What's Up On Wall Street - Michael Regan, Bloomberg

Welcome back into the financial exchange this is -- not a filling in all week for burial Armstrong and we have a couple pieces of breaking news actually we mentioned earlier in the day that Barkley CEO was going to be resigning. We now have found out that there CEO always resigning as well so their top two executives. Are both leaving the company and in addition that we -- that at 10 o'clock hour we had may factory orders coming in. Those rose point 7% which was a actually above. The point 2% increase that we are expecting so finally. Some good news on what has been a terrible Tuesday. How about actions -- right factory orders up all point 7%. This is this so we can kind of live off this for what and the rest of the day the rest of the week I'll take the rest of the -- this. Just one step at a time and yourself I do also have some good news from our from our techsters though we we asked people what are they going to be doing for the fourth of July where they see the fireworks. Let me tell you I've changed my plans from my barbecue from the 603. We have Hampton beach fireworks in beautiful girls on the ocean a great day and night. I'm there by my barbecues officially canceled I will see US Hampton beach. And Shaq did you hear -- newscast that Chrysler sales for the month that you more pop up 28% I believe enough for the 27 consecutive months of another company coming back you know again. You know. For Ford came back GM came back and now we're finally seeing Chrysler get there as well also. The Big Three appear to be on the rebound at this point those Sebring convertibles man. Who bit of -- who buys those. Guys though so. Just I'm just kidding but that's a good current. So -- Let's bring in now from Bloomberg we have Michael Regan who's going to be joining us. And and Michael it's good to have you here today I -- spectrum so let's talk a little bit about yesterday. Pretty quiet day in the market we a bit of a mixed bag there after the reports came out on manufacturing construction what is that data telling us and even with today's report you know to any kind of put that in perspective for us to. Well yeah like you said today's report is a a welcome surprise. In in what's been really string of pretty disappointing economic data mean. Yesterday the -- and manufacturing. Index which you know for the manufacturing was actually contracting for the first time in in like three years. So that that was -- you know that that was a big disappointment for the market. This factory orders now is is -- Happy surprise but in general that the data has really been disappointing. In you know when. Related to economists adjustments that we follow this thing called Citigroup. Economic surprise index. And what doesn't basically you know measures how much needed is missing her beating estimates. And it's sad about that negative 64 right now which is really well that and that's it's it's almost the lowest in a year. It's kind of follows there's a seasonal trend that's -- in the last three years where that the -- in. The summer months has really come -- a lot lower than what economists were estimating so it's sort of you know the last couple years if it. It quickly picked back up later in the summer so. It gets to be seen you know the summer it's an apology entrant or mrs. you know connecting to need to be. A bed you know. Couple months for -- for the economic data. Yeah and it's interesting ever actually seen a couple studies that caused the decline in late 2008 was so severe. It actually threw -- a lot of the seasonality factors that are used to calculate that that might actually have something to do with why we've seen this trend. Over the last couple years so we'll look at that and see if that happens again but. Talking again about another big story that's coming out and we just picked up as well that in addition to Bob Dimon the CEO of Barclays. Jerry del messier is also this he's the CEO while. He is also going to be resigning as a result. Of this interest rates scandals so what exactly is going on here now and with the two top executives out -- Barclays where they go. Did that to be questioning about diamond was you know really feel lost features are there meaning he'd let their investment bank through. All the troubles in 20082009. And then eventually you know came out that that's the other and its CEO. You know and this this I think -- Barclays is being criticized a lot by the analysts and experts that you know our reporters to talk to. Mainly word not having a succession plan in place -- usually if you know he CEO is getting and your retirement age which he wasn't exactly but. It he Euro was supposed to have a backup plan. He's the CEO faster quicker which resign and and it you know it is it's looking like -- -- strong succession plan in mind now lot of adults saying. They're really have to have the facility outside to -- and so all freshman -- that you know not the attached to the -- all to really take over so -- question marks hanging over them I mean that the park the stock got crushed last week is down about 1220% intraday. You know announced the settlement with the US and UK for about 450 million dollars. You know settle their pardon -- probe in its -- get to see. If there are other issues they'll drop after that and then not just for -- but for all the banks involved in such elaborate you know albeit that now from JPMorgan which a bank Royal Bank of Scotland. There's a lot of you know investigations around the world to them right now and yeah. Mark please penalties. And some the other venture are cooperating with the with the probe so. They're definitely you know is potential for Laporte she's -- not just that part -- -- you know throughout the financial sector. And digging into this just a little bit more is it seems like every couple of weeks we have a new one of these banking scandals whether it's the big trading losses at JPMorgan. Now we have this interest rates and that's really generating a lot of news is is there. Really anything that can give get people back on board and give them little faith in the financial system because it seems like they're just. Bombarded by bad news every single time they turn around. -- senator one just came across the wire about 55 minutes -- this is a new and JPMorgan is being investigated by the Federal Energy Regulatory Commission over. Power market mean -- position. So is that someone new looking -- Just -- -- I mean this is just great. There. Yes I'd I don't know except -- that's our question and answer it's you know obviously the that the banks. China has sort of an ability to get pesky. Candles on the hearings for it is there as long as you know are still making money and in that so much that relies on the growing economies in the housing market and what's gonna happen there so. I you know I I I think he is these scandals and east. Sort of a short term problems for the banks that if they really means to get that earnings from the mark there's Sox really that. And let's talk about another company it's gonna be taking a bit of a short term loss Microsoft is writing down. More than six billion dollars of its purchase of a quantum Internet ad company that they bought back in 2007 and is this going to hurt them just for a public perception perspective going into the launch of windows eight later this year is this kind of just a one off thing that won't mean too much. Well I you know it it really sort of which the focus at that Microsoft's in all business model and competition -- from apple as far as. You know the so much of the sort of you know he wrote in computer use is is on the iPad and and sounds. And -- you'll -- Microsoft's revenue improved over you know the history the copy I mean this is the company that was gross revenue for the 4020%. Interest in the ninety's -- nearly part of two thousands and then that -- is just trickled away console. In this year they're they're expected -- was about 5% revenue -- according to channel specimens so. You know it's this huge growth stock has has really dwindled into basically copy trying to you know figure out its next move that would compete with apple. Seeing the same thing with bill and you know computer makers. -- is sort of focusing on you know it it it just being announced it was -- Quest Software to. Expanding asses managing data centers -- that's their strategy to compete against apple and it one of Microsoft's. You know one of the lead the original problems at this competition with Google and not quite a statement this they purchase in 2007 apartment. Sort of you know fight to an -- -- -- -- and apple. So -- out there just fighting -- -- so I had a great it to avoid a problem they have to work through there so. I think you know definitely windows eight gives him an opportunity later this year but -- to see exactly how that works out so Michael I want to thank you for -- for coming -- with us today okay. And advocate and have a great fourth of July tomorrow all right. You -- record much artist that was Michael Regan from Bloomberg.