Transcripts For BLOOMBERG Market Makers 20150326 : vimarsana

BLOOMBERG Market Makers March 26, 2015

Let this lead to actually postponing your plans and the confidence has returned. I think this is certainly not the right day to discuss a future tragedy. What has to be done is to support the family members as much as possible. And all of us, together. I think i can even include the general public and when the time has come we will think about strategic considerations. It might exert a confidence on your position. Ive no reason to speculate this morning. An airplane this morning was planned to go to tel aviv. And when an airplane is called back, i think there is a good reason and there are good reasons for the captain to take it and not have the fight started. Since nobody knows the answer we could call after and ask what this all might have [indiscernible] you know something about the clue we provide you the reasons in a minute or two. When you heard what might be the region, did you inform the family members immediately . Or how have they had have they gotten to know this . Are being taken care of by us. Some others, europe, and we have seen to it that the family members have not actually gotten the information via the media. [indiscernible] irrespective or independent of the cockpit, the Flight Attendant the possibility and emergency and distress signal. You have a lot of speculation for instance, the aircraft, maybe not so good training. The pilots lost their conscience, etc. How do you see these speculations . The crews also know the code they are this was not used. Code. This was not used. Training in the cockpit. This is not actually permitted by the legislator. An emergency signal has to be triggered in the cockpit. This was only permitted through the license pilots. Ive never said anything on this point. I said it asked the gives the same kind of training to the german pilots as compared to and also the maintenance is the same technique. [indiscernible] actually looks after the maintenance. Older and younger planes. We have one more question. I think you have a picture releasing to the media today of the copilot. Is that him in front of the rich . In the bridge . We want to protect the private sphere of a person. This is actually something shared by the french authorities there one more question, please. He personally informed family members. How have they responded and reacted after having heard this not a matter of suicide or murder . How have they responded . The place in barcelona. Information by the french authorities. The family members did not get this information by the media. And of course, people react very differently. The shock, the sadness is different. It is of course terrible. We know the family members from barcelona, excuse me, a Different Air transport. Because different reactions if it is possible murder, i might imagine turkey different. I think it is simply terrible what happened two days ago. I do not know whether you could increase the sadness. Thank you very much for having come. Thank you for listening. Matt welcome to market millers Market Makers. It appears the 28yearold copilot deliberately crashed after locking the pilot out of the cockpit at least once or twice. He is stunned and aghast and does not know why the copilot did it here he said there is no sign of it very slick here. You also have german officials as well as the white house saying it does not look like terrorism. The highlight and the copilot word deemed 100 able to fly. He is interrupted training for some months. He cannot say why because of an oath of confidentiality. That is where we are right now in this horrible tragedy. For more lets bring in an aviation analyst and consultant. Kyle, thank you for being with us. You are also listening to the comments from the ceo. What were the biggest standouts to you and the Biggest Surprise you heard . Classic it appears the plane was taken over manually without any kind of autopilot being in shoulder. It looks like it is delivered action from everything they are saying. Pot death part of that is that one of the pilots cannot get back to their cockpit. How unusual is it for one pilot to leave the clock it during a fight . In the u. S. , it is required if a crew member leaves the cockpit the other cu crew member has to be in the cockpit such as the Flight Attendant. They did not have that requirement so there was in fact one person in the cockpit by themselves. I would not happen here in the u. S. I do not want to make you speculate here but perhaps it was a Budget Airlines of it did not necessarily have the crew members were that . No, it would be a regulation that would be in place. That was not the case they were not required to have another individual in the with the pilot. There are Flight Attendants on board with the airplanes and if needed, they wouldnt that be in the cockpit if regulations were in place. Matt how do you understand the structure, the lock ability of the door . Apparently, there is a lever the person inside the cockpit could operate that either opens the door or loc. Cit. Apparently, there is also a keypad on the outside. How do you lock someone out or get someone in from the outside . There is a three position control. There is unlocked, norm or operation, and unlock. The door would be closed and anybody would be free to enter from the outside into the cut area. If that control was in the normal position, the keypad would be enabled. In other words, a Flight Attendant or the pilot could actually dial in the code and gain access to the cut it. It appears that was on the lock position in this case, which would disable the keypad, so there would not be any kind of entry allowed via the remote keypad on the passenger side of the cockpit door. What kinds of other solutions might there be to help navigate this in the future, to have the l safe on the outside but also have a l safe from the inside . I think the way the system is here in the u. S. , it really works vertically. If this is a criminal act it would be a bad apple in the bunch. I do not think any regulation change is necessary here in the u. S. For Foreign Countries they will reevaluate that and i think it will wind up being like policies here in the u. S. Where it is required to have tea does individuals in the cockpit at all times. Matt i wonder how the investigation will go from here. They are still looking for a second voice recorder, the second contents of the black locks, which was found empty. And they have to evaluate whether or not the copilot was actually conscious . He had to be conscious because he was easily locking the door . That is correct. You know, they will analyze that analyzed the recordings and scrutinized his copilots history, his medical history, his financial condition, is there any reason for him to bring the airline down. They look at Bank Accounts and bank bounces, talk to his family and friends and coworkers to see if there was any unusual activity in the days prior to this incident. The ceo said the copilot was deemed 100 fit to fly and he underwent a thorough exam. What does that mean . Basically, a firstclass medical exam. It is done every six months checking your heart rate, blood samples, drug test, that sort of thing, just like a normal as an would go for a physical but more in depth. To make sure this person is in the correct state. One thing i want to say is there is not any psychological testing in most medical routine certifications. This might have happened in the very beginning when he was hired. There might be a brief psychological exam, but after that, there is typically a sixmonth evaluation. Thank you so much. We really appreciate your insight. Really staggering news is continuing to trickle out. Absolutely horrible. I want to bring you now to the date of the top stories outside the tragedy. Saudi arabia and allies have begun in yemen. Positions held by g. I. Rebels that have forced them to flee. The rebels are backed by iran and the saudis want to stop the spread of iranian influence on its southern border. My countries have joined the coalition. All are ruled by sunni muslims. The u. S. Is providing logistical and intelligence support. The goal of the attacks was outlined. We will do whatever it takes to protect from falling and any dangerous. Those saudi attacks up 6 . West texas intermediate trading above 60 per barrel at this point. The u. S. Health authorities are taking aim at ecigarettes. The centers for Disease Control will roll out a 68 Million Campaign helping smokers quit. The ads will help former ecigarette users as well as former traditional smokers. Electronic smokers face restrictions. You will be able to add photos and videos to your online chat on facebook. The social network is opening up messenger chat to add new features. Also open up to businesses and customers. Fourthquarter earnings that Beat Estimates there it was Winter Clothes that were the attraction, including oversized sweaters and boost sales by adding more seasonable products. Biotech takes a beating. Pulling down the nasdaq this week. Matt we have got one of the top exploration experts, stick with us for that. Mat greatt years for biotech investors. Biotech index up almost 300 and at record highs. That of course has some people yelling double. We have seen a sharp decline last week and the index is drive dragging the nasdaq down with it. A big and heavy weight. Our next guest says there is no need to worry. A major biotech investor. His Biggest Holding is biogen. You can imagine well, of course what you hold are terribly overvalued. I think you have to look at biotech and i do not think you can painted with a small brush. Appreciated at the very high end of could have it. The fundamentals have really not been better for a long time evaluations are not stretched, particularly when you put it in the context of other stocks in the market. You are talking about Companies Trading at 20 times earnings or maybe a little higher. At the same time growing those earnings in the high teens or even the 20 rate. Matt at the end of the 1990s, what kind of fees are you looking at then . Joe fee communication in the 2000 era, did not have earnings and were simply almost more like concepts. Matt we have a comparison from what we think of as a tech bubble. And now. You see the current era is in white, the biotech. The nasdaq tech bubble they look very much alike. Quite how do you figure out if there overvalued or is it is fundamentals . It is one of the paradoxes we live with. I talked to investors who are looking at this from the perspective of, we have seen a lot of specialists who have done well in the last few years. There is different types of money and the market. You talk to people who are positioning to say, hey, we could free up opportunities here. We have got day and change now. Question is last year alone, an incredible amount in the sector. Do you expect that kind of presence this year to be that continuing driving factor . I do believe and the day will continue. There have been two drivers. Big pharmacies still need products to continue their own growth. A lot of this has keyed off of low Interest Rate and relatively healthy evaluations for equity capital. Basically as long as Big Companies need products, and i still see them needing that, as well as money staying cheap, i think you will continue to see m a. I think it is hard to think you will see it may be at the pace we have seen it, but i would expect it to continue and hold the floor under the sector. Matt how much of this is actual medical breakthroughs . You have done stories recently on not a cure but a possible alzheimers issues. Hiv is much easier to live with her you can live with it now. Cancer, some progress being made there. Mia saini fascinating stuff in all we are seeing fascinating stuff in all of those areas. A biotech double of 1998 bubble of 1998 all of this pay off and it never really did during that time but all of a sudden, we have the knowledge of new scientific power that is ringing a lot to bear right now in cancer, in alzheimers, understanding human genetics and biology a lot better. There is fascinating stuff going on right now. We see a lot of fda approval. It is a really fascinating time to be in this area. Classically were to have a biotech sector, what would you be looking for . You look at the earlystage companies to to the extent they are treading at extreme valuations, or companies that do not have products and are just platform type technologies and are truly a technology play rather than someone developing a drug, seeing those with multibilliondollar market caps that is when you get much more worried. That is the distinction between now and 2000. A lot of the highest flyers in the 1999 era were not developing product. A lot of the depreciation you have seen in the past three to five years has actually been from real drug approvals. Dont those company is now still not have drugs . There are a few, but i would say less so than i thought back in 1999. Matt the fda has been more proving. The fda has a number of new policies to celebrate when they think there is a socalled breakthrough therapy. A great path way in the market. Approved in what i expect would be near record time. The fda is trying to take advantage of this and get to people faster than they can. Thank you so much. Matt chevron is doing well by doing good third it has been honored for increasing opportunities for women especially in leadership roles. Stay with us for that. Live from bloomberg headquarters in new york, this is Market Makers. Matt i am matt miller. Alix i am alix steel. I am eric and he is stephanie. Matt it is a personal preference. The top business stories of the morning. Shocking and tragic revelation from france yesterday. Prosecutors on the copilot of the german plane locked out of the locked out on purpose 30 appears to have deliberately crashed and the sounds of the plane last minute. They say the pilot tried to break the door down as the plane was in a rapid descent from 38,000 feet. We are learning more now about the copilot. 28yearold german citizen who wanted them to be a pilot since he was young. Flying since he was a teenager. German wings says he joined the airline since september of 2000 13 and had more than 600 hours in the cockpit to no immediate word on what his motivation could possibly have been if the speculation proves to be true. The ceo of german wings parent was asked if this would cause the airline to change any procedures in the cockpit. I do not cede any need to change our procedure. A german who will get together with the various experts in the authorities, with our german government, to see if procedures can be refined. I think we should not now jump into short notice activities. We should rather make analysis first. Matt the copilot was completely physically fit to fly. Americans are drawing more competent in the army. Consumer confidence rose last week to match the second highest level since 2007. Confidence grew among those making less money and those looking for jobs. The price of oil is now the highest level in two weeks. Yemen is near the center of trade. Crude now trading planning to shift spending from new york and london because that is where trends are set. It will also cut the amount of time. The company has been losing market share to the industrys leader, nike. We are down to the final 16 teams. Tonights game, kentucky takes on west virginia. The wildcats, youre watching in cleveland, the great state of ohio. Wisconsin plays North Carolina and xavier plays arizona. Alix it has been pretty fun. It has been a good time. Matt a lot of those guys are wearing adidas sneakers. The creator of that company, his name was it off. Slur. His nickname was adi dotzler. Adi da. Alix i believe you and scarlet after the dramatic selloff from the dow, we are still seeing continuing from the downside. Scarlet extending their losses from yesterday really the whole week. They have now fallen every day this week. This marks the Third Straight day of triple point losses. The dow has closed up or down by at least 100 points. In 13 of the last 15 training sessions. More of the big swings come back to the trade. You guys are talking about biotech. Stocks focus once again. In retreat in focus because the disk maker is dropping the most in six years since february of 2009 after cutting its firstquarter revenue forecast. It is pulling down other names like micron. Falling after share sale. The stock is continuing to move higher. Around 85 to 90 per share. You can see where it is below that for the moment to rallying yesterday. Moving in retreat or the broader market. Alix how do you say adidas . Thank you. All right. Scarlet fu. Matt Market Makers will take a quick break. Stay with us. Alix chevron pauses usbased Initiative Engineering opportunities for women is being honored with a catalyst award, a prestigious annual award honoring Innovative Strategies that expand opportunities for women and business. Here now is melanie, a chevron president of exploration and production. It is so great to have you out here. Thank you. Describe for us what the lord is . He does a prestigious award honoring Companies Corporations that have programs that show Measurable Results for women. We are very honored for chevron. Alix coming from the commodity land should landscape, it is rare to see it at all, women in charge of researching the companies, i mean, what kinds of strides have you seen internally . Melody 20 years ago we set up our policy number one, the chevron way. The describes the companyss values and their seven core values, one of those is diversity. Over the last 20 years, we have focused processes and programs around diversity that have really resulted in increasing number of women in leadership roles in the company and diversity across the country. It has been strong. Matt it strikes me you have got to start before people graduate. Ruth went to google and said, when she went to sanford, there were hardly any other women in her classic. What do you have to do to convince people in the oil industry . Melody we focus very heavily on the stem career. Women in diverse coming in. Encourage girls to go into engineering care we work with universities all over the world and we partner globally with universities and also here in the u. S. To develop the curriculum and ensure we have women coming into those programs. Once they come into our comp

© 2025 Vimarsana