1 00:00:03,120 --> 00:00:07,440 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:07,520 --> 00:00:12,520 Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:12,680 --> 00:00:16,640 Speaker 1: Bloomberg nine to the country sees Exam Channel one nine 4 00:00:17,000 --> 00:00:20,520 Speaker 1: and around the globe the Bloomberg Radio Plus appen Bloomberg 5 00:00:20,520 --> 00:00:25,079 Speaker 1: dot Com. This is taking stock. I'm Cafene Hayes along 6 00:00:25,120 --> 00:00:28,840 Speaker 1: with pim Fox Oil. The price is down today after 7 00:00:28,960 --> 00:00:32,479 Speaker 1: a run said it's unwilling to freeze output at current levels. 8 00:00:32,479 --> 00:00:36,159 Speaker 1: It wants to raise production to four million barrels a day. 9 00:00:36,200 --> 00:00:38,960 Speaker 1: This is once again dashing hopes for OPEC to reach 10 00:00:38,960 --> 00:00:42,480 Speaker 1: a deal to stabilize markets. When the group meets tomorrow, 11 00:00:42,560 --> 00:00:45,600 Speaker 1: pim and we have one of Wall Street's top oil 12 00:00:45,600 --> 00:00:48,040 Speaker 1: and gas analysts coming up to discuss this. Yes, so 13 00:00:48,120 --> 00:00:51,199 Speaker 1: we'll be speaking with Fudel A Gate, senior analysts at 14 00:00:51,200 --> 00:00:54,000 Speaker 1: Oppenheimer and Company. Get his views and his thoughts about 15 00:00:54,040 --> 00:00:57,240 Speaker 1: investing in energy. Right now, Let's go to Charlie Pellett 16 00:00:57,240 --> 00:01:00,200 Speaker 1: in the Bloomberg newsroom for Bloomberg Business Flash and I 17 00:01:00,440 --> 00:01:03,040 Speaker 1: thank you very much, pim Fox, Thank you, Carol Nassir, 18 00:01:03,280 --> 00:01:06,520 Speaker 1: thank you, Kathleen Hayes. We have got crude oil West 19 00:01:06,560 --> 00:01:09,720 Speaker 1: Texas Intermediate down three percent right now, more on oil 20 00:01:09,760 --> 00:01:13,160 Speaker 1: coming up. That's the drop of a donar barrel fifty 21 00:01:13,200 --> 00:01:16,520 Speaker 1: five right now on West Texas Intermediate. Brent also down 22 00:01:16,520 --> 00:01:20,720 Speaker 1: three Natural gas by the way, down one tenth of 23 00:01:20,720 --> 00:01:23,640 Speaker 1: one per cent. Stocks are shrugging off that drop in 24 00:01:23,720 --> 00:01:27,560 Speaker 1: oil as a rally and consumer confidence jumps. Also, banking 25 00:01:27,600 --> 00:01:32,080 Speaker 1: shares are rebounding Mexico's pace, so leading emerging markets higher. 26 00:01:32,080 --> 00:01:35,720 Speaker 1: On the perception that presidential nominee Hillary Clinton beat Donald 27 00:01:35,720 --> 00:01:39,080 Speaker 1: Trump in their first debate, But among those watching last 28 00:01:39,160 --> 00:01:43,600 Speaker 1: night's presidential debate, former UK Chancellor of the Exchequer George 29 00:01:43,600 --> 00:01:46,640 Speaker 1: Osborne now a member of Parliament, and he was interviewed 30 00:01:46,680 --> 00:01:49,640 Speaker 1: this morning on Bloomberg Television. But I'm not voting in 31 00:01:49,680 --> 00:01:53,360 Speaker 1: this election, but I watched that debate last night, and 32 00:01:53,560 --> 00:01:56,680 Speaker 1: you know, I don't think the answers that Donald Trump 33 00:01:56,680 --> 00:02:00,880 Speaker 1: put forward on closing America off from the world erecting 34 00:02:00,960 --> 00:02:04,280 Speaker 1: trade barriers are going to help create jobs in America, 35 00:02:04,480 --> 00:02:07,360 Speaker 1: and I don't think they're good for the world more generally. 36 00:02:07,560 --> 00:02:10,560 Speaker 1: So we'll let the American people make their own decisions. 37 00:02:10,680 --> 00:02:13,880 Speaker 1: But that's my economic judgment. On what I heard last 38 00:02:13,960 --> 00:02:16,400 Speaker 1: night on the Today People familiar with the matters say 39 00:02:16,440 --> 00:02:20,760 Speaker 1: most essay, b Miller investors, voting by proxies, supported Annheuser 40 00:02:20,800 --> 00:02:24,360 Speaker 1: Busch in Bev's on four billion dollar takeover offer in 41 00:02:24,400 --> 00:02:28,120 Speaker 1: advance of tomorrow's shareholder meeting, an early indication of the 42 00:02:28,160 --> 00:02:31,640 Speaker 1: deal will go forward. SMP up eleven a gain of 43 00:02:31,680 --> 00:02:34,000 Speaker 1: five tenths of one percent, the DOWOP one twelve a 44 00:02:34,000 --> 00:02:37,160 Speaker 1: gain of six tenths of one percent, Gold down one percent, 45 00:02:37,240 --> 00:02:41,840 Speaker 1: dropping ounce, and now at three thirty two on Wall Street. 46 00:02:41,840 --> 00:02:45,320 Speaker 1: I'll look at the other stories making news. Thank you, 47 00:02:45,400 --> 00:02:48,040 Speaker 1: Charlie from the Bloomberg News Room. I'm Jill Schneider. This 48 00:02:48,120 --> 00:02:50,720 Speaker 1: news update is brought to you by the Jeep Grand Cherokee, 49 00:02:50,880 --> 00:02:54,480 Speaker 1: the most awarded suv ever. The Grand Cherokee continues to 50 00:02:54,560 --> 00:02:57,959 Speaker 1: raise the bar with its luxurious interior and legendary four 51 00:02:57,960 --> 00:03:02,120 Speaker 1: by four capability drive one local jeep dealer today. Hillary 52 00:03:02,120 --> 00:03:05,200 Speaker 1: Clinton is winning applause from supporters in North Carolina for 53 00:03:05,280 --> 00:03:08,840 Speaker 1: her performance in last night's debate. Here's Bloomberg Washington Bureau 54 00:03:08,919 --> 00:03:11,480 Speaker 1: chief Megan Murphy. This is a pretty important win for 55 00:03:11,560 --> 00:03:14,840 Speaker 1: her in terms of at least stalling his momentum as 56 00:03:14,880 --> 00:03:17,120 Speaker 1: as we had seen this sort of mini surge, particularly 57 00:03:17,120 --> 00:03:19,160 Speaker 1: in some of the crucial swing states. But the other 58 00:03:19,400 --> 00:03:22,119 Speaker 1: sort of flip side always with dealing with the Trump candasy, 59 00:03:22,200 --> 00:03:23,960 Speaker 1: and this is a good thing for his campaign. Is 60 00:03:24,120 --> 00:03:26,639 Speaker 1: the bar is so low now if they'll go back 61 00:03:26,639 --> 00:03:28,639 Speaker 1: to the drawing board, they know they need to get better, 62 00:03:28,680 --> 00:03:30,880 Speaker 1: they know they need to be more prepared, and maybe 63 00:03:30,880 --> 00:03:32,880 Speaker 1: he'll be able to turn in a much better performance 64 00:03:32,880 --> 00:03:35,560 Speaker 1: than the next two debates that we're really solidify as Cannasey, 65 00:03:35,600 --> 00:03:37,720 Speaker 1: That's that's what we're gonna be watching for. How Speaker 66 00:03:37,760 --> 00:03:39,800 Speaker 1: Paul Ryan says he thinks Donald Trump did a good 67 00:03:39,880 --> 00:03:43,200 Speaker 1: job against Clinton. I think he gave a spirited argument, 68 00:03:43,280 --> 00:03:46,200 Speaker 1: and I think he passed a number of thresholds which 69 00:03:46,240 --> 00:03:48,680 Speaker 1: showed that for what was it, ninety minutes, for ninety minutes, 70 00:03:48,720 --> 00:03:51,360 Speaker 1: he could go toe to toe with Hillary Clinton. Trump 71 00:03:51,440 --> 00:03:54,680 Speaker 1: is describing the debate as quote an interesting evening. Each 72 00:03:54,720 --> 00:03:56,880 Speaker 1: of the estates of the forty nine patrons killed in 73 00:03:56,920 --> 00:04:00,400 Speaker 1: the gay nightclub massacre in Orlando will receive three hundred 74 00:04:00,400 --> 00:04:03,680 Speaker 1: fifty thousand dollars from donations. That's according to an official 75 00:04:03,720 --> 00:04:07,080 Speaker 1: with the one Orlando. Fund authorities have identified a firefighter 76 00:04:07,160 --> 00:04:09,840 Speaker 1: killed in a house explosion today as a Bronx Battalion 77 00:04:09,920 --> 00:04:13,000 Speaker 1: Chief Michael Fahey, a seventeen year veteran, was a father 78 00:04:13,080 --> 00:04:15,960 Speaker 1: of three. Firefighters were responding to reports of a gas 79 00:04:16,080 --> 00:04:18,400 Speaker 1: leak at the home, and officials say they discovered a 80 00:04:18,480 --> 00:04:21,200 Speaker 1: drug lab when they arrived on a scene. Global News 81 00:04:21,240 --> 00:04:24,880 Speaker 1: twenty four hours a day, powered by more than journalists 82 00:04:24,920 --> 00:04:28,520 Speaker 1: and analysts in more than one twenty countries. I'm Jill Schneider. 83 00:04:28,720 --> 00:04:31,719 Speaker 1: This is Bloomberg, Charlie, and we thank you and again 84 00:04:31,760 --> 00:04:35,919 Speaker 1: recapping the dal the SMP Neztack continuing to advance the 85 00:04:36,080 --> 00:04:39,800 Speaker 1: SMP five hundred index up eleven fifty seven, a gain 86 00:04:39,839 --> 00:04:43,360 Speaker 1: of five tenths of one percent. I'm Charlie Platon. That's 87 00:04:43,360 --> 00:04:47,640 Speaker 1: sub Bloomberg Business Flash. You're listening to taking Stock with 88 00:04:47,760 --> 00:04:51,760 Speaker 1: Kathleen Hays and Pim Fox on Bloomberg Radio Oil and 89 00:04:51,880 --> 00:04:55,880 Speaker 1: oil prices. Who better to ask and understand the market 90 00:04:56,040 --> 00:04:59,120 Speaker 1: and the participants but fadel Gate. He is a senior 91 00:04:59,160 --> 00:05:02,480 Speaker 1: analyst at Oppenheimer and Company, and he joins us now 92 00:05:02,960 --> 00:05:06,520 Speaker 1: partow If you were in the room in Algeria where 93 00:05:06,520 --> 00:05:10,640 Speaker 1: they were negotiating or not negotiating among the OPAQUE members. 94 00:05:11,120 --> 00:05:14,960 Speaker 1: What do you think we would hear, I will hear silence. 95 00:05:15,400 --> 00:05:18,640 Speaker 1: There's nothing to talk about. It's they're trying to put 96 00:05:18,800 --> 00:05:25,120 Speaker 1: a positive front on a situation that is not really 97 00:05:25,279 --> 00:05:31,440 Speaker 1: entirely up to OPEC open is in price war. Uh, 98 00:05:31,600 --> 00:05:35,440 Speaker 1: they are not seeing it. The Saludians are not seeing 99 00:05:35,480 --> 00:05:38,279 Speaker 1: what their Indians are doing, what the Algerians are doing, 100 00:05:38,279 --> 00:05:41,239 Speaker 1: what the Nigerians are doing, what the Venezuelans are doing. 101 00:05:41,720 --> 00:05:47,560 Speaker 1: Saudi Arabia started the price war two years ago and 102 00:05:47,680 --> 00:05:52,720 Speaker 1: unfortunately it backfired because you know, the other producer are 103 00:05:52,800 --> 00:05:56,440 Speaker 1: matching what the Saudists are doing. Even Venezuela, which is 104 00:05:56,480 --> 00:06:02,799 Speaker 1: for all practical purposes, in bankrupt country, they're still having 105 00:06:03,640 --> 00:06:07,880 Speaker 1: plans to increase production and by significant and not not 106 00:06:08,040 --> 00:06:11,880 Speaker 1: by sifty you know, sixty thousand barrel, but they're talking 107 00:06:11,880 --> 00:06:14,679 Speaker 1: about two hundred and fifty thousand barrel in the next 108 00:06:14,760 --> 00:06:19,560 Speaker 1: three years. And they are really putting bits out. So Uh, 109 00:06:19,640 --> 00:06:24,520 Speaker 1: the Nigerians are the same. You know, all these countries 110 00:06:25,120 --> 00:06:27,960 Speaker 1: have to live with lower or prices because all prices 111 00:06:28,040 --> 00:06:32,400 Speaker 1: will probably lower. Old prices are here to stay. We're 112 00:06:32,440 --> 00:06:34,920 Speaker 1: not going to see a hundred dollar oil any any 113 00:06:35,520 --> 00:06:39,640 Speaker 1: talent soon. So things have changed and allth it has 114 00:06:39,760 --> 00:06:43,120 Speaker 1: to learn how to live within means. That's what the 115 00:06:43,240 --> 00:06:47,760 Speaker 1: industry has learned. That's what oil companies have learned. That 116 00:06:48,120 --> 00:06:52,880 Speaker 1: you you you, you know, hope for the best plans 117 00:06:52,920 --> 00:06:55,920 Speaker 1: for doors. Yes, you do always in life for so 118 00:06:55,960 --> 00:06:58,159 Speaker 1: many things. It's almost on this side, but not really. 119 00:06:58,200 --> 00:06:59,960 Speaker 1: I guess when you talk about living within their means. 120 00:07:00,080 --> 00:07:04,320 Speaker 1: Story today, uh that the Saudis are going to cut 121 00:07:04,400 --> 00:07:06,640 Speaker 1: government workers pay. I think this is some other ministers 122 00:07:06,680 --> 00:07:09,800 Speaker 1: are going to get pea cuts. And I did not 123 00:07:10,400 --> 00:07:14,040 Speaker 1: see in that particular news item how high those salaries were. 124 00:07:14,080 --> 00:07:16,560 Speaker 1: Maybe they're very high. Cut is that much? But is 125 00:07:16,560 --> 00:07:20,280 Speaker 1: that a sign that maybe the Saudis realize what's going on? Oh? Absolutely. 126 00:07:20,320 --> 00:07:24,240 Speaker 1: The problem is when you have a country where you know, 127 00:07:24,280 --> 00:07:28,000 Speaker 1: a less than five percent of the population has of 128 00:07:28,040 --> 00:07:31,400 Speaker 1: the world, there's something wrong with this picture. We're talking 129 00:07:31,480 --> 00:07:36,720 Speaker 1: about the income inequality. Welcome to the land of you know, 130 00:07:38,560 --> 00:07:41,880 Speaker 1: you know, hardship. You know, nineties five percent of the 131 00:07:41,880 --> 00:07:47,760 Speaker 1: Salagies are living hand amounts or five percent of the population. Obviously, 132 00:07:47,840 --> 00:07:50,920 Speaker 1: these certamors and all these guys. So there has to 133 00:07:50,960 --> 00:07:55,280 Speaker 1: be some change. These people just cannot continue with the 134 00:07:55,320 --> 00:07:58,880 Speaker 1: same sale business model. They have to learn. The oil 135 00:07:58,960 --> 00:08:04,360 Speaker 1: industry cut cut from spending by twenty alibano tw So 136 00:08:04,880 --> 00:08:08,120 Speaker 1: the ol tech has to learn that all tech has 137 00:08:08,160 --> 00:08:11,640 Speaker 1: to see what is going on in in real life. 138 00:08:12,000 --> 00:08:15,400 Speaker 1: They just cannot hope for hundred dollar or to a tear. 139 00:08:15,720 --> 00:08:18,840 Speaker 1: When oil prices were hundred and ten dollars, they kept 140 00:08:18,880 --> 00:08:22,160 Speaker 1: saying the fair prices hundred and twenty. And when oil 141 00:08:22,200 --> 00:08:25,480 Speaker 1: prices were hundred and forty dollars, they said that this 142 00:08:25,560 --> 00:08:29,400 Speaker 1: is the fair price. Now all prices forty dollars, the 143 00:08:29,440 --> 00:08:33,120 Speaker 1: fair prices seventy. But we're worthy. When all prices were 144 00:08:33,200 --> 00:08:35,920 Speaker 1: hundred and ten, why didn't they bring or try to 145 00:08:35,960 --> 00:08:39,480 Speaker 1: bring all prices lower. So it's one way street and 146 00:08:39,559 --> 00:08:42,880 Speaker 1: if obviously leading to it at the end, and we're 147 00:08:42,880 --> 00:08:45,320 Speaker 1: going to see it at the end here because freezing 148 00:08:45,360 --> 00:08:48,600 Speaker 1: production is not going to solve the current oversupply problem. 149 00:08:48,920 --> 00:08:52,600 Speaker 1: That is something that nobody is focusing on. That is 150 00:08:52,640 --> 00:08:56,920 Speaker 1: not a solution. The only solution is for oil for 151 00:08:56,920 --> 00:08:59,360 Speaker 1: for for for all text to cut usion by at 152 00:08:59,400 --> 00:09:02,920 Speaker 1: least ten per fact, and that's not gonna happen because 153 00:09:02,960 --> 00:09:07,720 Speaker 1: they don't trust each other. You know you Darenian and 154 00:09:08,280 --> 00:09:13,760 Speaker 1: the Saudis. They have been in praxified for twin ty years. 155 00:09:13,960 --> 00:09:17,440 Speaker 1: Unfortunately it didn't get data bilion because we had other 156 00:09:17,559 --> 00:09:22,480 Speaker 1: wars that were more important to us find out. Just 157 00:09:22,559 --> 00:09:27,280 Speaker 1: get your thoughts here on the implications for what you're describing. 158 00:09:28,400 --> 00:09:32,559 Speaker 1: Less money in Saudi Arabia means less money to other 159 00:09:32,679 --> 00:09:35,640 Speaker 1: nations in the region that they either support or help, 160 00:09:35,840 --> 00:09:39,839 Speaker 1: or various groups that they support. Also in that context, 161 00:09:39,880 --> 00:09:43,400 Speaker 1: like Venezuela supplying oil to Cuba won. If you could 162 00:09:43,400 --> 00:09:47,320 Speaker 1: give us your thoughts, well, obviously they would have to 163 00:09:47,640 --> 00:09:52,280 Speaker 1: satisfy their domestic demand first. One of the reasons that 164 00:09:52,840 --> 00:09:56,720 Speaker 1: these countries are under tremendous pressure because basically they are 165 00:09:56,840 --> 00:10:01,760 Speaker 1: well sirch states supported by or exports revenue. Things are fine, 166 00:10:01,880 --> 00:10:04,440 Speaker 1: or at least appear to be fine when you have 167 00:10:04,559 --> 00:10:06,800 Speaker 1: hundred dollar oil, but all of a sudden you have 168 00:10:06,840 --> 00:10:09,920 Speaker 1: forty dollar You're no longer looking at hundred dollar oil. 169 00:10:10,200 --> 00:10:14,680 Speaker 1: So they have to make the same you know cuts 170 00:10:14,720 --> 00:10:20,880 Speaker 1: if you will, that any organization or company or government 171 00:10:21,000 --> 00:10:24,320 Speaker 1: or individual will have to make because now they will 172 00:10:24,400 --> 00:10:27,680 Speaker 1: have to live within the y. They are not prepared 173 00:10:27,720 --> 00:10:30,400 Speaker 1: to do that quick final question, give me five ten seconds. 174 00:10:30,520 --> 00:10:32,120 Speaker 1: How it is oil going to stay in this like 175 00:10:33,120 --> 00:10:36,240 Speaker 1: bucks a barrel rangers? It going lower. It's not gonna 176 00:10:36,240 --> 00:10:39,800 Speaker 1: go lower outside potential statif significantly other than the downside 177 00:10:39,840 --> 00:10:42,320 Speaker 1: threes who have to remember that oil prices are up 178 00:10:42,360 --> 00:10:47,880 Speaker 1: seventy five percent from their low percent down from their high. 179 00:10:48,120 --> 00:10:51,120 Speaker 1: That is only in the left twelve months. Alright, finnel Gay, 180 00:10:51,160 --> 00:10:54,520 Speaker 1: thank you so much. I'm Oppenheimer and Co. I'm Kathleen 181 00:10:54,559 --> 00:10:58,439 Speaker 1: Hayes along with pim Fox and this is Bloomberg. Yeah, 182 00:11:00,880 --> 00:11:03,480 Speaker 1: coming up on taking stock. He helps to manage more 183 00:11:03,520 --> 00:11:08,040 Speaker 1: than eleven billion dollars in assets. Tom Stringfellow, Chief investment 184 00:11:08,120 --> 00:11:13,160 Speaker 1: Officer Frost Investment Advisers. They'll tell us what they're doing 185 00:11:13,280 --> 00:11:14,400 Speaker 1: with their money next