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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomber to Boston, Bloomberg dwell unders to San Francisco, Bloomberg

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Speaker 1: to the country at Channel one, and around the globe

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Speaker 1: the Bloomberg Radio plus Bloomberg dot Com. This is Bloomberg surveillance, Marian,

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Speaker 1: It's seventh already at All Street at Michael McKee along

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Speaker 1: with Tom King. This is Bloomberg surveillance. Here's a couple

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Speaker 1: of things happening in the company's space that you'll want

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Speaker 1: to know about before trading starts in about two hours

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Speaker 1: from now. Best Buy not gonna do this for them.

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Speaker 1: Earnings per share a dollar fifty three for the most

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Speaker 1: recent quarter, better than the dollar thirty nine that was forecast,

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Speaker 1: But that's on fourth quarter profit that was seven point

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Speaker 1: seven percent weaker than in the same quarter a year ago.

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Speaker 1: Investors shrugging off twenty billion dollars in losses, rewarding two

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Speaker 1: of North America's biggest natural gas producers yesterday Chesapeake Energy

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Speaker 1: and in kind of is twenty three percent each. Lloyd's

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Speaker 1: Banking Group raising its dividend, introducing a special payout, and

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Speaker 1: indicating it may have reached the end of charges for

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Speaker 1: wrongly sold payment protection insurance. It cost it five point

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Speaker 1: six billion dollars last year. And Anheuser Busch in BEV

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Speaker 1: reported fourth quarter earnings that missed analyst estimates. Americans apparently

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Speaker 1: drank less beer. Hard to believe, but apparently true. Now

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Speaker 1: it's springing. John Tucker and the latest world in national headlines,

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Speaker 1: John and Michael Houston will be decided Tonight's Republican presidential debate,

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Speaker 1: but Donald Trump rivals getting one more chance to try

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Speaker 1: and de rail the GOP front rudder before Super Tuesday.

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Speaker 1: There's a state of emergency in Virginia. That's where four

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Speaker 1: people were killed after tornadoes damaged homes and left thousands

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Speaker 1: without power across the state. China's Defense ministry says the

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Speaker 1: commander of US forces in the Pacific smear to China

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Speaker 1: while seeking additional defense funding for the US Congress. Those

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Speaker 1: spokesman strongly criticized Admiral Harry Harris Jrs. Testimony before Congress

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Speaker 1: this weekend, which Harris said China was militarizing the South

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Speaker 1: China Sea and a Coast Guard vessel overturned. Andrew was

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Speaker 1: sent to assist a fishing boat that ran aground in

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Speaker 1: an inlet off New York City. The crew of the

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Speaker 1: Coastguard vessel and those aboard the fishing boat did make

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Speaker 1: it safely to shore early this morning. Global News twenty

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Speaker 1: four hours a day, powered bar twenty four hundred journalism

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Speaker 1: more than one hundred fifty news bureaus around the world.

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Speaker 1: I'm John Tucker, Michael, Thanks John. Time now for the

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Speaker 1: Racontina Auto Group Bloomberg NBC Sports Update. Here's John Stashour,

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Speaker 1: John all Right, Mike Wayness. Nick lost last night and

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Speaker 1: Indianda game where they let an halftime tied. Going to

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Speaker 1: the fourth quarter, they had three point shots in the

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Speaker 1: last two seconds that would have either tied the game

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Speaker 1: or given them the lead. Neither went in. The Pacers

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Speaker 1: won one oh five, Paul George twenty seven points, all

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Speaker 1: but two in the second act. Chris Stops Porzingis scored

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Speaker 1: twenty two, but Carmelo Anthony had only fourteen on five

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Speaker 1: of twenty shooting. Both missed threes down the stretch and

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Speaker 1: the Knicks up for their third lost in the last

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Speaker 1: fifteen games. But Porzingis called it a moral victory and

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Speaker 1: today we got back to to the team that we

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Speaker 1: are actually are. We were playing physical or not letting guys,

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Speaker 1: you know, push us around, and and that's that's a

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Speaker 1: team we are, and that's a team you gotta be

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Speaker 1: every night. And so I think from now this is

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Speaker 1: the game that we can build on and then go

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Speaker 1: from here back at the Garden tomorrow to play Orlando.

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Speaker 1: Golden State. Gotta combine sixty five points from the all

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Speaker 1: star backcourt of Steph Curry and Clay Thompson to win

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Speaker 1: in Miami, raises the Warriors record of fifty one and five.

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Speaker 1: They called it the biggest game between Catholic schools and St.

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Speaker 1: John's and Georgetown. Fifth rank Xavier avenged a thirty one

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Speaker 1: point loss earlier in the year of Illanova knocked off

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Speaker 1: the top rank Wildcats ninety three. With the Bloomberg NBC

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Speaker 1: Sports Update, I'm John Stampsham. Thank you John. Let's check

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Speaker 1: the driver of the market's oil. West Texas eight is

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Speaker 1: down two tenths of eight percent. Brent crude fourteen is

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Speaker 1: off by eight tens of a percent and oddly enough

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Speaker 1: not having an impact. Futures are higher in the United States,

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Speaker 1: stocks are higher in Europe. We'll talk with Vince Piazza

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Speaker 1: from Bloomberg Intelligence about oil coming up here on Bloomberg Radio.

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Speaker 1: This is Bloomberg Surveillance. I'm Michael McKee along with Tom Keene.

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Speaker 1: As I mentioned, SMP futures are up by four points

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Speaker 1: two tents of eight percent, same gain for dal Emni features,

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Speaker 1: They're up thirty one points. Nasdaq Emnis up five points,

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Speaker 1: tents of a percent of stock six hundred in Europe

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Speaker 1: up six points right now, that is a one point

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Speaker 1: nine percent gain on the day, So green on the screen,

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Speaker 1: except for in China, where we did see a six

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Speaker 1: percent decline today. That's the outlier, but it hasn't affected

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Speaker 1: everyone else. Right now, right now, let's check in with

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Speaker 1: Bob Moon. The Bloomberg and j i T STEM Report

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Speaker 1: brought to you by New Jersey Institute of Technology, partnering

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Speaker 1: with government and industry to apply the university's world class

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Speaker 1: research assets to innovate and spur economic growth. Learn more

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Speaker 1: at n j i T dot com. Writer Michael Good Morning,

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Speaker 1: a Wall Street. Here's what's making news in science, technology, engineering,

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Speaker 1: and math. We what if we could, but we can't.

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Speaker 1: That's the essence of Tim Cook's argument against helping the

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Speaker 1: FBI crack into a terrorist iPhone. As the clock ticks

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Speaker 1: to ward to California courts deadline to respond tomorrow. The

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Speaker 1: Apple chief was interviewed by ABC News and explained that

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Speaker 1: it's not a matter of just opening up the phone,

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Speaker 1: but rewriting special software code to reverse Apple's carefully crafted

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Speaker 1: privacy protections. If we knew a way to get the

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Speaker 1: information on the phone that we haven't already given, if

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Speaker 1: we knew a way to do this that would not

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Speaker 1: expose hundreds of millions of other people's issues, we would

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Speaker 1: obviously do it, and Cook told ABC News the government

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Speaker 1: is going too far. What is it stake here is

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Speaker 1: can the government compel Apple to write software are that

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Speaker 1: we believe would make hundreds of millions of customers vulnerable

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Speaker 1: around the world, including the US. The government claims it

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Speaker 1: only wants access to one dead terrorist encrypted smartphone, while

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Speaker 1: Cook says this will obviously lead to unlimited requests. He

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Speaker 1: says his company is standing tall on principle and argues

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Speaker 1: that there's probably more information about you on your phone

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Speaker 1: than there is in your house. And that's this morning's

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Speaker 1: Bloomberg and j I t Stem report Michael Nobody's torturing

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Speaker 1: my phone, give up everything they know, Bob Moon, thank

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Speaker 1: you very much. Vince Fiazza is in charge of our

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Speaker 1: coverage of the oil and energy industry for Bloomberg Intelligence,

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Speaker 1: and we asked him to come by because we've been

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Speaker 1: talking a lot about, uh, the influence of oil on

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Speaker 1: the markets and where we go from here, especially a

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Speaker 1: month ahead of when the banks all reset the loans

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Speaker 1: that they have made to energy exploration and production companies.

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Speaker 1: And so what we wanted to do is is kind

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Speaker 1: of get caught up with you, Vince, because its been

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Speaker 1: a little while about where we are with I know

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Speaker 1: it's impossible to predict prices basically, but um, we were

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Speaker 1: talking with a guest earlier this week who said the

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Speaker 1: prices could go to ten dollars of barrel because the

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Speaker 1: marginal cost of just turning on the taps is still

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Speaker 1: so low even if we cut back on new wells

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Speaker 1: out there. Well, I think that is in part true. Um,

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Speaker 1: what we have seen of late, we've had we have

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Speaker 1: seen a few green shoots. So the net petroleum draw

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Speaker 1: that we saw on Wednesday was a step in the

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Speaker 1: right direction. UM crew did build, but the refined product side, uh,

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Speaker 1: they all decline. So net net you had a small

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Speaker 1: modest draw Production continues to bleed down modest as well,

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Speaker 1: but still continues to bleed down. What you really need

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Speaker 1: to see is a better sentiment on the demand side.

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Speaker 1: Right now, the imbalances remain wide and investor indifference to

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Speaker 1: the space remains wide as well. Uh So, still a

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Speaker 1: lot of wood to chop. I've used that terms several

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Speaker 1: times here. But you still have across the petroleum value chain,

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Speaker 1: uh significant imbalances that you need to work through. Uh.

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Speaker 1: Crude above the five year average. This is known on

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Speaker 1: the products side themselves, gasoline and also distal. It's quite

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Speaker 1: robust relative to the five year average. We're coming into

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Speaker 1: uh in the process of of of a seasonal maintenance.

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Speaker 1: Uh So you still have some some negative headwinds to

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Speaker 1: push through, but there are some green shoots that we

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Speaker 1: do see in front of us. Perhaps everybody saying, you know,

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Speaker 1: no deal on cutting output from OPEC and non OPEC

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Speaker 1: companies countries. But did the cap agreement announced last week,

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Speaker 1: did that put a floor under oil because we really

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Speaker 1: haven't seen a big drop since it. Well, I really

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Speaker 1: can't agree with the argument that the freeze provided a

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Speaker 1: positive inflection because when you think about Russian output UM,

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Speaker 1: it's doubtful that that growth could have been much more

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Speaker 1: significant UM. And Saudi capacity UH, it's doubtful that they

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Speaker 1: could have raised the turn the spigin on even more UM.

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Speaker 1: So I don't see how that can be viewed as

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Speaker 1: a significant positive net net. You still have Iranian capacity

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Speaker 1: that's coming on UH, and you still have growth from Iraq.

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Speaker 1: So you still have on a global basis of these

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Speaker 1: imbalances UH promoted by opeckin its willingness to continue to produce.

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Speaker 1: We've got just about thirty forty seconds left, so I

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Speaker 1: have to ask this quickly. But the bankruptcy situation a

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Speaker 1: month from now, well, we have seen UM. What we

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Speaker 1: have seen is continuing pressure on the operators, especially those

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Speaker 1: that have not hedged. Coming into sixteen. There is a

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Speaker 1: view that additional cap CAPEX cuts are coming in order

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Speaker 1: to bring cash flow more in line with cap X.

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Speaker 1: But there is stress in the system, and the operators

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Speaker 1: are doing what they can to continue to stay in

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Speaker 1: the fight. But there will be ongoing stress on some

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Speaker 1: of the higher yield operators. Alright, well, we gotta have

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Speaker 1: you back talk more about that as we get closer

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Speaker 1: UH to March. We're very close to March. As we

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Speaker 1: get into March, and we have to start thinking about

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Speaker 1: whether the banks are gonna start pulling their loans or not.

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Speaker 1: Vince Piazza for Blueberg Intelligence, Thanks very much for coming

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Speaker 1: in and joining us today. West Texas thirty two oh six,

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Speaker 1: Brent thirty four twelve, and we were talking about gasoline

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Speaker 1: and gasoline futures at a dollar one right now retail

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Speaker 1: gas one seventy two a gallon. This is Bluemberg Radio,

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Speaker 1: Bloomberg Surrounds brought you by s c n B v

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