host Kathleen Hayes. Right now the shares of PepsiCo. They are up more than one and a quarter percent, trading at a hundred seven dollars
and thirty four cents. This is Bloomberg. FBI Director James Comey defending his recommendations against pursuing criminal charges for Hillary Clinton over use of her private email while secretary of State? Is it over? Are the Republics going arrest? Now? That's coming up on Bloomberg