tv Bloomberg Markets Bloomberg May 26, 2015 12:00pm-1:01pm EDT
communications a great to buy time warner cable for $55 billion in cash and stock, a government could reshape the tv industry. pimm: greek debt talks remain deadlocked with greek and eu officials waiting for the other side to blink. european officials playing down the risk of a possible greek default. betty: taco bell tells bloomberg the chain will remove artificial colors, trans fats and high fructose car and syrup from the rest of the menu. part of the push to appeal to .illenials pimm: good afternoon, i am pimm fox with betty liu. betty: let's begin with a look at how markets are trading at midday. down.
instant, we had a trifecta of good economic numbers this morning. durable goods, new home sales, s&p case schiller. stocks are down, looks like a fed rate hike is in the cards, likely in september. two companies we are looking at -- time warner cable and charter communications. charter flat after acquiring the company. time warner cable up 4.5%. oil markets affected by the dollar strength.crude down. brent is also lower at 2.8%> pimm: let's look at the bond markets and see what is going on with the 10 year. unchanged, 2.15. below 3% on the 30 year. let's look at the currency markets. the dollar versus the euro, 1.0 873. dollar showing strength. yen losing against the dollar, the dollar.
#-sterling, 1.5394. top stories, charter hoping to succeed where comcast did not. $ying time warner cable for 55 billion in cash and stock. the deal what let charter quadruple the number of cable subscribers. d.l. fell, comcast's apart because of regulatory issues. charter's chief executive discussed in the deal's advantages. offers a company committed to the development of the cable business no matter where it goes. and as inefficient and expensive and customer facing and customer -- and is efficient and expansi ve and customer facing and customer oriented. pimm: comcast was also a content
provider with nbc universal. charger does not have any content assets. new home sales rose more than expected last month. at thencreased almost 7% start of the year's most busy selling period home prices are growing faster than expected in 20 u.s. cities. the case schiller index thatased 5% on the year ended in march. this reflects a limited number of available properties. business investment could be picking up in the second half of the year. orders for capital equipment rose for a second consecutive month. bookings for nonmilitary equipment, excluding aircraft, increased 1.5%. the total demand for durable goods fell after.a 5% increase in march that was the biggest since last summer. betty: republican presidential hopeful rand paul demanding a vote on government collection of american phone records. says heucky senator
will block reauthorization of surveillance programs unless he gets one. linda will of the patriot act is stalled in the senate. the nsa bases book collection of data on a clause in the patriot act. paul wants the program stopped. >> i'm looking to see if the other side will negotiate. all i asked for was two amendments and a majority vote. i am not being unreasonable. i would like a vote on ending bulk collection. workedsome lawmakers during the holiday weekend trying to work out a compromise. the program expires june 1 and last congress -- unless congress renews it. greece may be running out of money again. thes varoufakis says countries will not accept a cure that is worse than the disease. former director of the
u.s. office of management and budget says varoufakis might not have long to make such declarations. he spoke this morning on bloomberg "surveillance." peter: either the government is going to fail or find a new coalition. there will be a new finance minister within two months. betty: european lenders want more greek reforms. besides our meeting again today in brussels. pimm: amtrak is taking more thety steps that follow crash in philadelphia. the railroad will install video cameras to record the action of engineers. the engineer of the accident and philadelphia suffered a head injury and told investigators he cannot remember what happened. those are your top stories. betty: coming up, ryanair's michael o'leary tells us how his strategy of cutting prices and improving service has led to more money. pimm: imagine.
a landgrab in san francisco. why tech companies are leasing more office space than they need. betty: taco bell making a push to attract millenials. fast food chain says it will remove artificial flavors and colors from most products. will my taco still be yellow? pimm: you can put in a special request. to turn to the top news story of the day, charter communications, backed by liberty's john malone aims to succeed where comcast failed. a deal to acquire time warner cable for $55 billion. betty: we spoke to tom rutledge this morning. he views the company as content and cell service provider. mr. rutledge: the ability to use wifi and have roaming capabilities on the platforms. ultimately integrating goes into
cellular businesses, i think, is in our destiny. betty: he looks tired. pimm: it has taken him two years. betty: he finally did it. giving the broadband consumer what it wants. perfect point to bring in check kanojia, founder and ceo of aereo, which lost a legal battle in the supreme court late last year. great to see you. perfect timing with this news from charger and time warner cable. your take? i think the industry requires scale. consolidation is inevitable. happen.ng to they're a good operator. betty: are you troubled? chet: no. the interesting question is what is going to have to from a
concessions perspective. i don't think it will be a clean regulatory process, there will be concessions. there is a move towards adding wi-fi and all these various things. i think we are heading back towards the duopoly, basically. it is better than the current state. the current management was not doing much. case gotuld it be the a duopoly is actually a good thing? chet: i think that is the only way the industry needs to operate. they need a counterweight and they need a duopoly. from a technological investment perspective, cost of content, they need scale to do that. it is inevitable that something happens. pimm: glad you mentioned technology. i wonder if you could give us a primer on the idea of wi-fi in the home, wi-fi outside the home. cell towers everywhere.
what are the different technologies and what are the advantages and disadvantages? chet: i would probably be a contrarian. and think step back about licensed versus unlicensed spectrum. the fcc has specific views on how much transmission power you can use in an unlicensed span. if anybody keeps saying wi-fi will be a panacea of they are either spinning a story or not really having thought through -- pimm: explain to people what that means. chet: the way wireless technology works, there is a requirement for how much power you will pump through the air. in certain bands, to manage conjunction, you reduce power levels. regulates all that. to imagine that you would have -- extremity today has wi-fi -- xfinity has wi-fi in every city. bandare using the 2.4 gig limited power.
as long as there is restricted power because consumers have access at home, the experience is going to be terrible. other things like hops, transitions, none of those have been worked out. on the other hand, cellular providers have significant spectrum challenges on their own. pretty much everything leading beene 2.5 gig block has leading up. there is plenty of spectrum but new technologies need to come for that to happen. betty: i often think about this. a year on from the supreme court decision. so much has changed in the last 12 months with the way people look at content, over content. we talked about mergers. there was the aol-verizon deal. i wonder, given the more acceptance of piecemeal content carte content, whether you think you would have
had a fighting chance this year. chet: absolutely. a sentiment has completely shifted. we forced the issue a little bit. we could not have control the timing and it is what it is. blind and asers' a result he general acceptance is, especially with sling tv, you can pick and choose. it's pretty good. think the outcome would have been -- time has a healing property. and thee out there world has not ended, which was the argument against us. the industry is going to evaporate and broadcast is going to leave the broadcasting business. might have been ok because the spectrum is better used in mobile technology anyway. pimm: using the over the air digital transmission capabilities, is there any hope for that being a successful business? chet: i think that is where the incentive auctions, come
in., pimm: the quality is great. chet: absolutely. it works. for mass events, that is the only way to deal with it. betty: let's switch topics. we mentioned rand paul and his single man blockage of the renewal of the patriot act. i am curious from attack point of view, from telecoms and other providers and tech providers. the fact that this is being wrestled in congress, this idea of privacy and e-book collection bulk collection of data. how does that affect what providers do? chet: it is not just this. it is a huge infringement on personal privacy that there is bulk data being collected, that is a personal view of mine. there has to be a better way. technology companies are more than capable of collecting
things when warranted. the proposal is extending got into the internet of things. betty: what is the alternative? chet: there's a certain level of risk we are all prepared to take. at what point the you have liberty and where can you balance those? i think bulk data collection is terrible, wrong. i think we have a system in which you can go to a judge, get a warrant. if you have probable cause, the judge is likely going to -- the fisa court has never denied a warrant. that works. balances.checks and the idea that congress should over regulate everything -- it is not just congress, it's international treaties that come in. some guy in the eu is deciding what you can and cannot do. betty: great to see you.
more than a month ago. etsy shares falling because "the wall street journal" reporting amazon has sent out invitations to etsy sellers to something called handmade, a marketplace for artisans that amazon might be starting. shares off about .9%. party city getting analyst initiations. when a company ipos week tend to see initiations and month later. the equivalent of buy or outperform from companies like morgan stanley. shares only up about .25%. the other ipo, shake shack. week.g more than 30% last news that it filed a patent on chicken shack. shares off by 7%. they soared 340% since the ipo
at the end of january. "the new york times" writing "shake shack shares could hit an overvaluation." you think? more than 300%. pimm: shake shack shares. betty: it is not easy. pimm: let's take a look at top stories crossing the bloomberg terminal. defects in general motors' ignition switch is linked to 107 deaths. families of victims are being offered $1 million from gm's compensation fund. "the wall street journal" says prosecutors might bring criminal charges. key issues are still being hashed out, including whether gm will have to plead guilty and how big a fine it will have to pay. american tourists are flocking to cuba. visits to the island are up 36%
since january, according to statistics provided by the university of havana. the u.s. started to normalize relations with cuba in december. many travelers are flying in from mexico or other countries so they can sidestep u.s. travel rules. he's the man responsible for the look and feel of apple's most important products. johnny ive will give of managerial duties and become the company's first chief design officer. -- timl work closely cook has expanded ive's role. that is a look at our top stories. the irish airline ryanair reporting a 66% increase in profits compared to a year ago. betty: europe's biggest discount carrier. michael o'leary spoke with "market makers" about gaining market share, cutting prices and improving customer service. mr. o'leary: the price war in europe is over, ryanair has
won it. stuff top -- stephanie: it's never over. mr. o'leary: we have had flexible tickets for business people, families traveling with young kids get discounts and things like that. people arere abandoning the european legacy carriers and switching to ryanair. betty: i say hallelujah to this. of ten euros tickets are over and being cheap and nasty is going to be a thing of the past. pimm: michael o'leary was famously of ten euro tickets are over and being cheap and recorded at one point discussing the possibility of charging passengers a fee to use the loo. now you have got reserved seating, more legroom, owerosedly better meals, l missed departure and delay fees.
maybe you do not have to pay extra for carry-on baggage. betty: let's hope that the pendulum goes back the other way. i'm tired of feeling like cattle when i get on an airplane. pimm: giant out. still ahead, we are going to talk about the new san francisco landgrab. betty: why many tech companies are leasing two or three times the amount of office space they need. back after the break. ♪
landgrab in san francisco. how much is too much? betty: the "bloomberg west" team crunched the numbers and found a growing number of tech companies are subleasing their existing office space ahead of future expansion. is that the b-word in san francisco? emily chang reports. emily: there's a landgrab in san
francisco. how much is too much? >> companies are being forced to lease twice or five times more space than they need for the number of employees they have today to ensure they have space to grow. san francisco leads the nation at 13.5%, up from 9% a year ago. i'm in front of landgrab in san zynga headquarters. the company least a -- leased a plot. 50,000 square feet on the market. also subletting, salesforce, zillow. still, the landgrab is not slowing down. >> most of the commercial buildings are going to be delivered in mid-2016-2018,
the buildings in 2016 are all leased. emily: companies can make big rocks by subletting. they can't fill the space themselves. >> in 2000 seven, people were doing interest only three-year loans. in 2010, there was no one there to fund the loan again. you could be looking at something where two or three years down the road when the sub leases expire there might not be anyone there. emily: is it a sign of the bubble? only time will tell. emily chang, bloomberg, san francisco. it still looks like that property market is booming. look at the case schiller numbers. up over 10% in san francisco for home prices. pimm: for homes. betty: but all the indicators. pimm: it is all interconnected. when you look at the amount of new money flowing into startups
are the ability of the market to absorb initial public offering. slows, whatat effect does that have on these particular real estate projects? people may be did the spreadsheet using one particular number. you will have to readjust. if there is not more money flowing in, who is going to lease the buildings? betty: emily is not the only one raising speculation about a bubble. you're starting to hear more whisper tech ceo's int word or say it conferences or articles, maybe there is a bubble in private money. pimm: we will wait to see what happens. betty: that is it for this half hour. we stay on housing and the overall market. ♪
some top stories at this hour. the deal charter communications had hoped for 15 months ago. buying time warner cable for $55 billion. last year, twc went with comcast's $45 billion bid. that fell apart last month. charter's ceo does not mind paying a higher price. >> they have been successful during this process. they have continued to keep their eye on the ball. we have grown our business. we are comfortable with where we are today. it's a different circumstance than it was then. their behavior and our behavior is different and i am pleased. betty: comcast's deal fell apart over regulatory issues. charter is not expected to have those problems. been a surprise increase in consumer confidence this month. the index of sentiment rose from a 4-month low.
confidence bolstered by higher home values, a stronger labor market and near record stock rises. taco bell is going natural to appeal to millenials. the fast food chain tells bloomberg it is going to remove artificial flavors and colors, trans fats and high fructose corn syrup from most of its menu. some exceptions include beverages and cobranded items. you will not see changes to doritos tacos locos. lawmakers in oregon want to prevent nestle from opening a water bottle plant. town needs approval from the oregon department of fish and wildlife. 9 legislators want to deal, saying transferring water rights to a for-profit company is not in the
public interest. stocks in china soaring with the shanghai composite index marking its biggest 6- day advance since november 2008. what is driving chinese stocks. report may explain how companies are managing to attract and keep employees while keeping pay raises to a minimum. wages stagnant. taco bell is making a push to attract younger customers. the chain saying it is going to stop using artificial flavors and colors. we'll talk to the reporter who broke that news. we got two important pieces of data on the u.s. housing market. sales of new homes rose more than forecast in april. to annualized pace of 517,000. before that, the s&p case-shiller index of prices in on the yearp 5% ending in march. where is the demand coming from? does the fed trust the data?
with me now is bloomberg intelligence economist carl. also with us is fund manager steve brown of american century real estate fund. carl, i will start with the economist. what's happening? where are we getting the new households? a slow pace of home sales. a reflection of an ongoing recovery in the labor market. betty: we are talking what -- from what? carl: relative to where we were prior to the housing bubble inflating. slow relative to prior -- a number of prior cycles. the inventory of newly built ing theor sale, barrrin recovery in the last few years, we are the lowest going back to the late 1960's and early 1970's when the population was smaller. builders have not kept up with
demand and we are facing an economy that has nearly normalized and there is a housing shortage. we saw it last friday in the rent data, cpi index. we see it in the continued pace of home price appreciation. demand is there, supply is not. good news for builders and that explains why builder sentiment is at healthy levels. betty: weren't we seeing at the peak new home sales at one million plus. carl: we are not close to those types of levels. builder sentiment tells us construction activities -- permits, for instant -- should be 40% to 50% higher than current levels. we have positive potential from the housing sector. betty: steve, that does not worry you that we are below average? there is still opportunity. we are only running at about 75% of capacity of what builders can sell. we think new home sales could be up 10% this year, a reflection
of the gradual but steady recovery. what we are excited about is the recovery in new family formations. the last two quarters it has picked up to 1.5 million annualized run rate. the last couple years it was about 800,000. 31-year-olds moving out of the house into a new home, a rental home or apartment. betty: not so much people getting married, it is the millennials who have not stayed there welcome in their parents' basement? steve: they have a job and are confident they can keep their job, they may be getting a raise. betty: all right. they are aging out. so, carl, where does this leave the fed? downhe equity indexes are today with this idea that the fed is raising rates. carl: janet yellen told us last week that she wants to keep 2015 for a rate increase. is not going to be an aggressive
fed but she's not willing to write off this year. she wants to see how the q2 data how we look into the latter half of the year. it looks good but not great. today, weods orders look outside of the volatile transportation component, ex-transportation durable goods expanding but still below levels. we are moving in the right direction but there is a lot of slack in the economy. no sense of urgency for the fed to start normalizing policy. betty: steve, remember when we had the taper tantrum? back late last year. reits saw a big selloff. do you find this opportunity when it looks inevitable that the fed is going to start raising interest rates? if notven the economy, lift off now, it is on its way. steve: what we have seen this
year, as the market has been pricing in a september rate hike, it has impacted securities such as real estate or reits. yesterday they are flat, they were up 7% or 8% in the first part of the year. they have had a sellout. people are concerned about a rate hike. nowffset that, reits are trading at no asset value and the demand is greater than supply for u.s. commercial real estate. many of the apartment reits 5%, raising rents, 4% or higher than inflation and gdp. fundamentals are good. once the market prices in the fed action for the second half of the year there will be a good spot fundamentally on the price basis. betty: the case-shiller numbers, which i found interesting to break down into cities, what is going to most. new york city was actually down month on month. let's pull up of the 20 cities, where there was the biggest growth.
san francisco was up 10.3%, year on year. denver up 9.9%. dallas, miami, then tampa. what does that tell you about where the jobs are and where growth is? carl: housing recovery is not extremely even. it's up across the board but it certainly is concentrated in certain pockets like the west coast and florida where you have a lot of buyers and not necessarily middle income household line therre -- bu ying their first home. case-shiller is growing at a steady year on your clip of about 5%. it does not look like 2005-2006 where the markets boiling over. that might be the case in some markets but generally across the spectrum we do not see that hot and cold dynamic. betty: that 5% is lower than last year.
carl: it is moderating and the fed can take comfort that they are not inflating another housing bubble stop things are moving in the right direction. this is pulling a lot of underwater mortgages back right side up. it's creating wealth that tap into, either to refinance and take advantage of low rates or extract equity from their home with heloc's and so forth. betty: you are talking about apartment reit equityr -- you were talking about apartment reits, equity residential. steve: they're a primary beneficiary of the new family formations. not people losing out to get married, it is just getting out of the house. the typical age range is 22 to 31. that is the prime of the property rental cycle. betty: thank you, steve of american century real estate and carl, our economist.
betty: welcome back to the bloomberg market day. i am betty liu. let's look at how the markets are trading midday. a lot of selling going on, despite what seems like pretty good news on the economy. new home sales, the case-shiller, durable goods and the markets are lower, dow down by 190 points. now for a look at how the european markets are. here's francine lacqua from london. francine: than you.
european indices falling for a third day. all about greece. little convergence and talks between greece and creditors. time is running out to secure this before the country needs to make payment for the imf starting in early june. that has spooked investors. one of thee dax, biggest losers. also france and the ftse. in london down 1.3%. aeek officials plan to hold conference call today. maybe that will be soothing words. this was initially meant to be a meeting between the finance minister and the creditors face-to-face. we will see if anything comes out of that. we have comments from the federal reserve, julie hyman has been talking about that. fueling concerns that rates will rise this year. having an impact on the european markets. the ftse in the u.k. sliding. one company that is doing better %, ryanair from 4.5
adding 5% in trading sessions after reporting an annual earnings jump. it has a very bright outlook for the rest of the year. one company we are watching for. the rest is bleak, ryanair is gaining. pimm? betty: is actually betty. chinese stocks soar, the shanghai composite put together its biggest 6-they rally since november 2008. no one saw it coming david ingles has more from hong kong. david: the stockmarket rally in china has been so good that even the most bullish forecasts now look so foolishly pessimistic. the estimate back then was about a 28% rally. the index is pushing towards 120%> analysts have been scribbling to catch up. the focus is on fundamentals, the market is moving based on the charts. now,u dare put out a call remember that ever the past 12 months it was only wrong and v ery wrong.
betty: wrong and very wrong. in the states, julie hyman has the story so far, including charter and time warner. we've also been talking about the federal reserve. comments from stanley fischer today and over the weekend. a lot of economic data coming out, better than estimated. both new-home sales numbers, we had case-shiller, durable goods, consumer confidence -- all better than estimated. in terms of the treasury market, the yields are going higher and the prices are going lower. yields pushing up on the perception that the fed is going to raise rates at some point. could happen this year. i want to look at the longer-term chart of treasuries. i have a one-year chart of the 10 year yield. but we have seen is yes, of course we have bounced from the bottom in january and february. at pretty still
historically low levels. to give you an idea, i want to max out my chart. it can as far back as go. back to about 1960. this gives you an idea of the historical scope. yes, we are getting a taper tantrum along the way. seeing great spot up a little. i -- seeing rates bump up a little. in perspective, it is a lot lower. the treasury market with dollar. we are seeing all this evidence of the dollar higher against most of its currency partners. particularly notable is; versus the yen. dollar is trading at its highest since 2007 versus the yen. there's a long-term chart. bringing it back to stocks, betty, all the movement we have seen higher than rates has been negative for stocks. money flowing out of stocks and
in the treasury market as well. betty: i like it when you maxed out the ten your chart. people need perspective. you realize, hey, think about the 1970's. julie: it is a big deal if you are trading the markets are getting a mortgage. le'ts not get too worried. betty: thank you so much. julie hyman, senior markets correspondent. we've got much more. a look at the top stories. flooding in houston has shut down public transit and closed freeways. more than 10 inches of rain fell this morning. downtown wereinto closed by raging waters. most schools were closed. power outages affected almost 60,000 customers. major storms in texas and oklahoma have killed 11 people during the weekend. the broken pipeline that caused an oil spill in california might be removed today. its owner, plains all american
pipeline wants to find out why a ruptured. the company is cleaning up the mess. the spill released hundred thousand gallons of oil and causing a slick in the ocean near santa barbara. that's a look at the top stories. employers do not want to raise salaries. data suggesting employers prefer one-off bonuses and perks to pay raises to keep employees. budgets for annual pay raises, the share of the budget at companies, sank to a low of 1 .8% during the recession and has only made a slow rebound to 2.9% in 2014. 1981, the share of budgets for raises was at 10% in the good old 980's. mark crumpton and i remember the 1980's. i don't think either of us were working.
this is variable compensation. you have signing bonuses, you have companies who want high-priced talent and they will poach them from another corporation but they have to pay them. it seems that the pay scale is going down and you get a one off big time bonus. that might be it. -- aeon hewitt as lleditt cale n this a drastic shift. betty: you hear about millenial's and how important a pay raise is not as important as perks, being able to spend six weeks on a sabbatical or more vacation time. i realize that you are much younger. take the money. betty: take the money.
youeast four millenials, hear that the one-off perks are more important. i agree, take the money. mark: we are staying on the u.s. economy in the next hour. las is going to join me. talking about the labor market and what that may indicate to the federal reserve about raising interest rates. where does this put janet yellen? past, ita for the seems, forever. how is the fed going to react? we've been saying there's probably not going to be a rate increase in june, july -- august and september seems to be what people are looking for. betty: i think it is far enough so people can feel like they can make that prediction. wait until we get to july or august. mark: is the market pricing it in? betty: exactly. mark crumpton, see you in the next hour. too bell says "no mas"
betty: taco bell and pizza hut are the latest fast food chains to announce they will remove artificial ingredients from their food. taco bell will remove artificial colors and flavors, high fixers corn syrup and trans fat from 95% of its menu by the end of the year. pizza hut will remove artificial colors and flavors by the end of july. they are owned by yum! brands. intog to draw millenials their chains. they are making it sound like it is going to be easy to do this. is it? think so. they have been working on it for a while. this takes time. there is a lot of artificial ingredients. sometimes they are totally reformulating the recipe. is going to have to
happen at taco bell to do this? craig they would not say it if they did not think they could do it. a lot of work has gone in. they are looking at different ingredients. it still has to taste good and be affordable. this is not going to directly lead to a price hike. they are figuring out a way they can do this and keep prices affordable. betty: can they promise that or for now it is not going to lead to a price increase? craig: there is inflation and prices go up from time to time. but because of these steps prices are not going to go up. betty: what about the taste? craig: they say it will be the same. ve-able taco bell. they have done pretty well with millenials. they say they can do it and keep the taste the same. betty: what is going to stay the same? the beverages. craig: they are not touching beverages. what they call cobranded
products. what about the doritos taco. a dorito that's all natural? betty: that is controlled by pepsi. craig: it is just taco bell stuff -- tacos, burritos, stuff on the menu. betty: pizza hut is going to do the same thing. what about the other brands that yum! owns. craig: they have not said anything about kfc. they are trying to get by brand back on track. the colonel is back. they have not said anything on the ingredient front. that would be the next shoe to drop. betty: colonel sanders' secret recipe. craig: you would think there are not too many additives but who knows. does yum! brands had a millenial problem? you hear about mcdonald's with a problem. do they had a millennial problem? craig: not as much. taco bell has a great app.
they have been a leader, up there with starbucks. brand appeals to millenial's. kids when they get their first car, they go to taco bell. does not seem like taco bell has a millennial problem. they must feel like this is keeping pace. betty: what about the cost to talk about? did -- to taco bell? did they say how much this will cost? craig: they were emphatic this will not lead to higher prices. the suppliers have come around, mcdonald's and everybody else is doing this. they must feel that the supply is there. betty: much more ahead, including more on the charter communications deal for time warner cable. ♪
day. charter communications agrees to buy time warner cable or 55 ilion dollars in cash and stock $55 billion in cash and stock. ives promoted to chief design officer. >> this week marks the one-month anniversary of that devastating earthquake that killed more than 8000 people in the paul. .- nepal the challenges of getting life back to normal. betty: good afternoon. i'm betty liu, here with mark crumpton. mark: let's start with a look at what is moving the markets on this tuesday after that long memorial day holiday weekend. stocks dropping the most in three weeks,