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On Friday a week from today dining out is David Blitzer chairman of the S&P Dow Jones indices committee which is the group.
That made the change sir welcome -- wonderful happy this afternoon.
Good afternoon a pleasure to be here so why did you opt to Baghdad -- united health care to the Dow index.
It's really two step decision the first was to look at Kraft which will split itself -- -- two businesses act after the market closes on October 1.
The larger one to be called -- delay.
-- -- have that 20% of its revenue -- the US the other 80% is expected to come out of Europe and some of someone and Asia.
And looking at that William the fact that the size -- -- stock would be small in the craft today that price would be falling crap today.
We really felt it was not the best best not to stay in -- -- to their -- joined the Dow Jones Industrial Average.
Yet when I -- -- there are so many companies with a larger market captain UnitedHealth as I'm sure you are well aware seventeen I believe the head of it.
And this isn't about that because a lot of folks Barron's Magazine for one.
Had called for modernization of the Dow index to be able to include some of the big price your -- an influential names like apple and Google in the text -- so.
Why did you easier when I'm on UnitedHealth.
Is companies that are important to the US economy to the US markets companies that might add some representation that wasn't in the Dow up until now.
One area that's clearly -- important -- Brian important as health care and health insurance and while there are some big health care companies in the Dow currently.
There are pharmaceutical companies right fighting -- child and John as a whole another physician a whole other area.
An area that we see is increasingly important to the American people and one that should be represented in the most watched index around.
Is -- political side of this because the anticipation with health care affordable care -- And all the increased the expectations for higher health care spending that I think -- kind of goes along with your point that.
This could be more influential company the health care company then it has been.
But it did the -- political related to legislation.
It will be important spending on health care is likely to continue to rise.
Regardless of who gets elected this coming November or November 4 years later are probably 44 years later for that matter.
But health care is important it will continue to be more important it's -- rising PC -- -- GDP.
Not to have the way a lot of people pay for health -- represented in an index like the Dow Jones industrials it make any sense to us so we I felt.
This was the place the time.
To represent health care in -- is very widely watched gauge of all the way the financial markets move.
Well we sure appreciate you sharing what goes into this decision he -- -- is is really fascinating David Blitzer thanks so much.
Thank you have a good -- --
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