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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot Com, the Radio plus Mobile Act and on your radio.

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Speaker 1: This is a Bloomberg Business Flash and good morning. I'm

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Speaker 1: Karen Moscow. US Dock Index futures are lower along with

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Speaker 1: the price of nimex scrude oil. Let's go to the

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Speaker 1: First Word Breaking news desk for today's morning call. Here's

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Speaker 1: Bill Maloney. Good morning, Bill, Good morning Karen. That's right.

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Speaker 1: We are seeing losses in the US futures today. Futures

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Speaker 1: currently lowered by sixty two point says be drop nine

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Speaker 1: and as a futures followed by eighteen the US Tenniel

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Speaker 1: at one point seven three percent and Crew Pictures dropped

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Speaker 1: four and a half percent. After the Doha talks failed.

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Speaker 1: On the US Economic Frinday eight thirty FEDS Dudley speaks

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Speaker 1: in New York at at ten o'clock n HB Housing

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Speaker 1: Market Index. In deal news, Cevent to be acquired by

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Speaker 1: vis To Equity for one point six five billion or

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Speaker 1: thirty six dollars per share. And regarding earns this morning,

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Speaker 1: PEPSI has bro W W. Granger and J B Hunt

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Speaker 1: EPs B and Morgan Stan EPs and revenue beat estimates

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Speaker 1: shares her up to point one percent pre market. Finding

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Speaker 1: some of your wall sheet upgrades and downgrades. Cummins Enjoy

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Speaker 1: Global raised neutral at Bank of America, Arm Holdings cut

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Speaker 1: the hold at Jeffreys City Group cut to market beforem

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Speaker 1: at Keith Burwett algan cutting neutral, Piper and Union Pacific

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Speaker 1: cut to neutral versus by at ubs live in the

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Speaker 1: first Breaking news desk on Bill Maloney Karen very thanks

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Speaker 1: to the ailit to hear live breaking news over your

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Speaker 1: Bloomberg type squawk a goo on your terminal, that's sq

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Speaker 1: you a w K go and that's a Bloomberg business flash.

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Speaker 1: Tom and Mike, Karen, thanks so much Bloomberg Surveillance. This

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Speaker 1: morning brought you by Investco. Investing isn't about meeting benchmarks,

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Speaker 1: I opened the New York Times today. Buried in like

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Speaker 1: six pages is a photo. The only thing Mike in

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Speaker 1: the photo that's not there is Daniel Jurgen. It's a

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Speaker 1: photo of Franklin Delano Roosevelt leaning forward in his chair

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Speaker 1: to King Abdul Aziz of Saudi Arabia. I was looking

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Speaker 1: for young Urgan in the background, right, he's right behind

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Speaker 1: the kid. Couldn't find if Daniel Jurgen joins us. Of course,

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Speaker 1: that's a famous photograph. It is. It's a wonderful photograph,

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Speaker 1: and you're gonna give us perspective on it right now.

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Speaker 1: King even Saud actually brought sheep aboard the I think

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Speaker 1: that she she ship and kind of stayed in a

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Speaker 1: in a tent. It was, but that that photograph and

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Speaker 1: that meeting is what when you talk to Saudi's it

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Speaker 1: always goes back to talk about that being the origin

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Speaker 1: of their relationship with the United States. And now, of

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Speaker 1: course President Obama has headed there. Where is that relationship?

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Speaker 1: Are we gonna put sheep on board Air Force one?

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Speaker 1: I think the relationship is somewhat frayed right now. Uh

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Speaker 1: more so in the aftermath of the nuclear deal with Iran.

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Speaker 1: And I think that President Obama is partly going there

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Speaker 1: to men defenses and say this is still an important

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Speaker 1: relations ship, uh having you know previously, you know, the

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Speaker 1: Saudi's heard him say that Iran's the regional power, and

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Speaker 1: that makes them very uncomfortable because they're engaged in such

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Speaker 1: a deep rivalry with Iran right now, which of course

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Speaker 1: is UH. What was so evident at Doha. One of

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Speaker 1: the issues in the US relationship with the Middle East

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Speaker 1: for many decades has been exactly what the Saudis would

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Speaker 1: do UH in terms of breaking off with the United States.

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Speaker 1: And the argument was always made within the White House

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Speaker 1: that you know, these guys talk a lot, but they

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Speaker 1: need us more than or as much as we need them.

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Speaker 1: We needed their oil, which we no longer need as much,

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Speaker 1: but they need us for their defense. So can they

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Speaker 1: really let the relationship rot or do they need to

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Speaker 1: come back towards the US. I think that for both

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Speaker 1: countries the relationship actually UH continues to be very important. Clearly,

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Speaker 1: the US is at the end of the day, the

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Speaker 1: guaranteur of security in the in the Gulf region. That's

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Speaker 1: why that photograph still resonates. And at the same time,

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Speaker 1: Saudi Arabia is the main player in world oil and

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Speaker 1: oil is still to a considerable degree what makes the

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Speaker 1: world go around. So UH, they're and they're a very

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Speaker 1: important player. And other issues like Syria and so forth.

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Speaker 1: So UH, I think they're the the the interconnections between

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Speaker 1: the two countries are pretty deep, despite the strains that

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Speaker 1: are somewhat evident. Now, well, what happens with with Saudi

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Speaker 1: Arabia and Iran? With the Saudi Kingdom under internal strain,

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Speaker 1: with Iran newly resurgent after the nuclear deal, Uh, where

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Speaker 1: does lead us? What's happening in Saudi Arabia is that

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Speaker 1: the Deputy Crown Prince, the thirty year old Mohammed ben Salman,

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Speaker 1: is really leading a program that's supposed to either sometime

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Speaker 1: later this month come out with a plan to transform

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Speaker 1: the economy and diversify it so it's not so dependent

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Speaker 1: directly on oil revenues, and so that critically it creates

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Speaker 1: jobs for all these young people. The population is thirty

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Speaker 1: years and younger and they need jobs. And so what

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Speaker 1: you're seeing happening on an oil part of that is

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Speaker 1: really fits into this larger plan to, as they say,

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Speaker 1: transform the economy. I'm lost, what's the prize right now?

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Speaker 1: What's the prize? What's the oil prize right now? I

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Speaker 1: think we knew what the prize was when you brought

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Speaker 1: your tome out. What's the prize right now? Well, I

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Speaker 1: think it's revenues. I think it's money. It's the ability

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Speaker 1: to turn oil to monetize oil reserves. And I think

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Speaker 1: that's kind of a shift that you're seeing now. It's

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Speaker 1: um and I think that Saudi Arabia has really looked

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Speaker 1: at neighboring Abu Dhabi, looked at other countries and said,

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Speaker 1: we want to not only be an oil our we

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Speaker 1: want to be a financial power in the world. So

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Speaker 1: I guess it's a it's a little it's some alchemy

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Speaker 1: as at work. Dan, I'm embarrassed to say that's just

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Speaker 1: a minute. You completely reframed the debate on British capitalism

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Speaker 1: with your book The Commanding Heights. We celebrate the Queen's

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Speaker 1: ninetieth birthday. Did she have anything to do with the

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Speaker 1: ascendency of Margaret Thatcher and the early efforts of Prime

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Speaker 1: Minister Thatcher or she removed from your Commanding Heights? I

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Speaker 1: think she was pretty removed. I think it was you know,

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Speaker 1: Thatcher came to power when the British economy was, you know,

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Speaker 1: sort of tottering and with a very determined program. And

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Speaker 1: of course she remains a controversial figure, but you know,

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Speaker 1: if she hadn't come on the scene, the British economy

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Speaker 1: would have been uh and very difficult problems, and of

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Speaker 1: course she had enormous effect around the world from Poland

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Speaker 1: UH two reforms everywhere. Daniel, you're gonna Brexit. Where are

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Speaker 1: you on the dynamic of this as we go to

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Speaker 1: the under June? Well, it looks awfully close right now.

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Speaker 1: It also looks like if Brexit occurs, you know, it's

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Speaker 1: going to have very you know, serious and unpredictable economic consequences.

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Speaker 1: But of course it's now gotten tied up with the

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Speaker 1: personal problems of Prime Minister Cameron coming out of the

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Speaker 1: Panama papers, and his hand is not as strong as

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Speaker 1: it was. Well, his rival Boris Johnson is out there,

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Speaker 1: uh stumping for it. So, I mean, the polls at

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Speaker 1: this point look like it's very close and and nobody's

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Speaker 1: really calling it. Daniel, You're always always interesting, my guy.

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Speaker 1: I really, I didn't mean that as flipping. I wonder

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Speaker 1: what the prize is today. You know, that was a

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Speaker 1: very good question. I just don't know. We need more

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Speaker 1: time with Dani. Always more time with Daniel Jurgen from

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Speaker 1: New York Bloomberg Surveillance. Good morning, coming up with all

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