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Speaker 1: around the world, i c d R dot org. Iron

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Speaker 1: Ore climbing to the hyacinths June, boosting mining companies and

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Speaker 1: helping equity markets recover intra day losses. Crude oil is

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Speaker 1: retreating after Kuwait workers said they would end a strike,

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Speaker 1: and we check the markets every fifteen minutes throughout the

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Speaker 1: trading day on Bloomberg sn P, EMNY futures up two

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Speaker 1: points down, EMUNI futures up one and NASDAC EMUNI futures

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Speaker 1: up seven. Docks in Germany's up almost two ten percent

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Speaker 1: ten Your treasury up three thirty seconds. The yield one

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Speaker 1: point seven seven percent yield on the two year point

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Speaker 1: seven six percent nine x Scrude oil down two point

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Speaker 1: two percent or not e one sensed if prety dollars

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Speaker 1: seventeen cents of arrol Co max gold on to tenth

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Speaker 1: per cent or two dollar sixty cents to twelve eighty

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Speaker 1: announced the euro at other thirteen seventy four the EN

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Speaker 1: one oh nine point to eight the European Commission sending

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Speaker 1: Google a formal antitrust complaint to accuse the company of

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Speaker 1: striking restrictive contracts that prevent makers of tablets and phones

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Speaker 1: from adding competing apps and web browsers. Untail down almost

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Speaker 1: two per cent this morning after its first quarter revenue

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Speaker 1: and forecast for the next three months miss analysts estimates. Addition,

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Speaker 1: Network boasted profit that beat analysts estimates after a January

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Speaker 1: price increase, and Sling TV subscriber games helped cushion a

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Speaker 1: drop in Satellite TV users. And that's a Bloomberg business flash,

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Speaker 1: Tom and Mike Karen, thank you so much. It is

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Speaker 1: on Wall Street. The following is from Bloomberg View, opinions

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Speaker 1: and commentary from Bloomberg columnists. I'm Megan mccartol, a columnists

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Speaker 1: from Bloomberg View. We all love farns table food, don't we,

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Speaker 1: or maybe we just think we love it. An exhaustive

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Speaker 1: investigation by a Tampa Bay of Times food critic reveals

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Speaker 1: just how little of the food advertised as organic, locally sourced,

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Speaker 1: non GMA affair actually fits the description. Given the ubiquity

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Speaker 1: of these anomalies, it's hard to believe there isn't considerable

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Speaker 1: calculation there, and it's not hard to figure out why

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Speaker 1: consumers don't really want to buy firm to table food.

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Speaker 1: What they want to buy is the moral satisfaction of it.

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Speaker 1: After all, if you're actually looking for farm fresh vegetables,

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Speaker 1: you probably won't be satisfied with something weeks old. On

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Speaker 1: the other hand, if you're just looking for moral satisfaction, well,

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Speaker 1: the nice thing about selling intangibles is there's no real

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Speaker 1: difference between being told you're consuming locally grown foods and

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Speaker 1: actually doing so. Restaurants shouldn't deceive their customers. Part of

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Speaker 1: the reason they get away with it is people don't check,

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Speaker 1: and part of the reason they do it is that

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Speaker 1: most people seem unwilling to pay in money or unlimited selection,

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Speaker 1: the cost of actually eating local and those to the country.

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Speaker 1: If people really love farm to table food, they'll be

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Speaker 1: checking providance with suppliers and paying enormous premiums for their

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Speaker 1: limited menus. If they just want to love the idea

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Speaker 1: of it. Well, they'll probably keep eating just about like

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Speaker 1: they do. Now. I'm Megan mccartell from More of You.

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Speaker 1: Please go to Bloomberg View dot com or view go

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Speaker 1: on the Bloomberg terminal. This has been Bloomberg View and

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Speaker 1: Bloomberview Commentaries give yourn hourly weekdays on Bloomberg Radio. The

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Speaker 1: President of the United States is in ri odd he

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Speaker 1: moves to London for I believe a birthday party for

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Speaker 1: the Queen, and then Mike, I'm guessing to Germany. I

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Speaker 1: don't have the itinerary in front of me. What he

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Speaker 1: knows is two thousand and sixteen is not nineteen seventy three.

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Speaker 1: If you look at the chronology of American diplomacy and

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Speaker 1: seventy three, it's possibly original. Outside World War Two, Mike,

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Speaker 1: stock market crash, we go to August October six the

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Speaker 1: yan Kapur War. We get to the end of the

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Speaker 1: year through historic negotiation and within that was our guest,

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Speaker 1: Robert Hormets, Ambassador now with Kissinger associates, Michael, why din't

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Speaker 1: you pick it up on the idea that this is

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Speaker 1: not well, this is uh many years down the road

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Speaker 1: for the first time, it seems in quite some time,

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Speaker 1: we have a president who is openly somewhat disdainful of

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Speaker 1: the Saudiast. We've always and and you read Dennis Ross

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Speaker 1: Ambassador US is great new book Doomed to Succeed about

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Speaker 1: the US Israeli relationship. The attitude of the State Department

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Speaker 1: was always they've got oil, We need them. And Obama

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Speaker 1: seems to be saying they need us as much as

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Speaker 1: we need them in this new world. You know where

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Speaker 1: they're facing off with ran Well, it's a very complicated pictures.

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Speaker 1: You correctly point out, Uh, they still need the protection

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Speaker 1: of the American Navy, uh, for their oil facilities and

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Speaker 1: the Persian Gulf, and the American Navy still plays a

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Speaker 1: very important role there as well as in protecting the

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Speaker 1: sea lanes that oil goes through to get to various

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Speaker 1: other parts of the world. So that part is true,

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Speaker 1: But it's also been true over decades and decades as

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Speaker 1: the result of Saudi wealth and the willingness of Saudis

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Speaker 1: to provide support for friends and allies of the United States,

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Speaker 1: that we call on them regularly, and probably even though

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Speaker 1: their oil revenues are down considerably, probably we'll have to

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Speaker 1: call them them again. The problem is that the distrust

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Speaker 1: has increased dramatically, in part because the Saudis are skeptical

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Speaker 1: of the deal we've made with Iran, and in part

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Speaker 1: because the United States didn't do something that it did

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Speaker 1: very very thoroughly in nineteen seventy three and then again

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Speaker 1: in the First Gulf War, which was consult on a

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Speaker 1: very regular and intimate basis with all the Arab governments

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Speaker 1: in the region. I remember working for Dr Kissinger when

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Speaker 1: we were doing the the negotiations between Israel and its neighbors,

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Speaker 1: that's so called this engagement negotiations after the seventy three war,

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Speaker 1: and there was a lot of consultation with countries in

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Speaker 1: the region. Even though they didn't have troops involved, we

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Speaker 1: knew they had a voice and discussions in the Middle East.

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Speaker 1: So there was a particular amount of consultation with Saudi Arabia,

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Speaker 1: even at that time with half as Lassa who was

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Speaker 1: running Syria and many many other countries. The regency had

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Speaker 1: got to keep up with all these countries and maintain

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Speaker 1: their confidence. How much do we need the Saudias now

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Speaker 1: given the change in oil production, the fact that you

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Speaker 1: know we are producing so much oil. Well, that's a

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Speaker 1: good question. Some people would argue, well, we don't import

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Speaker 1: as much oil, we don't depend as much on the

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Speaker 1: Saudis of the rest of the world for oil. But

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Speaker 1: I would say that that's true in the direct sense.

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Speaker 1: The fact, however, is the Saudias are the marginal producer

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Speaker 1: of oil. There is a world price for oil, so

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Speaker 1: if something were to happen to disrupt Saudi production, the

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Speaker 1: price would go up in many parts of the world,

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Speaker 1: and there could be a lot of volatility. Uh. The

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Speaker 1: other part of it is that many of our allies

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Speaker 1: and friends depend very heavily on Saudi oil. They are

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Speaker 1: the marginal producer of all around the world. And if

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Speaker 1: there were to be a security disruption, some disruption of

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Speaker 1: the Gulf, or terrorism in Saudi Arabia, or internal problems

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Speaker 1: in Saudi Arabia, and that caused a disruption of the

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Speaker 1: supply of oil to other countries, that could have a

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Speaker 1: strategic effect on our major allies. Ambassador, I kid you

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Speaker 1: that you were at Sais Paco in nift I guess

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Speaker 1: you weren't, but I'm going to promist it by year

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Speaker 1: by year, I'm gonna put out on on Twitter right

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Speaker 1: now the actual map T. E. Lawrence had that he

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Speaker 1: presented to the War Committee, I would respectfully suggests there

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Speaker 1: nothing changed within our new world order. What's the map

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Speaker 1: going to look like for the next president? Really interesting question.

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Speaker 1: I mean, there's a great uh book by about Gertrude Bell,

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Speaker 1: who were also working on this, really the first woman

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Speaker 1: diplomat to play a major role in the region, and

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Speaker 1: it describes how these borders were constructed, and it had

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Speaker 1: to do with tribal relationships and giving certain territory to

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Speaker 1: certain members of the royal family in Saudi Arabia, Um

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Speaker 1: and other parts of the region. The problem now is

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Speaker 1: that those borders then and those borders now really didn't

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Speaker 1: necessarily reflect the interests or the views of a lot

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Speaker 1: of the people in the region. Maybe the leaders, but

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Speaker 1: not necessarily the people. And now the border between Iraq

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Speaker 1: and Syria, while it is there physically, is really not

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Speaker 1: necessarily there from the point of view of the people

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Speaker 1: in the region, and and Isis has broken it down there.

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Speaker 1: Even within Iran, there are various power groups are between

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Speaker 1: Iran and Saudi Arabia. That's the arch issue. Other in

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Speaker 1: the Arabian seat, Saudi Arabian and Iran. I don't think

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Speaker 1: the issue is a border issue. I think it's much

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Speaker 1: more UH an issue of the national competition and various

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Speaker 1: religious groups, second groups dealing. We're fighting with one another

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Speaker 1: at various points. But that border is not so much

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Speaker 1: in contention, but the sound the border between Iraq and

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Speaker 1: Uh and Syria certainly is there. And then you've got

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Speaker 1: a lot of irridentist movements. You've got the Kurds who

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Speaker 1: would like to have a Kurdish belt that goes across

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Speaker 1: northern Syria and northern Iraq. The churchs are concerned about

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Speaker 1: that because they think that would strengthen the hands of

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Speaker 1: the Turks, of the of the Kurds in Turkey. So

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Speaker 1: you've got a lot of these ethnic groups that have

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Speaker 1: very powerful transporter roles. We'll talk about this more, but

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Speaker 1: briefly because we're gonna run a time and then we'll

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Speaker 1: come back and and fish the thought. But I'm wondering

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Speaker 1: about where Saudi Arabia goes from here. They have the

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Speaker 1: external competition you're talking about, but also they seem to

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Speaker 1: be having trouble within the kingdom UH. You know the

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Speaker 1: royal family, Yes, this is they. They they there. There

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Speaker 1: are lots of reports. It's hard to know what's going

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Speaker 1: I've been to Saudi many times. You can talk about

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Speaker 1: many things in Saudi Arabia. Saudi has been talking about

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Speaker 1: the politics of the royal family. No one really wants

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Speaker 1: to speak of, but it has gotten, as you correctly

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Speaker 1: point out, into the public of late I think the

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Speaker 1: House of Salad understands that for the stability of the

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Speaker 1: House of Salad and the House of and the Kingdom

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Speaker 1: of Saudi Arabia, they have to maintain unity within that family.

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Speaker 1: And that unity has depended very heavily on reverence for

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Speaker 1: in respect for the king that is going to be

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Speaker 1: critical in the future. Robert hormece with us. We will

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Speaker 1: continue on this discussion again. The President and read will

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Speaker 1: talk much more here about the more narrow discussions of

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Speaker 1: the moment. Mr Hormance is with Kissinger associates and of

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Speaker 1: course out of the Fletcher School UFS at University uh

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Speaker 1: futures up to down features up for We have another

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Speaker 1: hour of Bloomberg surveillance and we do that with Robert Harmetts.

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Speaker 1: This is Bloomberg Surveillance. Good morning,